Corporate Social Responsibility Activities Research Articles

Moderation Of Firm Size On The Effect Of Financial Performance On Tax Avoidance

This research was conducted to determine the influence of profitability, leverage, capital intensity, CSR, and firm size on tax avoidance and how firm size moderates this influence. The data in the research was taken using purposive random sampling by determining criteria from companies in the energy, basic materials, industrial, primary and secondary consumer goods sectors listed on the Indonesia Stock Exchange (IDX) from 2019 to 2021. The data were processed and analysed using multiple regression and moderated regression analysis using Eviews 10. The research results show that profitability has a positive and significant influence on tax avoidance, and leverage has a negative and significant influence on tax avoidance. Capital intensity, CSR activities and firm size do not influence tax avoidance. The research results also show that firm size can moderate the influence of leverage and capital intensity on tax avoidance.

Empirical Evidence on Corporate Social Responsibility A Case Study of Chinese Companies in Pakistan

This paper investigated the state of corporate social responsibility (CSR) practices among Chinese companies operating in Pakistan. Findings reveal that while most Chinese firms have dedicated CSR programs, the strategic focus and long-term developmental impacts vary; enhancing corporate reputation rather than creating ethical value or empowering local communities was the dominant motivation. Key CSR activity areas include education, healthcare, and environmental initiatives, aligned with local socioeconomic needs. Although positive impacts are acknowledged, local stakeholders perceive CSR effects to be limited lacking strategic direction; challenges around political sensitivities, security risks, and coordination issues were highlighted. The paper advocates for a more strategic, participatory and sustainable CSR approach focused on long-term capacity building. Guidance frameworks attuned to local contexts can enable companies to balance business goals with lasting social value.

Is India on a path to reduce the tobacco industry's influence in tobacco control? Insights from the Global Tobacco Industry Interference Index (2019-2023).

The tobacco industry (TI), driven by profit motives, consistently conceals health risks through deceptive strategies, notably in countries like India. These tactics create vulnerabilities that hinder effective tobacco control measures and enable the TI to exploit legal gaps. Understanding these TI strategies is essential for policymakers to take appropriate preventive and corrective measures in order to limit tobacco industry interference (TII) in policy-making. The study aims at understanding the trend of TII in India between 2019 and 2023. The secondary data from the Global Tobacco Industry Interference report, consisting of seven major domains of the TII index, viz. policy participation, corporate social responsibility (CSR) activities, industry benefits, unnecessary interaction, transparency, conflict of interest, and preventive measures, were retrieved. A composite score was obtained after adding scores of different domains, for each year. The findings of the study demonstrated an initial improvement in India's implementation of WHO FCTC Article 5.3, as evidenced by a decreasing score between 2019 and 2021. However, this trend halted in 2023, with data showing a slight increase in the score. When compared with other Asian countries, India shows marginal improvement in score than Cambodia, China, Indonesia, Lao PDR, Malaysia, Myanmar, Nepal, Philippines, Thailand, and South Korea. Some of the countries in the region, including India, Pakistan, Bangladesh, Sri Lanka, Myanmar, Brunei, China, and Vietnam experienced a decline in TII. There has been a rise in CSR activities, forms of unnecessary interactions of TII with policymakers, and participation in policy development; however, improvements are observed in providing benefits to the TI, conflict of interest, and preventive measures. In order to fortify the regulatory framework, it is imperative to create awareness among stakeholders on conflict of interest, denormalize corporate social responsibility (CSR) initiatives by the TI, provision of a watchdog for TII in the country and "whole of government" approach in implementation of FCTC Article 5.3.

Corporate Social Responsibility and Stakeholder Engagement: Impact on Organizational Performance

Corporate Social Responsibility (CSR) has become increasingly pivotal in shaping organizational strategies, impacting not only societal perceptions but also organizational performance metrics. This paper explores the multifaceted relationship between CSR initiatives, stakeholder engagement practices, and their collective influence on organizational performance. By reviewing theoretical frameworks and empirical studies, it examines how CSR activities contribute to enhancing brand reputation, fostering stakeholder trust, and mitigating risks. Furthermore, the study delves into the strategic alignment of CSR with business objectives, emphasizing its role in driving long-term financial sustainability and competitive advantage. Through a comprehensive analysis of case studies and industry examples, this research elucidates the nuanced impacts of CSR and effective stakeholder engagement on organizational success in contemporary business environments.

The Rise of Partisan CSR: Corporate Responses to the Russia–Ukraine War

AbstractThe Russia–Ukraine war has challenged our understanding of corporate social responsibility (CSR). Whereas CSR is traditionally associated with business self-regulation that benefits business and society, the conflict has revealed new forms of what we call “partisan CSR.” Based on comprehensive data from Fortune Global 500 firms, this study discovers that in particular Western, but also some non-Western, corporations have engaged in partisan CSR activities, ranging from (1) strengthening Ukraine’s economy, to (2) enhancing security and protection for Ukrainian citizens, (3) providing military support, (4) weakening Russia’s economy, and (5) supporting Ukraine in symbolic ways. By comparison, several mostly non-Western firms, e.g. from Asian countries, have chosen to be “neutral”, while, in some cases, exploiting economic opportunities arising from the conflict. This study also discusses major drivers of these CSR responses, including political climate, resource availability and economic dependency, isomorphism, and regulatory requirements. Our findings suggest a shift from political CSR to partisan CSR, which we expect to become more important with growing geopolitical divides and territorial conflicts.

Development of the Methodology for Analysing the Social Activity of Companies Based on the Sustainability Report

Modern business conditions in the period of globalisation and instability of the external environment are characterised by the need to pay special attention to the issues of corporate social responsibility and social activity of companies. In times of crisis, it is companies, along with the state, that should act as a pillar for society. The aim of the research is to analyse the social activity of organisations and assess the level of their involvement in the sustainable development strategy on the example of companies in the Russian oil and gas sector. The study pays special attention to the issues of regulatory and legal support for the preparation of non-financial reporting. The analysis led to the determination that the extent of companies’ engagement in the execution of the sustainable social development strategy is markedly deficient. Currently, the disclosure of a company’s social investments in non-financial reporting is undertaken on a voluntary basis. As a consequence, variances exist in the formats employed, the frequency of reporting, and the alignment with the corporate interests of the organisation. This approach hinders the establishment of a dependable evaluation and comparison of data, as well as impedes the thorough analysis of the influence exerted by companies on social development. The novelty of this study centres around conducting a thorough evaluation of social activity and corporate engagement in the execution of sustainable development strategies. Moreover, the authors have contributed by identifying a set of recommended indicators for mandatory disclosure in non-financial reporting.

Corporate Social Responsibility, Bank Size and Customer Trust amongst Commercial Banks in Kenya

Despite the commercial banks’ significant position in Kenya's ever growing economy there is limited study on the influence of Corporate Social Responsibility (CSR) on consumer trust in the commercial banking industry. This study therefore sought to explore the impact of Corporate Social Responsibility (CSR) on customer trust in the commercial banking sector of Kenya. With focus on commercial banks, this research delved into how community investment, sustainable initiatives, stakeholder engagement, social welfare, and bank size influence customer trust. This study was anchored on Stakeholder Theory. A correlational research design was employed, targeting all the 39 commercial banks in Kenya. The analysis was centered on the banks as units of analysis, while observations were drawn from both customers and bank managers. The study used stratified sampling to select 384 bank customers population exceeding 1 million. Data was gathered through structured questionnaires and Key Informant Interview (KII), ensuring reliability and validity through Cronbach’s Alpha test and content/construct validity testing. Analysis was conducted using descriptive and inferential statistics, including regression analysis and ANOVA. The results were presented on tables, charts and bars. The findings revealed a coefficient of determination (R²) of 0.605 indicating that the CSR activities used in this study explain 60.5% of the variation in customer trust, suggesting a strong relationship between CSR and customer trust. The regression analysis demonstrated significant positive effects, with community investment (β = 0.354, p = 0.000), sustainable initiatives (β = 0.235, p = 0.003), stakeholder engagement (β = 0.275, p = 0.000), and social welfare (β = 0.329, p = 0.000) all positively influencing customer trust. Based on the findings, the study concludes that corporate social responsibility (CSR) activities, including community investment, sustainable initiatives, stakeholder engagement, and social welfare, significantly influence customer trust among commercial banks in Kenya. In view of the findings, the study recommends that commercial banks in Kenya should continue to invest in CSR activities as a strategic approach to enhance customer trust and loyalty. Policymakers should create supportive regulatory frameworks that encourage banks to adopt comprehensive CSR practices. Keywords: Corporate Social Responsibility, Community investment, Sustainable initiatives, Stakeholder engagement, Social welfare, Bank Size, Customer trust.

Implementation of Corporate Social Responsibility to Realize Prosperity for the Community

The existence of a company cannot be separated from its environment and society. Companies must balance economic achievement with social and environmental responsibility through Corporate Social Responsibility (CSR) activities. However, only a few companies realize the importance of implementing CSR to maintain the company's sustainability. Some companies consider CSR one of the costs that must be incurred to reduce profits. This condition motivates researchers to identify the motivation of business actors in conducting CSR activities. This study explores CSR practices in construction companies whose business activities significantly impact the surrounding community and the environment. This study uses a qualitative method: a single case study using PT. BASA is one of the construction companies in Bali, Indonesia. Research data were obtained through structured interviews with company management. The results show that the motivation of management to implement the CSR program is to contribute and be responsible for sustainability. The company project must get support from the community to avoid unwanted things during the project. The company has been able to implement its CSR program well. This activity provides a positive impact on the community.

Strategies for Effective B2B Sales in the Corporate Gifts Industry: Best Practices and Success Tactics in the w.r.t Bag Manufacturing in Ahmedabad City

The corporate gifting industry has grown exponentially due to increased brand awareness and relationship management in corporate environments. Therefore, an effective B2B sales strategy is an important task for companies operating in this sector. The study focuses on the corporate gifts industry, particularly the banking sector of Ahmedabad, a commercial and industrial hub. Corporate gifts, including bags, are an important tool to increase brand awareness and promote business relationships at events, employee engagement, CSR activities and customer engagement. Recognizing the importance of these gifts requires a thorough analysis of effective B2B sales strategies to meet the branding and marketing goals of corporate clients. This paper discusses strategies to improve B2B sales efficiency in manufacturing banks in Ahmedabad and examines the various product offerings and customization options available in the market. To analyze the current market trends, key players, customer needs and competitive environment related to Ahmedabad. Successful marketing strategies in this area are customer-oriented and focus on customized solutions, quality, design, personalization and customer experience. In addition, the use of digital marketing and e-commerce platforms is essential to increase visibility, engagement and customer satisfaction in this evolving environment. Strategic partnerships and collaborations with suppliers and distributors play a key role in optimizing sales growth and market intelligence. By examining best practices and successful strategies, the study aims to provide useful insights to banks in Ahmedabad looking to strengthen their sales strategies and achieve growth in the highly competitive corporate gifting industry

The potential of CSR engagement in UK SMEs

ABSTRACT In recent years, there has been a notable interest surrounding the corporate social responsibility (CSR) of small and medium-sided enterprises (SMEs). However, unlike larger corporations, SMEs often lack the resources to develop comprehensive CSR strategies or dedicated departments. In light of this, it becomes crucial to focus on the role of individual decision makers in driving CSR engagement within SMEs. Drawing on insights from 219 UK entrepreneurs and objective performance data, we reveal the significance of personal values and competencies in shaping CSR initiatives and the importance of perceived employee supportiveness within the firm in strengthening CSR efforts. By highlighting the importance of individual-level factors and a supportive culture for entrepreneurs, we offer valuable insights for practitioners aiming to enhance CSR activities in their SMEs. Furthermore, we emphasize the positive impact of CSR engagement on various aspects of performance, encouraging entrepreneurs to consider proactive engagement in CSR.

Integrating CSR and Business Strategy into Social Innovation: Insights from Taiwan’s Cultural and Creative Industries

ABSTRACT Design/methodology/approach This study’s contributions lie in the use of multiple methods and data collected from developing industries from cultural and creative industries in Taiwan. Purpose This study aims not only to emphasize the importance of corporate social responsibility (CSR) for businesses but also to examine how CSR activities affect communities while ensuring that the firm meets its necessary social performance standards. Findings The results show the multiple mediation mechanism of business strategy, multiple moderation effects of marketing orientation in the initial stage, and the role of social entrepreneurial self-efficacy in the final stage of improving the social innovation. Practical implications This study considers how CSR could affect the results of business strategy, whereby cultural and creative firms should embrace social responsibility behavior altruistically rather than merely seeking economic benefits but focus on social innovation to improve their own competitive advantage. Originality/value This study argues that the relationship among CSR, business competitive strategy and firm innovation performance is more complex than previous business management studies have revealed.

Corporate Social Responsibility, Bank Size and Customer Trust amongst Commercial Banks in Kenya

Despite the commercial banks’ significant position in Kenya's ever growing economy there is limited study on the influence of Corporate Social Responsibility (CSR) on consumer trust in the commercial banking industry. This study therefore sought to explore the impact of Corporate Social Responsibility (CSR) on customer trust in the commercial banking sector of Kenya. With focus on commercial banks, this research delved into how community investment, sustainable initiatives, stakeholder engagement, social welfare, and bank size influence customer trust. This study was anchored on Stakeholder Theory. A correlational research design was employed, targeting all the 39 commercial banks in Kenya. The analysis was centered on the banks as units of analysis, while observations were drawn from both customers and bank managers. The study used stratified sampling to select 384 bank customers population exceeding 1 million. Data was gathered through structured questionnaires and Key Informant Interview (KII), ensuring reliability and validity through Cronbach’s Alpha test and content/construct validity testing. Analysis was conducted using descriptive and inferential statistics, including regression analysis and ANOVA. The results were presented on tables, charts and bars. The findings revealed a coefficient of determination (R²) of 0.605 indicating that the CSR activities used in this study explain 60.5% of the variation in customer trust, suggesting a strong relationship between CSR and customer trust. The regression analysis demonstrated significant positive effects, with community investment (β = 0.354, p = 0.000), sustainable initiatives (β = 0.235, p = 0.003), stakeholder engagement (β = 0.275, p = 0.000), and social welfare (β = 0.329, p = 0.000) all positively influencing customer trust. Based on the findings, the study concludes that corporate social responsibility (CSR) activities, including community investment, sustainable initiatives, stakeholder engagement, and social welfare, significantly influence customer trust among commercial banks in Kenya. In view of the findings, the study recommends that commercial banks in Kenya should continue to invest in CSR activities as a strategic approach to enhance customer trust and loyalty. Policymakers should create supportive regulatory frameworks that encourage banks to adopt comprehensive CSR practices. Keywords: Corporate Social Responsibility, Community investment, Sustainable initiatives, Stakeholder engagement, Social welfare, Bank Size, Customer trust.

Impacts of CSR autonomy, self-expressiveness and hedonic value of CSR activity on guest citizenship and hotel brand preference

Recruiting guests to participate in corporate social responsibility (CSR) activities during a vacation presents a dilemma for hotel managers – will such requests spoil a holiday? The study is significant because of increased investment by hotels in CSR activities and greater inclusion of hotel guests in CSR activities. We extend psychological wellbeing theory to evaluate the relative importance of CSR autonomy in enhancing guest engagement. A scenario based on a guest’s return to an actual hotel recently visited was designed and a convenience sample of 249 survey respondents analyzed using structural equation modeling. While hedonic value of the CSR activity provided the greatest effect on brand preference, both self-expressiveness and CSR autonomy significantly impacted brand preference. Effects for all constructs were mediated through cocreated citizenship behavior. The study has substantial theoretical implications for scholars and practical implications for CSR marketing communication campaigns to guests conducted by hotel managers and non-governmental organizations.

The Hidden Figures: Discovering Global Apparel Manufacturers’ CSR Activities According to the Global Standards

The Hidden Figures: Discovering Global Apparel Manufacturers’ CSR Activities According to the Global Standards

Enhancing organizational attractiveness through CSR consistency: Examining the impact of corporate hypocrisy, conceptual fluency, and proactive communication in HR recruitment

AbstractIncorporating corporate social responsibility (CSR) into organizational strategies has become essential, demonstrating a dedication to ethical conduct and sustainable practices. This paper investigates how consistency in CSR practices impacts organizational attractiveness. Drawing upon the theory of the continuum model of impression formation, two separate studies were undertaken to investigate the influence of CSR consistency (both consistent and inconsistent CSR) on the appeal of organizations. Besides, these studies aimed to evaluate the mediating roles of conceptual fluency and perceived corporate hypocrisy in this relationship, as well as the moderating effect of two corporate communication strategies (proactive and passive). The study found that perceptions of corporate hypocrisy played a significant mediating role in the link between inconsistent CSR practices and the appeal of an organization. This mediating effect was diminished by the use of proactive communication strategies. In contrast, conceptual fluency was identified as a key mediator in the relationship between consistent CSR practices and organizational attractiveness, with its mediating effect being enhanced by proactive communication strategies. This study makes a novel contribution by focusing on the temporal stability of CSR initiatives and broadens the understanding of whether sustained engagement in CSR activities over time confers greater organizational attractiveness than occasional or random initiatives. This study extends the theory of the relationship between perceived CSR and job seekers and provides guidance and recommendations for CSR activities and HR recruitment practices for companies in the post‐epidemic era.

The Role of Influencer Marketing, Customer Feedback, Corporate Social Responsibility, and Product Quality on Brand Image and Customer Loyalty in the Beauty and Personal Care Market in Indonesia

This study examines the effects of influencer marketing, customer feedback, corporate social responsibility (CSR), and product quality on brand image and customer loyalty in the beauty and personal care industry in Indonesia. A quantitative methodology was employed to collect data from a sample of 300 participants. The collected data was then analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS) 3. The findings demonstrate substantial favorable impacts of influencer marketing, consumer feedback, corporate social responsibility (CSR), and product quality on brand image. Moreover, the brand image greatly amplifies client loyalty. The study illustrates that influencer marketing and corporate social responsibility (CSR) play a vital role in establishing a favorable brand image while maintaining a high standard of product quality continues to be a significant factor in how the brand is perceived. These elements collectively contribute to an increased level of consumer loyalty. The results offer practical insights for beauty and personal care companies, emphasizing the significance of well-planned influencer collaborations, proactive customer involvement, strong corporate social responsibility activities, and unwavering product quality in cultivating consumer loyalty and enhancing brand reputation.

Probing the CSR-pro-environmental behavior linkage: Insights into green reputation and chief sustainability officer influence

This study aims to examine the impacts of internal and external corporate social responsibility (CSR) on managers’ pro-environmental behaviors with the mediating role of green reputation and moderating of chief sustainability officer (CSO). We acquired information from 609 managers working in various Chinese manufacturing firms using a standardized survey tool. Structural equation modelling (SEM) was performed to analyze data. Our major findings are as follows. First, both internal and external CSR influence the pro-environmental behaviors of managers through the mediation role of corporate green reputation. Second, the CSO significantly moderates the relationship between CSR actions and corporate green reputation. Our study contributes to the body of current knowledge by giving empirical evidence for the theoretical framework linking CSR, reputation, and pro-environmental behavior. The findings from this study offer managerial insights for businesses that deliberately want to promote environmentally friendly activities.

Corporate social initiatives and wealth creation for firms-an empirical examination

Purpose This study aims to examine whether social initiatives adopted by firms lead to improved financial performance. The authors analyse the impact of different elements of social initiatives on wealth creation for firms in terms of operating and market performance. Design/methodology/approach The study is based on the social initiative scores of over 4,500 firms collected from Thomson Reuters' ESG database. The study uses two-stage least squares (2SLS) to analyse the relationship between social initiatives and firm performance. Findings Profitable, mature, capital intensive and firms with high sales growth rate tend to invest more in social initiatives. Firms with high agency costs invest in social initiatives for workforce efficiency, maintaining human rights and product responsibility. The study documents evidence that social investments are value creating mechanism for firms which leads to improved financial performance in terms of operating and stock market performance. Firms with high dividend intensity invest in social initiatives for workforce welfare and human rights initiatives. Investment in employee well-being and community initiatives results in intangible benefits such as improved stock market valuation. Practical implications The research model has not considered the impact of intervening variables to understand the relationship between corporate social performance and corporate financial performance. Social implications Firms ought to recognize that social investment is beneficial in terms of value creation of firms as stock market perceive such investments favourably. Firms must focus more on community development initiatives and workforce initiatives for the value creation of firms compared to investments directed towards human rights initiatives and product responsibility initiatives. Originality/value This study focusses exclusively on the social dimension of the CSR activities. The authors examine the impact of social welfare scores on firm performance by analysing the valuation effects on scores representing workforce, human rights, community and product responsibility. Moreover, the paper also examines the impact of a new dimension of product responsibility on firm performance. They also focus on both aspects of financial performance in terms of operating performance (proxied by ROE) and the joint impact of both operating and market performance (proxied by Tobin’s Q). This paper contributes to the research on the linkage of social performance to financial performance by observing that firms with high agency cost characteristics tend to invest in social initiatives for work force efficiency, maintaining human rights and product responsibility.

Terrorist Attacks, Corporate Social Responsibility, and Firm Value

Synopsis Research problem According to the World Economic Forum, terrorism is one of the main managerial concerns for companies worldwide. However, there is surprisingly scant research on how terrorist attacks impact managerial decision-making. To fill this gap, we investigate how terrorist attacks influence firms’ socially oriented activities, as measured by their investments in corporate social responsibility (CSR). Motivation or theoretical reasoning In light of the crucial role of CSR in financial markets and the growing apprehension regarding terrorism risk, this study explores whether and to what extent firms’ CSR investments contribute to the resilience to terrorism risk. The motivation for our research question is grounded in the idea that terrorist attacks create a unique set of circumstances that prompt firms to reconsider their socially oriented initiatives. We argue that firms impacted by such events tend to recognize the importance of demonstrating commitment to social responsibility in the aftermath of a crisis. Overall, the theoretical underpinnings of this study revolve around the notion that CSR becomes a strategic response for firms affected by terrorism, through which they address various stakeholder concerns, maintain legitimacy, and strategically manage their public image in the aftermath of a crisis. The test hypotheses We empirically examine two key research questions in this study. First, we examine the effect of terrorist attacks on the CSR investments of publicly traded firms. Second, we examine whether and how the increase in CSR investments of publicly traded firms after terrorist attacks affects firm value. Target population Our study extends the limited research on the impact of terrorism on capital markets, which is an area of great concern to various stakeholders, including shareholders and corporate managers. The findings will also help researchers understand the determinants of CSR and the potential channels through which CSR creates value for shareholders. Adopted methodology Using a multivariate regression model and controlling for all other determinants of corporate CSR investment documented by prior studies, we test the effect of terrorist events on firms’ CSR investment. To reduce the concern that a growing awareness of the importance of CSR may explain the changes in firms’ investment in CSR over time, we use a difference-in-differences research design. Analyses Using a sample of 53 major terrorist attacks occurring in the U.S. between 1994 and 2015, this study examines the causal effect of terrorist attacks on firms’ CSR activities. Findings Our findings indicate that public firms located in close proximity to terrorist attacks (i.e., the impact firms) substantially increase their investment in CSR following those terrorist events, and that the increase in CSR investment is positively associated with firm value. We further observe a strengthened association between increased CSR and firm value when the CSR efforts of the impact firms attract greater media attention. In conclusion, our findings substantiate the hypothesis that firms exposed to higher levels of terrorism risk are more inclined to enhance their CSR investments. This inclination is driven by the dual impact of CSR efforts: not only do they contribute to bolstering stakeholders’ confidence in firms’ future performance, but they are also linked to increased returns in the aftermath of a terrorist attack.

Seeking common ground: CSR conformity and stock liquidity

This paper investigates the impact of CSR conformity on stock liquidity from a legitimacy perspective. Based on the sample of Chinese listed firms from 2009 to 2021, the results reveal that CSR conformity mitigates legitimacy pressures, thereby significantly improving stock liquidity. Notably, this effect is primarily driven by the increased involvement in stakeholder-related CSR activities rather than third-party CSR activities. In addition, this liquidity-boosting effect is more pronounced in firms with more analyst attention and with higher institutional investor shareholding.