Aligning Incentives for Social Responsibility: Evidence From Performance‐Contingent Equity Awards

CSR literature clearly asserts that there is a dearth of CSR studies from the part of the developing world; and thus far very little is known about CSR initiatives from the developing world. On top of that while CSR studies from developing countries in general is dominated by studies from Asian continent, CSR studies from Africa are profoundly dominated by South Africa, and CSR scholars and practitioners know virtually so little about the status of CSR from the rest of the developing world, even if that means the CSR initiatives of leading businesses operating in this part of the world. This study examined the focus areas of the corporate social responsibility (CSR) initiatives of two of the leading/largest companies in Ethiopia: MIDROC Ethiopia and Sunshine Investment Group. These leading companies are chosen based on the availability of online and document based information about their CSR engagements. Methodologically, the study employed content analysis to explore the CSR activities that these leading companies undertake based on data obtained mainly from the companies’ website documentations. Findings show that, based on the labels that the companies attached to their CSR initiatives, the following themes emerged as their CSR focus areas: community support; infrastructure development; employee welfare; charities/donations to NGOs and other organizations; and sponsorships. Cite this Article Yohannes Workaferahu Elifneh. Focus Areas of Corporate Social Responsibility Initiatives in Two Leading Companies in Ethiopia: Towards Unveiling the Status of CSR from this Part of the Developing World. Journal of Production Research & Management. 2018; 8(1): 18–24p.

PurposeThe paper aims to examine the corporate social responsibility (CSR) activity of audit firms.Design/methodology/approachUsing hand-collected data on all Chinese audit firms’ CSR activities from 2007 to 2020, this study constructs two measures to proxy for audit firms’ CSR engagement: a dummy variable to indicate whether an auditor engages in CSR activities in year t and the frequency with which auditors conduct CSR activities in year t. The authors use ordinary least squares regression as a baseline methodology, along with the entropy balancing method and instrumental variable approach to alleviate potential endogeneity concerns.FindingsThe baseline results show that socially responsible audit firms provide higher quality audit services than their counterparts. In particular, the authors find that clients audited by socially responsible audit firms are less likely to receive an aggressively clean opinion. Moreover, the findings suggest that CSR activities related to community and employees are more relevant in improving audit quality compared with those related to other dimensions of CSR. Further analyses show that capital markets and audit clients react positively to audit-firm CSR activity. Audit firms engaging in CSR increase their audit inputs in response to risky clients, as compared with their counterparts. Finally, cross-sectional analyses show that the positive relationship is more pronounced for non-Big 4 and non-industry experts and is attenuated by within-firm geographic dispersion. In terms of client characteristics, the positive effect of audit-firm CSR is stronger when their clients face the higher financial risk or have lower CSR awareness than others. Taken together, these findings are consistent with the ethical view of audit-firm CSR engagement.Practical implicationsThe study advances investors’ understanding of audit-firm CSR engagement and helps them evaluate the credibility of audited financial reports. Besides, the findings may also help guide the audit firms to conduct more CSR activities and help guide the audit clients to choose CSR audit firms.Originality/valueTo the best of the authors’ knowledge, this study provides the first large-sample evidence by empirically examining the association between audit-firm CSR activity and audit service performance. Besides, this paper also explores audit-firm CSR activity from two competing perspectives, thereby providing a comprehensive understanding of this issue. Finally, this work responds to the call for more CSR research in emerging markets.

PurposeThe association between ethical leadership and employees’ ethical behaviors is well-established. But can ethical leadership go beyond this and drive employees’ corporate social responsibility (CSR) engagement? The purpose of this study is to examine the association between ethical leadership and employees’ perception of their engagement in CSR activities while exploring the mediating role of person–organization fit.Design/methodology/approachUsing a quantitative research design, data were collected via self-administered questionnaires from 142 employees of multi-national companies in Malaysia. This study used partial-least squares structural equation modeling to test and validate the research model and hypotheses posited.FindingsThe results reveal that ethical leadership has a positive impact on employees’ CSR engagement, mediated through person–organization fit. Moreover, analyses were carried out to assess the predictive performance of the proposed model. Our results confirmed the predictive capability of the proposed model.Research limitations/implicationsThis study has provided a better understanding of employees’ CSR engagement, which is a crucial factor for effectiveness of CSR implementation in any organization. Finding evidence on the positive role of ethical leadership in driving employees’ CSR engagement extends both the leadership and CSR literature and offers new avenues for future research studies.Practical implicationsThis study has shown that ethical leadership can stimulate employees’ CSR engagement through creating a better person–organization fit. This understanding can help managers in finding ways for more effective involvement of employees in a company’s CSR activities and creating a better working environment.Social implicationsOrganizations can find better ways to involve employees in CSR activities through having ethical leaders who lead by example and champion social causes. Although ethical leadership will benefit society, it will also help employees experience a better fit between their values and those of the organization.Originality/valueDespite extensive research on CSR, its drivers and outcomes, there is still limited knowledge on the role of leaders in driving employees’ CSR engagement. Findings from an emerging economy (i.e. Malaysia) will offer fresh insights into the growing CSR and leadership literature.

The study explores factors influencing employee participation in Corporate Social Responsibility (CSR) intervention at AFGRI. COVID-19 developed new working arrangements and the introduction of young people in the workplace contributed immensely towards the shift in employee volunteering programmes. amongst other social contributors. Employees in most agricultural companies. operating in rural and farming areas, are mostly excluded from the company's EVP activities compared to their head office counterparts. The majority encompass blue-collar workers that operate on rotational shift hours and or in operational settings that requires them to be present on fulltime basis. It is for these reasons amongst others. that might put employees at a low risk of being exposed to their company's CSR activities. Various factors that influence employee participation in CSR interventions were examined in this study and based on recent literature and findings. A quantitative research methodology was employed to investigate employee participation in CSI activities. The study's findings provided valuable insights into how both negative and positive factors can be improved to enhance CSR engagement and support from employees. Key factors influencing employee participation in CSR initiatives included amongst others: I. Leadership Involvement: Active participation and support from leadership in CSR initiatives is crucial to demonstrate the intention of the company's efforts. 2. Understanding CSR Strategy: Employees need to comprehend and buy into the company's CSR strategy. 3. Effective Communication: Clear, relevant. and engaging communication is essential to attract employees to CSR initiatives. Timely communication helps employees plan their schedules around these initiatives. 4. Recognition and Rewards: Implementing a system to recognize and reward employee participation in CSR can boost engagement and healthy competition. 5. Provision of Resources: Providing volunteering time and resources is vital for the sustainability of CSR projects and to garner more support and participation. These elements are essential for creating a supportive environment that encourages employee involvement in CSR activities. The study offered essential recommendations with practical, implementable, and measurable actions to boost CSR engagement and participation. These recommendations included, amongst others: I. Roadshows and Campaigns: Organising events to expose employees to CSR initiatives. 2. Inclusion in Work Cycle: Integrating CSR participation into employees' Key Performance Indicators (KPls). 3. Enhanced Company Culture: Fostering a culture that encourages participation in CSR initiatives. 4. Visible Leadership Involvement: Increasing and making leadership involvement in CSR more visible. 5. CSR Awareness and lnclusivity: Raising awareness about CSR, promoting a culture of inclusivity, and embedding strategic communication for maximum participation. These actions aimed to create a supportive environment that encouraged employees to actively engage in CSR activities.

Purpose This study aims to investigate the disparity in corporate social responsibility (CSR) engagement between construction firms and other sectors in India. This paper explores the financial implications of CSR activities on company performance. Design/methodology/approach A literature review was first conducted to identify six key financial metrics (net profit, total assets, equity, income, share capital and R&D expenditure), which were used to assess the relationship between financial performance and CSR investment. After that, this paper analysed financial data from FY22 for construction and non-construction firms in India. Regression analysis is used to further explore these relationships. Findings The study reveals significant differences in CSR engagement. Non-construction firms exhibit higher net profits and a more substantial investment in CSR initiatives. Regression analysis confirms a positive association between net profit and CSR spending. Interestingly, other financial metrics have minimal impact on CSR activities. Furthermore, non-construction firms exhibit a stronger commitment to CSR across all thematic areas. Originality/value This research contributes to a deeper understanding of CSR practices and financial dynamics in the Indian business landscape, particularly within the construction sector. The findings on the connection between financial performance and CSR engagement offer valuable insights for policymakers and stakeholders. This knowledge can be used to develop strategies that promote sustainable practices and corporate responsibility in construction and other industries.

Theoretical background: This study examines the motivations underlying Jordan University College’s (JUCo) engagement in Corporate Social Responsibility (CSR) initiatives targeting public health. As CSR has gained global prominence, higher education institutions like JUCo play a vital role in addressing societal challenges, particularly public health, through community engagement. The study is grounded in institutional theory, which posits that organizational behavior is shaped by the broader social, cultural, and regulatory environments in which it operates. Thus, JUCo’s CSR engagement reflects its alignment with institutional norms and values, that enable the university to maintain legitimacy, enhance its reputation, and meet societal expectations. Purpose of the study: The aim of the study is to explore the motivations driving JUCo’s engagement in CSR initiatives, particularly those targeting public health in Morogoro Municipality, Tanzania. By understanding these motivations, the research seeks to provide insights into the broader dynamics influencing the adoption of CSR practices among educational institutions in the Tanzanian context, offering insights that can inform policy and institutional strategies. Research methods: The study adopted a cross-sectional research design based on a mixed-methods approach to provide a comprehensive understanding of JUCo’s CSR initiatives. Primary data were gathered from a sample of 100 respondents, selected through random sampling techniques to ensure representativeness. The data collection process involved careful coding, cleaning, and analysis using SPSS Version 25, with descriptive statistics employed to extract meaningful insights. This methodological rigor enhances the reliability and validity of the findings, providing a solid foundation for evidence-based conclusions. Main findings: The findings reveal that JUCo’s CSR initiatives are driven by multiple factors, including reputation enhancement, legal compliance, stakeholder expectations, and a genuine commitment to effecting positive societal change. Public health initiatives like disease prevention, healthcare access, and environmental health are prioritized. These results underscore the strategic alignment of JUCo’s CSR activities with institutional and societal objectives, which could enhance both community well-being and the university’s legitimacy.

Previous research has addressed the effects of corporate social responsibility (CSR) initiatives on consumer purchase intention (CPI). However, most of the empirical evidence is based on the analysis of mature large‐scale firms; much less examines the effects of CSR initiatives on CPI in entrepreneurial contexts. In this study, we address this gap by investigating whether entrepreneurial start‐ups' declaration of CSR engagement affects consumers' purchasing intent. We assert that consumers may consider firms' CSR engagement as a signal for unobserved product quality. We exploit a vignette experimental approach to test our theoretical predictions. In our experiment, participants received online invitations to subscribe to an electronic catalog that advertised various products supplied by entrepreneurial start‐ups. The invitations are of five types, some of which presenting different CSR‐related information on the suppliers to the participants. Overall, we find that the displayed information on CSR engagement promotes participants' willingness to subscribe to the electronic catalog, indicating that consumers will increase their purchase intentions for ethically oriented suppliers. Moreover, we find that among all the initiatives, external CSR initiatives (social contribution and environmental responsibility) promote consumers' intentions to purchase most effectively. To the best of our knowledge, our study is the first to explore the effects of different CSR initiatives on entrepreneurial start‐ups in entrepreneurship literature. We highlight the heterogeneous effects of CSR initiatives on CPI, contributing new insights to research on CSR and consumer behavior.

This research investigates the involvement of MBA students in Corporate Social Responsibility (CSR) activities, considering collaborations with both corporate entities and non-governmental organizations (NGOs). Through an examination of the types and dimensions of CSR activities in which MBA students actively participate, their motivations, and the impact of their engagement on social responsibility skills and awareness, this study aims to provide comprehensive insights into their role in fostering societal change. Leveraging secondary data sources, including academic literature and industry reports, the research underscores the significance of MBA students' participation in CSR initiatives with corporate and NGOs. The findings contribute to the existing body of knowledge on CSR engagement among MBA students, offering recommendations for enhancing their participation and effectiveness in driving positive social impact.

PurposeDespite the intensive research on corporate social responsibility (CSR) and firm financial performance, little is known about how the linkage between CSR and firm financial performance is heterogeneous across industries and how the performance implications are differentiated among specific categories of CSR activities. The purpose of this paper is to explore how the association between a firm’s engagement in CSR and firm financial performance is heterogeneous across industries and CSR categories.Design/methodology/approachUsing a sample of 17,083 firm-year observations representing 1,877 firms from the largest 3,000 US companies during years 1991 and 2011, the authors compare the association between CSR and firm financial performance across ten industry sectors defined by Global Industry Classification Standard and across the four CSR categories classified by Mandl and Dorr (2007).FindingsThe authors find that the association between the overall CSR activities and firm performance is heterogeneous across industries. CSR has significant positive implications for firms from most, but not all, industries. Comparing the performance implication of CSR practices targeting different stakeholder groups, the empirical results indicate that different types of CSR have different influences on financial performance of firms from different industry sectors.Research limitations/implicationsThis study provides new angles for managers in maximizing firm performance through CSR activities and suggests an important and interesting direction for researchers who engage in CSR research. Due to its heterogeneous nature, the CSR-performance relationship needs to be examined more specifically – across industries and different CSR categories. Findings from studies incorporating both company industrial sector and CSR categories would provide more meaningful and practical implications for managers.Practical implicationsThis study provides important managerial implications. First, to maximize firm performance through CSR activities, managers must interpret the linkage between CSR and firm financial performance from the perspective of a specific industrial sector and acknowledge the importance of CSR practices across different CSR categories. Second, the findings suggest that CSR practices aiming at different stakeholder groups generate different financial returns in different industries. Firms engage in CSR to satisfy different stakeholder groups. When budgets are tight, managers may give higher priority to the CSR practices that have stronger effects on firm financial performance.Originality/valueThis study advances our understanding of the CSR-financial performance relationship by exploring its heterogeneous nature across industry sectors and across specific categories. To obtain the biggest gain from CSR spending, managers must have a good understanding how a specific CSR category can contribute to the financial performance of their particular company in their particular industry.

This study was conducted to explore the relationship between Corporate Social Responsibility (CSR) Engagement and Employee Job Satisfaction in Schools of Kampala District, Uganda. CSR refers to an organization’s commitment to contribute positively to society through ethical practices, environmental sustainability, and community engagement. The study assessed the relationship between (i) frequency of CSR engagement and employees’ job satisfaction and (ii) type of CSR activity and employees’ job satisfaction. A descriptive and correlational research design was used to collect data from 50 teachers purposively selected from 6 secondary schools Kampala. SPSS software was used to analyse the data. The study findings showed a strong positive correlation between CSR engagement and employee job satisfaction (r = 0.65, p < 0.01). In addition, the regression analysis conducted showed community outreach as the predictive power of CSR engagement on job satisfaction (R² = 0.45, p < 0.01). It is therefore concluded that CSR engagement has a statistically significant relationship with job satisfaction. Employers are therefore urged to promote CSR activities in their institutions, align CSR with employees’ values, encourage employee involvement in CSR and recognise employees that actively engage in CSR.

This abstract examines Wahaha, a prominent food and beverage company in China, and its extensive engagement in corporate social responsibility (CSR) activities, which have contributed to its business value and societal impact. By analyzing Wahaha’s CSR achievements and their implications, this research aims to offer insights for both the company itself and other enterprises. The study underscores Wahaha’s success in building a positive corporate and brand image through active CSR participation, serving as a model for industry peers. Additionally, it explores the mediating role of consumers’ perceived sincerity of motives in the effectiveness of CSR activities, emphasizing the importance of genuine engagement in CSR initiatives. Furthermore, the research highlights the microeconomic perspective of CSR, linking social responsibility to corporate profitability and sustainable growth. Despite Wahaha’s notable CSR practices, the study identifies challenges such as strategic ambiguity, information asymmetry, and food safety concerns. Recommendations are provided to address these issues, including transparent disclosure, strategic focus, risk management, and consumer education. Overall, Wahaha’s CSR endeavors offer valuable lessons for the food and beverage industry, promoting social responsibility awareness and guiding businesses toward sustainable practices.

PurposeResearch on corporate social responsibility (CSR) activities and consumer perception of CSR activities is increasing over the recent past. The purpose of this paper is to gain an understanding of the consumer perceptions of CSR activities of banks in India. It provides insights on whether consumers want their banks to take up CSR initiatives and would these perceptions influence their attitude towards the bank.Design/methodology/approachSelf-report questionnaires were personally administered by the researchers and their team. Respondents’ responses were based on their awareness of their bank’s involvement in CSR initiatives. The study uses convenience sampling, given the resource limitations. The research was conducted in the city of Nashik, India during June–October 2015.FindingsThe results of the study show that consumer perception towards the CSR activities of the bank influenced their attitude and satisfaction. Though consumers expressed a need for their bank’s taking up CSR initiatives, this need did not influence their attitude towards the bank, contradicting studies in the past. Consumer perception of the bank’s involvement in the CSR activities was moderate, indicating that banks need to increase their communication about the CSR initiatives undertaken by them.Practical implicationsUnique contribution of current research is that the CSR reputation and CSR concern of consumers in the Indian context have been investigated for their influence on consumer attitude. Unlike previous studies, CSR concern does not influence consumer attitude or satisfaction. Findings provide important insights for practitioners and academicians focussing on the banking sector in India.Originality/valueLittle research is reported on consumer perception of CSR in banking sector. Current research tries to fill this gap.

PurposeThe purpose of this study is to understand the driving forces of corporate social responsibility (CSR) initiatives in organizations and how these social initiatives influence organizations’ “license to operate” using data from the Ghanaian business environment.Design/methodology/approachThis study used purposive sampling with a well-structured questionnaire as a data collection tool. Partial least squares-structural equation modeling was used to study the driving forces of CSR initiatives in organizations and how these social initiatives influence their social license.FindingsThe findings indicate that CSR initiatives are driven by the normative, mimetic, investors and community pressures. The regulative pressure has no significant effect on CSR initiatives. The authors found no difference between the services and the manufacturing sectors as far as the results are concerned using multi-grouping analysis.Research limitations/implicationsFrom the results, the importance of normative, mimetic, investors and community pressures as the driving forces of CSR are established. The finding indicates that CSR demands by suppliers, customers the extent to which organizations perceive their competitors have benefited from initiating CSR are benefiting, the willingness of investors to invest in companies whose CSR activities are best and the opinion on the extent to which the District Assembly and the Chief Executive in the district, the Chiefs, the Churches, the Opinion leaders have significant impact on CSR initiatives.Practical implicationsThe results indicate the need for suppliers and customers to continually demand from corporations to initiate CSR activities as organizations seem to respond to these pressures, and these initiatives are also likely to be mimicked by other organizations in the same industry to enable this drive the social responsibility agenda. Investors and community members are also encouraged to invest and accept, respectively, organizations with very good CSR records to send a signal to companies who see CSR as a cost instead of performance enhancement.Originality/valueThe work illustrates and provides some insights and builds on the literature in the area of CSR from a developing country’s environment. This is also one of the few works that investigate the driving forces of CSR and social license using the institutional theory based on data from the African business environment.

This study investigates the impact of Corporate Social Responsibility (CSR) activities of a social enterprise on organizational economic and social performance in Korea. CSR initiatives are divided into external CSR and internal CSR where external CSR refers to activities focusing on responsible activities for local communities, natural environments, and customers, and internal CSR activities are activities that employees pursue growth and learning by focusing on building their own human resources. It is worth noting that many publicly traded company in Korea attempt to pursue a competitive advantage through CSR actions and strategically utilize it for organizational success but studies so far show that the impact of CSR activities on organizational performance is mixed at best. These inconsistent effects partially suggest that organizations differ in their ability to strategically utilize CSR activities. Thus, this study adopted and analyzed a microscopic perspective that divides CSR activities into external CSR and internal CSR and examine its link to organizational performance. The purpose of this study is three-fold. We first examine the effect of CSR on organizational performance whether the economic and social performance of social enterprises that engage in external CSR activities are different from those of organizations that do not engage in external CSR activities. Secondly, we investigate the impact of the degree of internal CSR activities on the economic and social performance of the organization. Third, we further explore the possibility of positive synergistic interaction between external CSR activities and internal CSR on organizational performance of social enterprises. The sample of the study were 196 social enterprises selected for participating social progress credit(SPC) program. This study used survey data accumulated for companies selected by the CSES and analyzed based on responses to surveys conducted in 2019 and performance data in 2020. The 2019 survey consists of the same questionnaire as the social value questionnaire conducted on social enterprises certified by the Ministry of Employment and Labor. The survey was conducted by social enterprises selected by the SPC. In general, social enterprises are pre-selected by SPC program based on social performance last year and incentives are paid in February in the following year. Therefore, since the survey conducted between March and April 2019 corresponds to the results of 2019, the economic performance data for 2020 of participating companies were used to measure economic and social performance.

This study examines the effectiveness of corporate social responsibility (CSR) initiatives by mining companies on community development, with a specific focus on community health. A case study of Kansanshi Mine in Solwezi District, Zambia, is presented. The findings suggest that CSR initiatives can have a positive impact on community health outcomes, but also highlight the need for greater community involvement and participation in CSR decision-making processes. Despite the implementation of Corporate Social Responsibility (CSR) initiatives by mining companies like Kansanshi Mine in Solwezi District, concerns persist regarding their impact on community health. This study aims to investigate the effectiveness of CSR activities undertaken by Kansanshi Mine on community health in Solwezi District, identifying strengths, weaknesses, and areas requiring improvement in CSR strategies to enhance their positive impact on public health. Despite Kansanshi mine involvement in the corporate social responsibilities, the effects of their CSR activities have not been felt. Information obtained from the community had shown that the effects of mining activities on CSR have not been progressive as the standard of living had been deteriorating in the community around Solwezi. The community feels the amount spend on CSR is not enough and a lot need to be done in terms of expenses to meet their demand. The objectives of the study were: (i) To establish CSR activities conducted by Kansanshi mine in Solwezi District. (ii) To examine effectiveness of Kansanshi mine CSR in improving livelihoods of people of Solwezi. (iii) To ascertain the effectiveness of Sustainability interventions offered in CSR programs in Solwezi. This study employed a case study approach, focusing on Kansanshi Mine in Solwezi District, Zambia. Data was collected through a combination of interviews with community members, mine officials, and healthcare professionals, as well as a review of existing documents and reports. The study was conducted using the descriptive design. The descriptive design was used to collect information by interviewing and administering a questionnaire to a sample of individuals. A sample size of 100 people both residents of Solwezi and Kansanshi Mine employees was selected. The study found that the majority of respondents (70%) were male, while 30% were female. The age range of respondents was between 18 and 65 years. The study found that the majority of respondents (54%) perceived CSR initiatives by Kansanshi Mine as not being beneficial to the community.