Sub-project C investigates what role virtues play at the organizational level in ensuring that companies operating in a free market context contribute to people’s well-being.
The leading questions of this project are as follows:
C1. What can we learn from social psychology and management studies about the impact of virtues and vices, as they become manifest in various styles of leadership, on human flourishing in and through companies?
C2. How do different indicators of economic freedom (e.g. size of government, quality of legal system and property rights, sound money, trade openness and government regulation) affect corporate social responsibility (CSR) and how do virtues affect this relationship?
Methodologies used in this project are:
- Factor analysis/ Principal Component Analysis
- Regression analysis
- Binary logit/probit model
- Panel estimation using data of economic freedom and ESG ratings
- Regression analysis using data of large survey among European companies
Researchers
Resulting Publications
2021

Graafland, Johan
Corporate Social Responsibility and SMEs: Impacts and Institutional Drivers Book
Routledge, Abingdon, Oxfordshire, 2021, ISBN: 9781032106724.
@book{Graafland2021bb,
title = {Corporate Social Responsibility and SMEs: Impacts and Institutional Drivers},
author = {Johan Graafland},
url = {https://www.routledge.com/Corporate-Social-Responsibility-and-SMEs-Impacts-and-Institutional-Drivers/Graafland/p/book/9781032106724, Routeledge website
},
isbn = {9781032106724},
year = {2021},
date = {2021-12-29},
urldate = {2021-12-29},
publisher = {Routledge},
address = {Abingdon, Oxfordshire},
abstract = {The world’s people and their leaders face a complex and multifaceted set of ‘eco-social questions’. As the productivity of humanity increases, the negative external environmental effects of production and consumption patterns become increasingly problematic and threaten the human welfare. As the regulating power of national and international governments is limited, this challenge has generated a strong interest in the corporate social responsibility (CSR) of companies. Firms find it increasingly important to meet the expectations of stakeholders with respect to the company’s contribution to profit, planet, and people.
The primary aim of this book is to introduce the reader to the impacts and drivers of CSR, with a special focus on small and medium-sized enterprises (SMEs). Research into the social and environmental impacts of CSR is rare. This is a serious gap because if CSR were to fail to have favourable social and environmental impacts on society, the whole concept may become redundant. If societal impacts of CSR are substantial, it is important to know the drivers of CSR. This book considers (1) factors internal to the company, (2) the competitive environment of the company, (3) institutions external to the company, and (4) how the impacts of institutions are mediated or moderated by company internal factors.
This book will fill this gap by estimating various types of models that integrate external and internal factors driving CSR and its impacts on environment, innovation, and reputation, making it a valuable resource for researchers, academics, and students in the fields of business management and CSR.},
keywords = {},
pubstate = {published},
tppubtype = {book}
}
The primary aim of this book is to introduce the reader to the impacts and drivers of CSR, with a special focus on small and medium-sized enterprises (SMEs). Research into the social and environmental impacts of CSR is rare. This is a serious gap because if CSR were to fail to have favourable social and environmental impacts on society, the whole concept may become redundant. If societal impacts of CSR are substantial, it is important to know the drivers of CSR. This book considers (1) factors internal to the company, (2) the competitive environment of the company, (3) institutions external to the company, and (4) how the impacts of institutions are mediated or moderated by company internal factors.
This book will fill this gap by estimating various types of models that integrate external and internal factors driving CSR and its impacts on environment, innovation, and reputation, making it a valuable resource for researchers, academics, and students in the fields of business management and CSR.

Graafland, Johan; de Bakker, Frank G. A.
In: Environmental Planning Management, 2021.
@article{Graafland2021b,
title = {Crowding In or Crowding Out? How Non-Governmental Organizations and Media Influence Intrinsic Motivations toward Corporate Social and Environmental Responsibility},
author = {Johan Graafland and Frank G.A. de Bakker},
doi = {10.1080/09640568.2021.1873110},
year = {2021},
date = {2021-02-19},
urldate = {2021-02-19},
journal = {Environmental Planning Management},
abstract = {Motivation crowding theory examines how external intervention may undermine intrinsic motivation. Earlier research has shown that intrinsic motivation plays a decisive role in fostering environmental performance of households and consumers, but that external pressures may “crowd out” the intrinsic motivations. Similar patterns could be expected in business organizations. However, only a few studies consider crowding effects of financial incentives on businesses’ intrinsic motivation to environmental responsibility, whereas none addresses the impact of external pressures from non-governmental organizations (NGOs) and media, despite their prominent role. This study aims to address this gap by offering a mediation framework explaining how pressures from NGOs and media affect intrinsic motivation. Empirically, the paper adds to the scant empirical research by estimating a model on a sample of 4,364 enterprises from twelve European countries. We find that NGOs and media pressures increase financial benefits from environmental responsibility, which in turn crowd in intrinsic motivation in enterprises.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
2020

Commandeur, Harry; van Geest, Paul; Rijsenbilt, Antoinette
Deugden als krachten in de vrijemarkteconomie? Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 3-9, 2020.
@article{Commandeur2020,
title = {Deugden als krachten in de vrijemarkteconomie?},
author = {Harry Commandeur and Paul van Geest and Antoinette Rijsenbilt },
url = {https://www.tijdschriftmeno.nl/artikel/17064/Deugden-als-krachten-in-de-vrijemarkteconomie},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {3-9},
abstract = {Inleiding bij het themanummer 'Drijfveren, deugden en leiderschap'.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Hendriks, Martijn
Deugdzaam leiderschap: helpt het organisaties floreren? Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 10-20, 2020.
@article{Hendriks2020b,
title = {Deugdzaam leiderschap: helpt het organisaties floreren?},
author = {Martijn Hendriks },
url = {https://www.tijdschriftmeno.nl/artikel/17065/Deugdzaam-leiderschap-helpt-het-organisaties-floreren},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {10-20},
abstract = {Leiderschapsschandalen laten zien dat veel leiders geloven dat deugdzaam leiderschap nadelige gevolgen heeft voor henzelf of hun organisatie. Dit artikel geeft een overzicht van de onderzoeksliteratuur betreffende het verband tussen deugzaam leiderschap en het floreren (van mensen) binnen organisaties.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Burger, Martijn; Rijsenbilt, Antoinette
De weg naar deugdelijk leiderschap Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 21-35, 2020.
@article{Burger2020,
title = {De weg naar deugdelijk leiderschap},
author = {Martijn Burger and Antoinette Rijsenbilt},
url = {https://www.tijdschriftmeno.nl/artikel/17066/De-weg-naar-deugdelijk-leiderschap},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {21-35},
abstract = {In dit artikel stellen de auteurs vast dat deugdzaam leiderschap investeringen vergt van zowel de leidinggevende als de organisatie en dat het wellicht niet voor iedereen is weggelegd. Na een algemene beschrijving van deugden en hoe men in de westerse en oosterse filosofische tradities over deugden denkt, beschrijven de auteurs drie mogelijke benaderingen om een deugdzaam leider te worden.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

van Geest, Paul
De ontoereikendheid van het verstand en de liefde als kenweg. Theologie als verrijking van de economie Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 48-56, 2020.
@article{vanGeest2020,
title = {De ontoereikendheid van het verstand en de liefde als kenweg. Theologie als verrijking van de economie},
author = {Paul van Geest },
url = {https://www.tijdschriftmeno.nl/artikel/17068/De-ontoereikendheid-van-het-verstand-en-de-liefde-als-kenweg-Theologie-als-verrijking-van-de-economie},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {48-56},
abstract = {Dit artikel is een pleidooi voor de bevordering van het interdisciplinaire gesprek tussen economen en theologen. Dit zal verrijkend zijn, ook voor theologen, omdat de tijd nabij is dat economen theologen zullen dwingen om theologische noties in het licht van veranderde tijden beter te doordenken en adequater te formuleren.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Bovenberg, Lans; van Casteren, Sander; van Os, Bas
Mens en economie. Liefde als het nieuwe kapitaal Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 57-63, 2020.
@article{Bovenberg2020,
title = {Mens en economie. Liefde als het nieuwe kapitaal},
author = {Lans Bovenberg and Sander van Casteren and Bas van Os},
url = {https://www.tijdschriftmeno.nl/artikel/17069/Mens-en-economie-Liefde-als-het-nieuwe-kapitaal},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {57-63},
abstract = {Er is steeds meer aandacht voor de mensen door wie en voor wie onze economie functioneert. Zo is onlangs het Erasmus Economics and Theology Institute opgericht en is een leerstoel in het leven geroepen op het snijvlak van relationele economie, waarden en leiderschap. In dit artikel lichten de auteurs deze drie begrippen toe, als uitnodiging voor verdere uitwisseling en gedachtenvorming.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Commandeur, Harry; Karali, Emre; Slob, Henri
It must be love. Liefde als deugd van de leider Journal Article
In: Management & Organisatie, vol. 2020, no. 2/3, pp. 64-79, 2020.
@article{Commandeur2020b,
title = {It must be love. Liefde als deugd van de leider},
author = {Harry Commandeur and Emre Karali and Henri Slob},
url = {https://www.tijdschriftmeno.nl/artikel/17070/It-must-be-love-Liefde-als-deugd-van-de-leider},
year = {2020},
date = {2020-06-01},
journal = {Management & Organisatie},
volume = {2020},
number = {2/3},
pages = {64-79},
abstract = {De auteurs schetsen in deze bijdrage de eerste contouren van liefdevol leiderschap in relatie tot de mate waarin medewerkers die liefde ervaren. Daarnaast beargumenteren zij dat dit een mogelijk mechanisme is waarmee verklaard kan worden hoe en waarom de steward gericht is op het collectief.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Graafland, Johan; Noorderhaven, Niels
Culture and institutions: How economic freedom and long-term orientation interactively influence corporate social responsibility Journal Article
In: Journal of International Business Studies, 2020.
@article{Graafland2020,
title = {Culture and institutions: How economic freedom and long-term orientation interactively influence corporate social responsibility},
author = {Johan Graafland and Niels Noorderhaven },
url = {https://doi.org/10.1057/s41267-019-00301-0},
doi = {10.1057/s41267-019-00301-0},
year = {2020},
date = {2020-01-08},
journal = {Journal of International Business Studies},
abstract = {Studies of international differences in firm behavior tend to consider either institutional or cultural factors. Focusing on corporate social responsibility (CSR), we conjecture that not only both institutions and culture need to be taken into account, but also the interaction between these two sets of factors. We theorize that the institutions associated with economic freedom in combination with the cultural trait long-term orientation positively influences CSR practices. Panel data of 5023 companies from 41 countries confirm this expectation. This finding pertains both to long-term orientation at the level of the society and at the level of the company. Our findings support calls for more attention to interactive effects of cultures and institutions.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Hendriks, Martijn; Burger, Martijn; Rijsenbilt, Antoinette; Emma Pleeging, Harry Commandeur
Virtuous leadership: a source of employee well-being and trust Journal Article
In: Management Research Review, 2020, ISSN: 2040-8269 .
@article{Hendriks2020,
title = {Virtuous leadership: a source of employee well-being and trust},
author = {Martijn Hendriks and Martijn Burger and Antoinette Rijsenbilt and Emma Pleeging, Harry Commandeur},
url = {https://www.emerald.com/insight/content/doi/10.1108/MRR-07-2019-0326/full/pdf?title=virtuous-leadership-a-source-of-employee-well-being-and-trust},
doi = {10.1108/MRR-07-2019-0326},
issn = {2040-8269 },
year = {2020},
date = {2020-01-03},
journal = {Management Research Review},
abstract = {PURPOSE
The purpose of this paper is to examine how a supervisor’s virtuous leadership as perceived by subordinates influences subordinates’ work-related well-being and to examine the mediating role of trust in the leader and the moderating roles of individual leader virtues and various characteristics of subordinates and organizations.
DESIGN/METHODOLOGY/APPROACH
An online survey was conducted through Prolific among a self-selected sample of 1,237 employees who worked with an immediate supervisor across various industries in primarily the UK and the USA. Structural equation modeling was used to test the hypotheses.
FINDINGS
The empirical results indicate that an immediate supervisor’s virtuous leadership as evaluated by the subordinate positively influences all three considered dimensions of work-related well-being – job satisfaction, work-related affect and work engagement – for a wide variety of employees in different industries and countries. A subordinate’s greater trust in the supervisor fully mediates this positive influence for job satisfaction and work engagement and partially for work-related affect. All five individual core leader virtues – prudence, temperance, justice, courage and humanity – positively influence work-related well-being.
PRACTICAL IMPLICATIONS
The findings underscore that promoting virtuous leadership is a promising pathway for improved employee well-being, which may ultimately benefit individual and organizational performance.
ORIGINALITY/VALUE
Despite an age-old interest in leader virtues, the lack of consensus on the defining elements of virtuous leadership has limited the understanding of its consequences. Building on recent advances in the conceptualization and measurement of virtuous leadership and leader character, this paper addresses this void by exploring how virtuous leadership relates to employees’ well-being and trust.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
The purpose of this paper is to examine how a supervisor’s virtuous leadership as perceived by subordinates influences subordinates’ work-related well-being and to examine the mediating role of trust in the leader and the moderating roles of individual leader virtues and various characteristics of subordinates and organizations.
DESIGN/METHODOLOGY/APPROACH
An online survey was conducted through Prolific among a self-selected sample of 1,237 employees who worked with an immediate supervisor across various industries in primarily the UK and the USA. Structural equation modeling was used to test the hypotheses.
FINDINGS
The empirical results indicate that an immediate supervisor’s virtuous leadership as evaluated by the subordinate positively influences all three considered dimensions of work-related well-being – job satisfaction, work-related affect and work engagement – for a wide variety of employees in different industries and countries. A subordinate’s greater trust in the supervisor fully mediates this positive influence for job satisfaction and work engagement and partially for work-related affect. All five individual core leader virtues – prudence, temperance, justice, courage and humanity – positively influence work-related well-being.
PRACTICAL IMPLICATIONS
The findings underscore that promoting virtuous leadership is a promising pathway for improved employee well-being, which may ultimately benefit individual and organizational performance.
ORIGINALITY/VALUE
Despite an age-old interest in leader virtues, the lack of consensus on the defining elements of virtuous leadership has limited the understanding of its consequences. Building on recent advances in the conceptualization and measurement of virtuous leadership and leader character, this paper addresses this void by exploring how virtuous leadership relates to employees’ well-being and trust.
2019

Graafland, Johan; Gerlagh, Reyer
Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs Journal Article
In: Environmental and Resource Economics, vol. 74, no. 3, pp. 1101–1123, 2019, ISSN: 1573-1502.
@article{Graafland2019f,
title = {Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs},
author = {Johan Graafland and Reyer Gerlagh},
url = {https://doi.org/10.1007/s10640-019-00361-8},
doi = {10.1007/s10640-019-00361-8},
issn = {1573-1502},
year = {2019},
date = {2019-11-01},
journal = {Environmental and Resource Economics},
volume = {74},
number = {3},
pages = {1101--1123},
abstract = {The effect of economic freedom on firms' environmental responsible management is still unconcluded. We conjecture that the effects are conditional on a firm's internal motivation and use a large-scale survey to run an empirical test. The sample consists of 4338 small and medium-sized enterprises from twelve European countries. Distinguishing between intrinsic (environmental) and extrinsic (profit) internal motivations, we find clear support that the effects of economic freedom and intrinsic motivation on corporate environmental performance interact with each other. Our findings explain the ambiguous results of previous empirical studies at the aggregate level.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Graafland, Johan; Noorderhaven, Niels
Technological Competition, Innovation Motive and Corporate Social Responsibility: Evidence from Top Managers of European SMEs Journal Article
In: De Economist, 2019, ISSN: 1572-9982.
@article{Graafland2019g,
title = {Technological Competition, Innovation Motive and Corporate Social Responsibility: Evidence from Top Managers of European SMEs},
author = {Johan Graafland and Niels Noorderhaven},
url = {https://doi.org/10.1007/s10645-019-09351-z},
doi = {10.1007/s10645-019-09351-z},
issn = {1572-9982},
year = {2019},
date = {2019-10-31},
journal = {De Economist},
abstract = {Various motives have been proposed for firms to engage in corporate social responsibility (CSR), but no attention has been paid to innovation as a motive to engage in CSR. In this paper we explore the role of this motive and hypothesize that it is particularly important for companies facing intensive technological competition. We find support for this in a sample of 2579 top managers of small and medium sized enterprises from 12 European countries. The innovation motive mediates the relationship between technological competition and CSR and is the most (second most) important motive for environmental and social CSR, respectively.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Graafland, Johan; Bovenberg, Lans
Government regulation, business leaders’ motivations and environmental performance of SMEs Journal Article
In: Journal of Environmental Planning and Management, 2019.
@article{Graafland2019e,
title = {Government regulation, business leaders’ motivations and environmental performance of SMEs},
author = {Johan Graafland and Lans Bovenberg },
url = {https://doi.org/10.1080/09640568.2019.1663159},
year = {2019},
date = {2019-10-07},
journal = {Journal of Environmental Planning and Management},
abstract = {This paper investigates whether government regulation crowds out intrinsic motivation to improve environmental performance of small- and medium-sized enterprises (SMEs). Motivation crowding is the phenomenon by which external pressures reduce intrinsic motivation. Literature on motivation crowding effects of environmental regulations exhibits two gaps. First, previous studies have focused on households while neglecting business organizations, even though businesses account for a major part of industrial pollution worldwide. Second, previous literature neither measured intrinsic motivation nor tested how government regulation affects this motivation. Empirical evidence of motivation crowding by environmental regulations is therefore still lacking. This paper fills both research gaps. Using a dataset of 2,373 SMEs from 12 European countries, we show that government regulation enhances environmental performance directly but harms it indirectly by crowding out intrinsic and extrinsic motivations of business leaders. It only stimulates environmental performance for companies exhibiting low motivation.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Graafland, Johan
Competition in technology and innovation, motivation crowding, and environmental policy Journal Article
In: Corporate Social Responsibility and Environmental Management, 2019.
@article{Graafland2019c,
title = {Competition in technology and innovation, motivation crowding, and environmental policy},
author = {Johan Graafland },
url = {https://www.moralmarkets.org/wp-content/uploads/Motives_Comp_CSREM.pdf},
doi = {10.1002/csr.1779},
year = {2019},
date = {2019-06-16},
journal = {Corporate Social Responsibility and Environmental Management},
abstract = {This paper investigates the theoretical and empirical relevance of motivation crowding theory for owner–managers' motivation towards sustainable development. Motivation crowding theory has argued that external pressures enforce (crowd in) moral motivation if these pressures are perceived as supportive. On the basis of this theory, we conjecture that a competitive environment that is characterized by a high intensity of competition on innovation will crowd in moral motivation towards sustainable development if owner–managers believe that environmental policy practices increase the innovative capability of their company. Test results on survey data filled out by 650 owner–managers support this hypothesis. These results imply that policy makers, who aim at stimulating innovation as well as sustainable development, should inform managers about the innovation‐enhancing effects of environmental policy practices.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}

Graafland, Johan
Economic freedom and corporate environmental responsibility: The role of small government and freedom from government regulation Journal Article
In: Journal of Cleaner Production, vol. 218, pp. 250 - 258, 2019, ISSN: 0959-6526.
@article{GRAAFLAND2019250,
title = {Economic freedom and corporate environmental responsibility: The role of small government and freedom from government regulation},
author = {Johan Graafland},
url = {http://www.sciencedirect.com/science/article/pii/S095965261930335X},
doi = {https://doi.org/10.1016/j.jclepro.2019.01.308},
issn = {0959-6526},
year = {2019},
date = {2019-01-01},
journal = {Journal of Cleaner Production},
volume = {218},
pages = {250 - 258},
abstract = {In international scientific literature, it is argued from institutional theory that economic freedom stimulates corporate environmental responsibility. However, economic freedom comprises several different dimensions, such as government size, rule of law, open markets, and (freedom from) government regulation. Whereas previous literature has shown that rule of law and open markets stimulate corporate environmental responsibility, the impact of government size and government regulation on corporate environmental responsibility of companies located in different countries has yet not been explored. This paper contributes to scientific literature by researching the effects of these two dimensions of economic freedom on corporate environmental responsibility. We hypothesize that small government stimulates corporate environmental responsibility and that freedom from government regulation discourages it. Using panel data from ASSET4 for the corporate environmental responsibility of 5023 companies, and data of government size and government regulation from Fraser Institute and Heritage Foundation for 41 countries, the authors perform panel analysis for the period 2005–2014 to test the hypotheses. The estimation results show that both small size of government and freedom from government regulation decrease corporate environmental responsibility. The test results are robust for the type of economic freedom data (Fraser Institute or Heritage Foundation) used.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}