The influence of unions on companies’ CSR profiles: more internal policies and programs, but not always at the expense of external endeavors.

Abstract

This paper compares the CSR profiles of companies operating under the same macroeconomic institutions but with different levels of union density. Drawing from stakeholder and neo-institutional theories that distinguish between internal and external actions, this paper finds that companies initially have to substitute internal for external CSR. After some experience dealing with unions, companies can complement both actions. There is perhaps a reinforcement of mutual trust and loyalty, and has implications for managerial prerogatives