Corporate Social And Environmental Responsibility Research Articles

STRATEGI PUBLIC RELATIONS PT KILANG PERTAMINA INTERNASIONAL REFINERY UNIT IV CILACAP DALAM MEMPERKUAT PEMBERDAYAAN PASAR SEMOK (SMALL ENTERPRISE MEDIUM OF KEMIREN ASRI) DI KELURAHAN TEGALKAMULYAN KECAMATAN CILACAP SELATAN KABUPATEN CILACAP

PT Kilang Pertamina International RU IV Cilacap as a global energy company, has a sustainability commitment to strengthen social development by running the PERTAMINA CSR (Corporate Social and Environmental Responsibility) program through sustainable community empowerment aimed at realizing community economic independence by establishing and fostering Micro Small Units (UMK) which is run through the UMK Funding Program so as to encourage UMK to upscale. This study aims to determine the public relations strategy of PT Kilang Pertamina International RU IV Cilacap in managing relationships with the Kemiren Asri Group, as well as strategies and factors in strengthening the empowerment of the SEMOK (Small Enterprise Medium of Kemiren Asri) Market. This research is a type of field research conducted using a qualitative approach. The presentation method used in the research is through observation, interviews, and documentation.
 From the research results that have been prosented, the gradual community empowerment in Kemiren Village has produced many beneficial results for the community. A unique condition and has a value chain where all activities in Kemiren Asri are related, and form a zero waste system, where no waste is wasted from all production activities of the Kemiren Asri Group. To develop Kemiren at a higher stage, the company together with the community developed the marketing of Kemirean Asri product through SEMOK Market (Small Enterprise Medium Of Kemiren Asri).
 In order to achieve success in every condition faced by the company, PT Kilang Pertamina International RU IV Cilacap uses four steps of public relations strategy in carrying out CSR programs, starting from the planning, implementation, monitoring, and evaluation stages. The SEMOK Market program implementations system was initiated by PT Kilang Pertamina International RU IV Cilacap and the Kemiren Asri Group from the evaluation results, and involved all stakeholders in providing access and support to encourage self-help communities.

Corporate Social and Environmental Responsibility in SOE Mining Sector in Indonesia: Commitment of Social-legal Awareness

Through its Corporate Social and Environmental Responsibility (CSER), the company actively contributes to addressing social vulnerability issues in communities. However, given that businesses are also impacted financially, it is interesting to find out why companies, especially State-Owned Enterprises (SOE), continue to run their CSER programs, whether it is merely an obligation due to regulatory orders or whether there are other motives. This research was conducted from the perspective of the sociology of law. The result shows that the obligation of CSER in several regulations is not merely the lawgiver's own desires but comes from social awareness, given that kinship has existed for a long time. Even though there are no explicit restrictions addressing requirements or sanctions to implement CSER in the SOE Law, SOEs in the mining sector demonstrate their commitment to social awareness by continuing to carry out their CSER program in 2020 and 2021.

Corporate social and environmental responsibility advertising: Advertising effectiveness as a function of viewing context

This study investigated the effects of corporate social and environmental responsibility (CSER) advertising, and programme-advertisement congruency, on advertising effectiveness. In a between-subjects design, participants (N = 128) viewed either three CSER or three neutral advertisements for the same brands embedded in either a “sustainable” or “neutral” programme. Measures of memory for advertising (free recall, cued recall, and brand recognition), and buying intention were obtained. The percentage recall and buying intention scores were significantly higher for CSER than neutral advertisements, but there was no effect on brand recognition. There were no significant effects of programme type nor significant interactions between programme and advertisement types found. The effectiveness of CSER advertising as measured by free recall was found to vary as a function of the brand being advertised, which was attributed to differences in the type of message being carried by the CSER advertisements.

The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand

This study aims to: (1) investigate the amount of corporate social and environmental responsibility (CSR) spending, awards, and activities of listed companies in the Stock Exchange of Thailand (SET) and in the Market for Alternative Investment (MAI); (2) test the impact of CSR spending, awards, and financial performance activities; and (3) examine the amount of CSR spending, awards, and activities between companies with and without a CSR committee. The sample included all the listed companies in the resource industry from the SET and the MAI. The data were collected from the companies’ annual reports from 2015 to 2019. Descriptive analysis, an independent-sample t-test, a correlation matrix, and an unbalanced panel data analysis were used to analyze the data. The average level of spending per activity was 2.2964 million baht. There were, on average, 2.1741 awards and 11.4178 activities during the studied period. Moreover, there was a significant negative impact of CSR spending, and a positive impact of CSR awards and activities, on corporate financial performance. Finally, there was a significantly different amount of CSR spending, awards, and activities between the companies with and without a CSR committee. The findings of this study demonstrate that legitimacy theory can be used to explain the benefit of CSR to Thai-listed companies, although CSR is still a voluntary corporate responsibility in Thailand.

Corporate social and environmental disclosure as a sustainable development tool provided by board sub‐committees: Do women directors play a relevant moderating role?

AbstractThe aim of this research is to examine the impact of three audit committee characteristics on corporate social and environmental responsibility (CSR) disclosure: the existence of an audit committee, audit committee independence, and audit committee financial expertise. Moreover, this research analyzes the moderating effect of board gender diversity between these audit committees' attributes and CSR reporting. The results of analyzing 13,178 firm‐year observations of non‐financial companies show that the presence of an audit committee and audit committee financial expertise are positively associated with CSR disclosure. However, a higher proportion of non‐executive directors in audit committees has a negative effect on the disclosure of CSR information. These findings suggest that some audit committees' features play an important role in ensuring the reporting of environmental, social, and economic information. Our evidence also indicates that the presence of female directors on boards increases the positive impact of financial expert membership of audit committees on CSR disclosure, while women directors moderate any negative effect of the percentage of independent directors on audit committees on CSR reporting by increasing the latter. In addition, female directors moderate the positive impact of the existence of an audit committee on the disclosure of CSR information by reducing the latter.

Institutional complexity and CSR practices: evidence from a developing country

PurposeThe study aims to investigate the appearance of corporate social and environmental responsibility (CSER) practices in a context where economic, communal and political institutions are highly central and competing with each other.Design/methodology/approachTheoretically, the study draws upon the institutional logics perspective and the theoretical concepts of logics centrality and compatibility to understand how higher-order institutions interact with mundane CSER practices observed at the case company's micro level. Empirical data were solicited in an Egyptian village community, where fishing, agriculture and especially salt production constitute the main economic activities underlying its livelihood. A combination of interviews, informal conversations, observations and documents solicits the required data.FindingsThereby, this study presents an inclusive view of CSER as practiced in developing countries, which is based not only on rational economic perspectives – as is the case in developed and stabilised contexts – but also on social, familial and political aspects that are central to the present complex institutional environment.Originality/valueThe reported findings in this study highlight the role of non-economic (societal) logics in understating CSER in African developing nations.

The impact of corporate governance on social and environmental engagement: what effect on firm performance in the food industry?

PurposeThis paper aims to provide new evidence on firm-specific determinants and effects of corporate social and environmental responsibility (CSER) in the food industry.Design/methodology/approachThe current study is designed to empirically answer dual related research questions. First, we investigate the extent to which effective corporate governance (CG) mechanisms foster CSER. Second, we analyse the impact of CSER engagement on corporate financial performance (CFP). Consistent with the research design, to avoid sample selection bias, the authors employed Heckman two-step model (1979) to a worldwide sample of 324 food firms between 2011 and 2017.FindingsThe findings of the study reveal that effective board characteristics foster CSER engagement. Furthermore, CSER engagement is a positive predictor of improved profitability and also reduces the cost of debt (COD).Originality/valueThis article has elements of originality regarding the research questions, the context and the method. First, the authors demonstrate that CSER is a “missing link” between CG and CFP in the food industry. The authors’ contribution complements the debate on CSER and CFP through the stakeholder theory, the resource-based view and the innovation management perspective. They disentangle the effect of CG from the impact of social and environmental responsibility after correcting for endogeneity bias. The implications of the study contribute to a win-win scenario for companies investing in CG that result in higher CSER engagement, better profits and lower cost of capital.

Does CSER is a driver of innovation Evidence from French listed companies

This study examines whether socially responsible firms carry higher research and development (R&D) intensity and how corporate governance quality influences this investment. Based on a sample of French firms belonging to the SBF 120 index from 2012 to 2016, the results show that firms with higher corporate social and environmental responsibility (CSER) score have greater R&D intensity. These companies try to protect environment and to create positive social impact by the use of new technologies. Moreover, the findings confirm that firms with better corporate governance quality invest more on R&D. Finally, the results reveal that some control variables influence significantly R&D intensity. The findings in this research may be of practical interest to investors, sustainable professionals and modern consumers who are aware of social and environmental concerns and who are trying to keep themselves informed about strategies used by businesses to improve CSER practices.

ESG disclosure regulation: in search of a relationship with the countries’ competitiveness

This paper is devoted to the investigation of environmental, social and governance (ESG) disclosure regulation process and its possible connection with countries’ competitiveness as an integral part of countries’ Corporate Social and Environmental Responsibility (CSER) poliсy. ESG disclosure regulation criteria were examined according to their classification on Pension Fund Regulation, Stewardship Code, Government Corporate ESG disclosure, and Non-Government Corporate ESG disclosure by UNPRI in 2016 and for developed countries and developing and emerging countries separately. In order to find the relationship between ESG disclosure and the countries’ competitiveness (describing by Global Competitiveness Index), variety of statistical tests was applied (Student’s t-tests, ANOVA analysis, Mann-Whitney tests, simple average analysis and regression analysis with dummy variables). Research hypotheses about statistically significant differences in ESG disclosure regulation between developed countries and developing and emerging countries and the influence of ESG disclosure regulation on the overall competitiveness of the country were proved. ESG disclosure regulation became an effective instrument of countries CSER policy and tools for increasing their competitiveness.

Ensuring Corporate Social and Environmental Responsibility Through Vertical Integration and Horizontal Sourcing

Firms have recently vertically integrated with suppliers to ensure corporate social and environmental responsibility (CSER) in sourcing. We investigate the conditions under which CSER concerns will drive vertical integration, and how actions of nongovernmental organizations (NGOs) impact CSER. This paper is inspired by Taylor Guitars’s acquisition of an ebony mill in Cameroon to ensure CSER. Whereas the majority of the responsible sourcing literature focuses on auditing as a mechanism for addressing CSER, we study vertical integration as an alternative. Our analysis confirms that CSER can be a potential driver of vertical integration aside from other well-known drivers. We analyze game-theoretical models where a firm can vertically integrate to potentially eliminate CSER risks. Two innovative features of our models are demand externalities (namely, a firm’s CSER violation can positively or negatively affect its competitor’s demand) and horizontal sourcing (namely, a vertically integrated firm can sell responsibly sourced supply to a competitor). We show that a firm’s CSER strategy depends on the risk of a CSER violation exposure, the level of demand externalities (positive or negative), and whether horizontal sourcing is feasible. We find that in industries where horizontal sourcing is unlikely, firms stay disintegrated under a low CSER violation exposure risk and vertically integrate under a moderate CSER violation exposure risk. Surprisingly, firms may stay disintegrated under a high CSER violation exposure risk combined with strongly negative demand externalities. In contrast, firms vertically integrate under moderate-to-high CSER violation exposure risk when horizontal sourcing is possible but may not share responsibly sourced supply through horizontal sourcing under strongly positive demand externalities. We show that firms should be conscious about demand externalities and the possibility of horizontal sourcing in the industry when considering vertical integration for CSER. We also provide guidance to NGOs interested in promoting CSER. When horizontal sourcing is unlikely, NGOs should specify both violating and nonviolating firms in their reports, but not over-scrutinize firms; whereas when horizontal sourcing is possible, NGOs should allocate more resources for scrutinizing firms’ CSER violations and create industry-wide violation reports, while avoiding naming of specific firms in their reports. This paper has been accepted for the Manufacturing & Service Operations Management Special Issue on Value Chain Innovations in Developing Economies.

Regulation on Corporate Social and Environmental Responsibility (CSER) in Indonesia: Changing Concept of Corporate Social Responsibility (CSR) from Voluntary to Mandatory

The research is financed by Ministry of Research, Technology and Higher Education of the Republic of Indonesia No. 180/K3/KM/2014 Abstract The purpose of this paper is to describe the results of the research on the regulation of Corporate Social Responsibility (CSR) in Indonesia as well as its development, as regulated in Chapter V - Article 74 of Law No. 40 of 2007, using the term Corporate Social and Environmental Responsibility (CSER). The research method employed is legal research, which is analyzed prescriptively, to produce novelty about alterations in the concept and regulation of CSER which is in force Indonesia, changed from voluntary (morale obligation) to mandatory (legal obligation). The existence of the CSER regulation, which has been passed by the Government and House of Representatives, is intended to improve the welfare of society in its environment. Moreover, it is intended to create legal certainty regarding the implementation of CSER for limited liability companies running their business activities in the field of and/or related to natural resources. However, the existence of such regulations is not without problems, which will be discussed in this paper. Keywords: CSER, Voluntary, Mandatory, Changing Concept DOI : 10.7176/JLPG/81-09

Formation of the Mechanism of Corporate Social and Environmental Responsibility of the Trading Company

It was determined that the impact of corporate social and environmental responsibility (CSER) on the formation of the company’s distribution policy has more integrated mechanism than previously assumed. The article emphasizes the fact that all intermediaries (major, regional, local distributors) must comply with the principles and provisions of СSER of manufacturer as the brand owner at the stage of providing consumer with the products. CSER mechanism of the trading company is suggested to form a sales management strategy for a trading company, that is developed on the basis of CSER of manufacturer and aimed at improving economic results and improving social, environmental and economic state of the territory. The conceptual foundations of the mechanism of cooperation with the local distributor are proposed and the expediency of its attraction, which is based on the analysis of the BCG matrix, is justified using Sumy affiliated branch of LLC Bayadera Logistic as case study.

TANGGUNG JAWAB SOSIAL, LINGKUNGAN DAN REPUTASI PERUSAHAAN: PENGUNGKAPAN PADA SITUS BANK

This research aims to provide evidence on the contents of corporate social and environmental responsibility (CSER) disclosures and company reputation on the three largest Banks (Bank Mandiri, Bank Central Asia and Bank Rakyat Indonesia) in Indonesia. CSER disclosures were measured through content analysis methods from the company’s’ websites, and company's reputation was measured through customer perceptions. The study was conducted through an online survey of 360 customers by undertaken non probability sampling and accidental sampling (convenience sampling). The results show that the majority of respondents agree with a good reputation after reading the Banks’ CSER websites. The dominant information of the Bank’s CSER website are community activities and programs, followed by environmental activities. Respondents stated that the Bank's reputation has been good and by reading the CSER website, the respondents felt more familiar with the Bank's activities. This familiarity adds a sense of customer’s closeness to the Bank. This research provides implementation contributions to the Bank and also provides empirical findings that can be used by other Banks in delivering CSER disclosures on the website. This research enhances to the depth of study in the field of CSER in the Indonesian context and contributes to the new insights for CSER research area.

Reconception of mandatory-based corporate social and environmental responsibility in Indonesia

The Legal Concept of Corporate Social and Environmental Responsibility (CSER) in Law Number 40 Year 2007 (Company Law), as set forth in the general provision Article 1 (3) of Company Law evidently is a definition (begripsbepalingen) of voluntary basis, because it comes from the concept of CSR used by western countries based on World Bank’s guidelines. Hence, it is certainly contrary to the legal concept of CSER that is perceived to be mandatory in the Company Law. Therefore, the concept of CSER as an implementation of a legal principle in a norm, so as not to cause legal issue, at the normative level as well as at implementation level, must be consistent and need reconception.The purpose of this reconception of CSER is to find a new concept of mandatory-based CSER. The methodology of research used is legal research (doctrinal research), based on secondary legal material acquired analysed presciptively by statute, conseptual and comparative approach.The research outcome is resulting in a discussion of reconception of a legal responsibility-based Corporate Social Liability (CSL) with sustainable local community empowerment oriented, so as to create legal certainty at the normative level and implementation in Indonesia.

SUATU PERBANDINGAN PENGATURAN CORPORATE SOCIAL RESPONSIBILITY (CSR) DI TAIWAN DAN DI INDONESIA

Regulation comparison between Corporate Social and Environmental Responsibility (CSER) in Indonesia and Corporate Social Responsibility in Taiwan, aiming to compare the regulation of CSR in Taiwan and CSER in Indonesia. This Comparison carried out using the normative research method, which analyzed descriptively illustrating that regulation CSER at Art 74 Indonesian Law No. 40 of 2007 on Limited Company in conjuction with Government regulation Number 47 of 2012 on Social and Environmental Responsibility of limited company compared with Corporate Social Responsibility Regulation in Taiwan as required by the Taiwan Stock Exchange Corporation (TWSE) and GreTai Securities Market (GTSM)

All aboard the corporate socially and environmentally responsible cruise ship

PurposeThe purpose of the study was to examine the relative importance of corporate social and environmental responsibility (CSER) in comparison to standard, price, duration, destination, brand and disruption using choice-based conjoint analysis (CBC).Design/methodology/approachCBC was used as the data collection survey technique, and counts analysis for preference and hierarchical Bayes estimation (HB) for importance levels data analysis methods, from Sawtooth Software Inc.FindingsResults show that 2:1 Royal Caribbean Cruise Line cruise consumers prefer companies with CSER policies and practices. However, their actual product choice selection of cruise package attributes revealed that consumers overall placed less importance on CSER when choosing cruises. Experienced consumers were more brand image-conscious than those new to cruising, and consumers who were less price-sensitive were most willing to choose companies with CSER policies and practices.Research limitations/implicationsThe information provided is specifically on “what” cruise consumer preferences and importance attributes are but does not explicitly explain “why” the respondents made the choices they did. This was at the time a limitation of the software used to conduct the study.Practical implicationsThe Conjoint Analysis CBC Sawtooth Software pre-2014 version choice simulators do not facilitate questions that provide answers as to “why” respondents make the choices they do in the market simulations.Social implicationsThe knowledge contribution is of value to both academia and industry, as the quantitative statistical data on the cruise consumers’ choice preferences are of value in understanding and identifying solutions/approaches towards “opening the bottleneck” that exists between private sector sustainable development practices and consumer lifestyle changes.Originality/valueThis was the first time that CBC/HB was applied within academia to examine the cruise consumers’ choice preferences in a UK context and also the first time that CSER was applied as a direct variable in a cruise package to determine the preference and important values of a brand in a consumer behaviour decision-making context.

Contributing barriers to corporate social and environmental responsibility practices in a developing country

Purpose The purpose of this study is to explore the contributing barriers to corporate social and environmental responsibility (CSER) practices. In particular, this study focuses on non-managerial stakeholders’ perceptions of the barriers to CSER practices in a developing country context. The study also investigates the current initiatives undertaken by the different stakeholders, such as government, non-governmental organisations (NGOs) and regulators. Design/methodology/approach The study takes a qualitative approach, undertaking semi-structured in-depth interviews with 26 participants from NGOs, the media, regulatory authorities, government departments, shareholders, trade union leaders and customers. Findings The views of stakeholder groups were analysed to identify the contributing barriers to CSER practices. The findings of the study reveal that corruption and politics, lack of coordination, lack of government initiatives and unsatisfactory implementation of laws are perceived as the major barriers that hinder CSER practices in Bangladesh. The study also found a lack of awareness amongst various stakeholder groups regarding the influential role CSER plays in promoting sustainable development. The current initiatives undertaken by various stakeholders to improve CSER practices were limited but growing. Research Limitations/implications The study utilises the stakeholder theory to examine the role of stakeholders, rather than managers, in relation to CSER practice in Bangladesh. The findings may provide impetus for mitigating CSER barriers in a developing country context. Originality/value This study is one of the few engagement-based studies to explore the non-managerial stakeholders’ views on CSER in a developing country context.

Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country

Purpose– The purpose of this study is to explore senior managers’ perception and motivations of corporate social and environmental responsibility (CSER) reporting in the context of a developing country, Bangladesh.Design/methodology/approach– In-depth semi-structured interviews were conducted with 25 senior managers of companies listed on the Dhaka Stock Exchange. Publicly available annual reports of these companies were also analysed.Findings– The results indicate that senior managers perceive CSER reporting as a social obligation. The study finds that the managers focus mostly on child labour, human resources/rights, responsible products/services, health education, sports and community engagement activities as part of the social obligations. Interviewees identify a lack of a regulatory framework along with socio-cultural and religious factors as contributing to the low level of disclosures. These findings suggest that CSER reporting is not merely stakeholder-driven, but rather country-specific social and environmental issues play an important role in relation to CSER reporting practices.Research limitations/implications– This paper contributes to engagement-based studies by focussing on CSER reporting practices in developing countries and are useful for academics, practitioners and policymakers in understanding the reasons behind CSER reporting in developing countries.Originality/value– This paper addresses a literature “gap” in the empirical study of CSER reporting in a developing country, such as Bangladesh. This study fills a gap in the existing literature to understand managers’ motivations for CSER reporting in a developing country context. Managerial perceptions on CSER issues are largely unexplored in developing countries.

Responsible Sourcing via Vertical Integration and Supply Chain Partnership

Taylor Guitars purchased an ebony mill in Cameroon to ensure corporate social and environmental responsibility (CSER) in sourcing, and shared the responsibly-sourced supply of ebony with competitors through horizontal sourcing. Inspired by this case, we investigate vertical integration as an alternative strategy for CSER in sourcing in which a firm can vertically integrate with its supplier in order to ensure responsible practices in the supply chain. In a competitive setting, an exposed CSER violation in one supply chain may increase the competing supply chain’s demand (positive externalities) due to substitution, or decrease the competing supply chain’s demand (negative externalities) due to public’s suspicion about industry’s social and environmental practices. Furthermore, NGOs’ scrutiny and reporting policies may influence the chance of a violation exposure, as well as demand externalities between the competing supply chains. We examine horizontal sourcing as a potential strategy for mitigating the impact of a CSER externality caused by a competing supply chain. When horizontal sourcing is infeasible, we find that higher violation exposure externalities induces better CSER, but overly intensive violation scrutiny alongside strongly negative externalities may backfire and discourage CSER. By contrast, when horizontal sourcing is feasible, intensive violation scrutiny induces CSER, but strongly positive externalities may impair industry-wide CSER. These findings have instructive implications for firms interested in ensuring CSER in their supply chain, as well as for NGOs’ violation scrutiny and reporting policies.

Corporate Social and Environmental Responsibility in an Emerging Economy: Through the Lens of Legitimacy Theory

Efforts to promote Corporate Social and Environmental Responsibility (CSER) require an understanding of stakeholder attitudes toward enhanced responsibility. However, little is known about current attitudes on this subject, or the determinants of these attitudes. This study presents a survey of the attitudes of Indian managers, toward 18 social and 16 key contemporary environmental management issues. The findings indicate that respondents are concerned about a range of issues surrounding social responsibility. With respect to environmental responsibilities, Indian respondents were also strong in their support, and identified a select few issues to be more important over other environmental factors. Results indicated a positive attitude of Indian managers towards CSER. Confirmatory factor analysis (CFA) confirmed three distinct social and environmental factors for the respondents and provided a model of managerial attitudes towards CSER.