Volume 10, 1999
Proceedings of the Tenth Annual Meeting
Linda M. Sama
A Conceptual Model of the Determinants of Corporate Social Response Strategies
Why Do Firms Differ?
This paper examines the sources of variation among firms’ strategies of social responsiveness. It presents a categorization scheme of four social responses adapted from the literature and suggests how both strategic slack and corporate governance combine to differentiate firms’ social response strategies. The paper establishes a theoretical basis for arguing that market conditions provide the context for management decision-making and thereby constrain the band of strategic choices that management has available to it. Within market-prescribed limits, differentiable responses to social issues are attributed to the social orientation of the governance structure monitoring firm performance.