Corporate Social Responsibility Categories Research Articles

Exploratory Study on the Awareness of Accounting Students in the Implementation of Corporate Social Responsibility(CSR) in Organizations: Basis for Crafting a Sustainability Education and Development Plan

A management concept known as “corporate social responsibility” is used by organizations whose primary goal is to actively give back to society and the community in various ways. Understanding corporate social responsibility and how it may impact not just the organization, but the community as a whole is crucial for accounting students. This study aims to determine the awareness of accounting students across different categories of CSR, such as environmental responsibility, ethical responsibility, philanthropic responsibility, and economic responsibility. A descriptive research design with a quantitative approach was used in this study. The researchers used a two-part survey questionnaire and distributed it to one hundred (100) accounting students from First City Providential College in San Jose del Monte, Bulacan. It was revealed that accounting students have a basic understanding of all categories of corporate social responsibility. However, in contrast to other categories, they appear to be less aware of economic responsibility. Along with improving their analytical abilities, the goal of the sustainability education and development plan was to help accounting students become competent in managing the wide variety of environmental, ethical, philanthropic, and economic impacts involved in financial decision-making in business.

CSR inequality, managerial myopia and hostile takeover threats

PurposeExploiting a novel measure of hostile takeover exposure primarily based on the staggered adoption of state legislations, we explore a crucial, albeit largely overlooked, aspect of corporate social responsibility (CSR). In particular, we investigate CSR inequality, which is the inequality across different CSR categories. Higher inequality suggests a less balanced, more lopsided, CSR policy.Design/methodology/approachIn addition to the standard regression analysis, we perform several robustness checks including propensity score matching, entropy balancing and an instrumental-variable analysis.FindingsOur results show that more takeover exposure exacerbates CSR inequality. Specifically, a rise in takeover vulnerability by one standard deviation results in an increase in CSR inequality by 4.53–5.40%. The findings support the managerial myopia hypothesis, where myopic managers promote some CSR activities that are useful to them in the short run more than others, leading to higher CSR inequality.Originality/valueOur study is the first to exploit a unique measure of takeover vulnerability to investigate the impact of takeover threats on CSR inequality, which is an important aspect of CSR that is largely overlooked in the literature. We aptly fill this void in the literature.

Do corporate social responsibility ratings have any effect on traffic congestion?

• Employs quantitative research and analysis methods. • Explores traffic congestion in light of CSR ratings and its translation to real-world outcomes. • An innovative idea on sustainable transportation and policy in CSR. • Enhancing CSR policy in mitigating traffic congestion is an area where private entities can have a significant local impact on a social issue affecting people, plant, and profit. Traffic congestion (TC) is a complex issue that has an adverse impact on the environment, business operations, livability, and health of a community. Supply-side TC mitigation measures increase transportation capacities while demand-side measures attempt to modify travel behavior so that the travel demand is reduced. As part of the demand-side, some corporations are investing in TC reduction through actions that contribute to improved walkability, reduced peak travel demand, and active commuting. While beneficial for their local communities, TC reduction efforts are not specifically tagged as a part of corporate social responsibility (CSR) endeavors. CSR involves reporting of a company’s stewardship towards its community and environmental impact. Research reflecting on the impact of CSR on TC has not been conducted. This study aims to fill this gap. Using corporations headquartered in the top traffic-congested cities in the United States, this study examines the relationship between TC and CSR. This research employed a hierarchical linear model with two datasets, Travel Time Index (TTI) and CSRHub ratings. Of the four CSR categories studied, community, employees, and environment ratings are significantly related to TTI, with employees and environment ratings having an inverse relationship to TTI. This shows that congestion has a strong impact on the environment and that companies, through their employee policies, can impact TC. The results also highlight the opportunities that companies have in potentially reducing their environmental impact by incorporating congestion reduction strategies as part of their CSR, either as a separate measure or as part of their environmental or employee CSR ratings. Our results are also a starting point for new tools/strategies that transportation policymakers and analysts can use to engage companies to help mitigate TC. A further study on other cities with major traffic problems may shed more light on CSR and TC.

Corporate social responsibility and comparative capitalism frameworks: Evidence from the United States, Poland, and Italy

AbstractUsing the varieties of capitalism perspective and institutional theory as frameworks, we analyze cross‐cultural differences between firms' corporate social responsibility (CSR) approaches. We investigate three countries with different institutional settings: the United States, representing a liberal market economy; Italy, representing a coordinated market economy; and Poland, an example of a dependent market economy. We examine the differences in their CSR stances, operationalized through Porter and Kramer's concept of the four CSR categories: good citizenship, mitigating harm from the value chain, transforming value chain activities, and strategic philanthropy, based on data from 269 questionnaires administered to managers attending executive seminars at the authors' universities. Focusing on stakeholder engagement activities (SEAs) across the three economies, we show that companies in all three countries engage in the four categories of CSR activities. However, using a series of tests and rankings on means and standard deviations, followed by the subsequent analysis of variance, we argue that SEAs are emphasized more in American than in Polish and Italian companies, with the latter two countries showing more subtle differences despite some institutional similarities. Our results shed light on how different capitalistic models are associated with different CSR approaches, allowing policy‐makers and practitioners to better tackle CSR objectives in different countries.

Do Corporate Social Responsibility Categories Distinctly Influence Innovation? A Resource-Based Theory Perspective

Despite the existing vast literature on corporate social responsibility (CSR), there is a lack of research on the influences of CSR categories (i.e., employees; suppliers, customers, and consumers; environment; and social welfare). The objective of this paper is to investigate the influences of distinct CSR categories on firm innovation from a resource-based theory perspective. Based on a sample of Chinese A-share listed firms from 2010 to 2017, we find that employee-, supplier, customer, and consumer-, and environment-related CSR promotes innovation, while society welfare-related CSR reduces firm innovation. We also examine the distinct mechanisms of distinct CSR categories to influence innovation. Our findings mainly contribute to the literature on the association between CSR and innovation by considering the different influences of distinct CSR categories.

Corporate social responsibility (CSR) practices in the construction industry of Sri Lanka

Construction could be considered an industry that provides a major contribution to the economy, society, and the environment. However, it is often criticised due to its unethical and substandard practices. Thus, effective Corporate Social Responsibility (CSR) practices could be utilised to minimise the adverse effects in the industry and lead to sustainability of the industry. This study focused on identifying various CSR practices prevailing in the Sri Lankan construction industry. A qualitative research approach, with twenty-three semi structured interviews, on a purposive sample, was used to gather data. Grounded theory: transcribing, coding, categorizing, was used for data analysis with five expert group interviews conducted to validate the gathered data. Findings revealed that the activities related to, three categories of CSR activities performing among construction business organisations i.e. business process-related CSR, business environment-related CSR, and philanthropic activities. Despite the industry's focus on philanthropy, it still has the capability to promote the concept of CSR through its various business process-related and business environment-related activities. As the main implication of this research, industry practitioners and stakeholders can apply the identified CSR categories and CSR activities within their core business operations to contribute to sustainable development.

Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) has been an articulated practice for over 7 decades. Still, most corporations lack an integrated framework to develop a strategic, balanced, and effective approach to achieving excellence in CSR. Considering the world’s critical situation during the COVID-19 pandemic, such a framework is even more crucial now. We suggest subsuming CRS categories under Sustainable Development Goals (SDGs) be used and that they subsume CSR categories since SDGs are a comprehensive agenda designed for the whole planet. This study presents a new CSR drivers model and a novel comprehensive CSR model. Then, it highlights the advantages of integrating CSR and SDGs in a new framework. The proposed framework benefits from both CSR and SDGs, addresses current and future needs, and offers a better roadmap with more measurable outcomes.

Does corporate social responsibility affect Generation Z purchase intention in the food industry

Corporate social responsibility (CSR) becomes more and more prevalent in the business world and is considered as one of the factors to make purchase intentions by customers. Thus, corporations are obliged to implement CSR initiatives to attract their customers. Generation Z is born in the world with the internet and social media. They are more able to handle technology and reply on the internet or social media to receive or search for information. They are more concerned with social issues or environmental problems. Therefore, CSR is one of the considerations when they make purchase decisions. This study is to explore whether CSR affects Generation Z purchase intentions in the food industry and which CSR categories have impacts on the purchase intention of Generation Z. A survey was used to collect the data from the youngsters at a post-secondary education institution. The findings showed that Generation Z will consider the CSR performance of the corporations in the food industry when they made purchase decisions. Most of the CSR initiatives, except shareholder related initiatives, had impacts on purchase intention. This may be due to the characteristics of Generation Z.

Doing Well by Doing Good, Uniquely: Materiality and the Market Value of Unique CSR Strategies

Corporate social responsibility (CSR) has become a strategic decision for organizations. The capacity to invest in several distinct CSR categories at varying levels (e.g., environmental innovation, diversity, community) leaves firms with a multitude of patterns from which to choose. However, the question of whether market returns to CSR are defined by individual-level positioning choices or by industry-level conditions––particularly the materiality of distinct categories of CSR––remains unresolved. Drawing on the literature arguing that stakeholders are crucial enablers of value creation and capture, we theorize that unique CSR strategies more effectively promote stakeholder engagement by helping firms develop differentiated and unrivaled positions with key stakeholders. Thus, we argue that CSR uniqueness is positively associated with market value. Yet we also argue that uniqueness can be constrained by materiality: in industries in which a higher number of CSR categories are considered material, firms have fewer degrees of freedom to successfully differentiate from competitors; hence, the market returns to unique CSR positioning are negatively associated with the number of CSR categories deemed material to the industry. Using a novel measure of uniqueness of CSR strategies and a database containing environmental, social, and financial information of 2,093 firms between 2002 and 2017, we find strong support for our hypotheses. To shed further light on the mechanisms driving the role of materiality, we examine the 2010 BP Deepwater Horizon oil spill.

CSR Statements in International and Czech Luxury Fashion Industry at the Onset and during the COVID-19 Pandemic—Slowing Down the Fast Fashion Business?

COVID-19 leads to a reinforced need to address sustainability at the economic, environmental, and social pillars, and the six categories of Corporate Social Responsibility (CSR) of businesses, that is, their self-commitment to integrate sustainability in their policies and strategies and to become more effective and efficient. Luxury fashion businesses refer heavily but not identically, to their CSR, by formally issuing CSR reports and Codes of Ethics, and informally voicing their pro-CSR statements. Then, the COVID-19 pandemic hit and brought important changes. This burning issue translates into three objectives in this paper—assessing the CSR statements of International and Czech Luxury Fashion Industry businesses (i) at the onset of the COVID-19 pandemic, (ii) during the COVID-19 pandemic, and (iii) identifying new trends. To address them, a holistic and interdisciplinary case study exploration was performed entailing 10 International Luxury Fashion businesses and 10 Czech Luxury Fashion businesses. The resulting data were explored via Meta-Analysis and content analysis, teleological interpretations, etc. The critical and comparative review revealed six interesting trends indicating a shift in perception of sustainability and CSR caused by COVID-19. The review offers propositions for how the COVID-19 threats could become an opportunity for rebuilding this industry.

Do CEO overconfidence and narcissism affect corporate social responsibility in the UK listed companies? The moderating role of corporate governance

Purpose This paper aims to examine the effect of two CEO characteristics, namely, narcissism and overconfidence on corporate social responsibility (CSR) and the moderating effect of corporate governance (CG) mechanisms in the UK. Design/methodology/approach Using a sample of 2,360 UK firms listed on the FTSE 400 index for the years 2010–2017, the feasible generalized least squares method was applied to test the hypotheses developed. Findings The finding argues that CEO narcissism and overconfidence positively affect CSR. In addition, this paper found that CG effectiveness moderates the CEO’s CSR behavior. Research limitations/implications This research is subjected to two limitations. First, this study used different measures to proxy for CEO narcissism and overconfidence. However, other measures are not included owing to the difficulty to collect data regarding these measures. Second, this study includes only CSR performance instead of all other dimensions and categories of CSR. These limitations do not change the conclusions of this research, and they may provide guidance for further investigations. Practical implications Given that the CEOs psychological and behavioral features are critical in understanding CSR, shareholders and boards of directors should incorporate the behavioral aspects of narcissistic and overconfident CEOs in the design of CSR strategy. Originality/value This study emphasizes the importance of top executives’ psychological characteristics for CSR, which is a key application and complements the “upper echelons theory” and fills the research gap in the literature. This is one of the few studies that investigate the interaction between CG, CEO profile and CSR.

The Role of Mutual Funds in Corporate Social Responsibility

This paper examines the role of mutual funds in corporate social responsibility (CSR). Using a fund-level, holdings-based CSR score, we find that CSR-friendly mutual funds improve firms’ CSR standings. This effect is more pronounced for firms with higher mutual fund ownership and stronger corporate governance. We further show that while CSR-friendly mutual funds have influence on almost all CSR categories, they focus on increasing CSR strengths rather than reducing CSR concerns. We also discover that CSR-friendly funds are more likely to vote in favor of CSR proposals, and that firms owned by CSR-friendly funds are more likely to link their CEO compensation to CSR outcomes. These results suggest that actively managed mutual funds, which were previously thought to be indifferent (or even detrimental) to social and ethical issues, play a significant role in corporate social outcomes of the firms they invest in.

Exploring how independent directors view CSR inequality using a quasi-natural experiment

PurposeThe purpose of this paper is to explore corporate social responsibility (CSR) inequality, which is the inequality across different CSR categories. Higher inequality suggests a less balanced CSR policy. To determine if CSR inequality is beneficial or harmful, this paper investigates how independent directors view CSR inequality, using an exogenous regulatory shock introduced by the passage of the Sarbanes–Oxley Act.Design/methodology/approachTo draw causality, this study relies on a quasi-natural experiment based on an exogenous regulatory shock that forced certain firms to raise board independence. This approach is significantly less vulnerable to endogeneity and is much more likely to show a causal effect. The results using propensity score matching, principal component analysis and instrumental-variable analysis are confirmed.FindingsThe difference-in-difference estimates show that independent directors view CSR inequality unfavorably. Specifically, board independence diminishes CSR inequality by approximately 34%-43%. Because the empirical strategy is based on a quasi-natural experiment, the results are more likely to show causality. The results also imply that CSR inequality is a crucially important aspect of CSR.Originality/valueAlthough a substantial volume of research has examined CSR, one vital aspect of CSR has been largely unexplored. Filling this void in the literature, the CSR inequality is investigated. The study is the first to explore how independent directors view CSR inequality using a quasi-natural experiment.

The CSR Perception of Front-line Employees of Luxury Fashion Businesses

Abstract Background and Purpose: The sustainability projected into Corporate Social Responsibility (CSR) is pivotal for luxury fashion businesses and they heavily refer to it. However, do their front-line employees follow this trend? To achieve an effective and efficient CSR, the front-line employees have to share the CSR perception advanced by their businesses. The main objective of the study is to discover, critically assess and compare the CSR perception of the front-line employees of the top luxury fashion industry businesses located in Prague, Czech Republic. Design/Methodology/Approach: An investigative case study of the CSR approach of such employees of all ten top luxury fashion businesses in Prague is performed while using a holistic Meta-Analysis, a manual Delphi method and three rounds of interviews, along with mystery shopping techniques. Results: The heterogenous conglomerate of data reveals: (i) problematic awareness of these employees, (ii) their ignorance of the legal setting, (iii) an imbalance and preferential focus, along with ignorance of certain CSR categories, (iv) direct and indirect contradictions and (v) a preoccupation with the fur issue. Conclusions: This alarming inconsistencies and ambiguity have strong implications for both science and practice, they call for more studies, a deeper understanding of causes and a prompt correction in order to make the CSR perception of these important inside stakeholders be in line with expectations.

CSR categories and R&D investment: the moderating role of Managerial emotional intelligence

Abstract The purpose of this paper was to determine the important role of Chief Executive Officer emotional intelligence to explain the interaction relationship between research and development investment and corporate social responsibility categories. This research relied on the completion of a questionnaire type inquiry structured around the table-based analysis. The questionnaire was sent out to a large sample of Tunisian firms’ Chief Executive Officer. The results of the 96 valid responses were entered for analysis by the partial least squares method. They show the significant effect of Chief Executive Officers’ emotional intelligence on the relation between corporate social responsibility categories (customer, employee, community, territory and environment) and research and development investment. In addition, the Chief Executive Officer emotional intelligence provided explanations into research and development investment for the corporate social responsibility problems in Tunisia. Firstly, this study emphasized the important role of research and development investment in the corporate social responsibility categories. Secondly, a new data analysis method “decision-tree” was applied to estimate the moderating effects of managerial emotional intelligence on the CSR – R&D relationship.

Corporate social responsibility and cash holding: evidence from trucking firms

ABSTRACT This study analyses the influence of corporate social responsibility (CSR) on the corporate cash management of trucking firms. The fixed-effects model of the panel data analysis is applied from 2007 to 2017. Capital expenditures, dividend payments, and retained earnings negatively influence cash holdings, whereas cash flow, market-to-book ratio, net working capital, and share repurchase for all CSR categories positively influence cash holdings. However, the changes in market leverage, dividends, book-to-market ratio, and firm size negatively and significantly influence excess stock returns. In summary, social and environmental participations positively influence cash holdings and excess stock returns, respectively.

On the relation between corporate social responsibility and financial performance

AbstractResearch SummaryThis study reexamines the relation between corporate social responsibility (CSR) and financial performance by benchmarking firms against industry peers in a given year to identify best‐in‐class and worst‐in‐class firms. We also address distributional issues when using CSR ratings (clustering of CSR scores around the median and material differences across industries and time) and financial performance ratios (the possible influence of extreme values). We find that the best‐in‐class firms outperform their industry peers in terms of operating performance and have higher relative market valuations (Tobin's Q). When we control for endogeneity, we find that the significant relation between operating performance and CSR categories disappears, calling into question whether this relation is causal. However, we continue to find that best‐in‐class firms receive higher relative market valuations than industry peers.Managerial SummaryThe conflicting evidence on the relation between CSR and firm performance may influence a manager's decision to invest in CSR activities and an investor's decision to invest in a firm. Our research provides managers and investors with important implications regarding the value of relative benchmarking. Managers should understand that expectations of CSR performance evolve over time and that investors place higher valuations on the best‐in‐class CSR firms within an industry.

CSR in Ghana’s gold-mining sector: Assessing expectations and perceptions of performance with institutional and stakeholder lenses

PurposeThis article examines community expectations and perceptions of the corporate social responsibility (CSR) performance of a multinational mining company following a unique incident of cyanide spillage from a tailings (processed ore effluents) storage facility. CSR remains a critical component of stakeholder management in developing countries due to the continuous environmental and social impacts of mining development. The article employs the stakeholder and institutional theories to assess the CSR manifestations of a large-scale mining company in the context of pressures at the plant level.Design/methodology/approachWe employ a mixed method design using survey and stakeholder interviews to collect, analyse, and present findings within legal, ethical, and discretionary CSR categories. The survey data were statistically analysed by calculating the standard deviations of the three CSR dimensions to compare and understand the data variations in respect of the perception ratings of respondents on a four-point Likert scale, while interview data was evaluated using an inductive approach based on thematic networks.FindingsThe findings suggest that unfulfilled expectations for employment generate wider consensus towards demands to share in mining benefits based on rising perceptions of inequity and social exclusion. Additionally, host communities within farming areas engage in speculative development in anticipation of CSR-related compensation resulting in a homogenised expectation. Further, this study reveals that reactive CSR practices are interpreted as both insincere and patronising, contributing to a negative perception of mining activities in affected communities.Research limitations/implicationsAs a single-case study, the findings may be inadequate for theoretical generalisations and therefore limited to the context of the study.ImplicationsRethinking stakeholder and institutional theories, and exploring new assumptions in the context of the mining industry in Ghana, may expand the current discourse within the academic, corporate, and statutory communities.ContributionThis study adds to and expands the assumptions of stakeholder and institutional theories in a mining context within local communities. It may also improve the knowledge of managers of large-scale mining companies on effective stakeholder management.

Corporate Social Responsibility and Financial Fraud: The Moderating Effects of Governance and Religiosity

This study investigates how managers in firms that have committed fraud strategically use socially responsible activities in coordination with their fraudulent financial reporting practices. Using propensity score matching to select control firms that have a similar probability of fraud in the pre-fraud benchmark period, we find that the corporate social responsibility (CSR) performance of fraudulent firms in the fraud-committing period is significantly higher compared with the CSR performance of non-fraudulent control firms during this period, and compared with that during their own pre-fraud benchmark periods. This higher CSR performance by fraudulent firms is achieved by means of investing in both stakeholder and third-party CSR categories and by improving in CSR strengths. Furthermore, the increase in CSR performance is more pronounced for fraudulent firms with a weak governance environment, and for firms located in high-religiosity states. Overall, our findings suggest that fraudulent firms strategically adjust their CSR performance to coordinate with their fraudulent financial activities.

Do Corporate Social Responsibility Activities Reduce Credit Risk? Short and Long-Term Perspectives

This study examines the short- and long-run effects of corporate social responsibility (CSR) activities on the credit risk implied in credit derivative prices. Measuring the different term effects on credit risk by the slope of credit default swap (CDS) spreads with different maturities, we investigate how CSR activities affect credit risk differently in the short and long run. Fama-MacBeth regressions reveal that firms with higher CSR scores tend to have more gently decreasing CDS slopes because, on average, CSR activities reduce credit risk in the long run more than in the short run. An analysis of individual CSR categories shows that while community, diversity and employee relations lead to a lower CDS slope, human rights and product characteristics increase the CDS slope. This finding suggests that not all CSR activities affect short-term and long-term credit risks in the same direction. Therefore, even though CSR activities can reduce credit risk in the long-run, some CSR activities may increase the short-term credit risk and hence increase short-term borrowing costs.