The political economy of CSR in Western Europe

Purpose The increasing engagement in corporate social responsibility (CSR) potentially indicates an attempt to “re‐embed” the economy in a wider societal context, following a period of neoliberal market exposure, deregulation, and separation of commercial and societal concerns. The purpose of this paper is to explore the relationship between this new social embedding of the economy and older traditions of social embeddedness, such as the welfare state, neocorporatist arrangements, and other socio‐political and labour market arrangements. Design/methodology/approach The paper explores the relationship between old and new embeddedness by examining how 17 West European nations and the USA are ranked on “old” embeddedness dimensions and comparing this ranking with “new” CSR rankings of nationally aggregated industrial performance. Findings The overall findings at an aggregate level provides some support for the idea of a symmetric relationship between the “old”, politically‐driven embeddedness and the “new”, industry‐driven embeddedness. However, a finer inspection of the results reveals interesting diversity and variation between countries and between scores, indicating more complex national story lines. Research limitations/implications Despite the limited set of countries and some measurement challenges, the analysis illustrates that the patterns of national industrial adaptation to the CSR agenda is strongly shaped by regional and national institutional contexts. While some of the institutional patterns shaping CSR in the “old” EU 15++ have been analysed in this paper, much work still remains to be done in extending and deepening our knowledge in this field. Practical implications The findings may help understand how a general framework like CSR interplays with political and institutional contexts as it trickles down into different West European political economies. Originality/value The systematic analysis of old political and new corporate social embeddedness of the economy based on a broad set of indicators is new and sheds light on the institutional preconditions for‐ and shaping of CSR.