Corporate Social Responsibility Awards Research Articles

Aggressive CSR strategy and CSR awarding: managerial opportunism versus social activism

PurposeDespite the extensive body of research on absolute corporate social responsibility (CSR) performance, limited attention has been given to the distinct concepts of optimal and aggressive CSR engagement, as well as their associations with CSR awarding. This study aims to differentiate between optimal and aggressive CSR engagement and examine their relationship with CSR awarding while considering the moderating influence of board characteristics from the perspectives of stakeholder and agency theories.Design/methodology/approachThis empirical analysis draws on an international dataset comprising 43,803 observations from nine sectors across 41 countries. We employ a least squares dummy variable regression approach that accounts for country, industry and year effects to conduct the analysis.FindingsThe results reveal that engagement in aggressive CSR activities beyond the optimal level leads to the generation of a social reputation through CSR awarding. However, the influence of board characteristics on this relationship is significant. Specifically, the presence of a dedicated CSR committee encourages CSR awarding in the context of aggressive CSR engagement. Conversely, board independence constrains the relationship between aggressive CSR engagement and CSR awarding. Notably, board gender diversity does not have a discernible impact on this connection.Practical implicationsOur evidence provides valuable insights to help firms seeking to enhance their social reputation through CSR activities better allocate their resources and avoid unnecessary financial commitments.Originality/valueThis study advances the current understanding by exploring the relationship between aggressive CSR engagement and the recognition of CSR awards. Furthermore, it scrutinises the factors that dictate when such aggressive CSR engagement translates into enhanced social reputation, as evidenced by the attainment of CSR awards.

Does CSR award affect sustainability assurance levels?

Purpose This study aims to examine the relationship between corporate social responsibility (CSR) award and sustainability assurance levels for the French CAC 40 companies. Design/methodology/approach A sample of 57 French companies in the CAC 40 index corresponding to 448 observations was analyzed between 2008 and 2020 using an ordinal regression. Findings The main results conclude that the inclusion in the Dow Jones Sustainability Index World, the CSR award and the introduction of the Grenelle 2 law have a significant influence on sustainability assurance levels. However, incentive compensation does not appear to be relevant to explain sustainability assurance levels. Research limitations/implications The present study focuses on a sample, limited to companies belonging to the CAC 40 index. To enhance the understanding of sustainability assurance levels, this research may include other global sustainability indices, such as the MSCI World and the FTSE4Good World, in the CSR awards. Practical implications This study could be useful for audit practitioners, leading them to reconsider their evaluation methods and take into account CSR incentives for a more objective analysis. Regulators should investigate the current CSR issues to improve CSR disclosure standards. Finally, these findings could motivate other researchers to expand the scope of the research to diverse contexts. Originality/value This study helps fill the gap existing in sustainability assurance literature by highlighting the relationship between CSR rewards and sustainability assurance levels.

Social reputation, loan contracting and governance mechanisms

PurposeThis study aims to investigate whether social reputation via corporate social responsibility (CSR) awarding facilitates access to debt and decreases the cost of debt and whether governance mechanisms moderate this relationship.Design/methodology/approachThe sample covers the period between 2002 and 2021, during which CSR award data were available in the Thomson Reuters Eikon/Refinitiv database. The empirical models are based on country, industry and year fixed-effects regression.FindingsWhile the main findings produced an insignificant result for access to debt, they indicated strong evidence for the positive relationship between CSR awarding and the cost of debt. Moreover, the moderating effect highlights that while the sustainability committee helps CSR-awarded companies access debt more easily, independent directors help firms decrease the cost of debt via CSR awarding. Furthermore, the results differ between the US and the non-US samples, earlier and recent periods, high- and low-leverage firms and large and small firms.Originality/valueFor the first time, to the best of the authors’ knowledge, the authors assess whether social reputation via CSR awarding facilitates access to debt and decreases the cost of debt in an international and cross-industry sample. Little is known about the effect of social reputation on loan contracting, although social reputation conveys broader information that goes beyond the firm’s internal (performance) and external (reporting) CSR practices. The authors also draw attention to the differing roles of distinct governance mechanisms in leveraging social reputation for loan contracting.

Happy troubles? CSR awards and CSR report quality

AbstractWe propose that quality of corporate social responsibility (CSR) reports, as measured by independent agencies, will decline when firms perform well in social responsibility. Building on the existing literature on stakeholder theory and existing literature, we theorize that lower‐quality CSR reports may correlate with better actual CSR because performing well in CSR will increase external stakeholders' expectations but simultaneously stimulate discontent among shareholders, forcing firms to mitigate the conflict through CSR reports. This study takes Chinese listed firms from 2010 to 2019 as subjects and examines the relationship between winning prestigious CSR awards and CSR report quality. The results support our hypothesis. We further investigate two moderator variables and find the negative relationship is weakened when firms are state‐owned, potentially resulting in more social expectation pressures from the government and public. As an important financial indicator tracked by internal stakeholders, return on equity weakens this negative relationship.

The Study of Corporate Social Responsibility and Ownership Structure on Bank’s Financial Performance in Taiwan

Abstract This study investigates the relationship between corporate social responsibility (CSR), ownership structure, and financial performance in a sample of 14 domestic financial holding companies in Taiwan. The empirical data gathered clearly indicate that banks recognized with CSR awards demonstrate superior financial performance across all models compared to those without awards. Notably, the bank’s practice of CSR, which signifies drawing from and contributing back to society, correlates with superior financial returns. In terms of large external shareholders, the institutional block-holders has a more pronounced impact as a monitoring mechanism compared to individual block-holders. Moreover, the study also supports the convergence-of-interest hypothesis, indicating that the alignment of interests between the managerial insiders and the shareholders through equity ownership can bolster a company’s financial performance. JEL classification numbers: G32. Keywords: Corporate Social Responsibility (CSR), Ownership Structure, Financial Performance.

Firm's biodiversity initiatives disclosure and board gender diversity: A multi‐country analysis of corporations operating in Europe

AbstractEnvironmental practices, in particular biodiversity protection, are crucial for a business to maintain its market valuation and social license. Grounded in resource dependency theory and upper echelon theory, we test the link between board gender diversity and firm's biodiversity initiatives disclosure. Also, we investigate potential moderating variables such as eco‐innovation, resource consumption reduction, and firm's corporate social responsibility (CSR) awards that could strengthen the link between board gender diversity and corporate biodiversity initiatives disclosure. To empirically test our study's framework, we rely on a sample of non‐financial firms operating in 13 European countries between 2002 and 2021. Our estimation results show that women's presence on boards is positively associated with better disclosure of biodiversity conservation initiatives of a firm. Also, our study suggests that firm's eco‐innovation, resource usage, and CSR awards are important and moderate the board gender diversity and biodiversity conservation disclosure nexus. Our results hold to a battery of sensitivity analyses.

Do CSR awards enhance firms’ market value? Evidence from China

PurposeThis study aims to examine the impact of corporate social responsibility (CSR) awards on firms’ market value considering these awards as a signal and proxy for the effectiveness of CSR practice.Design/methodology/approachThere are 342 announcements of CSR awards in China from 2006 to 2017 screened and analyzed using the event study methodology.FindingsThe stock market reacts significantly negatively to CSR award announcements in the short term. Firms that are state-owned, belong to the manufacturing industry, outside east China, repeatedly win awards and are listed in the Chinese H-share market, experience a stronger stock market reaction. Interestingly, the long-term stock returns of award winners are significantly positive for multiyear holding periods.Practical implicationsThe findings offer stakeholders clear guidelines on how to manage communications in the market to extract enhanced financial performance from CSR award announcements.Originality/valueThis study chooses CSR awards as a proxy for the effectiveness of excellent CSR practice. This study also contributes to the CSR literature by analyzing how investors use the award information to make investment decisions.

CSR Disclosures, CSR Awards and Corporate Governance as Determinants of the Cost of Debt: Evidence from Malaysia

The current study examines the relationship between corporate social responsibility (CSR) disclosures, media announcements of CSR awards and a firm’s cost of debt in Malaysia. The sample consists of 104 Malaysian publicly listed companies belonging to the Edge Billion Ringgit Club between 2009 to 2015. The study uses panel data regression analysis and the ordinary least squares estimation method. The results find that the interaction between CSR disclosures and winning awards for a company’s CSR initiatives and practices lowers the cost of debt. Our study concludes that, when a company discloses more information on its CSR initiatives and practices, it reduces the cost of debt. Thus, we argue that CSR disclosures and awards can act as proxies for branding listed firms, making them more marketable and allowing them to negotiate better debt contracts. However, the study shows that politically connected companies have a higher debt cost than non-politically connected firms. Furthermore, our results indicate that smaller boards are effective, but audit committees are not effective in monitoring the board of directors in Malaysian listed firms.

Does winning a CSR Award increase firm value?

This study explores the effect of winning a corporate social responsibility (CSR) Award on firm value. Drawing on the stakeholder value maximization view of stakeholder theory, we analyze a sample of 14,039 US firm-years between 2002 and 2018 and find that winning a CSR Award is value enhancing. We further offer evidence that demonstrates how the CSR dimensions of environmental, social and governance criteria influence the CSR Award–firm value nexus. Our results are supported by a series of robustness tests. As CSR Awards are typically awarded to firms that excel in CSR, our findings are expected to encourage managers to pursue CSR more rigorously so as to attain high firm value.

Corporate Social Responsibility, Corporate Governance dan Manajemen Laba pada Perusahaan Manufaktur di Indonesia Tahun 2015-2019

This study aims to see how the influence of Corporate Social Responsibility (CSR) and Corporate Governance on earnings management practices. CSR is proxied by CSR award and Corporate Governance by GCG award. Earnings management is measured by discretionary accrual and real earning management through cash flow operations. The population in this study is all manufacture companies that listed in Indonesian Stock Exchange (BEI) which their financial reports are available completely during the study period, which is from 2015-2019. This study results shows that GCG has negative impact to accrual earnings management and real earnings management through cash flow operation even though it’s not significant, meanwhile CSR has negative impact to accrual earnings management and positive impact to real earnings management through cash flow operation and they’re not significant .

The Corporate Social Responsibility of Polish Energy Companies

If corporate social responsibility (CSR) is expected to work efficiently, there should be a standardised approach for implementation of the CSR concept for all businesses, including companies operating in the energy sector. Although many companies declare compliance with CSR standards, further investigation should be undertaken to evaluate if and how those standards have been applied in practice. The aim of this research is to examine the level of standardisation of the CSR activities within Polish energy companies and explore the good practices developed by those companies. The Polish energy companies have been selected for the investigation as the literature review we conducted demonstrates that there is limited research in this area and there is a knowledge gap regarding how Polish energy companies apply CSR regulation in practice. To accomplish the stated aims, the following research questions were developed: (1) What is the essence of applying the CSR concept in Polish energy companies, and at what level of development is the concept applied? (2) To what extent do Polish energy companies have a common approach to the CSR concept, and in what areas are there differences? (3) To what extent have Polish energy companies applied global CSR standards and solutions? (4) Is there a gap between the declared measures of CSR and their actual implementation in Polish energy companies? The research methodology of this study is based on a systematic literature review of the sources acquired from databases such as ProQuest, Emerald, SCOPUS and the Jagiellonian University Library. The multiple case study approach was identified as the most suitable research tool. Companies for the study were selected according to their affiliation to the energy sector and listing on the main market of the Warsaw Stock Exchange. These two assumptions allowed us to base this study on the largest Polish energy companies that have international status. Six areas of CSR annual report disclosures have been identified and used for the investigation and analysis. This research looks at similarities and difference between these six aspects of CSRs disclosed by Polish energy companies. The investigation allows us to conclude that the top three energy companies use similar tools to build their CSR strategies: formalised CSR concept, published CSR reports, disclosure of CSR information on the company website, CSR related activities offered to stakeholders, obtained CSR certificates, and CSR awards. This indicates the existence of a standardised approach to CSR across Polish energy companies.

Peer Influence of Corporate Social Responsibility Awards

This paper investigates how firms react to their peers who are promoted to corporate social responsibility (CSR) awards winners. By using the full set of non-winning peer firms as our control sample, our results show that a firm is more likely to disclose its CSR report or win CSR awards after its peer firms win CSR awards due to the incentivizing effect of awards on peers. Further, we obtain similar results using propensity score matching (PSM) and a difference-in-differences (DiD) approach to mitigate endogeneity. The reactions to CSR are more pronounced when peer firms win their first CSR award. Key words: Corporate social responsibility, peer effects

Keeping Up With the Joneses: Role of CSR Awards in Incentivizing Non-Winners’ CSR

We attempt to provide a novel antecedent of corporate social responsibility (CSR) by focusing on the role of CSR awards. Specifically, we investigate how competitors’ winning CSR awards incentivize non-winning firms’ CSR as a competitive catch-up. Using a difference-in-differences research design, we find that non-winners improve their CSR after their competitors have won CSR awards. Furthermore, based on the awareness-motivation-capability (AMC) framework from the competitive dynamics literature, we find that the media visibility of award winners, the performance gap of non-winners with award winners, and the prior CSR of non-winners strengthen the CSR competitive catch-up behaviors. Findings from this study contribute to the CSR research by highlighting the spillover effect of CSR awards as a meaningful event in incentivizing non-winning firms’ CSR and extending the AMC framework to explain the contingency factors of competitive catch-up in the context of CSR research.

Impacts of Distributional Social Comparison Behavior on Corporate Social Responsibility: Power of the Small

Motivated by the emergence of various corporate social responsibility (CSR) rankings and awards, we study the impacts of distributional social comparison behavior of firms on CSR in a supply chain, consisting of one manufacturer and one retailer. Both the manufacturer and the retailer can choose to make CSR investment, which attracts CSR-concerned consumers. We consider two types of social comparison behavior: ahead seeking that makes one willing to overperform relative to others, and ahead averse that results in underperforming. We find that if the retailer is a large enterprise who has strong negotiation power in the supply chain, his ahead-seeking behavior cannot motivate the up-tier manufacturer to increase CSR investment. In contrast, if the retailer is small, his ahead-seeking behavior can lead to significant increase in the manufacturer’s CSR investment. This is because the increased market share achieved by the small ahead-seeking retailer makes it profitable for the manufacturer to increase CSR investment. Interestingly, the total CSR investment of the supply chain is also higher with the small ahead-seeking retailer than that with the large ahead-seeking retailer. On the other hand, the ahead-averse behavior of the retailer increases the manufacturer’s CSR investment if the retailer is large, whereas it reduces the manufacturer’s investment if the retailer is small. While many contemporary CSR rankings and awards are for large firms in practice, our results suggest that governments and NGOs should pay more attention to small firms, motivating their ahead-seeking behavior or deterring ahead-averse behavior through rankings and awards. Measures to promote consumers’ social consciousness are also helpful to leverage the benefit of ahead-seeking behavior or to offset the negative effect of ahead-averse behavior.

A model for business responses to global challenges and sustainable development

Purpose This study aims to validate a model of organizational performance embedding corporate social responsibility (CSR), corporate governance (CG) and sustainability concepts at a strategic level. The model has been created in response to two significant global influences: global challenges and sustainable development (SD). Design/methodology/approach To validate the model created, executives from 10 of Thailand’s leading companies that have received CSR, CG, or sustainability awards during 2010-2015 were asked to complete a questionnaire and were later interviewed. Findings The findings indicate the appropriateness of the model in addressing the two significant global influences and highlight the critical issues in its implementation. Research limitations/implications Types of interviewees who are information sources, organization’s features such as size and industry and culture, appear to be critical factors in affecting the research findings and in limiting the interpretation and applications of the research model. All of those limitations have been explained in the research paper so that future research could be improved. Practical implications The model presents additional knowledge in relation to SD, business strategy, organizational performance and organizational sustainability. It shows how businesses can participate and respond to SD by embedding CSR, CG and sustainability concepts at the strategic level. It also shows that the outcome of such an approach will help business organizations sustain their existence by balancing financial, social and environmental dimensions. Social implications Business is one of the three key players (government, business and citizens) in managing global challenges and promoting SD. A business sector contains huge valuable resources (e.g. physical; financial; human; technology) for development capabilities. Therefore, this research shows a model which helps business organizations understand their significant role in SD. Originality/value Due to increased human population, climate change and deterioration of natural resources, social thinkers all around the world have been warning the seriousness of global challenges and the importance of SD. However, not many studies combine and connect the key concepts of global challenges, SD, CSR, CG and sustainability, all together to address the important role of business organizations. This research answers/gives such overall picture through a field research work for validation.

The effects of social responsibility on company value: a real options perspective of Taiwan companies

Corporate social responsibility (CSR) is a subject that has garnered considerable attention in recent years. This study conducts the empirical study by using a real options perspective to examine whether a company’s CSR commitment tends to increase its market value. According to Taiwan’s CommonWealth Magazine, this study distinguishes CSR and non-CSR companies. The paper estimates and compares the real options values of CSR and non-CSR companies and shows that high percentage of the company value is attributed to real options. This study finds that a company’s commitment to fulfilling its social responsibility increases its real options value and that the higher the number of CSR Awards won by a company, the higher its real options value. Compared with 10 years ago, investors now pay more attention to companies’ CSR performance. In addition, the higher a company’s size, systematic risk, fixed asset ratio, debt ratio, or skewness in stock returns, the higher a real options value is likely to be.

Do CSR Awards Motivate Award Winners' Competitors to Undertake CSR Activities?

This study proposes that firms that witnessed competitors’ winning corporate social responsibility (CSR) awards will experience an upward comparison, which can motivate them to undertake intensive CSR activities in the post-award period. The influence of witnessing competitors’ winning CSR awards on focal firms’ CSR intensity is stronger when the focal firms have high similarity with CSR award- winning firms. Our findings also show that CSR activities conducted by focal firms after witnessing competitors’ winning CSR awards in the post- award period will give rise to higher performance compared with CSR activities by the same firms in the pre-award period. Using a sample of CSR award- winning firms’ competitors, we find empirical support for our arguments.

Peran CSR Awards terhadap Citra Perusahaan dalam Komunikasi Antar Budaya

This study aims to study empirically the influence of Corporate Social Responsibility (CSR) Awards on Corporate Image in intercultural communication, for CSR Indonesia Summit & Awards 2018 case study conducted by MePRindo Communication and Media CSR-Indonesia. The sample used in this study there are 75 respondents taken from participants in the event. The method used in this study is observation (observation) with the type of research and qualitative descriptive qualitative. This study aims to reveal the facts, circumstances, phenomena, variables and circumstances that occur when the study runs. The purpose of this study is to find out how researchers can process the results of research by analyzing the relationship or the relationship between the two, on research CSR Award role against corporate / corporate image in intercultural communication, with quantitative and qualitative descriptive approach. This method is suitable because it only provides an overview of research related to the role of csr awards to corporate image in case study (CSR Indonesia Summit & Awards 2018). Data collection techniques were conducted through the observation stage, questionnaire distribution, interview and documentation study. The analytical technique used in this study, is quantitative and qualitative descriptive. Analytical techniques used in this study, is descriptive quantitative and qualitative. Quantitative research is intended to process data in the field then distribute it into the form of frequency / percentage tabulation, while to deepen the results of quantitative research conducted with qualitative research. The results of the research findings are to obtain in-depth results in analyzing or interpreting the data obtained from the results of the study.

The effect of integrated reporting on corporate financial performance: Evidence from Thailand

The objectives of the study were to investigate the extent and level of integrated reporting in the annual reports of companies listed on the Stock Exchange of Thailand (SET), to test the different level of integrated reporting between SET100 companies and Non-SET100 companies, and between Corporate Social Responsibility (CSR) award companies and Non-CSR award companies, and to test the effect of integrated reporting on the corporate financial performance. By simple random sampling, 150 listed companies from the SET were selected for use as the sample. Content analysis was used to quantify the extent and level of integrated reporting in annual reports between 2012 and 2015. As the results, the companies provided an average of 603.59 words of integrated reporting in annual reports during the period being study. Intellectual capital reporting was the most common form of integrated reporting by the companies, while environmental capital reporting was the least common form. There were significant differences in the level of integrated reporting between SET100 and non-SET100 companies, as well as between CSR award and non-CSR award companies. Manufactured capital reporting and holding a CSR award positively affected corporate financial performance, while the corporate financial performance was negatively related to environmental capital reporting.

Liquidity Implications of Corporate Social Responsibility Disclosures: Malaysian Evidence

ABSTRACT The study examines the association between the different types of blockholdings, the levels of corporate social responsibility (CSR) disclosure, and liquidity of shares traded in Malaysian public listed companies (PLCs) on Bursa Malaysia. The sample consists of 194 most actively traded PLCs for the year 2009. A CSR index was constructed using the criteria used by a leading newspaper that provides an annual CSR award. We suggest that such CSR awards help legitimize the business activities of PLCs in the eyes of a government promoting sustainable business practices. The study finds that while insider blockholdings increases the trading friction and reduces liquidity, the nongovernmental institutional blockholdings improve the liquidity of shares traded on Bursa Malaysia. Moreover, the government institutional blockholdings interacts with the CSR disclosure levels to affect the liquidity of the shares traded. These findings make important contributions to emerging capital markets where government regulations incentivize CSR disclosures and the involvement of institutional investors in the governance of PLCs are the norm. Data Availability: The authors are willing to share the data for use by others in extending or replicating results reported in their articles (send request to Ms. Dhoraisingham at: shymala.dhoraisingam@monash.edu).