Corporate Social Performance Research Articles

Do organizational commitment and consumer satisfaction mediate the relationship corporate social responsibility-sustainable performance? Assessing happiness management in Spanish wineries

PurposeThe research aims to analyze the effect of corporate social responsibility (CSR) on sustainable performance (SP), as well as the mediating effect of organizational commitment (OC) and consumer satisfaction (CS) on this link. In addition, the variables age, size and membership of a Protected Designation of Origin (PDO) are included as control variables to increase the precision of the cause–effect relationships under study.Design/methodology/approachA theoretical model is formulated to achieve the proposed research objectives, which is then tested by structural equation modeling (PLS-SEM) on the basis of primary data obtained from a survey of 196 Spanish wineries between September 2022 and January 2023.FindingsThe findings of the research show that CSR has a positive and significant effect on the SP of wineries, demonstrating also the mediating effect of OC and CS in this link.Originality/valueThere are several reasons that justify the originality of this study. First, the present research advances the knowledge and understanding of the meaning of the CSR–SP relationship of wineries. Secondly, to our knowledge, there are no previous studies that have analyzed OC and CS as measurement variables in the CSR–SP link in the wine context, so the study provides new scientific knowledge. Thirdly, to the best of our knowledge, the proposed theoretical model has not been previously tested, so the study advances the academic literature and management decisions on CSR and sustainability.

Linking CSR and organizational performance: the intervening role of sustainability risk management and organizational reputation

PurposeThe purpose of this study is to look at the multifaceted relationship mechanism between corporate social responsibility (CSR) and organizational performance (OP) via sustainability risk management (SRM) and organizational reputation (OR).Design/methodology/approachThis research connects CSR to OP via SRM and OR. Based on a sample of 325 managers of multinational firms in India, a theoretical model was proposed and analyzed through sequential mediation regressions analysis.FindingsThe findings indicate that CSR is positively and appreciably associated with OP. Furthermore, SRM and OR have been found to have a sequentially mediating effect on the interrelationship between CSR and OP. The study recognizes that organizations with a proactive approach to CSR tend to manage sustainability risk more actively, which helps to improve OR and ultimately results in better OP.Originality/valueThe research advances understanding of the triple bottom line and offers a platform for building strategic and successful CSR policies by offering valuable insights on the link between CSR and OP.

Systemic Symbolic Management, Corporate Social Responsibility, and Corporate Purpose: A Cautionary Tale

In this paper I describe the multilevel and systemic nature of symbolic management and decoupling as it applies to corporate social responsibility (CSR), and consider the implications for the corporate purpose movement. I explain how and why the symbolic management system, including the various forms of decoupling that have compromised CSR, could be readily extended to corporate purpose. I further suggest why (i) the symbolic management of purpose would extend a historical pattern of decoupling that has penetrated into ever more fundamental arenas of corporate governance, and (ii) at least some characteristics of corporate purpose may render it even more vulnerable to symbolic management and decoupling than CSR. I conclude that although the corporate purpose movement carries a substantial, downside risk of symbolic management and decoupling, it nonetheless has upside potential to improve corporate social performance, and that academic researchers have a key role to play in realizing that potential. I suggest several research strategies for detecting the presence and extent of symbolic decoupling of corporate purpose.History: This paper has been accepted for the Strategy Science Special Issue on Corporate Purpose.

The impact of creating shared value strategy on corporate sustainable development: From resources perspective

AbstractPorter and Kramer abandoned the traditional view of trade‐offs and proposed the concept of “creating shared value”, which integrates social and environmental needs into a company's core business to improve both society and the environment while enhancing its competitiveness. Whether creating shared value strategy can achieve corporate sustainable development should be urgently investigated. With the resource‐dependence theory and resource‐based theory, the positive impacts of creating shared value strategy on corporate social, environmental, and financial performances are theoretically analyzed and empirically tested from the perspectives of resource provision and acquisition. In further analysis, the mechanism test based on “sharing value” suggests that creating shared value strategy can strengthen its competitiveness by fulfilling social and environmental responsibilities. The consequences test demonstrates that creating shared value strategy promotes the provision of technological resources and information resources, which is conducive to the acquisition of market resources, human resources, and capital resources.

What Do These Tweets Mean for Us? How Analysis of Consumer Tweets Sheds Light on Consumers’ CSR Beliefs and Firm Confidence

Through an experimental design and using the theoretical lens of categorization and cognitive appraisal theories, this research examines how tweets evaluated based on tone (valence and character) coupled with the CSR type (Corporate Operating Performance vs. Corporate Social Performance) and the related CSR fraud can subsequently impact their CSR beliefs and confidence in the firm. CSR beliefs are the extent that an individual feels a firm should be engaging in CSR activities. It was found that the valence of the tweets moderated by the tweet’s character or tone impacts the consumer’s belief in firms engaging in CSR activities. Tweet valence increases confidence in firms while tweet valence moderated by the fraud type (CSP fraud vs. COP fraud) decreases confidence in firms. Negative utilitarian tweets lead to less confidence in firms while positive utilitarian tweets lead to more confidence in firms, which can be explained through cognitive appraisal theory.

The nonlinear effect of executive compensation on corporate social responsibility performance

PurposeTaking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social responsibility (CSR) performance of the firms, this study attempts to explore the non-linear relationship between the said variables.Design/methodology/approachThe study utilizes a strongly balanced panel data set of 179 non-financial National Stock Exchange (NSE) 500 listed firms for the study period of 2015–2020. The study further employs both static as well as Arellano-Bond dynamic panel model under generalized method of moments (GMM) framework to establish the relationship between executive compensation and CSR performance of the sampled firms.FindingsThe study acknowledges an inverted U-shaped relationship between executive compensation and environmental, social and governance (ESG) score of the firms. According to the robust estimator, an increase in the level of executive compensation is said to affect CSR performance positively until it surpasses a threshold level of 18.7 percent.Practical implicationsOne of the major takeaways that the study provides for the corporate policymakers is that the level of compensation can only motivate the executives to take up socially responsible work up to a certain level surpassing which the executives becomes resistant towards any benefits provided by the CSR performance and get inclined towards economical performances of the firm. At the later stage, the economical expansionary investment benefits overweigh the personal career benefit gained by the executives from the CSR performances of the firm.Originality/valueThe nonlinearity relationship between executive compensation and CSR performance and the threshold level providing the two-fold effect of compensation on the CSR performance of the firms attempted by this study is a rare attempt in an emerging economy like India.

Stock index constituent adjustments and corporate social responsibility: evidence from a quasi-natural experiment of CSI 300 index adjustments

ABSTRACT The stock price index is a thermometer reflecting changes in the stock market, and can convey key information on capital market dynamics and trends to investors. This paper empirically investigates the impact of index adjustments on corporate social responsibility performance by employing the quasi-natural experiment of CSI 300 index adjustments. We find that index additions significantly promote corporate social responsibility performance. Mechanism analysis supports the shareholder value maximisation motivation that drives the fulfilment of corporate social responsibility. In addition, more analyst following and investor attention plays a significant mediating role in the promotion impact of stock index additions on corporate social responsibility. Further analyses show that the positive impact of the stock index additions on corporate social responsibility performance is more pronounced in industries with more competitive product market. However, index deletions do not significantly reduce corporate social responsibility performance, implying that index additions and index deletions have asymmetric effects.

Assessing the nexus between corporate social responsibility and environmental performance: A way forward towards sustainable development

Although the Chinese government has effectively enacted green policies to address climate challenges, the country's heavy reliance on fossil fuels has made these problems serious barriers to China's sustainable growth. This study analyzes data from 653 Chinese manufacturing companies and examines the relationship between corporate social responsibility and environmental performance. The suggested hypotheses have been investigated by employing structural equation modeling. The results showed that there is no direct association between corporate social responsibility and the environmental performance of manufacturing firms. In comparison, it is linked to green transformational leadership and green innovation that improves environmental performance. Furthermore, the results showed that the link between corporate social responsibility and environmental performance is mediated by green innovation and green transformational leadership. The study's results provide managers and decision-makers in manufacturing businesses with critical knowledge on managing corporate social responsibility, green innovation, and green transformational leadership. Increasing internal resources to improve environmental performance may be advantageous to general managers of big manufacturing enterprises.

Corporate social responsibility in family firms: Can corporate communication affect CSR performance?

Drawing on the stewardship theory (ST) and socio-emotional wealth (SEW) perspective, this study investigates the role of sustainable activities within family firms (FFs) and the effect of marketing strategic decisions in improving their corporate social responsibility performance. To achieve the research aims, we analysed a sample of 730 American and European listed companies from 2015 to 2020. The results show that family businesses are more socially responsible than non-family businesses due to the presence of stewards. However, strategic marketing decisions have unclear effects in achieving these outcomes. This study expands the literature on ST and SEW in FFs, integrating them with sustainable principles. We also contribute to the sustainability debate and marketing literature related to FFs.

Relative corporate social performance and cost of equity capital: International evidence

AbstractThis research examines the relationship between firms' corporate social performance (CSP) and the implied cost of equity capital using a sample of 25,938 firm‐year observation from 49 countries during the period from 2002 to 2021. Using estimates of the firms' ex ante cost of equity capital, we examine its relationship with industry‐relative measures of the firms' CSP, its environmental and social pillars and sub‐pillars. We find that increased overall CSP reduces a firm's cost of equity capital up until a point, beyond which the marginal benefits of further CSP investment decrease. We find that the social pillar is the main driver of the reductions in cost of capital, in particular, a firm's performance in relation to its workforce, and that higher performance is increasingly rewarded with a lower cost of capital. Finally, we find that this relationship differs depending on the institutional context, with greater reductions in the cost of capital evident in countries with stronger institutional environments.

Digital finance and corporate ESG performance: Empirical evidence from listed companies in China

With the continuous development of digital technology, the digital economy has gradually become a vital driver of global economic growth. We investigate the impact of digital finance on corporate ESG performance using panel data of Chinese A-share listed firms from 2011 to 2020. First, we find that digital finance can significantly promote corporate ESG performance, especially environmental and social performance. Second, we empirically identify that digital finance affects corporate ESG performance through green innovation and external supervision. Third, our heterogeneity analysis shows that digital finance has a more pronounced impact on firms with low digitalization and low profitability, and firms in regulated industries and high carbon emission industries. The positive effect of digital finance is more pronounced for firms in central and western regions and non-low carbon pilot cities. Finally, our results remain robust after addressing endogeneity issues and conducting a series of robustness checks.

Pengaruh Good Corporate Governance dan Corporate Social Responbility terhadap Kinerja Keuangan pada Perbankan yang Terdaftar di BEI Periode 2017-2020

The implementation of Good Corporate Governance and Corporate Social Responsibility is important for a company. By implementing Good Corporate and Corporate Social Responsibility properly and correctly it will add to the image of the company, this will also improve the company's financial performance. This study aims to determine the effect of independent commissioner, board of directors, audit committee and Corporate Social Responsibility variables on financial performance in banks listed on the IDX. The sampling technique in this study used purposive sampling which produced 29 samples over 4 years, namely 116 samples. The analytical method used was multiple regression analysis which was processed using SPSS version 25. The results showed that only the board of directors had an effect on financial performance, while independent commissioners, audit committees and CSR had no effect on financial performance. Together with independent commissioners, boards of directors, audit committees, and corporate social responsibility affect financial performance.

You Say Tough, I Say Hope: An Effect of CEO Regulatory Focus on Corporate Social Performance under Challenging Market Conditions

This study explores the effect of CEO regulatory focus (i.e., promotion vs. prevention) on corporate social performance (CSP). Given that corporate social activities are an outcome-uncertain risky investment, we propose that CEOs with promotion focus (vs. prevention focus) would actively seek CSP, since promotion focus involves risk-taking propensity and prevention focus involves risk-avoiding behavior. We further propose that such a tendency should be more pronounced, especially when market conditions are uncertain. Using a panel sample of U.S. listed firms and conducting content analysis of CEO letters in annual reports, we found that only promotion-focused CEOs tend to promote CSP, and such a tendency is more salient in tough market conditions where firms face a lower level of munificence and a higher level of stakeholder expectation in the markets. We conclude that promotion-focused CEOs tend to seek hope even when situations are hopeless.

DETERMINANT OF COMPANY VALUE IN THE SRI-KEHATI INDEX ON THE INDONESIAN STOCK EXCHANGE

The Sri-Kehati index is one of the indices that is an indicator of stock price movements on the Indonesia Stock Exchange. This index uses the principles of sustainability, finance, and good governance, as well as concern for the environment as benchmarks. There are many factors thought to influence the level of firm value, including corporate social responsibility, intellectual capital, and environmental performance. This study aims to determine the significance of the influence of corporate social responsibility and intellectual capital on firm value with environmental performance as a mediating variable on the Sri-Kehati Index on the Indonesia Stock Exchange. This research was conducted on all companies listed on the Sri-kehati Index listed on the Indonesia Stock Exchange, totaling 25 companies with a research period from 2017 to 2021. The research method used is PLS (Partial Least Squares), namely SEM (Structural Equation Method) based on variance. The results of this study state that corporate social responsibility has a negative and insignificant effect on firm value. Intellectual capital has a positive but not significant effect on firm value. Corporate social responsibility has a positive but not significant effect on environmental performance. Intellectual capital has a negative and significant effect on environmental performance. Environmental performance has a negative and significant effect on firm value. As well as environmental performance is not able to mediate corporate social responsibility and intellectual capital on the company's firm value on the Sri-Kehati Index.

How open innovation can improve companies' corporate social responsibility performance?

AbstractOpen Innovation (OI) allows companies to develop innovative solutions more effectively, with lower costs and risks. The economic benefits of OI have been thoroughly investigated in prior research. More recent literature suggests that OI can help companies also improve their Corporate Social Responsibility (CSR) performance. Contributions on how open innovation can help companies improve their CSR performance, however, are fragmented and lack strong theoretical foundations. In this study, we perform a systematic literature review to synthesize the main findings and provide a theoretical framework to explain how companies can simultaneously improve OI and CSR through the management of relationships with stakeholders. The framework is then used to investigate how OI projects favour the achievement of CSR objectives, by referencing the 17 United Nations (UN) Sustainable Development Goals (SDGs). Results show that the stakeholders' theory can be used to explain the connection between OI and CSR performance. We also find that companies can collaborate with different stakeholders' categories to achieve a variety of CSR goals. We suggest that companies adopt a long‐term perspective and explicitly include sustainability objectives in their open innovation strategy to enhance their position as reliable partners and elicit favourable responses from the environment. Results also allow us to provide some suggestions for future research. First, we point out that literature currently lacks conceptual studies to help formalize the connection between OI and CSR. Secondly, we observe that the influence of some stakeholders' categories, such as governments and research organizations, on companies' OI and CSR efforts remains under‐investigated.

The impact of sustainable banking practices on bank stability

This study seeks to examine whether corporate environmental performance (CEP) and corporate social performance (CSP) affect stability of the banking industry. The topic is of much interest to researchers and policy makers considering the growing demand to integrate environmental and social practices into banking business model. Based on a panel dataset of 473 banks in 74 countries, this research finds that CEP is negatively related to bank stability as measured by non-performing loans (NPL). However, the impact is insignificant for small and large banks, as well as for banks in countries with low environmental scores. Furthermore, CSP does not appear to have a significant relationship with bank stability, but financial product safety, which is an aspect of CSP, does. The results are robust to a variety of econometric specifications and have significant policy implications for investors, bankers and regulators.

Board diversity and corporate social performance in family firms. The moderating effect of the institutional and business environment

AbstractWe analyze the effect of structural and demographic board diversity on family firms' corporate social performance (CSP), taking into account certain institutional and business environment aspects. The sample consists of French, German, Italian, Spanish and Portuguese nonfinancial listed firms over the period 2014–2021. We compare family and nonfamily firms before focusing on family businesses. Findings show that CSP benefits from having female directors in family firms whilst independent directors increase CSP in nonfamily businesses. Family directors exert a negative effect on CSP in family firms. The enforcement of law makes the positive influence of board independence significant for family firms and of nondual CEOs for nonfamily companies. Within family firms, the negative effect of family directors is strengthened by the enforcement of law but lowered by the efficiency of the judicial system. Hostile business environment always lowers CSP and reduces female directors' positive influence for family firms.

Corporate social responsibility and performance in the workplace: a meta-analysis.

Despite stakeholders' desire for organizations to participate in corporate social responsibility (CSR) activities, some organizations do not invest in CSR due to uncertainty around the value it provides to performance. This research investigates the effect size of the relationship between CSR and performance via a meta-analysis of 17 articles. A series of performance-indicating groups emerged and effect sizes were calculated using the Comprehensive Meta-Analysis software. These groups include in-role performance, extra-role performance, employees' affective attitudes towards organizations, and organizational-level outputs. Results suggest that CSR has a large effect on performance across a range of contexts. Implications for career counseling are discussed.

Government as major customer: The effects of government procurement on corporate environmental, social, and governance performance

This study examines how the government's participation in the product market as a customer affects supplier firms’ environmental, social, and governance (ESG) practices. Using a sample of Chinese listed firms from 2010 to 2020, we find that firms with major government customers exhibit higher ESG performance than those without them. Further analysis shows that female managers, institutional ownership, media coverage, and public attention enhance the positive relationship between major government customers and ESG performance. Overall, the findings suggest that as an important public policy, government procurement can significantly affect stakeholders’ value by improving supplier firms’ ESG performance.

The Big data artificial intelligence and corporate social performance: The organizational innovation as Mediator

Businesses are under increasing pressure to demonstrate their commitment to Corporate Social Performance (CSP) and fulfill the expectations of their many stakeholders in today's environment. The purpose of this research is to look into the relationship between CSP and Big Data Artificial Intelligence (BDAI), as well as the function of Organizational Innovation (OI) as a mediator in this connection. The Resource-Based View (RBV) paradigm is used in this study, which hypothesizes that BDAI has a positive influence on CSP, and that OI mediates the interaction between these two variables. The study also shows that the implementation of BDAI can allow organizations to collect and analyze huge volumes of data, which can lead to improvements in decision-making, efficiency, and social and environmental performance. The merger of big data analytics and artificial intelligence is referred to as BDAI. Furthermore, by establishing an innovative culture inside an organization and supporting the application of BDAI into the company's operations, OI has the ability to act as a mediator between BDAI and CSP. This study adds to the existing literature on the relationship between BDAI and CSP by shedding light on the significance of OI as a mediator within that framework. The study's conclusions could have far-reaching repercussions for businesses, government decision-makers, and academia. Businesses can improve their CSP by implementing BDAI and OI, and policymakers should encourage firms to utilize BDAI and OI to improve their social and environmental performance. By analyzing the impact of various factors on the link between BDAI, OI, and CSP, researchers can acquire a clearer understanding of the nature of this interaction