Abstract
The aim of this chapter is to contribute to the further advancement of theoretical and empirical debate on CSR management by yielding support to the multidisciplinary and ‘context-dependent' nature of the field of managerial leadership of CSR and illustrating the various managerial orientations and attitudes of Iran's auto industry. Whilst there was very considerable evidence of the increased emphasis upon Sharia compliance mandate to regulate individual managers' personal values and orientation, there was much less evidence that this had as yet been carried through into similar behavioural and attitudinal changes at organisational and societal levels. Hence, the dominant managerial orientations toward CSR neither brought corporate behaviour up to a level where it was congruent with the prevailing Islamic cultural and societal norms nor it fulfilled the developmental promise of CSR. In a nutshell, the overall trend was incontrovertibly toward more personal/managerial use of CSR and failure to maintain a balance between (normative) developmental and instrumental CSR.
TopIntroduction
There has been a growing interest in the adoption of corporate social responsibility (CSR) practices in the advanced Western and developed Asian and emerging countries over the past several decades (Crane et al., 2019; Carroll, 1999; Carroll, 2016; Davidson & Yin, 2019; Fukukawa &Teramoto, 2009; Jamali, 2007; Matten &Moon, 2008). Such a massive amount of attention to CSR practices is largely attributed to its potential business benefits such as increased retention and reduced recruitment and training costs (Bhattacharya et al., 2008), simultaneous achievement of the triple bottom-line measures (i.e. people, plant, profit) (Kanji & Chopra, 2010; The Economist, 2009), favourable image, reputation, and customer retention (Eisingerich & Ghardwaj, 2011; Korschun et al., 2011), effective risk management (Kytle & Singh, 2005), brand differentiation, and a platform to engage with a diverse range of stakeholders (Lai et al., 2010 – see also Carroll & Shabana, 2010; Epstein, 2018; Luo et al., 2015). It has to be recognised, however, that the full realization of the potential benefits of CSR hinges, in the main, upon managerial orientation and attitude towards CSR practices. This importance is essentially that of Agle et al. (1999), Finkelstein & Hambrick (1996), Jamali et al. (2008), Pant & Lachman (1998), Quazi & O’Brien (2000) and Waldman et al. (2006) who lay stress on managerial personal values as prime factor in firm’s engagement in CSR on both performance and ethical grounds (Donaldson & Preston, 1995; Duarte, 2010; Galbreath, 2010; Hemingway & Maclagan, 2004; Petrenko et al., 2016). Despite the acknowledged significance of CSR practice as a catalyst for enhanced perceptions of organizational performance and individual ethics in both advanced industrialized countries and emerging market economies (see Trajkova et al., 2018) the nature, extent and intricacies of CSR Management in the developing countries (e.g. Middle East region) has remained comparatively unresearched (Blowfield, 2007; Blowfield & Frynas, 2005; Jamali, 2007; Jamali & Karam, 2018).
Key Terms in this Chapter
Taqwa: it is the basic Islamic principle of God-consciousness. It connotes fear of God for self-righteousness (right conduct, virtue, wariness). Abu al-Ala Mawdudi (1979) AU36: The in-text citation "Ala Mawdudi (1979)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. identified taqwa together with brotherhood, equality, fairness, and justice, on which the true Islamic society is established (The Oxford Dictionary of Islam, 2019 AU37: The in-text citation "The Oxford Dictionary of Islam, 2019" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Hadith: A narrative record of the sayings or customs of Prophet Muhammad (peace and blessings of Allah be upon him) and his companions (Merriam-Webster Dictionary, 2019 AU33: The in-text citation "Merriam-Webster Dictionary, 2019" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Islamic Law (Shria): The Sharia is Islamic Law based on the teachings of the Quran and the Prophet Mohammed Islamic law or Sharia law is a religious law that forms part of the Islamic tradition. It governs both religious rituals and people’s daily interactions and transactions (e.g. individuals’ business activities and business relationships) (see Esposito, 2019 ). The main components of Shari'ah are aqidah (belief and faith) and akhliiq (morality and ethics), and fiqh (legal rulings governing the acts of human beings) ( Dusuki, 2008 , p. 14).
Middle East: It covers the lands around the southern and eastern shores of the Mediterranean Sea, extending from Morocco to the Arabian Peninsula and Iran’ ( Encyclopedia Britannica 2013 , para. 1). The Middle East region has an estimated population of over 411 million. Known as the energy storehouse of the world ( Popov, 2017 ), the region accounts for one-third of global oil production, one-sixth of gas production, 48% of proved oil reserves and 38% of proved gas reserves ( BP, 2019 ). The Muslim populations of the Middle East is made up 44% of the total world Muslim population.
CSR in Islam: It refers to obligatory and compulsory business standards that individuals follow in their business operations and interactions with different business stakeholders’ (see Dusuki, 2008 ).
Stakeholders: Any identifiable group or individual who has direct or indirect stake in an organization. In other words, stakeholders are those who can affect the achievement of an organization’s objectives or who is affected by the achievement of an organization’s objectives. Key stakeholders in a business organisation include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources (Freeman & Reed, 1983 AU35: The in-text citation "Freeman & Reed, 1983" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ; Essays UK, 2018).
Iran: Known as Persia until 1935, Iran (officially the Islamic Republic of Iran) became an Islamic republic in 1979. It is the 19 th largest country in the world with a population estimated at 82.91 million. Geographically, Iran is located in the Middle East region, bordering the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan (CIA – The World Factbook, 2019 AU34: The in-text citation "The World Factbook, 2019" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Management Attitude and Orientation: It connotes managers’ basic beliefs, preferences, perceptions (positive or negative) and rationale that set a tone for subsequent actions and behaviours by managers in adoption and diffusion of CSR practices in organisations (see Dweck, 2006 ).