Affect Corporate Social Responsibility Research Articles

Family leadership and CSR decoupling: Founder–descendant differences in socioemotional wealth

Founders of family firms differ from descendants, particularly in terms of affective attachment, cognitive identification, and social concern. This study examines how these generational differences between founder-led and descendant-led family firms affect corporate social responsibility (CSR) decoupling, which is the gap between stated CSR policies on paper and their actual implementation in practice. While decoupling may yield economic benefits by saving on implementation costs if concealed, it can damage socioemotional wealth if revealed. The findings, based on a sample of 3,576 firm-year observations from large firms in the United States, demonstrate that the relationship between family ownership and CSR decoupling is contingent upon family generation. Family ownership decreases CSR decoupling in founder family firms, while it increases CSR decoupling in descendant family firms. It indicates that family firms perceive the benefits and risks of CSR decoupling differently based on the generation of family leaders. JEL CLASSIFICATION: M14, G32, D22, L25

The Impact of Servant Leadership on Corporate Social Responsibility: Insights from Egyptian Tourism Organizations

This study examines how servant leadership affects corporate social responsibility (CSR) practices and its dimensions (corporate commitment, governance, environmental protection, and social contribution) in the Egyptian tourism industry, focusing on Hilton and Four Seasons. Quantitative research with 386 participants was conducted. Spearman correlation, CFA, path coefficient analysis, model quality of fit, and Fornell-Larcker criterion were used for data analysis. The links between servant leadership and CSR factors were examined using SEM. A positive and significant correlation was found between servant leadership and all CSR aspects. In the Egyptian tourism industry, servant leaders can positively influence an organization's commitment to sustainable and socially responsible business practices by prioritising stakeholder well-being, fostering ethical practices, and promoting a culture of responsibility.

Peran Corporate Social Responsibility Memediasi Pengaruh Penerapan Green Accounting dan Kinerja Lingkungan Terhadap Profitabilitas Perusahaan yang Terdaftar di Bei

The profitability of a company, as reflected by ratios such as Return on Assets (ROA), measures its ability to generate profit from operational activities. In the consumer non-cyclical sector, while some companies have experienced a decline in profits, financial performance tends to remain stable. This study employs purposive sampling to obtain 106 observations and panel data regression analysis to explore the impact of green accounting, environmental performance, and CSR on profitability, given the varying results from previous studies. The research findings indicate that: 1) Green accounting has a positive effect on corporate social responsibility. 2) Environmental performance does not affect corporate social responsibility. 3) Green accounting does not impact company profitability. 4) Environmental performance does not impact company profitability. 5) Corporate social responsibility affects company profitability. 6) Corporate social responsibility mediates the relationship between green accounting and company profitability. 7) Corporate social responsibility does not mediate the relationship between environmental performance and company profitability.

Pengaruh Corporate Social Responsibility (CSR) Terhadap Kinerja Keuangan Pada Perusahaan Sektor Infrastruktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2020-2022

This study aims to examine the influence of company size and asset structure on capital structure in food and beverage This research is a quantitative research with the type of data source being secondary data obtained from the company's financial statements and annual reports. The analysis method used is multiple linear regression using SPSS version 26 software. Data testing was carried out using descriptive statistical analysis, classical assumption test, simple linear regression analysis test, determination coefficient and t-test. The independent variable used in this study is Corporate Social Responsibility (CSR) while the dependent variable is financial performance proxied by Return On Asset (ROA). The results of the study show that Corporate Social Responsibility (CSR) has a positive and significant effect on financial performance. In addition, based on the determination coefficient (R2) test, Corporate Social Responsibility (CSR) was able to explain its influence on financial performance by 12.2% of the dependent variables. Based on the results of the study, it was concluded that financial performance measured using the return on asset ratio had a positive and significant effect on Corporate Social Responsibility (CSR). Suggestions that can be given for future research are to add variables that are not included in this study that are considered to affect Corporate Social Responsibility (CSR) and increase the research period to get accurate results.

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

Bank deregulation and corporate social responsibility

We show how external credit market development can affect corporate social responsibility. Using a sample of US public firms over the period 1991–2010, we find that bank deregulation negatively affects CSR performance. We argue that deregulation-induced banking competition enhances credit accessibility, thereby reducing firms’ incentives to pursue CSR as a means of securing stakeholder rewards. Empirical evidence shows that firms increase their use of debt financing in response to the intensified banking competition, and these firms experience a more pronounced decline in CSR performance. We alleviate the potential concern that the observed decline in CSR could be attributed to changes in bank monitoring following deregulation. Further analyses find that firms reduce CSR regardless of their material nature, suggesting that the primary driver of CSR could be the trade-off between costs and returns. Overall, our findings shed light on the strategic motives of CSR, which exhibits adaptability in response to business dynamism.

Regional Climate Risk and Corporate Social Responsibility: Evidence from China

ABSTRACT Although firms suffer from regional climate risk in their production and operation, they are still highly expected by the public to play a leading role in addressing regional climate risk. In this paper, we study how regional climate risk affects corporate social responsibility (CSR). By constructing regional climate risk indicators and employing the OLS method to conduct empirical analyses, we find that regional climate risk can significantly promote CSR. Furthermore, regional climate risk can suppress firm’s cash flow, thereby exerting internal pressure on firms to assume CSR. Meanwhile, regional climate risk can raise higher public expectations for firms, imposing external pressure on them to assume CSR. We suggest that external pressure from the public plays a dominant role in CSR decision-making. Besides, we confirm that CSR can achieve a win-win goal for both firms and the public by mitigating the damage of regional climate risk on the firm’s long-term performance. We provide a new perspective for studying firm’s motivation to assume CSR under the influence of regional climate risk.

How does tax avoidance affect corporate social responsibility and financial ratio in emerging economies?

The purpose of this study is to better understand the relationship between financial ratios and tax avoidance in businesses that practice corporate social responsibility. Using a sample of 30 Tunisian financial institutions listed on the stock exchange from 2016 to 2022, we find that engaging in corporate social responsibility activities discourages tax avoidance behavior, particularly in businesses that actively participate in corporate social responsibility activities.In terms of financial metrics, we see that businesses with higher levels of rentability, cash flow, and sales growth are more likely to engage in tax avoidance. But, businesses with high liquidity are less likely to abandon tax avoidance.Based on the findings of this study, tax authorities may be able to predict whether a Tunisian company will engage in tax avoidance in the future by looking at its financial statistics. Furthermore, tax authorities may use corporate social responsibility activities to encourage businesses to pay taxes.

Embracing certainty in uncertain times: Macroeconomic uncertainty, third‐party assurance, and CSR performance

AbstractOur study investigates whether macro‐level uncertainty on the future economic prospects, referred to as macroeconomic uncertainty, affects corporate social responsibility (CSR) performance. Two competing theories, namely, the real options theory and the risk management theory, offer different perspectives on whether firms would increase or decrease their CSR performance in response to macroeconomic uncertainty. Existing literature documents inconclusive empirical evidence about this matter. Employing a novel and unbiased measure of macroeconomic uncertainty and drawing upon data from U.S. firms between 2006 and 2017, we find that CSR performance is negatively associated with macroeconomic uncertainty. We also document that the negative association between macro uncertainty and CSR performance is attenuated for firms that have their CSR reports independently assured by third‐party experts. The results are robust to controlling for firm characteristics, an alternative measure of macroeconomic uncertainty, and an alternative sample period excluding the 2008–2009 Financial Crisis.

Does legal justice promote stakeholder justice? Evidence from a judicial reform in China

This paper investigates how judicial quality affects corporate social responsibility (CSR) performance. Employing a difference-in-differences model based on the establishment of circuit courts in China and a sample of Chinese A-share listed firms from 2010 to 2020, we find that enhanced judicial quality improves firms' CSR performance. Further analysis shows that CSR helps reduce the incidence and expense of lawsuits and financial constraints arising after the circuit court establishment and mitigates negative market responses toward lawsuit announcements. This suggests that CSR has strategic value against lawsuits and firms' incentives to reduce litigation costs, financial constraints, and adverse market reactions are the potential mechanisms. The effect of judicial quality on CSR performance is more pronounced for firms with greater ex-ante litigation risk, lower ex-ante CSR awareness, and close to circuit courts. Overall, this study highlights a novel externality of the judiciary and suggests that legal justice can promote stakeholder justice.

Do female family managers affect corporate social responsibility in Chinese family firms?

ABSTRACT This study investigates the relationship between female family directorship and Corporate Social Responsibility (CSR) in the specific context of Chinese family firms. It explores the moderating influences of gender inequality, family ownership and economic policy uncertainty. Based on social role theory, we find that female family directorship is associated with a stronger commitment to external CSR engagement than to internal CSR. Moreover, gender inequality and family ownership attenuate the relationship between female family directorship and external CSR, while economic policy uncertainty enhances their impact on external CSR. Overall, we contribute to the literature at the intersection of family firms, female leadership, and corporate social responsibility.

Examining the Nexus of Governance, Firm’s Characteristics and CSR Disclosure in Highly Polluted Industries

This study seeks to examine the effect of corporate governance and firm’s characteristics on corporate social responsibility disclosure (CSRD) of highly polluted industries. The sample of this study consisted of 250 data from 125 companies of basic material, chemicals, and energy sectors listed in the Indonesia Stock Exchange from 2020-2021. The result shows that ownership concentration has a negative effect on CSR disclosure. Audit committee and firm’s size positively affect corporate social responsibility disclosure. Meanwhile, the board size and leverage do not affect CSR disclosure. This study provides policy implications to identify governance systems and firm’s characteristics at increasing CSR awareness. The paper highlights the research context of the highly polluted industry, indicating a specific sector with unique challenges and implications for CSR. By focusing on these industries, the research aims to provide insights into opportunities associated with CSR disclosure in highly polluting sectors.

Factors Affecting the Social Responsibility Declaration Activities of Joint Stock Companies in the Consumer Goods Industry in Vietnam

Objective: The article points out that there are nine factors that affect the social responsibility declaration activities of enterprises. Research method: The article uses qualitative methods combined with quantitative methods, through an investigation of 127 joint stock companies in the consumer goods industry on the HOSE, HNX and UpCom exchanges in the period 2018-2020, the method purposive stratified random sampling method. The survey results were used to synthesize and analyze the results of the OLS linear regression model. Research results: the authors estimated and tested the correlation of 9 factors affecting corporate social responsibility declaration activities in descending order including: (1) Audit quality, ( 2) Number of meetings of the board of directors, (3) Size of the enterprise, (4) Concurrentity of the Chairman of the Board of Directors, (5) Age of the enterprise, (6) Percentage of female members on the Board of Directors,( 7) Profit ratio of the Enterprise, (8) Independence of Board members, (9) Financial leverage. Discussion of research results: Completing the legal framework for social responsibility declaration activities in Vietnam. Strictly handle violations of information disclosure activities on the stock market. Increase this administrative fine by a fine calculated based on the percentage of violation level for each information disclosure category to deter violations.

Exploring the multifaced influencing factors of corporate social responsibility in Chinese-listed manufacturing enterprises

Although scholars have conducted research on the corporate social responsibility (CSR) of Chinese firms from different perspectives, there has been no unified conclusion so far. Therefore, identifying the factors that influence CSR in Chinese enterprises is an important topic for further investigation. Does the debt leverage ratio, ownership type, degree of internationalization (DOI), and auditing by the Big Four accounting firms have an impact on CSR? Based on a series of questions, our study aims to explore the influencing factors and relationships of CSR from multiple angles. Using data from 252 Chinese A-share listed enterprises from 2014 to 2019 and the CSR scores from the Hexun.com rating index, we constructed a panel dataset comprising 1,414 firm-year observations. After comparing models, the fixed effects method of panel data is ultimately used for empirical regression. The research results indicate a significant negative correlation between the leverage ratio and CSR. State-owned enterprises (SOEs) outperform non-state-owned enterprises (non-SOEs) in terms of CSR. There is a significant positive correlation between DOI and CSR. However, the contribution of audits by the Big Four accounting firms to CSR in Chinese enterprises is limited. While our study examines many aspects of the elements that affect corporate social responsibility (CSR) in Chinese companies, each firm must consider its circumstances and apply suitable strategies to improve its CSR practices.

Examining several factors that influence corporate social responsibility disclosure

This study aims to analyze the impact of Company Size, Profitability, and Foreign Ownership on Corporate Social Responsibility (CSR) Disclosure in mining companies listed on the Stock Exchange. Specifically, it aims to determine whether these factors significantly influence CSR disclosure. This study utilizes secondary data from the financial statements of mining companies listed on the IDX. Multiple linear regression analysis assesses the relationship between Company Size, Profitability, Foreign Ownership, and CSR Disclosure. The analysis aims to establish these factors' individual and combined effects on CSR disclosure in the mining industry. This study's findings indicate that the company's size positively influences CSR disclosure. Larger companies tend to exhibit higher levels of CSR disclosure. Additionally, profitability positively and significantly impacts CSR disclosure, suggesting that more profitable mining companies tend to disclose more about their social responsibility initiatives. The results also demonstrate that the ownership of foreign shares owned by the company positively influences CSR disclosure. As the ownership of foreign shares increases, the level of CSR disclosure also increases. Furthermore, the study concludes that when considering Company Size, Profitability, and Foreign Ownership, they collectively positively and significantly affect corporate social responsibility. This study contributes to the existing literature by examining the impact of Company Size, Profitability, and Foreign Ownership on CSR Disclosure, specifically in the mining sector. The findings provide insights into the factors that affect the extent of CSR disclosure, which can help mining companies and stakeholders enhance their understanding and awareness of social responsibility practices within the industry.

Corporate governance and corporate social responsibility: Evidence from directors' and officers' liability insurance

AbstractTheoretical theories underpin the governance effect of directors' and officers' (D&O) liability insurance include agency costs and stakeholder interests. Motivated by mixed evidence on the corporate governance effects of D&O, we ask whether and how the directors' and officers' (D&O) liability insurance affects corporate social responsibility (CSR) performance in China, one of the largest and fastest growing economies in the world. We develop two contrasting hypotheses: (1) supervision and incentives versus (2) opportunism. To test these hypotheses, we rely on Chinese A‐share market data and fixed effect panel regressions, along with a battery of robustness checks, including Heckman sample selection bias, two‐stage least square instrumental variable (2SLS‐IV), difference‐in‐difference (DiD), propensity score matching (PSM) analyses. Consistent with supervision and incentives hypotheses and stakeholder theory, we find that D&O liability insurance significantly increases firm's CSR performance and firms renewing D&O liability insurance with the same insurers tend to have better CSR performance. Two possible mechanisms supporting this positive relation between D&O liability insurance and CSR performance are information transparency and accounting conservatism. Aside from theoretical contributions, our findings offer important practical contributions such as promoting D&O as external governance and ensuring the functions of D&O insurance comprehensively and correctly understood. Integrating D&O insurance with CSR can be viewed as an important business strategy by mitigating risks, enhancing reputation, ensuring legal compliance, and supporting responsible decision‐making.

Does corporate governance affect corporate social responsibility?

Does corporate governance affect corporate social responsibility?

Does economic policy uncertainty affect corporate social responsibility investment? evidence from listed companies in China

Does economic policy uncertainty affect corporate social responsibility investment? evidence from listed companies in China

Institutional Cross-Ownership and Corporate Social Responsibility: Does Product Market Competition Matter?

This paper investigates the relationship between institutional cross‐ownership and corporate social responsibility and whether product market competition moderates this relationship. Based on a sample of French firms over 2001–2015, we found that institutional cross‐ownership positively affects corporate social responsibility. Our finding suggests that the monitoring experience gained by institutional cross‐owners leads them to increase corporate social responsibility by fostering industry coordination between cross-owned firms. This positive effect is less likely in highly competitive product markets which advocates that competitive pressure may make industry coordination more difficult. Cross-owned firms may then prioritize maintaining a profitable margin over pursuing corporate social responsibility activities.

Does Supplier Instability Affect Corporate Social Responsibility? A Theoretical and Empirical Study

Prior literature typically focuses on how corporate social responsibility (CSR) is affected by the external environment and firms’ characteristics but ignores features in the supply chain. To fill this gap, we provide theoretical and empirical analyses of the role of supplier instability in CSR engagement. Specifically, our game-theoretical model considers a two-echelon supply chain where an upstream supplier is unstable and a downstream retailer makes the CSR investment. The model generates several testable hypotheses as follows: 1) the effect of supplier instability on CSR engagement is negative; 2) supplier instability mainly affects internal CSR engagement; 3) the negative instability–CSR relationship decays with the increase of supplier instability; and 4) the instability–CSR effect is more pronounced under supplier-led Stackelberg structure than retailer-led Stackelberg structure. Using a sample of Chinese firms from 2010 to 2019, we verify the above hypotheses by providing concrete empirical evidence. Our empirical estimations are robust after using the Heckman selection model to solve the endogenous selection bias.