University of Vaasa - Vaasan yliopisto

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maintain some degree of control and differentiation (see, for example, Brown, 1994;
Lubbers, 2002; Watts, 2006). Criticism has been leveled from some quarters at the
‘industrialization’ of organic food production (Clark, 2007; Shea, 2007). Similarly,
Virgin Atlantic’s 2008 test flight using biofuels in a Boeing 747 was dismissed in
some quarters as a ‘stunt’ or ‘high-level greenwash’ (Barkham, 2008; Marotte, 2008;
Williams 2008). However, one interpretation of this move is that it was an
experimental effort to identify the instrumental benefits of the CSR practice,
something that would actually be necessary for its institutionalization within the
organization field. Such hostile reactions impede the adoption of the practice.
The State of Flux
The disillusionment of firms with public reactions to their efforts, and the
persistence of managerial and shareholder doubts over instrumental benefits, results
in a re-examination of the assumptions underpinning CSR. This state of flux fits with
Porter and Kramer’s assessment of the current stage of CSR adoption as a ‘hodgepodge
of uncoordinated CSR and philanthropic activities disconnected from the
company’s strategy that neither make any meaningful social impact nor strengthen
the firm’s long-term competitiveness’(Porter & Kramer, 2006: p 83). The state of
flux is resolved by a move towards instrumentally-motivated CSR or ‘enlightened
self interest’ (Moir, 2001; Wilson, 2004). This is where detailed attention is given to
the financial pay-offs to CSR implementation (Winn & Angell, 2000) as well as to its
social benefits. This represents a shift towards a more endogenously-driven period of
CSR adoption.
Institutionalized Adoption: Practice Taken for Granted/
Normative
Only when the economic case for a CSR practice has become clearer, assuming that
this ever happens, is it likely to be more widely adopted and finally institutionalized.
These may include cost savings, the ability to charge premium prices for their
offerings, or the ability to attract, motivate and retain talented employees (Donaldson
& Preston, 1995; Jones, 1995), or the fear of competitors gaining share from
ethically motivated consumers. Recognition of the instrumental benefits may be
triggered by particular events; the uptake of organic farming in Europe was assisted
by, for example, the discovery of BSE in British cattle in 1989 (Lynggard, 2007).
At this point the path of CSR institutionalization converges with that of normal
practices. When institutionalized, CSR becomes part of the recipe or rules of the
game of the industry (Spender, 1989) or strategic group (Porac, et al., 1989).
Perceptions as to its desirability are shared by buyers, suppliers and other external
constituencies alike (Tushman & Romanelli, 1985). Significant numbers of
customers and influential stakeholders begin to question the integrity or intelligence