Corrective Corporate Responses to Accusations of Misconduct on Societal Issues

Corporate misconduct on social and environmental issues has been given increasing attention in the organization and management literature. While the effects of misconduct on firms and its stakeholders are well documented, less is known about the conditions under which corporations engage in corrective behavior towards stakeholders, namely pursue correcting the adverse impacts of misconduct on its stakeholders, for example by entering in dialogue with them, committing to changing and perhaps even providing remedy to victims. In this thesis, using the setting of the OECD Guidelines for Multinational Enterprises and its associated complaints mechanism, I investigate the antecedents and outcomes of corrective corporate responses to allegations of misconduct.