Introduction

Abstract

Given the increased impact of nonmarket forces on business reputation and success, there has never been a greater need to grasp corporate social performance from a theoretically sound, integrative perspective. This involves understanding the responsibilities that business firms have to society, the means by which they respond to stakeholder demands, and the impacts these actions have on social and natural environments. Indeed, interest in these aspects of the business and society field continues to abound, particularly in light of the findings, presented in Part II of this volume, which substantiate the proposition that responsible corporate conduct can pay financially. Given these findings, it can be to a firm’s advantage to incorporate social responsibility into strategic planning proactively as well as to influence and adhere to voluntary codes of ethical conduct in an industry. In short, corporate social responsibility can represent a strategic opportunity. Conversely, not attending to this area can invite public scrutiny. Notably, the public’s concern about a lack of business responsibility, fueled by a wave of business scandals, has culminated in increased investigations by the press and new, expensive oversight mechanisms, such as the regulatory response of Sarbanes-Oxley in the United States, a Code of Corporate Governance in the United Kingdom shaped by the Smith and Higgs Reports, and a legion of ethics consultants charged with assisting firms with compliance.