Toward a View of Complementarity: Trust and Policy Influence Effects of Corporate Social Responsibility and Corporate Political Activity

Tahiru Azaaviele Liedong, Abby Ghobadian, Tazeeb Rajwani, Nicholas O’Regan

Research output: Contribution to journalArticle

34 Citations (Scopus)

Abstract

The extant literature argues that nonmarket strategies can establish, sustain, or enhance a firm’s competitive advantage. Less clear is how and why effective nonmarket strategies influence a firm’s competitiveness. Moreover, the extant literature tends to examine the two building blocks of nonmarket strategy—corporate social responsibility (CSR) and corporate political activity (CPA)—separately. In this article, we extend trust to the nonmarket environment. We analyze how CSR and CPA complement each other to create strong trust between firms and the polity, and how they consequently influence government policy. We show the mediating role of trust in policy influence, and argue that CSR and CPA should be aligned for the successful influence of salient government policy.

Original languageEnglish
Pages (from-to)405-427
Number of pages23
JournalGroup and Organization Management
Volume40
Issue number3
DOIs
Publication statusPublished - 15 Jun 2015

Keywords

  • corporate political activity
  • corporate social responsibility
  • policy influence
  • trust

ASJC Scopus subject areas

  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Organizational Behavior and Human Resource Management

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