Paper: CSR: A Process Model of Sensemaking (Basu & Palazzo 2008)

Question 1

General Description Basu+Palazzo

Answer 1

Authors propose a model of sensemaking explaining how managers think, discuss, and act with respect to their key stakeholders and the world at large. They also propose a set of cognitive, linguistic, and conative dimensions to identify such an intrinsic orientation that guides CSR-related activities. Recognizing patterns of interrelationships among these dimensions might lead to a better understanding of a firm’s CSR impact.

Question 2

Background

Answer 2

3 fundamental lines of CSR inquiry:

1. Stakeholder driven: CSR as a response to demand of stakeholders (e.g. government, NGOs, …)
2. Performance driven
3. Motivation driven

=> Emphasis on content of CSR activities (analyzing CSR by examining CSR), rather than focus on internal determinants such as mental frames and sensemaking processes (i.e. how an organization makes sense of its world)

Question 3

Sensemaking involves a tripartite view of processes:

Answer 3

1) Cognitive
2) Linguistic
3) Conative

Question 4

Cognitive view

Answer 4

implies thinking about the organization´s relationships with its stakeholders and views about the broader world (i.e. the “common good” that goes beyond what’s good for business)
=> What firms think

Question 5

Linguistic view

Answer 5

how the organization explains reasons for engaging in specific activities to others
=> What firms say

Question 6

Conative view

Answer 6

(behavioral disposition = Verhaltensneigung): involves the behavioral posture, the commitment and consistency it shows in conducting activities that impinge on its relationships
=> How firms tend to behave

Question 7

Sensemaking process

Answer 7

= What a firm thinks, says and tends to do in relation to others

Question 8

Authors definition of CSR

Answer 8

The process by which managers within an organization think about and discuss relationships with stakeholders as well as their roles in relation to the common good, along with their behavioral disposition with respect to the fulfillment and achievement of these roles and relationships.”

Question 9

dimensions (plus their characteristics) of the Cognitive View (what firms think)

Answer 9

1) Identity Orientation: Individualistic, Relational, Collectivistic
2) Legitimacy: Pragmatic, Cognitive, Moral

Question 10

dimensions (plus their characteristics) of the Linguistic View (what firms say)

Answer 10

1) Justification: Legal, Scientific, Economic, Ethical

2) Transparency: Balanced, Biased

Question 11

dimensions (plus their characteristics) of the Conative View (how firms tend to behave)

Answer 11

1) Posture: Defensive, Tentative, Open
2) Consistency: Strategically inconsistent, Strategically consistent, Internally inconsistent, Internally consistent,
3) Commitment: Instrumental, Normative

Question 12

Cognitive View:

Identity Orientation = ?

Answer 12

= shared sets of beliefs, values and norms that bind people together and help them to make sense of their worlds. These shared perceptions constitute the identity of an organization (“who we are”).

write: regarding their identity, manager/firms view themselves and their organization in individualistic/ relational/ collectivistic terms because

Question 13

Cognitive View:
=> Identity Orientation
==> Individualistic = ?

Answer 13

This orientation emphasizes individual liberty and self-interest, building on an “atomized” entity that is distinct and separate from others. Such organizations might describe themselves e.g. as “the best in business”.

=> firm might choose activities where they can showcase their performance

Question 14

Cognitive View:
=> Identity Orientation
==> Relational = ?

Answer 14

Organizations see themselves as being partners in relationships with their stakeholders; displaying strong personal ties; e.g. “we are committed to our customers”.

=> firm might choose activities to build networks/relationships (e.g. donate to charity that is favored by employees to secure their loyalty)

Question 15

Cognitive View:
=> Identity Orientation
==> Collectivistic = ?

Answer 15

Organizations see themselves as members of larger groups that go beyond simply the stakeholders most relevant to their immediate businesses, processing generalized ties to one another; e.g. use terms such as “we strive for a sustainable world”.

=> might choose to address environmental or social issues, e.g. global warming

Question 16

Cognitive View:

Legitimacy = ?

Answer 16

the perceived need to gain acceptance in society, especially among stakeholders (i.e. legitimacy for their actions), leads organizations to strive for compliance with some socially constructed systems of norms, values, beliefs and definitions

(Pragmatic, Cognitive, Moral)

write like: manager/firms try to gain pragmatic/cognitive/moral legitimacy for their actions as they …

Question 17

Cognitive View:
=> Legitimacy
==> Pragmatic = ?

Answer 17

Organization convinces stakeholders of the usefulness of its decisions, products, or processes (assumption: firm can substantially control its environment; managing legitimacy as a resource)

=> e.g. with campaigns showing conformity with social norms

Question 18

Cognitive View:
=> Legitimacy
==> Cognitive = ?

Answer 18

A firm aligns its actions to be congruent with perceived societal expectations to gain cognitive legitimacy (assumption: environment controls the firm with legitimization resulting from successful adaptation of external demand)

Question 19

Cognitive View:
=> Legitimacy
==> Moral = ?

Answer 19

Organizations try to gain moral legitimacy by co-creating acceptable norms of behavior with relevant stakeholders (assumption: under conditions of extreme uncertainty due to fundamental social changes)

Question 20

Linguistic View:

Justification = ?

Answer 20

how organizations justify their actions to others; reflecting how they interpret their relationships with stakeholders and view their broader responsibilities to society

(Legal, Scientific, Economic, Ethical ;

legal, scientific and economic justification has been criticized as it aims at silencing critics instead of facilitating dialogue)

Question 21

Linguistic View:
=> Justification
==> Legal = ?

Answer 21

To gain legal justification, an organization provides officially permitted arguments in support of its actions in response to accusations by its critics

Question 22

Linguistic View:
=> Justification
==> Scientific = ?

Answer 22

For scientific justification, a firm claims expertise in the measurement of relevant aspects of its behavior/impact or relies on the verdict of “neutral experts” to defend itself against criticism

Question 23

Linguistic View:
=> Justification
==> Economic = ?

Answer 23

to gain economic justification, a firm highlights tangible contributions to stakeholders (e.g. creation of jobs, taxes paid, …) in defense of its actions

Question 24

Linguistic View:
=> Justification
==> Ethical = ?

Answer 24

an organization explains the reasons for its actions as derived from “cosmopolitan” or “higher order interests” and aims at achieving universal goals such as human welfare, fighting HIV, …

Question 25

Linguistic View:

Transparency = ?

Answer 25

choice of an organization in terms of the information (either balanced or biased) included in its CSR communication. Thus, an organization can show different levels of transparency.

(Balanced, Biased)

Question 26

Linguistic View:
=> Transparency
==> Balanced = ?

Answer 26

including both, favorable and unfavorable aspects/outcomes of its actions

Question 27

Linguistic View:
=> Transparency
==> Biased = ?

Answer 27

including simply the favorable part (and omitting the unfavorable part)

Question 28

Conative View:

Posture = ?

Answer 28

implies how the response is made, with a view to revealing the organization´s character in terms of its interactions with others;

(3 postures: Defensive, Tentative, Open)

Question 29

Conative View:
=> Posture
==> Defensive = ?

Answer 29

An organization accepts no feedback from others, presumes it is always right in terms of its decisions and insulates itself from alternative sources of inputs

Question 30

Conative View:
=> Posture
==> Tentative = ?

Answer 30

the organization is uncertain regarding consequences of its actions as a result of its inexperience with an issue or because it lacks appropriate tools to devise solutions

Question 31

Conative View:
=> Posture
==> Open = ?

Answer 31

Orientation toward learning that is based on the organization´s willingness to listen and respond to alternative perspectives offered by others

Question 32

Conative View:

Consistency = ?

Answer 32

consistency of behavior in approaching CSR tasks; the consistency (1-2) between an organization’s overall strategy and its CSR activities and that (3-4) within the varieties of CSR activities contemplated during any given period of time.

1-2: strategically (in)consistent
3-4: internally (in)consistent

Question 33

Conative View:
=> Consistency
==> Strategically consistent = ?

Answer 33

Actively embedding CSR in the organization´s strategy

Question 34

Conative View:
=> Consistency
==> Strategically inconsistent = ?

Answer 34

An organization guides its selection of CSR activities without any guidelines and simply gears up to make decisions as and when demanded by internal or external stakeholders

Question 35

Conative View:
=> Consistency
==> Internally consistent = ?

Answer 35

Implies a willingness among managers to regard proposed CSR activities as a whole package designed to achieve specific aims

Question 36

Conative View:
=> Consistency
==> Internally inconsistent = ?

Answer 36

conveys a propensity to treat such activities arbitrarily, without a coherent logic or systematic framework applied with respect to their occurrence

Question 37

Conative View:

Commitment = ?

Answer 37

Commitment to reach a goal. A firm´s commitment to an activity has been viewed as critical in embedding the activity within its culture and in developing routinized processes in terms of delivery, thus contributing to the activity´s temporal stability

Question 38

Conative View:
=> Commitment
==> Instrumental = ?

Answer 38

stems from external incentives/pressure

Question 39

Conative View:
=> Commitment
==> Normative = ?

Answer 39

stems from internal and largely moral considerations