This paper was presented at the 3rd International Corporate Governance Conference “Corporate Governance and Corporate Social Responsibility”, 4 July 2005 at the Centre of Corporate Governance Research, Birmingham Business School.
Corporate Governance and Social Responsibility: a comparative analysis of the UK and the US*
Version of Record online: 25 APR 2006
Corporate Governance: An International Review
Volume 14, Issue 3, pages 147–158, May 2006
How to Cite
Aguilera, R. V., Williams, C. A., Conley, J. M. and Rupp, D. E. (2006), Corporate Governance and Social Responsibility: a comparative analysis of the UK and the US. Corporate Governance: An International Review, 14: 147–158. doi: 10.1111/j.1467-8683.2006.00495.x
- Issue online: 25 APR 2006
- Version of Record online: 25 APR 2006
- Corporate social responsibility;
- institutional investors;
- Anglo-American corporate governance system
This paper argues that key differences between the UK and the US in the importance ascribed to a company's social responsibilities (CSR) reflect differences in the corporate governance arrangements in these two countries. Specifically, we analyse the role of a salient type of owner in the UK and the US, institutional investors, in emphasising firm-level CSR actions. We explore differences between institutional investors in the UK and the US concerning CSR, and draw on a model of instrumental, relational and moral motives to explore why institutional investors in the UK are becoming concerned with firms’ social and environmental actions. We conclude with some suggestions for future research in this area.