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University of Vaasa - Vaasan yliopisto

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<strong>of</strong> non-adopters; the moral content <strong>of</strong> CSR practices may be expected to lend extra<br />

sharpness to such questions.<br />

183<br />

However, the institutionalization <strong>of</strong> CSR is likely to be partial, local, and in a<br />

constant state <strong>of</strong> negotiation – more so than normal practices. It is arguable that no<br />

CSR practice has been truly institutionalized within a broad organizational field or<br />

even an industry, and certainly not within an international field. Discovery <strong>of</strong><br />

unanticipated consequences, and questionable evidence over the economic case<br />

(Utting, 2000; Pedersen, 2007) may result in a de-institutionalization <strong>of</strong> the CSR<br />

practice (Scott, 2008). The recent withdrawal <strong>of</strong> pension commitments by firms,<br />

resistance by SMEs to maternity leave (and even stronger resistance to paternity<br />

leave), and the resuscitation <strong>of</strong> nuclear power as an ‘environmentally-friendly’<br />

technology are examples <strong>of</strong> this. We suggest that higher levels <strong>of</strong> societal<br />

involvement and subsequent discursive examination <strong>of</strong> the principles and practical<br />

applications <strong>of</strong> CSR make this more likely to happen than less visible, lower pr<strong>of</strong>ile<br />

organizational practices.<br />

Discussion and Suggestions for Further Research<br />

In this paper, we have identified five adoption phases in the institutionalization <strong>of</strong> a<br />

CSR practice. We have suggested that, contrary to the traditional path to<br />

institutionalization, the initiatives for CSR practices typically originate outside the<br />

organizational field. Their characterization as part <strong>of</strong> the social good, as well as the<br />

role <strong>of</strong> the media in focusing on the issues, tends to transform a theoretical ideal to<br />

the status <strong>of</strong> best practice or regulatory requirement without it ever having been<br />

worked through the organization. This is <strong>of</strong>ten supported by formal institutions such<br />

as governmental regulations or awards, which would normally emerge at a much<br />

later stage in the institutionalization process. This means that the stage <strong>of</strong><br />

experimentation and the causal identification <strong>of</strong> instrumental benefits that occurs at<br />

the early stages <strong>of</strong> other institutional developments is skipped. We hypothesize that<br />

this may have unanticipated consequences; ‘prizes’ such as the Corporate<br />

Conscience Award, awarded by the US-based Council on Economic Priorities, or a<br />

place on the FTSE 4 Good index, which are intended to promote socially responsible<br />

practices in firms, may not achieve this. The award <strong>of</strong> the Corporate Conscience<br />

Award and the from the US Environmental Protection Agency’s Climate Protection<br />

Award to Enron (Bradley, 2008) appears at least to indicate exogenous coercive<br />

factors that are not as yet properly operational. A focus on the achievement <strong>of</strong> such<br />

premature awards has the potential to lead to unanticipated consequences (Merton,<br />

1936), such as distracting firms from focusing on their own business strategies<br />

(Porter & Kramer, 2006), or wasting resources on measures <strong>of</strong> esteem that are at best<br />

inaccurate and at worst misleading.<br />

One distinctive feature <strong>of</strong> CSR is its idealistic content, which has pr<strong>of</strong>ound effects<br />

upon practice adoption. At the inception <strong>of</strong> the practice, it is characterized by a preentrepreneurial<br />

period during which idealism reigns and instrumental considerations<br />

<strong>of</strong> pr<strong>of</strong>it are largely absent. Because <strong>of</strong> the high levels <strong>of</strong> public attention that the<br />

idealistic aspects <strong>of</strong> a CSR practice can attract, its social acceptability is determined<br />

by a broader constituency than an organizational field, and considerations <strong>of</strong> social

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