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Keeping them honest? Exploring the impact of labor unions on CSR

Purpose The role of labor unions in relation to corporate social responsibility (CSR) remains both ambiguous and crucial for union members and business leaders. Given the complex relationship between labor unions and corporations, this study aims to address whether labor unions keep corporations honest (by monitoring CSR activities) or potentially render CSR initiatives less necessary. Design/methodology/approach Using data from the MSCI Kinder, Lydenberg, Domini Database for firms in the Russell 1000 Index, this study examines the link between labor unions and CSR in U.S. companies over a six year period. Generalized least squares models were used to test the hypotheses for 3,937 firm-year observations. Findings The findings show that unionized companies generally pay less attention to CSR compared to nonunionized ones. The presence of labor unions and positive union-management relations both show a significant negative impact on CSR ratings, where positive union-management relations negatively affect CSR ratings more than just the presence of labor unions. Further, when considering the environmental, social and governance aspects of CSR separately, the results are more complex, suggesting that the relationship between labor unions and CSR varies depending on specific ESG dimensions. Originality/value CSR, a well-researched area, rarely addresses the companies' relationships with labor unions. Studies in South Korea and the UK have touched on the impact of labor unions on CSR, but in the USA it remains unexplored. This study extends this line of work by examining U.S. companies.

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How perceived socially responsible HRM and job insecurity influence employee voice behavior: does psychological availability matter?

Purpose This study aims to examine the multifaceted connection between perceived socially responsible human resource management (PSR-HRM), job insecurity (JI), psychological availability (PA) and employee voice behavior (VB). Furthermore, it delves into the mediating roles of PA, and JI in the linkage between PSR-HRM and VB and the moderating role of PA in the connection between JI and VB. Design/methodology/approach The empirical data for this study were collected from a sample of 385 full-time employees in Vietnam. To analyze the data and explore the relationships among the constructs, partial least squares structural equation modeling (PLS-SEM) was used. Findings The study reveals positive relationships between PSR-HRM, PA and VB. Furthermore, it demonstrates that PA serves as a partial mediator in the nexus between PSR-HRM and VB, while JI similarly partially mediates this association. In addition, the research identifies a positive moderating effect of PA on the linkage between JI and VB. Originality/value Grounded in social exchange theory and social cognitive theory, this study uncovers significant relationships, providing nuanced insights into the intricate interplay among PSR-HRM, JI, PA and VB. It represents one of the initial investigations into the moderating influence of PA on the connection between JI and VB.

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Investor value orientation and environmental and social implications: a case of New Zealand agribusinesses

Purpose This study aims to examine the value orientations of New Zealand agribusiness investors and how these orientations influence their reactions to the environmental and social implications of agribusinesses. Design/methodology/approach In the context of the New Zealand agricultural sector, the views of investors as published in print and broadcast media between 2018 and 2022 are gathered. The study uses qualitative content analysis to analyse the data. The study is based on the value-belief-norm theory. Findings The study reveals that New Zealand agribusiness investors express concern about the environmental (biospheric) and social (altruistic) impacts of the agribusiness sector, prompting calls for greater transparency, climate adaptation and ethical investment options. Additionally, they actively support local businesses to benefit their communities and preserve cultural heritage. Despite these biospheric and altruistic tendencies, investors also prioritise financial and non-financial interests (egoistic). This highlights a nuanced perspective guiding their investment choices – a balance between self-interest and contributing to the greater good. This signals a shift towards socially and environmentally responsible investment practices driven by multifaceted values. Research limitations/implications The findings of this study highlight the role of non-pecuniary motives, like values, in determining the relevance of environmental and social information. Practical implications The study’s findings offer insight to agribusinesses on how investors’ value orientations shape their investment decisions. This understanding can guide businesses in framing a reporting strategy that enhances the likelihood of investors perceiving reporting as relevant and persuasive, thereby attracting more investments. In turn, this tailored reporting approach assists investors in making well-informed decisions in assessing the environmental and societal risks of agribusinesses. Originality/value The study offers a framework explaining how agribusinesses can increase the likelihood of investors finding firms reporting relevant and persuasive, leading to increased investments in environmentally and socially sustainable practices.

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The role of awareness of circular economy’s concept in purchase of sustainable goods and access-based and collaborative consumption – Porto case

Purpose Circular economy (CE) is receiving increasing worldwide attention as a manner to overcome the challenges linked to current trends of unsustainable energy and resource consumption. This paper aims to fill this gap and analyze the adherence to sustainable, access-based and collaborative consumption practices by exploring the role of CE awareness, specifically in the context of Porto, the second-largest city of Portugal. Design/methodology/approach The methodology of choice is quantitative, based on partial least square-based structural equation modeling. Findings The result shows that there is an influence of CE awareness on subsequent sustainable consumption models. Research limitations/implications Present research contributes to the theory on CE awareness and sustainable consumption. It proposes a model that could be applied in other countries. As this research is developed within the city of Porto, it may limit generalizations of obtained results. Practical implications As CE practices are embodied into national and local policies, this research contributes to understanding local contexts of CE practices dissemination, providing practical suggestions for businesses and policymakers aiming the transition to the CE. Originality/value An original approach to measuring the awareness of CE economy is proposed, that is analyzed not only from the familiarity perspective but in six dimensions of its construction: familiarity, importance, perception or interpretation, advantages, social impact and barriers in this process. Further, the conceptual model of the impact that these dimensions have on the adoption of sustainable consumption models (purchase of sustainable products, access-based and collaborative consumption) is proposed.

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The determinants of corporate social responsibility (CSR) committee: executive compensation, CSR-based incentives and ESG performance

Purpose This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories. Design/methodology/approach Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used. Findings It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees. Practical implications This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide. Social implications COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues. Originality/value The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.

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Demystifying the relationships among green HRM, green work engagement, green innovation and environmental performance: a serial mediation model

Purpose This study aims to demystify the mediating mechanism behind the relationship between green human resource management (HRM) and an organization’s environmental performance with the support of resource-based view theory and social exchange theory. Specifically, this study investigates the sequential mediation of green work engagement and green innovation on the direct effect of green HRM on environmental performance. Design/methodology/approach This quantitative study collected data from 311 employees working in various Indian manufacturing firms using an online survey. Structural equation modeling was used to determine the model fit of the serial mediation model, and PROCESS macro was used to test the hypotheses. Findings The findings of the study revealed the following important results. First, green HRM positively affects an organization’s environmental performance. Second, green work engagement mediates the effect of green HRM on environmental performance. Third, green innovation mediates the effect of green HRM on environmental performance. Fourth, green work engagement and green innovation sequentially mediate the green HRM–environmental relationship. Practical implications This study offers the following practical implications. First, it improves the managerial comprehension of the processes in enhancing environmental performance. Second, it implies that managers need to implement green HRM in their organizations as they play a pivotal role in improving employees’ green work engagement, organizations’ green innovation and environmental performance. Originality/value The present study is one of the primary research works that examined the serial mediating effect of green work engagement and green innovation in the relationship between green HRM and environmental performance. This study enriches the existing literature on green HRM and environmental performance by uncovering the mediating mechanism of green work engagement and green innovation.

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University social responsibility and sustainable development: illustration of adapted practices by two Tunisian Universities

Purpose This study aims to show how universities may engage in social responsibility approaches and to understand in depth how the university social responsibility (USR) practices contribute in achieving sustainable development. Design/methodology/approach Exploratory qualitative research was directed based on two Tunisian Universities (two case studies); the first one belongs to the public sector and the second one to the private sector. Data were collected through participant observations, group interviews, documentation as well as semistructured interviews with students and administrative staff. The survey was carried out in 2022, immediately following the COVID-19 health crisis. The interview lasted 45-min on average. Findings The results confirmed that USR was applicable within the two studied institutions. The two cases under investigation primarily concerned academic and philanthropic responsibilities, with practices pertaining to ethical and legal responsibilities being observed, albeit not to the same extent as the other two responsibilities. Therefore, universities prioritize the welfare of people over anything else when they implement a USR policy. Originality/value The USR is an approach that many higher education institutions, both public and private, must appropriate. Nevertheless, this field is still virgin in academic research and this theme remains unexplored within the Tunisian territory. Thus, through the present study, the authors were able to understand in depth the USR practices and confirmed that these two institutes were socially responsible. Consequently, the authors are inviting other Tunisian Universities to adhere to these approaches regarding their benefits among society, environment and economy.

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Core charitable purpose and voluntary CSR activities in charity organisations: do they conflict?

Purpose A charity’s core purpose is legally mandated and delivery thereof is not a corporate social responsibility (CSR) activity which, by definition, is voluntary in nature. Any CSR activity not required by law should be “incidental” and be an outcome of a core purpose/object and not a focus of activity. The purpose of this study, therefore, is to address the lack of research into voluntary CSR activities conducted by charities so that charities might have a clearer operating platform and do not involuntarily contravene legislation. Design/methodology/approach This was an exploratory investigation using purposive sampling of senior leaders in UK charities. This study uses a case study approach to identify pragmatic areas of concern and also identify practical actions. Findings The conventional hierarchical ordering of Carroll’s CSR pyramid (1991) for profit-focussed organisations were found to be inconsistent with those for charitable organisations which were: ethical, legal, economic and philanthropic/voluntary/incidental. Research limitations/implications This was an exploratory study and would benefit from further investigation. Practical implications Corporate social responsibility actions undertaken by charities need to be carefully evaluated to ensure that they comply with the core charitable purpose or are incidental. Social implications Many employees in charities are motivated by social justice; however, they need to be cautious that they do not exceed the core purpose of the charity. Originality/value To the best of the authors’ knowledge, no research was identified which has addressed the fundamental issue of charities’ core purposes and the extent to which charities might legally undertake CSR activities.

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Social versus financial performance: evidence from microfinance institutions in Ethiopia

Purpose Today, the sustainability and outreach of microfinance institutions (MFIs) are crucial to the success of microfinance and the sector’s potential to make a lasting impact. The ability of MFIs to operate financially well without sacrificing their social goals has come under scrutiny. This study aims to identify the kind of relationships between the two objectives of MFIs in Ethiopia. Design/methodology/approach This study investigated the association between the outreach and financial sustainability of Ethiopian MFIs from the years 2012 to 2021 using a balanced set of panel data. The study used secondary data and employed a descriptive research design and a quantitative research approach. To this end, random and fixed effects estimation models, as well as three-stage least squares, with the model of seemingly unrelated regression (SUR) are used. Findings According to the study, outreach performance enables MFIs to achieve sustainability/financial performance. On the other side, MFI that are financially sound improve social performance. There was therefore no trade-off between the two objectives. Originality/value As Ethiopia’s microfinance sector shifts away from government and non-government backing and toward commercialization, such research is crucial. This aspect of the Ethiopian microfinance industry has gotten little consideration in research. The SUR model was used in the study together with random and fixed effect estimators, and the most reliable estimation result was chosen based on the necessary tests.

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