Corporate Social Responsibility Commitment Research Articles

From personal to corporate social responsibility: (de)individuation in luxury retailing

PurposeThe New York Times has suggested replacing sustainable fashion with responsible fashion, emphasizing the need for joint efforts by both individual consumers and retailers to take responsibility for their own decisions and actions. This study seeks to investigate the mechanism that activates individuals' personal social responsibility (PSR) and its association with their perceived corporate social responsibility (CSR) from a responsible luxury fashion retailer.Design/methodology/approachAn online experiment was conducted with a nationwide US sample of luxury consumers who were randomly assigned to either individuation or deindividuation groups. Covariance-based structural equation modeling (CB-SEM) and multi-group SEM were employed to test the hypotheses.FindingsIndividuals' universalism positively affected PSR, which then enhanced their recognition of a responsible luxury retailer’s CSR and led to a greater willingness to pay a premium. More importantly, the positive effect of universalism on PSR was strengthened when consumers’ unique individuality, rather than their deindividuated state, was emphasized. Moreover, the moderating effect of individuation was indirectly transmitted through PSR to perceived CSR, hence reinforcing the relationship between PSR and CSR.Originality/valueThis study significantly advances existing scholarship on sustainable luxury retailing and adds rigor to deindividuation theory by demonstrating the central role of PSR and the moderating effect of individuation in enhancing recognition of a luxury fashion retailer’s CSR commitments. The findings provide luxury fashion retailers with communication and marketing strategies that highlight consumers' unique individuality to more effectively activate their sense of personal responsibility and thereby increase their recognition of the retailer’s CSR.

What Is the Relationship between Corporate Social Responsibility and Financial Performance in the UK Banking Sector?

This study rigorously investigates the intricate dynamics between Corporate Social Responsibility (CSR), quantified through Environmental, Social, and Governance (ESG) scores, and financial performance (FP), measured via the return on assets (ROA) and return on equity (ROE), within the UK banking sector. Our analysis is based on a comprehensive dataset from Bloomberg. This research encapsulates data from 32 banks publicly listed on the London Stock Exchange over a six-year span from 2017 to 2022. Employing panel data regression models while controlling leverage and bank size, we delve into the relationship between banks’ CSR engagements, as reflected in their ESG scores, and their financial outcomes. Our findings indicate a negative correlation between the ESG score and both the ROA and ROE, suggesting that elevated CSR commitments may inversely impact short-term financial returns. This finding not only challenges prevailing narratives within the sector but also fosters a crucial discourse on the balance between ethical banking practices and profitability. The implications of this research study are manifold, extending to policymakers, banking executives, and investors, suggesting a revaluation of CSR strategies in alignment with long-term value creation and sustainable banking. This study not only enriches academic discourse on CSR within the financial sector but also serves as a beacon for future inquiries into the evolving landscape of responsible banking, advocating for a nuanced understanding of CSR’s role in shaping the financial and ethical contours of the banking industry.

Does corporate governance influence environmental, social and governance disclosure practices of state‐owned enterprises? An international study

AbstractThis paper provides fresh insights into the impact of corporate governance mechanisms on environmental, social and governance (ESG) disclosure practices of state‐owned enterprises (SOEs). To accomplish this study's research objective, we collected ESG and corporate governance data from Refinitiv Eikon's database on a balanced sample of 253 SOEs from 37 worldwide countries over 5 years (2018–2022), obtaining a total of 1265 observations. A battery of fixed and random effects panel regression models has been estimated to test the impact of board characteristics, like board size, board independence, board gender diversity, number of board meetings, Chief Executive Officer (CEO) duality and the presence of a corporate social responsibility (CSR) committee, on overall and individual ESG disclosure scores of sampled SOEs. Results show that while board size and CEO duality negatively affect SOE ESG disclosure, board independence and gender diversity, as well as the number of board meetings and the existence of a CSR committee, exert a positive influence.

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.

Board Gender Diversity, Governance, and Firm Value: An International Evidence

Using firms across 95 countries, the paper finds that a higher percentage of females on the boards is associated with better corporate governance practices concerning the proportion of independent directors, governance disclosure, employee Corporate Social Responsibility (CSR) training, existence of a CSR committee, and board age diversity. Propensity score matching finds that a higher representation of females on the boards can improve board independence, disclosure, CSR training, and firm value. Based on instrumental variable analysis, the findings show that more female directors positively and significantly affect the board age diversity, independent directors, governance disclosure (with GDI annual), and market value.

Breaking through the glass ceiling: women on the board as a mechanism for greater environmental transparency

Purpose This research paper aims to examine the influence of greater female participation on the board of directors on the environmental transparency of companies. Design/methodology/approach To achieve the purpose of this study, the authors analyzed the environmental transparency of 412 companies in the energy sector, headquartered in 19 countries, during a four-year period (2016 to 2019). Findings The data reveal that gender diversity has a positive effect on the environmental transparency of companies in developed countries and on the total model. Furthermore, after removing the US companies, the results remained the same, indicating that companies with more women on the board tend to have greater environmental transparency. Regarding corporate governance variables, the results show that companies that have a corporate social responsibility committee tend to have greater environmental transparency, both in emerging countries and in developed countries. Practical implications The findings indicate that if companies aim to have greater environmental transparency, they must encourage female participation on boards, giving them equal opportunities for professional growth. Organizations must deconstruct the ideology that women are fewer valuable members of their boards, which limits their contribution to organizational success. Additionally, regulators can encourage greater female participation on boards through the implementation of quota laws. Originality/value The authors’ evidence indicates that the presence of women on board is an antecedent of greater quality in the dissemination of environmental information. Thus, managers of companies in the energy sector must understand that diversity on the board affects communication with its stakeholders through environmental transparency.

The determinants of corporate social responsibility (CSR) committee: executive compensation, CSR-based incentives and ESG performance

Purpose This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories. Design/methodology/approach Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used. Findings It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees. Practical implications This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide. Social implications COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues. Originality/value The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.

A Meta-Analysis of the Relationship Between Corporate Social Responsibility and Consumer Response in the Chinese Context

Consumers’ attitudes toward corporate social responsibility (CSR) and their response levels can significantly affect a firm’s behaviors. Based on 61 research papers addressing CSR responses to consumers in China, this study conducted a meta-analysis on three variables: CSR type, CSR characteristics, and CSR publicity behavior, which impact the CSR relationship. The following conclusions are drawn: Corporate social responsibility (encompassing private and public moral dimensions) elicits a positive consumer response, with private moral behavior having a greater positive effect compared to public moral behavior. The four dimensions of CSR characteristics (CSR commitment, CSR level, CSR correlation, and CSR timing) all lead to positive consumer responses. Positive consumer responses also arise from CSR publicity behavior, including publicity initiative and publicity intensity. Additionally, product type, sample time, and sample source have significant moderating effects on these relationships.

Do labor unions enhance corporate social performance? Evidence from Korean financial markets

This study examines the impact of labor unionization on corporate social responsibility (CSR) in South Korean listed companies, particularly in the context of chaebol-affiliated firms. Using a dataset of 2,622 firm-year observations between 2005 and 2009, the study employs regression analyses to explore the relationship between unionization and CSR performance. Key findings indicate a significant negative correlation between labor unionization and CSR engagement, suggesting that unionized firms exhibit less involvement in CSR activities. This association, however, is not significant in chaebol-affiliated firms, where the unique corporate structure and shared resources appear to mitigate the influence of labor unions on CSR. Furthermore, the study reveals a positive link between CSR initiatives and labor productivity in unionized firms, indicating that CSR may enhance employee efficiency. The study highlights the intricate relationships between labor unionization, corporate governance, and CSR, particularly in the context of Korean business conglomerates. It emphasizes the importance of aligning labor interests with CSR commitments and underscores the role of effective corporate governance in promoting CSR activities. The positive impact of CSR on labor productivity underscores its potential in boosting employee performance. AcknowledgmentThis work was supported by the Gachon University research fund of 2023. (GCU-202303770001).

Ethics and corporate social responsibility in HR: A comprehensive review of policies and practices

The integration of ethics and corporate social responsibility (CSR) in Human Resources (HR) has emerged as a critical aspect of organizational management, reflecting a paradigm shift in business dynamics towards sustainability and societal well-being. This paper provides a comprehensive review of policies and practices pertaining to ethics and CSR in HR, shedding light on the evolving landscape of responsible corporate conduct. In recent years, organizations have recognized the profound impact HR policies and practices can have on the ethical fabric of the workplace. This review examines the multifaceted dimensions of ethics in HR, encompassing recruitment, employee relations, training, and performance evaluation. It underscores the importance of fostering a culture of fairness, diversity, and inclusivity in HR processes, acknowledging the pivotal role HR plays in shaping the organizational ethos. Moreover, the paper delves into the intricate relationship between CSR and HR, emphasizing the role of HR in implementing and championing CSR initiatives. Companies are increasingly acknowledging their societal responsibilities and are aligning HR strategies with broader CSR goals. This involves addressing social and environmental concerns, promoting community engagement, and ensuring ethical supply chain practices. The paper explores the mechanisms through which HR can effectively contribute to the fulfillment of CSR commitments. Furthermore, the review examines emerging trends and best practices in ethics and CSR in HR. It considers the adoption of technology, the incorporation of sustainable HR practices, and the development of metrics for measuring social impact. The paper concludes by highlighting the imperative for organizations to align HR policies and practices with ethical principles and CSR goals, emphasizing the symbiotic relationship between responsible HR management and sustainable business success. As organizations navigate an era of heightened societal expectations, a strategic integration of ethics and CSR in HR emerges as a cornerstone for fostering a socially responsible and ethically sound corporate environment.

Mandatory CSR regulations and social disclosure: the mediating role of the CSR committee

Purpose This study aims to examine the association between mandatory corporate social responsibility (CSR) regulations (CSR mandate) and social disclosures (SOCDS) in India. It also investigates whether CSR committees mediate the relationship between CSR mandate and SOCDS. Furthermore, this paper explores how business group (BG) affiliation moderates CSR committee quality and SOCDS. Design/methodology/approach This study uses a data set of 5,345 observations from the Bombay stock exchange (BSE)-listed firms over 10 years (2011–2020) to examine the research questions. Baron and Kenny’s (1986) three-step model is estimated to examine the mediating role of CSR committees on the relationship between CSR mandate and SOCDS. Findings The study reveals that the CSR mandate positively impacts SOCDS in India due to coercive pressures. CSR committees mediate this relationship, with higher CSR committee quality leading to increased SOCDS. Furthermore, the authors report that SOCDS in India is positively related to CSR committee quality, and this relationship is stronger for BG firms. Finally, the supplementary analysis reveals that promoting CSR committee quality enhances firms’ likelihood of meeting CSR mandatory spending and actual CSR spending in India. Originality/value This research contributes to the academic literature by shedding light on the intricate dynamics of CSR mandates, CSR committees and SOCDS in emerging economies. Notably, the authors identify the previously unexplored mediation role of CSR committees in the link between CSR mandates and SOCDS. The creation of a composite index that measures complementary CSR committee attributes allows us to undertake a novel assessment of CSR committee quality. An examination of the moderating influence of BG affiliation documents the importance of CSR committee quality, particularly in governance, for enhancing SOCDS transparency within BG firms.

How could businesses with anchor positioning contribute to community wellbeing? A study of supermarket community support actions in the UK

Challenging economic and social conditions undermine community wellbeing across the UK. Using desk research and case studies, we examined how one business sector, UK supermarkets, support local communities through community-orientated support actions (COSAs) as part of Corporate Social Responsibility commitments. A theory of change was developed drawing on community wellbeing theory and community asset-based practices, providing a framework for data collection and development of detailed hypotheses for particular COSAs and resources invested. Findings present the results of analysis according to context-mechanism-outcome configurations representing scenarios for the mobilisation of: community colleague's time; donations of money/goods; and store space. Contextual enablers and barriers are also identified, with a view to supporting practice within and across business sectors as well as possible collaborations with state and voluntary sectors to enhance the contribution of COSAs to local communities in the future. Five areas of more ‘transformative’ actions which would require more concerted and collaborative efforts were identified: collaboration in the wider system; mobilising physical store assets; actions on household food security; economic interventions and empowering the local community; alongside possible system levers for doing so.

Promotion of the Principles of Corporate Social Responsibility and their Implementation by Large Businesses in Kazakhstan

The article discusses the features of promoting the principles of corporate social responsibility in the Republic of Kazakhstan. All components of promoting the principles of corporate social responsibility in Kazakhstan are considered as a single system, which defines the conceptual framework, stakeholders in the development of corporate social responsibility, as well as legal support for its development in the country. The authors characterized the Kazakh model of corporate social responsibility of large businesses and gave examples of the practical implementation of its principles at the present stage. Social investment of subsoil user companies in the territory of their presence in the Pavlodar region was analyzed. The considered social investment was carried out within the framework of memorandums of mutual cooperation with local executive authorities. The authors formulated conclusions that the Kazakhstani corporate social responsibility model is still evolving, with a combination of state regulation and business interaction, and further efforts are needed to increase corporate social responsibility commitments and embrace global initiatives.

Examining Employee Perceptions of External Corporate Social Responsibility Initiatives in the Nepalese Banking Sector: A Descriptive Analysis

The study aimed to explore employee perceptions of external corporate social responsibility (CSR) activities in the Nepalese banking sector. The study used a descriptive research design and collected primary data using questionnaires distributed to employees of commercial banks in Nepal. A real sample was used, and the sample size was 40 participants. The study results show that employees have a positive perception of their company's external CSR efforts, including charitable contributions and environmental initiatives. Importantly, demographic factors like gender, marital status, age, years of service, and education do not significantly influence these perceptions. Thus, the organization’s commitment to external CSR appears consistent across diverse employee demographics. Future researchers can explore the relationship between employees' active involvement in CSR activities, such as volunteering, and their perceptions of the company's CSR commitment.

Board‐level governance and corporate social responsibility: A meta‐analytic review

AbstractBoard‐level corporate governance (CG) is an effective route to developing sustained ethical behavior, helping firms to meet emerging accountability challenges and international expectations of corporate performance. In recent times, researchers have extensively studied the relationships between various board‐level governance mechanisms and corporate social responsibility (CSR) outcomes; however, results vary substantially. This study addresses the existing heterogeneity in the literature by systematically synthesizing 89 empirical studies on the board governance‐CSR nexus using meta‐analyses using random effect models. Results indicate that most governance mechanisms are strongly associated with CSR disclosure. On the contrary, only a few governance mechanisms are found to be significantly associated with CSR performance, suggesting that not all governance mechanisms are equally effective for performance and disclosure. However, board size and the presence of CSR committee on board are the closest predictors of both CSR outcomes. Additionally, our analysis of the moderating effect of study characteristics shows that coverage period, geographical setting, and measurement of CSR generate variability in existing findings. Our synthesis of the extant literature identifies a theoretical gap, clarifies the board CG‐CSR relationship, and proposes future research directions and guidelines within the field.

Why do sports goods manufacturers choose different corporate social responsibility engagements?

This study examines the impact of financialization and product market competition on the corporate social responsibility (CSR) engagements in sports goods manufacturing industry. Utilizing a dataset of China's listed firms, we employ textual analysis to identify organizations within this sector and create a panel data model to analyze the determinants of CSR engagements. Our empirical findings reveal that financialization and product market competition positively influence shareholder-related CSR engagements. Additionally, product market competition enhances the effect of financialization on these engagements. Conversely, a negative correlation exists between product market competition and stakeholder-related CSR engagements. Moreover, firms not categorized as State-Owned Enterprises (SOEs) or within high-pollution industries show a positive response in CSR engagements to both financialization and product market competition. Our results also highlight that managerial compensation and financial constraints modify the impacts of financialization and product market competition on shareholder-related CSR engagements. Collectively, our findings shed light on the challenges that sports goods manufacturing firms face in aligning their primary goals with CSR commitments.

CSR commitment and consumer situational scepticism of luxury brands: antecedents, moderator and outcomes

Purpose This study aims to investigate the moderating role of corporate social responsibility (CSR) commitment in the relationships between antecedents and outcomes of consumer situational scepticism towards luxury brands. Design/methodology/approach The study used a questionnaire administered through a consumer panel, using established scales. A 2 (fictional, non-fictional) × 2 (low commitment, high commitment) factorial experimental design with four cells was implemented. Findings The results revealed that values-driven motives were associated with lower consumer situational scepticism, whereas egoistic-driven motives were linked to higher levels of consumer situational scepticism, regardless of the CSR commitment level of the luxury brand. However, the impact of strategic-driven motives and stakeholder-driven motives on consumer situational scepticism was only significant within the low commitment condition. Consumer situational scepticism was found to lead to lower brand resonance and resilience to negative information in both low and high commitment conditions. Originality/value This study contributes new knowledge by highlighting the crucial role of motives in shaping consumer perceptions, including scepticism, brand resonance and resilience to negative information, ultimately influencing consumer advocacy. The study further demonstrates that high commitment weakens the relationship between strategic-driven and stakeholder-driven motives and consumer scepticism. Moreover, high commitment also weakens the relationship between scepticism and the key outcomes examined in the study.

The Impact of Corporate Social Responsibility Committee on Corporate Social Responsibility: Empirical Evidence from France

The Impact of Corporate Social Responsibility Committee on Corporate Social Responsibility: Empirical Evidence from France

Earnings management and sustainability assurance: The moderating role of CSR committee

AbstractThis study examines the effect of earnings management on the decision to acquire sustainability assurance (SA) reports. It also offers insight into the moderating impact of corporate social responsibility (CSR) committee over the earnings management‐SA nexus. To test the hypotheses, a logit regression for panel data is employed for a sample of 2972 firm‐year observations of non‐financial firms listed on the STOXX Europe 600 during the period 2012–2018. The findings reveal that firms that involve in earnings management, either accrual earnings management or real activities manipulation, tend to obtain SA reports to gain, repair, or maintain their legitimacy. Furthermore, the outcomes show that the existence of CSR committee alleviates the symbolic use of SA. Overall, this study highlights that the sustainability reporting assurance process can be used as a tool to deviate or shift stakeholders' attention from the earnings management techniques used in their reporting. The results, therefore, will benefit standard‐setters, policymakers, and stakeholders to be more cautious in differentiating between the substantial and symbolic SA reports.

Implementasi Program Jari Tangan: Analisis Pelaksanaan dan Dampaknya

The popularity of Corporate Social Responsibility (CSR) continues to rise, reflecting a company's commitment to addressing social and environmental issues to support sustainable development. As an example of CSR commitment, PT Pertamina EP Zona 7 Jatibarang Field has put this approach into practice. Their community development program, known as "Jari Tangan" (Independent Farming and Sustainable Food Production), is focused on developing sustainable horticulture cultivation. This research analyzes the implementation of the "Jari Tangan" program using a qualitative approach. The research findings demonstrate that this program has a positive impact on the local community in terms of economic, environmental, and social aspects. The program helps farmers increase their income, optimize land management, and introduce environmentally friendly farming practices. Additionally, the program introduces innovation in the form of the Bio-Cyclo Farming System, which helps address organic waste issues and enhances agricultural productivity. The success of the “Jari Tangan” program in Bongas Wetan Village extended to its replication in Karanganyar Village. This replication helped farmers enhance their rice harvests and income. The significance of the "Jari Tangan" program extends beyond the local context and aligns with broader sustainable development goals like poverty alleviation and sustainable agriculture improvement. The program's success is also recognized by the awards it has received in the field of CSR. Therefore, the "Jari Tangan" program not only serves as an example of a company actively engaged in sustainable development but also illustrates how appropriate innovations can generate significant positive impacts on society, the environment, and the economy.