Corporate Social Responsibility Commitment Research Articles

Reporting of Corporate Social Responsibility Practices : An Evidence from Indian BSE-Listed Companies

CSR activities presently spread across a wide scope of zones including environmental protection and biological protection. As per Section 135 under Schedule VII of Companies Act (2013) in Indian context, it furnishes that each organization in India with a total asset holding exceeding or equals to ₹five hundred crore rupees or an annual sales of exceeding or equals to ₹1000 crores rupees or a net profit of more than or equals to ₹5 crore rupees for any one financial year is required to establish a Corporate Social Responsibility Committee. Using the sample of BSE listed corporates across several industrial sectors in India, the objective of the study is to investigate whether there is an improvement in the corporate social responsibility scores of companies over the predetermined time range (from 2014-15 to 2019-20). Application of paired samples t-test as to test whether the mean difference between two groups is significantly different from zero indicates interesting CSR based outcomes for the items designed under CSR checklist. The derived findings were also found to be robust to the application of non-parametric statistical testing technique. It has generated suitable research insights for the academicians and policy makers of Indian corporate sector and will facilitate them to establish appropriate CSR norms to be applicable in India

Women leaders and corporate social performance: do critical mass, CEO managerial ability and corporate governance matter?

PurposeThis study aims to investigate the impact of top management team (TMT)'s gender diversity on corporate social performance (CSP). It sheds light on inconsistent results in literature by testing the moderator effects of chief executive officer (CEO) managerial ability and corporate governance (CG) on such impact.Design/methodology/approachA dynamic panel estimator is applied to an international sample of 8640 firm‐year observations from 2013 to 2017.FindingsThe author finds reliable evidence that the critical mass of at least three women leaders has a positive impact on the firm's CSP. Obtained results suggest, moreover, the deterrence effects of CEO managerial ability and CG tools (board independence, board gender diversity, the presence of a corporate social responsibility committee and family control) on the women leaders' contribution to the firm's CSP level. These results remain consistent with alternative measures for women leaders and CEO managerial ability. However, findings are lost when women achieve the CEO position, the chairperson position or both positions, which imply that men and women leadership styles are closely similar rather than different. Furthermore, women leaders' effect on CSP seems dependent (do not) on the country (industry) which a firm belongs to.Practical implicationsFrom a practical standpoint, the study highlights the importance of fostering the achievement of a critical mass of women leaders and the combination of CEO managerial ability – educational/professional backgrounds – and CG attributes to improve the firm's CSP. The study has important implications for investors and regulators. If investors wish to increase CSP, they should ask for more gender diversified TMTs. Furthermore, this study supports regulators in their efforts to increase senior women's quotas by providing empirical evidence of better social outcomes under leader gender diversity. The study’s evidence is also useful for companies in setting the criteria to identify CEOs who can support their strategic decisions.Originality/valueBy studying the impact female leaders have on CSP under CEO managerial ability and CG as moderators, this study is the first to display complementarities and substitutions between CEO's managerial ability and selected CG attributes in the promotion of CSP by female senior executives. Furthermore, it fills the void on how TMT's gender diversity impact CSP. In fact, while it is conventionally considered that women are more likely to engage in socially responsible activities, sensitive findings of this study shed light on the brighter side of female executives when they achieve the CEO, the chairperson position or both positions.

“Waging War” for Doing Good? The Fortune Global 500’s Framing of Corporate Responses to COVID-19 Pandemic

This study examined corporate social responsibility (CSR) communication and pandemic responses of large corporations across multiple industries in a global context. Specifically, this research (1) described the state of CSR communication during the pandemic, and (2) identified how top global Fortune 500 corporations framed their COVID-19 pandemic responses as part of their social advocacy. An in-depth content analysis of the corporate communication messages revealed that top global corporations positioned their pandemic responses as an extension of their ongoing CSR commitment, prioritizing their philanthropic responsibilities over the ethical, legal, and economic responsibilities. They often relied on war metaphors, portraying the virus as the “common enemy” and employees as “heroes,” and highlighted their leadership role in the global “fight” against the pandemic as a “partner” of governments, “protector” of employees, and “supporter’’ of the communities. Analyzing a large data set from a global perspective, this study provides a comprehensive look at the state of CSR communication during the pandemic and demonstrates how corporations as authoritative societal actors help shape the ongoing discourse on the global COVID-19 pandemic. Thus, the study makes several practical and theoretical contributions to sustainability research and our understanding of the evolving relationship between business and society.

DOES CORPORATE SOCIAL RESPONSIBILITY ADD VALUE TO THE INDIAN BANKING SECTOR?

Corporate social responsibility (CSR) is assumed to have an indirect impact on the performance of the banking sector due to the sector's core non-manufacturing and complex functionalities. This paper examines the value creation for a bank through CSR initiatives considering th­eir earnings persistence and risk exposure in India. The authors measure CSR disclosure through content analysis. CSR scores for 14 items are identified from the annual reports, National CSR Portal, Ministry of Corporate Affairs (MCA, 2021) and websites of 20 Indian banks. Applying OLS and panel regression models, the role of CSR in creating value for the banking sector is established. The study found that CSR commitment has a positive impact on the market value of the banks, along with an adequate liquidity position and business risk. CSR commitment and earnings persistence contribute to the bank's expected operating performance, highlighting its sustainability through CSR investments. Participation of banks for education, healthcare, skill development, and environmental sustainability is associated with higher returns from their lending activities to customers creating social value addition. Specific CSR activities encourage bank customers to repay banks with the implication of business risk reduction for banks.

Analyst forecast quality and corporate social responsibility: the mediation effect of corporate governance

Purpose This study aims to examine the mediating role played by corporate governance (CG) in the relationship between corporate social responsibility (CSR) and analyst forecast quality. Design/methodology/approach The authors raise three specific questions: Does CG play a mediating role in the relationship between CSR and analyst forecast quality? If so, is such mediation effect of CG reduced for firms with weak governance? Do firms with superior CSR performance experience higher analyst forecast quality through the mediation effect of CG? Findings The present results suggest that CG serves as a partial mediator that facilitates CSR’s positive influence on analyst forecast quality. However, further analyses show that in firms with a low governance score, CG does not have a mediation effect. Conversely, the authors find that firms with superior CSR performance have higher forecast quality through the mediation effect of CG. The authors also find that the mediation effect of CG is more pronounced for the environmental component than for the social component of CSR. Originality/value To the best of the authors’ knowledge, this study is the first to investigate the role of CG as a mediator between CSR and analyst forecast quality and to reveal that the strength of this effect varies depending on firms’ CG level and CSR commitment.

Do CSR ethics dominate weak shareholder protection? The case of corporate insider trading in Europe

Corporate social responsibility (CSR) theoretically builds a positive brand for social and environmental commitment with ethical constraints imposed on corporate insider trading. We use a sample of ten European countries, clustered by French, German and Nordic sub-code law and U.K. common law to show high variability in the ethical influence of CSR components in constraining insider profitability. Moreover, in Continental Europe, the negative association between CSR commitment and insider profits, becomes significantly weaker when there is insufficient legislative protection afforded to minority shareholders. Results are robust to changes in CSR quality, trading around annual accounting reports, and when CSR commitment and insider control factors are adjusted. We reveal a complex intersection between innate predatory corporate trading, nurtured ethical governance and customised country legislative codes that provides a contrast to prior studies enacted under protective shareholder legislation in the U.S.

Can a corporate social responsibility committee be utilized to enhance the effectiveness of independent directors?

The aim of this study is to investigate the role of board independence on environmental, social and governance (ESG) performance and the moderating role of a corporate social responsibility (CSR) committee on the relationship between these variables. The sample includes 2,925 companies from 18 industries and 38 countries for the period of 2002–2020. To test our hypotheses, we developed a regression model based on the panel data dependence technique. The results confirm that the establishment of a CSR committee within the board moderates the relationship between board independence and ESG performance. A CSR committee acts as a booster into enhancing the effectiveness of the board as a corporate governance mechanism. This article contributes to the academic literature evidencing the importance of establishing a sub-committee within the board of directors delegated to CSR issues. It provides also interesting insights for companies and policy makers for formulating future guidelines on corporate governance.

The role of board composition in CSR disclosure: An empirical analysis in four European countries

The purpose of this study is to provide evidence of the influence of corporate governance mechanisms on corporate social responsibility (CSR) disclosure released by 483 European listed companies after the EU Directive (2014/95) entered into force. The sample includes 483 listed companies, all from the top four European countries by GDP value — Germany, France, Italy, and Spain — that issued CSR reports in the period 2017–2020. The study uses an ordinary least squares regression model to test six hypotheses on the relationship between board characteristics and CSR disclosure. The results of the study confirm that gender diversity, board independence, and CSR committee are positively related to CSR disclosure, while no significant relationship was found with CSR disclosure board meeting, the board size, and CEO duality. This article contributes to academic literature (Pucheta-Martínez & Gallego-Álvarez, 2019; Fuente, García-Sanchez, & Lozano, 2017) by showing the functioning of six board characteristics in influencing CSR disclosure released by European listed companies after EU Directive (2014/95) entered into force. It also provides interesting insights for governments and other regulatory bodies when formulating future guidelines and policies in this regard.

The influence of corporate governance factors on ESG rating of industrial and IT companies

The article examines the impact of сorporate governance factors on the еnvironmental, social, and governance rating in companies from industrial and IT sectors. The aim of this study is to identify and measure the impact of corporate governance factors on ESG rating in industrial and IT sectors. The research also includes a country-specific analysis: for European, Asian and American companies. The dependent variable is ESG rating — an indicator of the company’s compliance with environmental, social and governance standards. The paper considers observations of 80 companies since 2005 to 2020. The results of this study showed that the most significant practices in European companies are the presence of a policy of independence of the board of directors and an increase in the percentage of non-executive members. For Asian companies, corporate governance factors such as the presence of a policy of independence of the board of directors, an increase in the percentage of non-executive directors effect positively. For American companies, the following practices positively influence the ESG rating — the existence of a policy of independence of the board of directors and the corporate social responsibility committee and an increase in the percentage of women on the board of directors. In terms of sectors, the results showed that information technology companies are positively affected by an increase in the percentage of non-executive members, the presence of a corporate social responsibility committee, and an increase in average age. Also, if the chairperson is a woman the chances of getting a higher ESG rating increase. In industrial sector companies, the presence of a corporate social responsibility committee and a policy of independence of the board of directors, as well as the fact that the chairman was a CEO, are positively affected. These results can be used by companies to develop a plan to improve corporate performance.

Corporate social responsibility (CSR) and sustainable development during the Covid-19 pandemic

The coronavirus pandemic affected all areas of social life and changed the conditions in which most industries operate. The current forms of profitable business activities were suspended in many sectors of the market, which forced entrepreneurs to adapt to the new market conditions. During the Covid-19 pandemic, particular attention should be paid to the activities of enterprises in two so far closely related areas: corporate social responsibility (CSR) and sustainable development (SD). Enterprises typically pursued sustainable development goals (SDGs) and supported them as part of their CSR. The paper is exploratory in nature and it aims to determine the degree of CSR commitment and the implementation of the SDGs during the first year of the Covid-19 pandemic. The results show that the sudden outbreak of the pandemic and the equally dynamic response of governments left some enterprises in uncertainty as going concerns. However, financially sound companies have become committed to helping the population groups most affected by the Covid-19 pandemic. Moreover, the pandemic situation has significantly distanced companies from achieving the intended long-term Global Goals, and the spread of the Covid-19 disease has a significant (mostly negative) impact on the sustainable development of the world. Furthermore, it is impossible to determine the long-term impact of a pandemic on CSR activities and on the implementation of the SDGs.

CSR COMMITMENT AND ACTION LOGICS OF SME MANAGERS: FINDINGS FROM A TUNISIAN STUDY

Purpose: Bymobilizing the sociological approach of action logic, this research aims to understand the articulation between the various dimensions of Corporate Social Responsibility (CSR) and the conditions for the emergence of an overallcommitment towards stakeholders in Small and Medium-Sized Enterprises (SMEs) in an emerging country: Tunisia. Design/methodology: A qualitative study was carried out through multiple case studies of Tunisian SMEs. Findings: The research findings tend to reveal that an overall CSR commitment requires an interaction between individual and contextual dimensions. However, predispositions coming from the individual manager dimension would play the role of a catalyst for a proactive CSR approach. As for the SMEs transition from weak to global commitment, this would primarily stem from contextual dimensions. In addition, each of the hedonistic, entrepreneurial or managerial action logic could be conducive to this type of commitment. Research Limitations:The number of explored cases could constitute a limitation of this work as it does not allow a statistical generalization of the results based on the criterion of frequency. Originality: Few of the CSR studies focused on a multi-dimensional commitment in SMEs In this research we aim to avoid an over-representation of the manager, and approach his action logics most conducive to a multi-stakeholder approach to CSR.

Corporate social responsibility: Is it a matter of slack financial resources or strategy or both?

Drawing on slack resources and institutional theories, this study tests the links between liquidity, corporate social responsibility (CSR) strategy, and CSR performance. The results indicate differential effects of liquidity measures on CSR investment. CSR committee and executive CSR compensation individually are significant drivers of higher CSR performance. Moderation analysis to test the interaction effect of liquidity measurements with the CSR committee on CSR performance yields mixed outcomes. Similarly, a second moderation analysis conducted to test the interaction of liquidity measurements with executive CSR compensation on CSR performance produces mixed results. Hence, the results are metric sensitive in terms of liquidity measurements.

Connecting the Dots: Do Financial Analysts Help Corporate Boards Improve Corporate Social Responsibility?

AbstractThis paper presents an examination of the joint impact of board structural elements at firm level and financial analysts as market‐level corporate governance (CG) on corporate social responsibility (CSR) performance. Our study contributes to the CG–CSR literature by adopting the bundling approach, a perspective that has recently attracted researchers’ attention as an answer to any heterogeneity and fragmentation in existing findings. It is based on an extensive sample consisting of 7,739 firm‐year observations of US firms for the 2006–2015 period. The findings suggest that financial analysts complement the corporate board with more independence, gender diversity and a specialized CSR committee to realize a certain level of CSR performance of a firm. The findings also indicate that analysts substitute for those internal governance factors that are associated with weaker boards – larger sizes and dual‐role CEOs. We also draw implications for research and practice from our findings.

Attention to social issues and CEO duality as enablers of resilience to exogenous shocks in the tourism industry

The tourism literature recognises the importance of resilience to crises, but little is known about how tourism firms become resilient. In particular, the use of corporate social responsibility (CSR) as a risk-reduction strategy has been identified as an important gap in the literature. Aiming to fill this gap and adopt a more integrative view, this study examines complementarities between tourism firms' attention to social issues and corporate governance mechanisms in the context of the COVID-19 pandemic. Supported by the attention-based view and stewardship theory, the findings show that firms' attention to social issues and CEO duality might be associated with higher degrees of firm resilience. If firms have a CSR committee, the presence of CEO duality might leverage firms’ attention to social issues. The findings suggest that corporate governance should not restrict executive flexibility when tourism firms face exogenous shocks if firms pay attention to social issues.

The Influence of the BOD`s characteristics toward corporate social responsibility: Study non financial and financial firms in Indonesia

This paper addresses the relationship between independent directors, gender diversity, board of directors (BOD) size, BOD meeting, BOD tenure, BOD turnover, and BOD remuneration to corporate social responsibility (CSR). This research is an empirical analysis using resource dependence theory, which underlies BOD as a capital provider for companies to respond to community engagement. The research sample is a company listed on the Indonesia Stock Exchange for the 2016-2019 period which consists of 232 companies and 927 observations. It is revealed that independent directors and BOD size have a positive and significant effect on CSR, while gender diversity, BOD size, BOD meeting, BOD tenure, and BOD turnover are not able to influence CSR. Surprisingly, independent directors and BOD turnover have a negative and significant correlation with CSR in the context of financial companies. BOD in Indonesia does not consider CSR as part of a firm`s strategic policy and fails to demonstrate the existence of the firm as part of the social system. These findings serve as a significant feedback for regulators and firms. It is preferable that the regulators consider revising the implementation of CSR-related regulations, which only requires companies that engage in the natural resources business or activities related to the natural resources business to conduct corporate social and environmental responsibility (CSR) activities. Regulators also need to reconsider regulations on the standard number of women in BOD, requirement to increase the number of BOD, and the requirement to establish a CSR committee. Meanwhile, the company needs to improve the recruitment system for BOD candidates that pays attention to community engagement.

Social media and CSR communication in European ports: the case of Twitter at the Port of Rotterdam

PurposeThe research objective of the paper is twofold. First, it scrutinises the current state of the art concerning adopting the most popular social media by European port managing bodies (PMBs). Second, it investigates the use of social media in the corporate social responsibility (CSR) communication strategies of European PMBs.Design/methodology/approachThe paper carries out online field research on the use of social media by the top-25 European ports. Then, it provides an in-depth case study of the use of Twitter by the Port of Rotterdam for CSR communication. Finally, a content analysis of the tweets published in the 2017–2019 timeframe is performed.FindingsEmpirical results demonstrate the extensive use of social media by European PMBs to reach a wider array of stakeholders. Uneven approaches emerge considering port sizes and cultural clusters. The content analysis shows that one-third of tweets published by the Twitter account of the Port of Rotterdam address CSR issues, especially green initiatives, advocating the use of social media to communicate CSR.Research limitations/implicationsThe study focuses on the European domain. A broader sample of ports worldwide should be examined to further investigate the drivers affecting PMBs' strategic adoption and use of social media, mainly to communicate CSR.Practical implicationsThe paper provides port managers with insights to strengthen CSR communication. Given the increasing pressure of the public opinion on environmental and social issues, the ability of European PMBs to communicate their CSR commitment through social media represents a key driver when searching for consensus of stakeholders and “licence to operate”.Originality/valueThe paper adds to the existing maritime logistics literature by introducing a promising field of research.

Corporate social responsibility and organizational commitment: evidence from Kazakhstan

Purpose: This study aims to analyze how Corporate Social Responsibility (CSR) affects employees’ organizational commitment.Design / methodology / approach: Data were collected through a self-administered survey questionnaire. A total of 230 complete questionnaires were obtained from restaurant employees in Kazakhstan. The Cronbach alpha, descriptive statistics, correlation analysis, and regression were employed to examine the association among corporate social responsibility and organizational commitment.Findings: The findings reveal that employees show more commitment to organization if involved in CSR activities. Results reveal a significant positive relationship of all four perspectives of CSR with organizational commitment.Practical and Theoretical Implications: This study sheds light on the reconsideration of CSR initiatives in developing loyal employees. This study also confirms the social identity theory and suggests that employees are social actors who join the organization if it best suits their self-interests, especially in context of CSR.Originality / value: Notwithstanding the significance of CSR awareness, several studies have explored customers’ and firms’ perceptions, whereas only a few studies have explored employees’ CSR perceptions.This study deepens the knowledge and aftermath of CSR from the employees’ perception. It is pivotal to know the employees’ perceptions of CSR activities for restaurant management because employees turn CSR statements into actions. According to our best knowledge, this is the first study that investigates the impact of CSR on the organizational commitment of service sector employees in Kazakhstan.

Talking is Silver, Doing is Gold? – The Influence of Corporate Social Responsibility on Corporate Financial Performance

Sustainability has become an omnipresent topic in the media and public as well as private debate. Stakeholders see the responsibility to promote sustainability with companies, pressuring them to increase their Corporate Social Responsibility (CSR). The relationship between CSR, being a means to satisfy a firm’s stakeholders, and Corporate Financial Performance (CFP) is extensively debated in academics. This thesis contributes to this debate and tries to overcome measuring inaccuracies of previous studies by strictly categorizing CSR activities into CSR communication and CSR commitment. A total of 656 annual and CSR reports were examined, and variables representing these CSR activities were carefully and elaborately created, resulting in, among other things, a CSR communication breadth index, as well as an accurate assessment of communication quantity. A panel data analysis on European firms across industries over the observation period of eight years was conducted. The results reveal that only CSR communication has an influence on CFP. While standalone CSR reports and communication breadth have a positive influence, high levels of communication quantity have a negative effect. Keywords: Corporate Social Responsibility; corporate financial performance; CSR commitment; CSR communication; stakeholder theory

CSR performance and firm performance in the tourism, healthcare, and financial sectors: Do metrics and CSR committees matter?

The purpose of this study is twofold. First, it tests the association between corporate social responsibility (CSR) performance and firm performance in the tourism, healthcare, and financial sectors. Second, it investigates whether CSR committees moderate this association in those sectors. To achieve these objectives, two proxies for CSR performance namely CSR performance and change in CSR performance are utilized. Moreover, firm performance is measured by three dimensions: market-based, accounting-based, and sales-based performance. The data for the three sectors were retrieved from the Thomson Reuters Eikon database from 2011 to 2018. While the financial sector generates firm value out of CSR performance per se, the tourism and healthcare sectors cannot. It is imperative to establish CSR committees among tourism firms to enhance firm value from CSR practices, since CSR performance and change in CSR performance per se do not generate value unless CSR performance interacts with the CSR committee. Moreover, the interaction of CSR committees with change in CSR performance does not generate value in either sector, which may imply that stockholders are satisfied with the current level of CSR engagement. Unlike the tourism sector, CSR committees cannot currently contribute to achieving higher market value in the healthcare and financial sectors. The conclusions concerning other performance metrics (profitability and sales) for the three sectors are outlined in the conclusion section. The study provides an opportunity for the three sectors to leverage CSR for firm performance improvement and presents refined guidelines that employ different firm performance measurements and CSR metrics.

Corporate governance and environmental disclosure through integrated reporting

PurposeIn recent years, integrated reporting has emerged as a tool to provide environmental information in an interconnected way. However, in the academic literature, the amount of environmental information contained in integrated reports has never been analysed. This study, through the stakeholder-agency theory, aims to fill this important gap by examining the impact of the corporate governance mechanisms on the level of environmental information disseminated by the firms through integrated reports.Design/methodology/approachA manual content analysis based on an environmental disclosure index consisting of 30 items was performed to measure the amount of environmental information. In addition, a regression analysis was performed on a sample of 129 international firms to examine the impact of the corporate governance mechanisms on the level of environmental information disseminated through integrated reports.FindingsThe results show a positive effect of the board size, board gender diversity and corporate social responsibility committee existence on the level of environmental disclosure. Furthermore, they show a non-significant impact of board independence.Originality/valueThis study enriches the literature in several ways. First, it extends the field of application of the stakeholder-agency theory. Second, this study extends the analysis of environmental disclosure to another document – the integrated report – still unexplored by academic literature. Finally, it shed light on the determinants of environmental disclosure.