Family Firms, Corporate Social Responsibility, and Place-Based Enterprises

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Family Firms and Local Roots

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

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Abstract

The chapter aims to contextualize the current debate on Corporate Social Responsibility (CSR) in family firms: most academic research maintains that family firms are more committed to socially and environmentally responsible activities and communicate more on CSR than non-family firms. The chapter introduces the concept of CSR and state-of-the-art CSR in family firms. It then explores the role of family firms as place-based enterprises fostering environmental and social responsibility in local communities.

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Notes

  1. 1.

    This chapter briefly depicts some definitions and time evolutions of CSR concepts. It is not aimed to provide a detailed excursus of the development of the CSR concepts and definitions over time, although the theme is fascinating. To this extent, please consult, among others, Moir (2001) and Windsor (2001) for a thorough discussion of the changes in CSR in the academic debate; and Latapí Agudelo et al. (2019) for a review of both academic pieces and public international events that have shaped the evolution of CSR.

  2. 2.

    Sustainable development is intended as “the development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987). Later contributions from the United Nations continued to specify and refine sustainable development components (Tsalis et al., 2020).

  3. 3.

    Although sustainability and sustainable development are concepts somehow related to CSR, it is outside the aim of this chapter to discuss them in detail.

  4. 4.

    In 1947, the ISO was settled, and it is now the largest organization for standardization in the world. The standards published by ISO are voluntary: companies are not obliged to transpose them unless this is imposed by national legislation. For further information, please see www.iso.org

  5. 5.

    The SDGs are 17 in number. They address challenges that affect every human being on the planet: goal 1 “No poverty,” goal 2 “Zero hunger,” goal 3 “Good health and well-being,” goal 4 “Quality education,” goal 5 “Gender equality,” goal 6 “Clear water and sanitation,” goal 7 “Affordable and clean energy,” goal 8 “Decent work and economic growth,” goal 9 “Industry, innovation and infrastructure,” goal 10 “Reduced inequalities,” goal 11 “Sustainable cities and communities,” goal 12 “Responsible consumption and production,” goal 13 “Climate action,” goal 14 “Life below water,” goal 15 “Life on land,” goal 16 “Peace, justice, and strong institutions,” goal 17 “Partnership for the goals.” The goals can be grouped into the social dimension (goals 1–5, 10, 16, and 17), the economic (goals 7–9, 11, and 12), and the environmental one (goals 6, 13–15) (D’Adamo et al., 2021).

  6. 6.

    CSR has generated a significant body of knowledge in academic research (Attig & Brockman, 2017). The other primary research stream investigates the relationship between corporate social responsibility and financial results. However, discussing this literature section is outside this chapter’s aims.

  7. 7.

    Indeed, many theories and approaches contribute to explaining why firms engage in responsible initiatives. As the objectives of this chapter are to disentangle the relationships between CSR, family businesses and their local roots, this part will be selective on the concepts presented, focusing on the basic ideas explaining the main drivers of CSR.

  8. 8.

    Please see Chap. 2, “Defining and Understanding the Family Firm” for a clear picture of what a family firm is and how it differs from other organizations.

  9. 9.

    A global initiative aimed at incentivising family firms to embed sustainability in their strategy is the Family Business Sustainability Pledge. Developed from a partnership between the United Nations and the global family business community. The partnership produced a pledge that family businesses committing to the SDGs can sign and indicators for family firm reporting. The Family Business Sustainability Pledge is available at: https://fbsd.unctad.org/pledge/

  10. 10.

    While the academic literature on firms and places has already been discussed in Chaps. 3 and 4, this part will refer to some of the concepts already mentioned and focus on local roots’ effects on CSR.

  11. 11.

    In Italy, trademarks connected to the recognition of the place of production and the practices of that location legally protect the food and drink sectors. Some examples are “indicazione geografica tipica” (IGT, meaning Typical Geographical Indication), “denominaziome di origine controllata” (DOC, meaning Denomination of Controlled Origin), “denominaziome di origine controllata e garantita” (DOCG, meaning Denomination of Controlled and Guaranteed Origin), and “denominazione di origine protetta” (DOP, meaning Denomination of Protected Origin) (Pant, 2016). These terms will be mentioned again in Chap. 7, “Unveiling the origins of local roots: a case study in the Chianti Classico wine cluster.”

  12. 12.

    Chapter 7, will focus on this industry, presenting the case of a small family business in Tuscany with strong bonds to the local area and an interest to preserve it.

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Amato, S., Patuelli, A. (2023). Family Firms, Corporate Social Responsibility, and Place-Based Enterprises. In: Family Firms and Local Roots. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-031-31793-4_5

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