The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference

Built on the categorization theory and Herzberg's dual‐factor theory, this study consisted of two experiments to investigate how and when small brands were affected by the corporate social responsibility (CSR) performance of other brands in the same product category. This study specifically focused on the type of CSR publicity (positive vs. negative), brand fit (high vs. low), and other brands' leadership positions (high vs. low). The results of Study 1 (156 U.S. consumers) revealed that a leading brand's CSR activities can increase consumers' CSR expectations toward another big brand more than that toward a small brand, by setting up consumers' CSR expectation standards toward the industry as a whole. That is, the big brand's CSR performance was less likely to increase CSR expectations toward the small brand. Study 2 (244 U.S. consumers) confirmed that a brand's CSR activities positively influence its product attitude. In addition, the effect of a small brand's negative CSR publicity on its product attitude was mitigated by other brands' similar publicity. In contrast, other brands' publicity did not amplify the effect of a small brand's positive CSR publicity. These findings manifested small brands were conditionally influenced by other brands in the same category. This suggested that small brands should strategically allocate resources to fulfill CSR by determining their position relative to leading brands as well as to other players in the market.

PurposeThe purpose of this paper is to focus on how corporate social responsibility (CSR) (i.e. responsibility to customers, employees and society) influences customer behavioural loyalty in the hotel industry. The mediating effects of brand image and customer trust on the relationship between CSR and customer behavioural loyalty are also considered.Design/methodology/approachIn total, 298 valid responses to questionnaire surveys were collected from a convenience sample in China in 2017. A structural equation model was used to test the hypotheses.FindingsHotel customer behavioural loyalty can be enhanced by CSR performance. Performance in each of the three CSR domains positively impacted customer behavioural loyalty to different degrees. The impact of CSR on the customer had the strongest influence on Chinese customers’ behavioural loyalty among the three CSR domains of customer, employee and society. Brand image and customer trust were found to be mediators of the relationship between CSR performance and customer behavioural loyalty.Originality/valueThe current research contributes to the literature by demonstrating that CSR activities are not all equally effective. Results reveal that the society dimension of CSR had the strongest impact on Chinese customers’ brand image of hotels among the three CSR dimensions investigated. In terms of Chinese hotel customers’ trust, the CSR–customer dimension plays the most effective role. The findings also support the notion that Chinese consumers are beginning to use CSR information to evaluate hotels.

We study a timely and important business phenomenon: corporate social responsibility (CSR) performance in emerging markets. Emerging markets constitute an interesting context in which to analyze CSR performance, due to their institutional voids and the upsurge of social media usage. Our research brings together the literature on ownership structure, institutional voids, social media, and CSR performance to develop a conceptual framework. The framework comprehensively demonstrates that (1) state-owned enterprises (SOEs) and multinational enterprises (MNEs) pursue different CSR strategies depending on levels of state ownership, (2) institutional voids bring difficulties due to unclear statements on how firms carry out CSR activities, and (3) social media increases the speed of CSR communication. We argue that institutional voids and social media are characterized differently between emerging markets and advanced ones. Therefore, we propose that MNEs perform CSR activities better than do SOEs, while institutional voids and social media influence firm CSR performance differently in the two structures. Furthermore, depending on the levels of voids and how social media is developed, the influence of ownership structure on CSR performance is modified. Our research encourages SOEs and MNEs in emerging markets to review their CSR strategies and switch from the conventional focus on market expansion and profit growth.

This article studies how financial investors respond to firms’ corporate social responsibility (CSR) performance in terms of their investing behaviors, and how such behaviors change contingent on an event that provokes their attention and concerns to CSR. Using the melamine contamination incident in China as a natural experiment, it is found that neither the individual investors’ nor the institutional investors’ behaviors are influenced by firms’ CSR performance before the incident. Nevertheless, in the post-event period, institutional investors’ behaviors are significantly influenced by firms’ CSR performance that exceeds a certain threshold. Furthermore, such an effect diminishes for a better CSR performance. In comparison, the authors do not find any effects of CSR performance on individual investors, either before the event or after the event. Finally, firms’ performance and investors’ behaviors jointly affect firms’ stock returns after the event but not before the event. This article reconciles the mixed findings in the literature on the effect of firms’ CSR performance on their financial performance by showing that such an effect exists in a contingent manner. Furthermore, the authors show that a too low or a too high CSR performance could lead to undesirable responses from investors. Therefore, managers should pay attention to optimizing firms’ CSR activities.

Research on the Corporate Social Responsibility (CSR) has been broadly studied across many different industries. More and more organizations have started paying more attention on CSR when it has bought significant impacts on society, economy and environment. This study aims to investigate the impact of Chinese students choosing an oversea university through the implementation of CSR activities toward to brand preference and also the impact of perceived brand quality on Chinese students towards to brand preference. The results from PLS regression analysis found that CSR to environment, CSR to society and CSR to stakeholder are positively related to brand preference and CSR to environment and CSR to society are positively supported perceived brand quality, except CSR to stakeholder is not significantly related to perceived brand quality. These findings suggest that when Chinese students choosing an oversea university with Chinse study program, they focus on the activities that a university implements on environment and society more than the fact of stakeholder.

PurposeThis study aimed to investigate the effect of sustainability committee (SC) characteristics (size, independence, the number of meetings, and expertise) on corporate social responsibility (CSR) performance in the Indian context.Design/methodology/approachThis research measures the CSR performance of 60 Indian non-financial firms listed on the Bombay Stock Exchange (BSE) over the period 2014 to 2019 using the ASSET4 environmental, social, and governance database. The authors resorted to fixed-effect panel regressions to capture the individual effect present in the data.FindingsThe results show that CSR performance is positively and significantly influenced by SC independence, size, and expertise. However, the number of SC meetings does not affect CSR performance. The results also demonstrate that CSR performance is positively and significantly associated with board independence.Research limitations/implicationsThis paper adds to the existing literature by examining the effect of SC characteristics on the firms' CSR performance in India as one of the oldest stock markets in the world, which would help test the validity of the agency and stakeholder theories in an old and big emerging market context.Practical implicationsThe findings allow managers to understand the mechanisms affecting CSR performance and how the characteristics of the SC can participate in its growth and development. Moreover, this study has implications for researchers, suggesting that future CSR studies should take into account the SC characteristics as potential determinants that explain CSR, such as CSR activities and CSR practices and strategies.Originality/valueThe present research contributes to the literature by investigating the effect of SC characteristics on the firms' CSR performance, thereby providing additional evidence on the issue. Several previous studies have examined the link between corporate governance and CSR performance with a focus on external oversight mechanisms, namely institutional ownership or analyst coverage or internal oversight mechanisms, such as board gender composition, board independence, separation of board Chairperson and CEO roles, and the existence of SC on the board, but these studies did not examine the SC characteristics. The present research fills the gap.

Research on the impact of corporate social responsibility (CSR) performance to the financial performance have been widely studied previously. However, there were a few studies investigate the effect of CSR on accrual quality which is one of the attributes of earning quality. The aim of this study is to examine the affect of CSR toward accrual quality in the context of Indonesia, where the empirical results of the benefits of CSR implementatation are still scant.Research samples are all listed companies in Indonesia Stock Exchange (IDX) in miscellaneous industry sector for period 2009 to 2013. There are 92 firm years included in this study. CSR is measured by scoring CSR activities of the firm based on GRI Index guideline version 3.1, whereas attributes of earning quality used in this study is accrual quality. We include two control variables in this research model i.e. firm size and leverage. The results show that CSR performance do not explain the changes in accrual quality. Leverage has no effect on accrual quality as well. On the other hand firm size has a significant effect on CSR performance however the sign of association is contrary with the expected.

PurposeThis paper aims to examine the impact of three key factors — corporate social responsibility (CSR) awareness, CSR affordability and CSR management system (CSRMS) sophistication—on the CSR performance of Japanese firms.Design/methodology/approachUsing responses to 36 items developed on the Global CSR standard of ISO26000, two CSR indexes were constructed to assess the CSR management system sophistication and performance of Japanese firms. The relationship between the three key variables (CSR awareness, affordability and management system sophistication) and CSR performance was then examined through a partial least squares (PLS)-based structural equation model. Data were collected through a questionnaire survey of 146 firms.FindingsThe results of the study found a positive relationship between CSR performance and three exogenous variables (CSR awareness, affordability and management system sophistication). Furthermore, the study found that CSRMS sophistication played a mediating role in the relationship between CSR performance and firms' CSR awareness and affordability.Research limitations/implicationsThe study was limited to examining the CSR practices of a major province in Japan, which may hinder the generalisation of the findings to the rest of the country. Moreover, the data used for assessing the variables in this study were self-reported by the participating firms, in addition to being cross-sectional. The findings of this study clarified areas that policymakers, including Japan's business associations–Keidanren and Keizai Doyukai, and other relevant parties need to focus on for further improving CSR performances of Japanese firms.Originality/valueThis study highlights the role CSR awareness, affordability and CSRMS sophistication play in improving CSR performance. On the one hand, it identifies the critical role CSRMS plays in mediating the relationship among CSR performance, awareness and affordability. On the other hand, it advances CSR theory providing insight for practitioners to generate positive CSR outcomes.

본 논문은 기업의 사회적 책임이 재무성과에 영향을 미치는지를 고찰하였다. 선행연구들은 지금까지 일관적이지 않은 결과를 보여주었으며, 본 연구는 기업의 사회책임이 기업의 재무성과에 긍정적인 영향을 미친다는 것을 발견하였다. 모건스탠리에서 발간되는 한국기업의 사회적 책임 성과평가 자료를 분석한 결과, 기업의 사회적 책임과 자본시장에서의 재무성과 간에 양의 상관관계가 있음을 발견하였다. 구체적으로 회귀분석의 결과 기업의 사회책임 평가가 한 단계 높으면 주가수익률이 평균 3.4% 정도 높은 것으로 나타났다. 본 연구의 결과는 다른 나라의 자료를 토대로 하는 선행연구의 결과를 지지하며, 한국기업의 사회적 책임에 대한 체계적이고 분석적인 평가 결과를 제공하였다는 데에 의의가 있다. This study investigates how the Corporate Social Responsibility (CSR) performance of a firm is associated with its financial performance in the stock market. Prior studies provide mixed evidence on the relation between CSR and financial performance. This study sheds some lights on the positive effect of CSR on firms' financial performance. Using a unique set of data on CSR performance of Korean firms provided by Morgan Stanley Capital International (MCSI), we find that firms' CSR performance is positively associated with their contemporaneous stock returns and Tobin's Q in the Korean market. This finding suggests that stock market participants value firms' CSR activities. This is the first study that provides empirical evidence on the existence of the positive association between the CSR performance of Korean firms and their financial performance using MCSI data which is considered more reliable than the data used in the prior CSR studies in Korea.

Purpose The present work aimed to investigate the impact of sustainability committees’ (SC) effectiveness in the Indian context in light of the Companies Act 2013. Particularly, we examined the direct and indirect links between SC effectiveness and corporate social responsibility (CSR) performance through the mediating role of CSR strategy. Design/methodology/approach This research analyzed the effect of SC effectiveness on CSR performance and the mediating effect of CSR strategy on the link between SC effectiveness and CSR performance of Indian listed companies following the Indian Companies Act 2013. Accordingly, we analyzed 480 observations in eight years (2014–2021) using panel regression analysis to test our hypotheses. Findings Regulatory mechanisms, such as the Companies Act 2013, enhance corporate governance efficiency. In this context, we confirm prior findings of a positive relationship between SC effectiveness and a firm’s CSR performance. Moreover, SC effectiveness enhances CSR performance through CSR strategy implementation. Originality/value The originality of this study lies in establishing direct and indirect links between SC effectiveness and CSR performance in light of the Companies Act 2013. Therefore, this paper enriches the literature on corporate governance, CSR strategies, and sustainability performance.

CSR performance and firm performance in the tourism, healthcare, and financial sectors: Do metrics and CSR committees matter?

This study explores the impact of corporate social responsibility (CSR) performance on stock price informativeness (SPI) in the global banking industry. Drawing on a dataset of 217 banks from 45 countries between 2009 and 2020, we find that CSR performance significantly enhances SPI by ensuring that more bank-specific information is reflected in stock prices. These results align with signalling theory, which suggests that CSR performance reduces information asymmetry by signalling a firm’s commitment to long-term sustainability and ethical practices, thereby improving market efficiency. The effect is stronger in countries with mandatory CSR disclosure regulations, underscoring the role of regulatory frameworks in amplifying the benefits of CSR activities. Furthermore, we find that the relationship between CSR performance and SPI is more pronounced in investment banks than in commercial banks, reflecting the greater market sensitivity to CSR performance in institutions with higher risk profiles. Our findings provide evidence of a critical link between CSR performance and improved market transparency, highlighting the role of CSR initiatives in fostering more accurate stock price reflections.

PurposeThe study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies.Design/methodology/approachData was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses.FindingsThe results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship.Originality/valueThis study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.

Purpose This study examines the relationship between corporate social responsibility (CSR) performance and financial performance, focusing on the moderating role of managerial entrenchment. The research aims to understand how entrenched managers influence the effectiveness of CSR initiatives and their impact on financial outcomes, particularly in the context of stringent French regulations. Design/methodology/approach The study employs a generalized least squares (GLS) econometric model to analyze a panel of 120 companies listed on the SBF 120 index from 2011–2022. The model integrates Environmental, Social and Governance (ESG) scores, managerial entrenchment indicators and financial data to isolate the effects of CSR and governance on performance. Managerial entrenchment is measured using a novel composite index combining CEO tenure, CEO-Chairman duality and anti-takeover provisions. Robustness tests, including alternative measures and sectoral subsampling, are conducted to ensure the reliability of the results. Findings The results reveal a significant positive relationship between CSR performance and financial performance, supporting stakeholder theory. However, managerial entrenchment negatively moderates this relationship, as entrenched managers tend to prioritize superficial, media-friendly CSR initiatives over substantive, long-term investments. This strategic misalignment reduces the financial benefits of CSR, particularly in firms with high levels of managerial entrenchment. Additionally, robust governance mechanisms, such as board independence and size, positively influence financial performance. Research limitations/implications The study is limited by its focus on French firms listed on the SBF 120, which may restrict the generalizability of the findings to other contexts. Future research could explore cultural and sectoral variations, as well as the impact of crises (e.g., pandemics, energy transitions) on CSR strategies. The study also calls for further investigation into the underlying mechanisms of managerial entrenchment and its interaction with CSR innovation and reputation Practical implications The findings suggest that companies should adopt a balanced approach to CSR and governance. Implementing term limits for CEOs, creating independent CSR committees and integrating measurable ESG indicators into executive compensation can help align managerial incentives with stakeholder interests. Firms should also invest in green technologies and sustainable business models to mitigate the negative effects of managerial entrenchment on CSR effectiveness. Social implications The study highlights the importance of ethical governance in ensuring that CSR initiatives serve the common good rather than personal legitimization. By promoting transparency and accountability, companies can build trust with stakeholders and contribute to sustainable development. The research underscores the need for regulatory reforms to strengthen corporate governance and align CSR strategies with societal expectations. Originality/value This research makes a significant contribution to the business ethics literature by empirically validating the positive impact of corporate social responsibility (CSR) on financial performance, while simultaneously exposing the ethical myopia associated with managerial entrenchment. Its originality stems from a triple contribution that addresses key gaps in the field. First, it offers an important contextual advancement by focusing on France’s distinct stakeholder-oriented model, providing a crucial counterpoint to the dominant body of research centered on Anglo-Saxon market-based systems. Second, it delivers a methodological innovation through the creation of a novel, multi-dimensional entrenchment index that captures the complexity of this phenomenon beyond traditional proxy measures. Finally, and most substantially, it provides a theoretical breakthrough by revealing entrenchment’s dual role as both a driver of organizational stability and a negative moderator of CSR efficacy. This crucial finding helps reconcile conflicting perspectives in the literature by demonstrating how the same governance mechanism can simultaneously support certain organizational objectives while undermining ethical performance, thereby offering a more nuanced understanding of the complex relationship between governance structures, ethical decision-making and financial outcomes.

CSR activities and internal capital markets: Evidence from Korean business groups