Communicating Corporate Social Responsibility Activities Research Articles

The Effect of Corporate Social Responsibility on Firm Value with Tax Avoidance and Sustainable Financial Performance as Mediators

Research confirms the influence of corporate social responsibility on firm value through tax avoidance and sustainable financial performance. Corporate social responsibility is measured based on the ESG disclosure score. In contrast, firm value is measured using Tobin's Q. Tax avoidance is measured using the effective tax rate, and sustainable financial performance is measured using return on assets. The samples analyzed in this research were 93 public companies listed on the IDX from all sectors. This research uses a purposive sampling method to produce reports on 93 companies in 5 years of company financial reports in 2017-2021. Data analysis used the Partial Least Square SEM technique. The analysis results show that corporate social responsibility has a significant direct effect on firm value, while the mediating role of tax avoidance and sustainable financial performance is not proven. In this research, it can be seen that corporate social responsibility (CSR) has a direct influence on firm value. This shows that stakeholders rely on CSR as a positive image of the company, as in several previous research results, it can describe the value of the company, which has an impact on investors' decisions to invest but indirectly does not influence tax avoidance and sustainable financial performance. The results of this research can provide an additional understanding of the previous theoretical concept that CSR can directly influence firm value. The strategic implications, of course, depend on company decision-makers in communicating CSR activities in their reports when they want investors' attention to the firm value.

Do socio-cultural factors affect the relationships between CSR and loyalty in retailing? A three-country investigation

PurposeThe aim of this research is to investigate the positive effects of corporate social responsibility (CSR) on loyalty to retailers through trust dimensions (competence, benevolence and integrity) taking into account socio-cultural factors (social norms and collectivism) across nations.Design/methodology/approachThe authors carried out three quantitative studies (N = 948) in three countries (France, Germany and the United Kingdom [UK]). They then used structural equation modelling to test the model and hypotheses.FindingsThe results show contingent positive effects of CSR perception on customer loyalty. They underscore indirect effects of CSR on loyalty through the mediation of specific dimensions of trust (competence, benevolence and integrity). The authors also identify significant moderations such that the effects of social norms on CSR and loyalty are stronger in France/Germany than in the UK. The effects of collectivism on CSR and loyalty are stronger in France than in Germany and the UK.Practical implicationsRetailers can rely on CSR and trust to increase loyalty directly. When communicating CSR activities, retailers have to account for cultural differences in their main markets and adopt adjusted strategies to convince consumers about their CSR efforts. Retailers should understand the social norms of their customers in order to determine the effectiveness of disclosing CSR initiatives.Originality/valueUsing a cross-cultural perspective, this article extends and enriches knowledge on the relationship between CSR, social norms and loyalty in retailing in different cultural settings. It also underscores the role of trust in building loyalty across nations.

Like It or Not: When Corporate Social Responsibility Does Not Attract Potential Applicants

Companies increasingly recognize the importance of communicating corporate social responsibility (CSR) including their engagement toward employees, the community, the environment and other stakeholder groups to attract applicants. The positive findings on the effect of CSR on applicants’ reactions are commonly based on the assumption that companies send a clear signal about their commitment to CSR. However, communication is always contextualized and has become more ambiguous through the increased availability of information online. External stakeholders including actual and potential applicants are confronted with inconsistencies between the way companies communicate CSR activities and their overall CSR performance. Drawing on signaling theory, this article raises the question of how the interaction between strong CSR communication and low CSR performance influences organizational attractiveness. We propose that low CSR performance dampens the effect of CSR communication on organizational attractiveness. Hence, the inconsistency between CSR communication and CSR performance decreases organizational attractiveness. To test our hypotheses, we scraped 67,189 posts published on corporate Facebook career pages by 58 Fortune 500 companies from the time they began their respective career page until June 2018. Surprisingly, our results show that a low CSR performance strengthens the effect of CSR communication on organizational attractiveness. Thus, inconsistencies between CSR communication and CSR performance seem to lead to positive evaluations among applicants.

The paradoxical effects of communicating CSR activities: Why CSR communication has both positive and negative effects on the perception of a company’s social responsibility

Supporting societal goals and sustainable developments can help a company to be seen as socially responsible. This corporate social responsibility (CSR) must be communicated effectively as too intensive communication could negatively affect the company’s perception. These negative effects may be caused by an imbalance between the amount of CSR communication and the actual extent of CSR activities. Two experiments show that increased CSR communication has a negative indirect effect on perceptions of a company’s social responsibility, mediated by persuasive intent and reactance. However, depending on the extent of a company’s actual CSR activities, there is also a countervailing direct effect: A high extent of CSR communication positively affects perceptions of a company’s social responsibility if the company engages in a great number of CSR activities. In contrast, if a company only engages in a few activities but communicates a lot about it, this positive effect may even become negative.

COMMUNICATING CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES FOR THE REPUTATION OF AVIATION INDUSTRY IN KENYA


 Purpose: The main objective of this study was to establish the impact of communication strategies used by Kenya Airports Authority while conducting CSR activities.
 Materials and Methods: The theories that informed this study were: Attribution theory, Grunig theory and Hunt Model theory. Descriptive research design was adopted. The research targeted a population of 2,800 participants of KAA. Data was collected through questionnaires and administered to respondents in Kenya Airports Authority (KAA). The study employed both stratified and simple random technique. Data was collected using structured questionnaires. Quantitative data was analyzed using Statistical Package for Social Sciences computer software package (SPSS statistics version 22). Descriptive statistics drawn include mean, and standard deviation which were presented in tables and graphs. Inferential statistics drawn include multiple regression and correlation analysis.
 Results: The results revealed that there is a positive relationship between Self-Centred Communication Strategy and the reputation of Aviation Industry in Kenya. The results indicated that there is a positive relationship between Mediated Communication Strategy and the reputation of Aviation Industry in Kenya. The results revealed that there is a positive relationship between Dialogic Communication Strategy and the reputation of Aviation Industry in Kenya.
 Unique contribution to theory, practice and policy: The study recommended to the airlines in Kenya to consider incorporating the communication strategy, and especially the Dialogic Communication Strategy, in their CSR activities in order to have a desirable reputation. The study findings also recommended that more studies be done in future to establish the role played by other communication strategies used to communicate Corporate Social Responsibility activities on the reputation of aviation industry. The study also recommends the need to not only engage the publics through dialogic communication, but also acting on the feedbacks received.

Professional Team Sports Organizations’ Corporate Social Responsibility Activities: Corporate Image and Chosen Communication Outlets’ Influence on Consumers’ Reactions

As professional sport teams’ involvement with corporate social responsibility (CSR) activities are prevalent and expected by the public, there has been more attention on the factors that can influence consumers’ reactions to CSR activities. This study investigated the influence of two factors—corporate image and organization choice of communication vehicle—on individuals’ responses, perceived motive, and change of attitude to a professional team sports organization’s CSR activities. A total of 225 usable surveys were collected from a university located in the southern region of the United States for data analyses. The study showed that corporate image had a main effect on perceived motives, Munfavorable = 5.07, Mfavorable = 5.60, F(1, 216) = 6.38, p < .05, , and attitudes, Munfavorable = 4.64, Mfavorable = 5.49; F(1, 216) = 18.34, p < .05, , toward the team due to CSR activities, while there was no main effect for the professional team sports organization’s chosen communication vehicle, F(2, 217) = 1.09, p > .05, for their CSR activities. The importance of building good corporate image and communicating CSR activities to the fan base are also discussed.

Corporate social responsibility (CSR) communication via social media sites: evidence from the German banking industry

PurposeThis study aims to explore how banks practice corporate social responsibility (CSR) communication on two popular social media sites (SMSs), Facebook and Twitter. Furthermore, this study examines CSR communication strategies on SMSs, including the levels of communication direction and communication balance.Design/methodology/approachData were extracted from Facebook and Twitter over a five-year period (2015–2019), and content analysis was performed. The research setting was the German banking industry.FindingsThe results indicate that the number of banks using SMSs to communicate CSR-information increased over time. Although the majority of banks’ messages were not related to CSR, the most-referenced (least-referenced) CSR-theme was “society” (“human rights”). On Facebook, banks employed an interacting CSR communication strategy more often than an informing one when communicating CSR activities; on Twitter banks used a balanced mix of communication strategies. In terms of stakeholder engagement, social media users interacted with banks more frequently on Facebook than on Twitter, and banks made efforts to engage in two-way symmetrical communication.Research limitations/implicationsAlthough the sample comprised the most relevant banks in Germany, it was limited to a single national context. Thus, the results may not be generalizable.Originality/valueThis study makes a significant contribution to the limited literature on banks’ CSR communication via SMSs, provides new empirical evidence on the use of CSR communication strategies and extends prior research on the direction and balance of communication. Recommendations are provided for banking communication practitioners.

CSR Activities and Their Impact on Brand Value in Food Enterprises in Slovakia Based on Foreign Participation

This paper highlights the activity of corporate social responsibility (CSR) and its impact on brand value in food enterprises with and without foreign participation in Slovakia. Attention has been paid to all three pillars—People, Planet, Profit—and their communication in relation to customers, business partners, employees, local communities, environmental protection, and company values. The paper evaluates the impact of these activities on brand value in food enterprises in Slovakia. One hundred and twenty-five food enterprises were included in the research. The paper offers eight statistically tested hypotheses, of which three have been fully confirmed. Almost 86% of food companies with foreign participation apply CSR activities, while companies without foreign participation comprise only 40% of the total share. The biggest differences in the perception of the importance of CSR activities are noticeable in foundations and charitable activities, and in sponsorship and donations, but are less noticeable in terms of ecology, corporate transparency, and cooperation with non-profit organizations. In the field of environmental protection, CSR activities are communicated and used in order to build brand value, mostly in food enterprises with foreign participation. Almost 96% of food enterprises with foreign participation that apply and communicate CSR activities see an increase in their brand value.

THE ROLE OF WEBSITES IN COMMUNICATING CSR POLICY BY PUBLIC COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE

Companies, by engaging in Corporate Social Responsibility (CSR) activities, can generate favorable stakeholder behaviors and build up their corporate reputations. On the other hand, stakeholders’ low awareness of these activities, and their lack of confidence in corporations, create major obstacles in gaining maximum benefits for these companies. This gives rise to a need for effective CSR communication. The purpose of the research presented in this paper was to identify how companies listed on the Warsaw Stock Exchange use their websites to communicate CSR activities. The research was based on the analysis of company documents. The main results show that company size was the most important factor differentiating CSR communication.

The immediate effect of corporate social responsibility on consumer-based brand equity

Purpose In response to consumer and society demands for firms to be socially responsible, brands have been taking a strategic approach to corporate social responsibility (CSR) by integrating socially responsible activities into their brands’ core value propositions to strengthen brand equity. Thus, from a brand building perspective, this paper aims to investigate the immediate effect that brand CSR communications have on the change in brand awareness, perceived quality and loyalty, to provide a deeper understanding of how each dimension affects the overall change in brand equity. Design/methodology/approach With evidence from an experiment conducted in three different countries (Australia, United States and Spain), based on an actual brand CSR program, this paper explores the different immediate effects of change in brand awareness, perceived brand quality and brand loyalty, after the exposure to a CSR message, on the overall immediate change in value that consumers give to a brand. Furthermore, it examines the role of brand-cause fit and the influence that differences in cultural, economic and political environments have on this effect. Findings The change in brand loyalty due to CSR communication is the key dimension driving the immediate positive change in overall brand equity. In addition, change in brand awareness has an inverted U-shape relationship with change in overall brand equity, whereas the change in perceived brand quality does not have an influence. Finally, the results indicate that this immediate effect holds regardless of the level of brand-cause fit, but is greater in countries where firms are expected to participate and CSR reporting is not mandatory, making such practices be seen as voluntary. Practical implications The findings of this study offer research implications for academics, and practical considerations for brand managers, interested in how to rapidly generate changes in consumer perception by leveraging CSR activities for brand building in global settings. Specifically, it indicates that when the aim is to quickly build brand equity, the goal of communicating CSR activities must be to increase the level of attachment that consumers have to the brand since loyalty is the main driver of the immediate change in overall brand equity. Originality/value Although many scholars have demonstrated the impact of CSR on various consumer behavior outcomes (e.g., brand attitude, purchase intention, loyalty), from a brand build perspective the implications of the immediate effect of a brand communication of CSR practices on consumer-based brand equity remain less clear. This study addresses this gap to gain a deeper understanding of how to rapidly generate changes in consumer perception to build strong brands while leveraging CSR practices.

CSR ACTIVITIES AND CONSUMER LOYALTY: THE EFFECT OF THE TYPE OF PUBLICIZING MEDIUM

This research develops a model to predict the effect of advertising a socially responsible activity on perceived corporate social responsibility (CSR) and its influence on consumer loyalty. It examines the relationships between company-cause congruence, corporate credibility, altruism attribution and perceived CSR, and CSR with consumer loyalty, and analyzes the moderating effect of the type of communication medium (i.e. traditional medium vs. social medium). This study is original because it fills the gap in the CSR communication literature in the evaluation of how the use of one or another type of medium to advertise a cause related marketing activity influences the effect of perceived CSR on consumer loyalty. An empirical study was conducted with two samples of consumers, each of which was exposed to the same advertisement, inserted in either a newspaper or posted on a social network. Data were analyzed using structural equation modeling. The results carry implications for CSR activities and communications management as they validate the proposed model that integrates the antecedents of perceived CSR and its influence on loyalty, and show that the traditional medium model has a better fit and its overall effect is greater than the social medium model. From a practical perspective, this study has several implications regarding the importance of communicating CSR activities.

Do the millennials in the USA care about the fast food industry’s involvement in corporate social responsibility?

PurposeThis purpose of this paper is to develop and examine a theoretical framework for evaluating role of corporate social responsibility (CSR) in influencing millennial fast food consumers’ purchasing behavior. It also aims to help business strategists to leverage marketing strategies to achieve a competitive gain.Design/methodology/approachTo examine the proposed framework through the partial least squares structural equation modeling (PLS-SEM), the authors collected data through survey. They also evaluated the proposed framework through the multi-group analysis and the importance-performance map analysis (IPMA).FindingsFindings suggest that CSR alone is unable to influence millennial fast food consumers’ purchase intention. Therefore, fast food business strategists should communicate CSR activities by simultaneously focusing on affective identification and satisfaction to achieve the objective. IPMA analysis shows that, among all the CSR indicators, fast food restaurants’ responsible behavior and their concern with respect to the environment create the most impact on millennial fast food consumers’ mindset.Practical implicationsFor fast food business strategists, the findings of this research provide a strategic blueprint in terms of using CSR as a way to foster relationships with the millennial fast food consumers, thus creating a competitive advantage in the market.Originality/valueAnchoring in the theoretical framework, this research contributes to the extant literature by providing a critical evaluation of how to influence millennial fast food consumers’ purchase intention from a more systematic perspective. This research also offers fast food marketing managers a strategy by leveraging their initiatives for a particular customer segment through the IPMA at both the construct and indicator levels.

Society or the environment? Understanding how consumers evaluate brand messages about corporate social responsibility activities

This research examines how and why consumers evaluate brand messages about corporate social responsibility (CSR) activities differently. Insights from secondary data suggest that brands may prioritize environmental activities over social activities, and vice versa, depending on the type of company. Using a field experiment and surveys, we explore whether consumers’ attitudes toward these brand decisions follow company priorities. We find that consumers perceive brands that sell goods and communicate messages about environmental sustainability activities more positively than services companies, while consumers perceive brands that provide services and communicate messages about social sustainability activities more positively than goods companies. We show that the tangibility of the brand’s offering also impacts brand attitudes in a similar way. These findings have important implications for brand managers as they communicate CSR activities and attempt to maximize sustainability investments across various causes.

An exploratory analysis of corporate social responsibility reporting in US pharmaceutical companies

PurposeThe purpose of this paper is to compare “how we see ourselves” vs “how others see us” when communicating corporate social responsibility (CSR) activities in US pharmaceutical companies.Design/methodology/approachData were collected as follows: CSR reports from the companies themselves and Business Press reports from the Lexis-Nexis database. NVivo content analysis was used to compare CSR communication by companies and the Business Press. This analysis was comprised of almost 10 million words. Comparisons of Carroll’s framework, including the economic, legal, ethical, and philanthropic categories between CSR reports and the Business Press, were done. Additional analysis was done to discern individual, organizational, and societal patterns of communications. Return on assets was computed for companies that have formal CSR reports and those that do not.FindingsThe analysis of documents containing almost 10 million words allowed the following conclusions: companies communicate more about their economic and philanthropic activities, and the Business Press communicates more about their legal and ethical activities. The companies and the Business Press communicated similarly about individual CSR. The organization communicated more about organizational topics, and the Business Press communicated less about societal topics.Originality/valueThis paper makes both substantive and methodological contributions. Its substantive contribution allows an understanding of what pharmaceutical companies need to do to fully communicate their CSR activities. Its methodological contribution is in suggesting that content analysis be used in understanding communication patterns. A levels of analysis approach allowed the discernment of individual-oriented, organizational, and societal-oriented communication patterns.

Online CSR communication in the hotel industry: Evidence from small hotels

This paper examines how corporate social responsibility (CSR)-certified hotels communicate CSR on their websites, how guests comment on hotels’ CSR engagement in online reviews and how hotels respond to online reviews. The CSR communication strategies of stakeholder information, response and involvement of Morsing and Schultz (2006) were used as conceptual framework. Three studies were conducted. Based on a sample of 47 Austrian CSR-certified hotels, the first study explored the extent to which hotels communicate CSR activities to stakeholders via their webpage. The second study analyzed 1383 customer online reviews of the same hotels on TripAdvisor® with regard to CSR references. The third study analyzed hotels’ responses to online reviews. Results show that environmental issues and supplier relations receive highest attention from hotels and customer reviews. Employee relations are less frequently communicated and addressed in reviews. The three studies uncover opportunities for intensified stakeholder integration in CSR engagement and communication strategies.

Communicating Corporate Social Responsibility on Social Media

The purpose of this study was to explore what corporations with good reputations communicate on social media. Based on a content analysis of 46 corporate Facebook pages from Fortune’s “World’s Most Admired Companies,” this study found that corporations communicate noncorporate social responsibility messages more frequently than corporate social responsibility (CSR) messages. When communicating CSR activities, corporations employed an informing strategy more often than an interacting strategy and included internal publics’ activities more than external publics. This study also found that publics engage more with noncorporate social responsibility messages than CSR messages, which may reflect public cynicism of CSR communication.

Company reputation and its influence on consumer trust in response to ongoing CSR communication

There is considerable disagreement in academic scholarship and beyond as to whether, in cases of bad reputations, companies will want to communicate corporate social responsibility (CSR) activities because this kind of communication is likely to increase consumers’ skepticism. In this regard, the two empirical studies discussed in this article examine the influence of prior company reputation on consumers’ trust in response to CSR communication in general and the development in response to continuous CSR activities and their ongoing communication by companies as well as by the media in particular. The two studies show that consumers’ trust in companies’ CSR activities increases after a second presentation of information by companies even in instances when companies had prior negative reputations. The second study in particular fills a gap in the literature on underlying mechanisms of consumers’ reactions to CSR communication. The results suggest that companies with prior negative reputations do not need to remain silent about their CSR activities; instead, CSR communication can help improve consumers’ trust in companies. However, the findings of these two studies also suggest that this positive development is short-lived. Consumers’ developing trust in companies’ CSR activities decreases significantly if they are exposed to negative information on these companies.

Using Management Control Systems to Implement CSR Activities: An Empirical Analysis of 12 Japanese Companies

AbstractManagement accounting research regarding corporate social responsibility (CSR) implementation in Japan has yet to address the lack of empirical research examining the processes, styles and efficacy of communicating CSR activities. Thus, this study conducts survey interviews with 12 Japanese corporations to examine how Japanese companies implement CSR activities in terms of the formal control system (FCS) and informal control system (ICS) of management control systems (MCS). The results of these interviews identified how Japanese managers employ the MCS approach to implement CSR. Hoshin kanri, a non‐financial control component of the FCS, supports successful implementation of CSR under the organizational climate dictated by the ICS. This MCS approach is enhanced by three factors that reflect characteristics of Japanese management: employee commitment, a consensus decision making process and long‐term management. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

A Conceptual Framework for Exploring the Impacts of Corporate Social Responsibility on Employee Attitudes and Behaviour

This article develops a conceptual framework that explains how organizations can influence employees’ attitudes and behaviour through their corporate social responsibility (CSR) activities. There are plenty of studies to suggest the financial benefits of CSR. However, studies are scarce to link CSR with non-financial measures of organizational effectiveness, such as, affective commitment, job engagement and organizational citizenship behaviour (OCB). Moreover, studies are rare to delineate the process through which CSR can bring positive attitudes. Thus, this article focuses on organizational prosocial identity as a mediating variable. The role of communicating CSR activities is almost negligible and to address this gap, this article considers CSR communication as a moderating variable. Drawing from literature, this article argues that the success of an organization lies in enhancing positive attitudes among employees and probably, one of the ways to promote this is through CSR. Based on this assertion, the framework identifies CSR activities towards four stakeholders (employees, customers, community and environment) and its impacts on employees. Several research implications are proposed based on the propositions highlighted in this article.

Retailer corporate social responsibility

Purpose – The purpose of this paper is to contribute to knowledge on the impact of corporate social responsibility (CSR) activities on retailers’ performance. An analysis using a comprehensive conceptualization of CSR reveals that CSR has positive implications for retailers’ firm performance and illustrates which CSR dimensions are the most important to focus on. It becomes clear that retailers must care about both downstream- and upstream-oriented CSR dimensions in the value chain. The paper highlights the impact of CSR communication activities for company success both in terms of general communication to the stakeholders and relating to in-store communications. Design/methodology/approach – The authors conducted a survey among retailers. Data analysis was performed applying partial least squares structural equation modeling. Findings – While CSR generally has positive effects on retailer performance – despite cost associated with CSR implementation, the authors show that diverse dimensions have different effects. Also, both downstream (customer-oriented) as well as upstream (suppler-oriented) activities count. Also, CSR communications, thus talking about what good a retailer does, is of high relevance. Originality/value – This paper offers both theoretical implications on CSR dimensions in retailing as well as practical help for retailers on how and why to implement and communicate CSR activities.