Corporate CSR Research Articles

CSR Expenditure and Company Performance: Charity or Signal? Evidence from Indonesia

Purpose: The purpose of this study are: first, to investigate CSR expenditures made by public companies in Indonesia are whether aimed at the charity, and second, whether CSR expenditure is related to the corporate’s performance in the future.Methodology/Approach: The samples are taken from 53 companies registered at the Indonesia Stock Exchange. Measurement of CSR expenditure uses monetary unit because CSR expenditure is the actual expenditure of the company. Company performance variables use ROA and CFO.Findings: The result indicates that CSR expenditures by companies in Indonesia are aimed at charity and are not related to their future performance. In addition, the CFO is also not related to CSR expenditure. This finding indicates that the expenditure of corporate CSR in Indonesia is only limited to fulfilling corporate social responsibility to the community without expecting repayment and to fulfill applicable regulatory obligations. Thus the resulting decision is a charity decision, not a signal.Research Limitation/implication: Sample in this study is limited to only company that reports CSR expenditure data in its annual report. The problem is that this disclosure is not mandatory in Indonesia so we cannot put all of public companies into our study. Our findings must be interpreted with this sample limitation problem.Originality/Value of paper: Our study contributes to understanding of motives of corporation in CSR spending. Corporations that operate in Indonesia are not only local corporations. Some are foreign companies that operate in Indonesia. Even though this Indonesian-based foreign corporation has its CSR program running in Indonesia, the program actually made by its home office abroad. While the CSR activity is used as signal in the home country, the purpose is not the same in Indonesia.

Company characteristics and CSR disclosure toward environmental performance

The term CSR in Indonesia has been known in the 1980s. But long before that, the application of CSR has been carried out as a philanthropic or humanitarian activity, for example, natural disaster assistance, hunger, and scholarships. But in terms of the application on the CSR fund management, the company is considered to merely maintain a reputation for stakeholders. In addition, with the publishing of the regulation Number 40 of 2007 concerning the obligations of Limited Liability Companies, companies were considered to be merely complying with the government regulations. This research aimed to examine the characteristics of the company proxies through Profitability and Environmental Performance as an independent variable on Corporate Social Responsibility Disclosure as the dependent variable. The population of this research was companies registered in the Jakarta Islamic Index (JII) during the period 2013-2017. The data collection used in this research was a purposive sampling method. The data were analyzed using multiple linear regression. The findings of this research revealed that profitability has no effect on CSR because it has a significant level of 0.595 or greater than 0.05 while the environmental performance has an effect on CSR because it has a significant level of 0.012 or less than 0.05. Based on the results of this research, it can be concluded that profitability cannot guarantee that companies will disclose CSR in their financial statements while environmental performance through the Ministry of Environment (KLH) assessment program can have an influence on the disclosure of corporate CSR.

Stakeholder Perspective of Corporate Governance and CSR Committees

CSR is becoming more and more important, and many companies have taken meaningful steps to improve their corporate governance according with a stakeholder perspective. An emerging board-level figure is the CSR or sustainability committee. The increase in complexity induced by the responsible business conduct and the growing importance of the effective management of reputational risk, highlight the usefulness of committees with proposing and consultative functions on CSR issues. These committees are relatively new governance structures, whose affirmation is slow, and can provide a useful contribution to the integration of social responsibility into strategy setting and the business model.

How Corporate Governance and CSR disclosure affect Firm Performance?

The study aims to provide empirical evidence of firm performance relation with board characteristics (Independent directors, Executive directors, and CEO duality), ownership structure (Managerial, State, and Foreign ownership) and CSR disclosure. The CSR disclosure by listed firms in developing countries has become a phenomenon during recent times. However, the type of CSR disclosure is still non-financial. However, it is an interesting topic for researchers to evaluate the performance of the firm in the presence of non-financial disclosure of CSR. Firm level panel data has collected for firms listed in KSE-100 index in Pakistan between 2012 and 2016. The study uses panel data analysis to estimate the models using firm size as a control variable. Results of the empirical research indicate that firms in the service industry are less disclosing the CSR, but such disclosure is positively related to firm performance. The authors find evidence that executive directors when engaging into CSR disclosure activities, it negatively and significantly impact the firm performance. The authors qualify the results regarding the CEO duality, independent directors, managerial ownership, state ownership and foreign ownership with impact on firm performance. Further, the results suggest that state ownership is influential in the service industry and negatively affect the firm performance. This study contributes to the existing body of knowledge in developing countries context that how CSR non-financial disclosure, especially in the service firms, affect the firm financial performance. Future research should use cross-country analysis for assessing the models and examining the results across countries, industry, and sectors. From a practical perspective, the results may guide firms how to engage in CSR disclosure activities without hampering the firm performance while considering the other firm level factors. This study is extensively novel in all of its contents and contributes mainly to the literature of CSR disclosure and firm performance.

PENGARUH PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP PENGUNGKAPAN TANGGUNGJAWAB SOSIAL PADA PERUSAHAN ASURANSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

The purpose of this study is to analyze the effect of profitability and firm size on the disclosure of social responsibility on insurance companies as independent variables using profitability and firm size variables on social responsibility disclosure (CSR) as the dependent variable in company annual report, Respectively) and simultaneously (together). The sample that is the object of this research is all insurance companies listed on the Indonesia Stock Exchange in 2013 to 2016, the total sample for research four years of observation is 40 samples by using purposive sampling. The data used are secondary data from annual reports and performance reports of insurance companies that have been published. The data analysis technique used is multiple linear regression with the help of SPSS version 22. The results of this study are as follows, 1. Profitabilias Insurance company has a negative and insignificant effect on corporate CSR, 2. The size of the Insurance Company has a negative and significant effect on CSR. The results of this study provide information for companies about the level of disclosure of social responsibility owned by insurance companies, and also useful for providing information for decision making.

STRATEGI PENGELOLAAN MODAL CSR UNTUK PENINGKATAN KESEJAHTERAAN MASYARAKAT

The focus of the problem in this study is the assessment of health assessments by analyzing the performance of managers and managers, the strategy in developing the BMT Swadaya Indigenous in community empowerment cooperation program with PT. Holcim Indonesia, seen from the influence on improving the welfare of Klapanunggal people.� The approach used in this research is by searching and collecting data, as well as library study which concerns the theories about micro finance institutions, syari'ah financial services products and others related to BMT Swadaya Indigenous with various existing patterns. Processing and data analysis in this study using qualitative descriptive analysis method to measure the analysis that includes characteristics, behavior and financing system. In this case we use SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).� Based on the results of data analysis conducted in this study gives the conclusion that corporate social responsibility can give effect to the improvement of people's life welfare. This happens because in the CSR capital participation can minimize the social issues that are warm in the community. CSR contribution in community economic development is to involve all components of society in corporate CSR activities. This has been done by PT. Holcim Indonesia by initiating the establishment of BMT Swadaya Indigenous through fund participation as revolving capital of empowerment to the community has illustrated the success in the implementation of corporate CSR. And based on the results of data analysis and discussion that has been done in the previous chapters, the General Level of Health Performance BMT Swadaya Indigenous included in the category Fair Enough.� Based on the research findings BMT SP need to improve efficiency, reserve fund disbursement is more proportional, it takes a policy strategy that is more concerned with local values of the community and the need for participation of all levels of society and expanded so that parties who have never get CSR program the company can feel also corporate CSR activities .

PENGARUH FEMINISME DEWAN, GRI ADOPTION DAN UKURAN PERUSAHAAN TERHADAP PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (CSR) (Studi Kasus Pada Perusahaan Sektor Infrastruktur, Utilitas dan Transportasi yang terdaftar di Bursa Efek Indonesia periode 2013-2017)

CSR disclosure is an important topic that proves whether the company isresponsible for economic, environmental and social factors or not. Company activities havean impact that can harm stakeholders, especially those around the company. Therefore thecompany must disclose its social activities into social responsibility reports to prove thecompany's commitment to the economy, environment and social.This study aims to analyze what factors can affect corporate social responsibilityreports. This study intends to determine whether the independent variables (board feminism,GRI adoption, and firm size) have a simultaneous or partial effect on the dependent variable(Corporate social responsibility disclosure).This study uses a population of infrastructure,utility and transportation sector companies listed on the Indonesia Stock Exchange from 2013to 2017. This research uses purposive sampling technique and obtained 8 companies with a 5-year research period, so that 40 sample data were obtained. The method of data analysis inthis study is panel data regression using software eviews 10.The results of this study state that board feminism is divided between the board ofdirectors' feminism and the boarder's feminism, the GRI adoption and the size of the companyjointly influence the disclosure of corporate CSR in the infrastructure, utilities andtransportation sectors for the period 2013-2017. Firm size has a significant negative effect onCSR disclosure. While board feminism and GRI adoption do not affect CSR disclosure.

Social Capital, Trust, and Corporate Performance: How CSR Helped Companies During the Financial Crisis (and Why It Can Keep Helping Them)

The authors summarize the findings of their study, published recently in the Journal of Finance, that shows that CSR investments can help companies when they perhaps need it most—that is, during sharp downturns when overall trust in companies and markets declines.Companies with high‐CSR rankings experienced stock returns that were five to seven percentage points higher than their low‐CSR counterparts during the 2008–2009 financial crisis, and even larger excess returns during the Enron crisis of 2001–2003. High‐CSR companies during the crisis also reported better operating performance, higher growth, higher employee productivity, and greater access to debt markets—while continuing to generate higher shareholder returns as late as the end of 2013. Many of these operating improvements continued well into the post‐crisis period, though at more modest levels.As the authors view their findings, the ‘social capital’ built up by corporate CSR programs complements effective financial capital management in increasing shareholder wealth mainly by limiting companies' downside risk. CSR is seen as not only reducing systematic as well as firm‐specific risk, but as also providing protection against overall ‘loss of trust.’ The social capital created by CSR programs is said to provide a kind of insurance policy that pays off when investors and the overall economy face a severe crisis of confidence.

ESG and Socially Responsible Investment: ACritical Review

We review the literature on ESG and Socially Responsible Investment with a special focus on fixed income investments. Most of the academic research is focused on the link between corporate CSR and ESG activities, investors’ SR engagement and stock returns and firm value. Very few studies examine the link between firm ESG policies and bond prices, risks and returns, and the performance of SR FI funds. The studies linking CSR to firm value suggest that higher CSR leads to higher corporate value, higher equity returns and lower risk, enhancing the general collateral value of the firm. The FI income studies provide mixed evidence about the link between issuer ESG scores and bond prices and return characteristics: the bonds of issuers with both excellent and very poor ESG behavior tend to under-perform the bonds of issuer with neither very strong or very poor ESG scores. Lastly while issuers’ ESG excellence may have led to both their equity and debt outperforming those of poorer ESG issuers in the 90’s, this out-performance halved in the first part of the 2000’s and completely disappeared after the financial crisis. Markets seem now to largely price ESG performance in equity and bond prices.

Is my company really doing good? Factors influencing employees' evaluation of the authenticity of their company's corporate social responsibility engagement

Based on persuasion knowledge theory, attribution theory, and a qualitative investigation of authenticity, this study investigates employees' CSR authenticity evaluation in four CSR domains (customer-, employee-, environment-, and philanthropy-oriented). Four antecedents of employees' CSR authenticity evaluation are examined: the evaluation of CSR advertising, the perceived fit between corporate culture and CSR engagement and two perceived CSR motives. Additionally, employees' involvement in CSR as an individual difference variable is analyzed. Results are reported from a study with the employees (n = 432) of a large European energy provider. Findings reveal that the evaluation of the CSR advertising and the perceived corporate culture fit have a higher impact on employees' CSR authenticity evaluation than do the perceived CSR motives. While CSR authenticity in the customer-, employee- and environment-oriented CSR domain are mainly influenced by perceived corporate culture fit, CSR authenticity in the philanthropy-oriented CSR domain is mainly affected by the evaluation of CSR advertising.

Firm value in commonly uncertain times: the divergent effects of corporate governance and CSR

ABSTRACTEconomic uncertainty disrupts firms’ ability to create value. Most related literature examines how various organizational characteristics affect value under extreme conditions – the global financial crisis. However, recent work in quantifying economic uncertainty now makes it possible to take a more nuanced approach in investigating the conditions under which this value reduction can be mitigated during more ‘commonly uncertain’ periods. In this paper we analyze the effects of corporate governance mechanisms and social responsibility investments on Tobin’s q across 13 years and 40 countries. Evidence suggests that shareholder-centric corporate governance policies restrict board and executive flexibility during uncertain times, and therefore stifle their ability to react effectively to adverse macroeconomic changes. We also find that CSR initiatives serve as insurance in that they preserve value under uncertainty by acting as a reservoir of social capital.

Firm Value in Commonly Uncertain Times: The Divergent Effects of Corporate Governance and CSR

Economic uncertainty disrupts firms’ ability to create value. Most related literature examines how various organizational characteristics affect value under extreme conditions – the global financial crisis. However, recent work in quantifying economic uncertainty now makes it possible to take a more nuanced approach in investigating the conditions under which this value reduction can be mitigated during more ‘commonly uncertain’ periods. In this paper we analyze the effects of corporate governance mechanisms and social responsibility investments on Tobin’s q across 13 years and 40 countries. Evidence suggests that shareholder-centric corporate governance policies restrict board and executive flexibility during uncertain times, and therefore stifle their ability to react effectively to adverse macroeconomic changes. We also find that CSR initiatives serve as insurance in that they preserve value under uncertainty by acting as a reservoir of social capital.

The role of corporate identity in CSR implementation: An integrative framework

This paper investigates the relationship between corporate identity (CI) and CSR and describes how CI can underpin the development and implementation of CSR initiatives; thus helping to clarify how best to implement CSR in business practice. Empirical findings derived from interviews with senior executives in leading UK-based companies reveal the steps that firms take to develop and implement CSR initiatives. The study provides a framework which directs management attention to key CI elements and practices, both strategic and operational, required to sustain different stages of CSR implementation. Using CI as a unifying platform, the framework clarifies how CSR originates strategically from CI values and founder's vision as explicated in mission statements, which legitimize CSR and develop a shared culture. CI plays a role in implementing CSR via communication and senior management behavior which impact employee identification with organizational values and goals and behavior, which relate to voluntary participation in CSR.

Corporate diplomacy and political CSR: Similarities, differences and theoretical implications

The purpose of this study is to systematically review the body of knowledge on corporate diplomacy (CD) and political corporate social responsibility (PCSR) in journals from the fields of public relations, public diplomacy, general management and business ethics. By applying an interdisciplinary approach our study aims to (1) examine what definitions of CD and PCSR exist, (2) explore what theories have been applied to CD and PCSR and, (3) find differences and commonalities between the underlying concepts of CD and PCSR. Building on the results of our review, we redefine each construct and develop a theoretical framework of CD, which integrates PCSR, international public relations and public diplomacy. Our results serve as a foundation for an operationalization of the constructs in order to conduct empirical analyses and contribute to current research on the political role of multinational corporations.

The Effect of Corporate CSR on Customer Attitudes

The research aim to analyze (1) the effect of CSR toward corporate image, (2) effect of corporate image toward attitude, (3) effect of CSR toward customer’s perception, and (4) effect of customer’s perception toward attitude of Bank Mandiri. This descriptive study using survey method with quistinaire to data collection. Respondent ini this research are customer’s of bank Mandiri in Jabodetabek area. The analysis approach used in this research in Structural Equation Modeling (SEM). The hyphotheses results obtained indicated that (1) CSR has positively influence significantly towards corporate image, (2) corporate image has positively influence significantly toward attitude, (3) CSR has positively influence significantly toward customer’s perception, and (4) customer’s perception has positively influence significantly toward attitude. CSR has direct and indirect positively influence, through corporate image and customer’s perception, toward customer’s attitude.. Keywords: Attitude, corporate image, CSR, perception , Structural Equation Modeling (SEM) DOI: 10.7176/JMCR/53-08

Reflection of Corporate Social Responsibility Implementation: Community Engagement In Sustainability Aspects

Social responsibility is a form of business commitment to continue acting ethical, operate legally in sustainable economic development to all stakeholders and the wider community. The aim of the study was to reflect on Corporate Social Responsibility at PT. BNI regarding Community Engagement? The research approach used is a qualitative approach. The interpretive paradigm is used by researchers so that they can assist researchers in achieving the objectives in carrying out research by reflecting the CSR of PT. PTI (Persero) Tbk. The primary data source in this study was through interviews with corporate and community CSR staff and direct observation to review the implementation of the PT.BNI CSR program. While secondary data sources are annual reports and sustainability reports (CSR). Researchers use the type ofmethod content analysis guided by sustainability accounting (Sukoharsono, 2010). The results of the research on the implementation of CSR to the community through partnership and community development programs have a good impact on the welfare of the community which are examined based on 4 aspects, namely social, economic, environmental and spirituality.

CSR az innováció szolgálatában. A Tungsram, mint a kormány-stratégiai partner vállalata CSR tevékenységének esetalapú vizsgálata

THE AIMS OF PAPER CSR-mapping of Tungsram as a strategic partner of Hungarian government stands in focus of study. Based on its objective, authors attempted to capture complex analysis: they wanted to outline company's CSR activities and related processes, from identifying stakeholders to involving them, through process management, till measuring and evaluating practices. METHODOLOGY Authors conducted document-analysis and two semi-structured interviews. Methodology was supplemented by a quantitative survey focusing on employee satisfaction, as well. MOST IMPORTANT RESULTS Parallel to dimensions of previous literature processing, Tungsram's CSR objectives are (i) driven by business decisions and business decision-makers, (ii) the company's CSR activities go beyond statutory principles and regulations, and (iii) the company is working to promote sustainable and less environmentally friendly technologies through the development and market introduction of innovative solutions. Connecting to research and innovation centers, as well as representative implementation and testing of some complex “smart-solutions” projects are crucial when consolidating presence in international markets. For this, strategic business cooperation with government provides an appropriate and flexible framework. RECOMMENDATIONS The transforming market, the strategy that is still taking shape, and the restructuring process following separation from the former multinational owner, are supported by a CSR organization that has not yet been boned. At the same time this department is shaping its own vision and aware that it is no longer need to localize actions dreamed at headquarters of a multinational company, but to develop and execute specific „Tungsram-focused” actions. Not only evolving corporate strategy but CSR programs itself are designed to support innovation-management, which - through systematic development of programs and feedback of standard indicator systems - can further support Company's domestic and foreign market operations and goals.

Disclosure of CSR over the Firm Life Cycle in Japan

This paper investigates how a firm’s life cycle affects corporate CSR disclosure. Using data from Japanese firms from 2006 to 2015, the firm life cycle is classified according to Dickinson (2011). The results show differences in disclosure levels depending on the firm life cycle. In the maturity stage, the amount of disclosure is significantly larger while, in the growth stage, the amount of disclosure is smaller. Additionally, there are differences in disclosure levels depending on the type of CSR information. Environment-related information has a significant influence in Japan. On the other hand, there were no significant differences in terms of governance and society. In Japan, stewardship codes have been introduced and reference those of the United Kingdom. For CSR-related information, disclosure should occur in accordance with laws and regulations, and information other than disclosure based on laws and regulations should also be addressed subjectively. The situation of firms has not been considered thus far. In the future, an appropriate disclosure strategy that considers firms’ growth stage would be employed to improve firm value.

Corporations as an Object of Research in Geography of Industry

Today, corporations play an important role in the global, national and local economy. Regardless of the business profile, degree of internationalisation or size, they participate in numerous economic processes, which is why they are the subject of research in geography of industry, especially in geography of enterprises. The main goal of the article is to review research related to corporations in Polish literature on the subject in the field of geography of industry. The author also aims at organising the concept of corporations, presenting closer their classifications, as well as indicating the place of research on corporations in geography. The preparation of the article began with a literature query, as well as an analysis of the existing data (desk research). As a result, the analysis of the concept of a corporation, various types of classifications and divisions of corporations, as well as a literature review of the subject in terms of the corporation’s research issues were made. As the research carried out indicates, in Polish literature on the issues of geography of industry, the researchers who concentrate on corporations look at the concentration of their head offices, theory and location factors, shaping processes and location of production, service and various branches, network connections, strategies implemented by corporations and their organisational forms, processes of corporation influence on international conditions for the development of domestic and regional systems and industrial enterprises, stimulation of inflow of foreign direct investment, the influence of corporations on the shaping of various industrial sectors, export relations, the role of cities in globalisation processes and the location of the corporation and their effects, as well as on corporate CSR activities.

Comparative Study Level of CSR Compliance in the Cement Industry Sector, Mining Sector and Banking Sector in Indonesia

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