Corporate Social Responsibility Cost Research Articles

The Role of Corporate Social Responsibility in Supporting SDGs: A Propriety and Fairness Perspective

Introduction: Increasingly complex environmental challenges demand transparent and accountable measurement of corporate social responsibility (CSR). To create corporate value and monitor social, environmental, and economic impacts, companies and governments collaborate to promote ethical CSR practices and meet existing regulatory requirements, while supporting transparency and accountability in achieving the Sustainable Development Goals (SDGs). However, varying CSR measurement standards often make it difficult to compare performance between companies. Objective: To uncover how stakeholders define the propriety and fairness of companies to achieve the SDGs. Method: Research data were obtained from interviews with company leaders/internal auditors/external auditors/teams involved in the company's CSR evaluation process totaling 81 people. The data collection process was carried out in a hybrid manner. Results and Discussion: In terms of regulations, most companies have complied with regulations related to transparency, financial reporting, and CSR. In terms of propriety and fairness, CSR costs cannot be classified as income, but rather as a reduction in taxable income (expenses). However, it turns out that there are still companies that include CSR costs in other income. Research Implications: This study develops a model for assessing the propriety and fairness of CSR in sustainability reporting, including the social and environmental impacts of its business to support the achievement of SDGs. Originality/Value: This study produces a measurable assessment of the propriety and fairness of corporate CSR, which supports SDGs in improving corporate accountability and transparency.

Manufacturer Encroachment on a Sustainable Supply Chain under Asymmetric Green Information

This paper investigates manufacturer encroachment on a sustainable supply chain, where the manufacturer holds exclusive information on product greenness and is responsible for both corporate social responsibility (CSR) and greening. The manufacturer and the retailer play a signaling game whereby CSR effort and wholesale price serve as joint green signals. Findings reveal that, firstly, encroachment induces higher CSR efforts from manufacturers. When customers exhibit a strong CSR preference, the resulting CSR increment leads to increased offline demand and drives up both wholesale and retail prices in a mutually beneficial manner. This phenomenon is referred to as the CSR effect, yielding a win-win encroachment. Secondly, when signaling product greenness to highly CSR-sensitive customers, the high-greenness manufacturer principally distorts her CSR effort downward to an extent unprofitable for the low-greenness manufacturer to mimic and subordinately distorts the wholesale price downward to counter CSR-induced demand decrement and mitigate CSR cost pass-through downstream. Finally, the win-win encroachment pattern is characterized by encroachment profit and signal expense sharing, with encroachment strengthening downward-distorted signaling while signaling weakens the CSR effect. These insights contribute valuable guidance for green manufacturers in CSR decision-making, which functions as a component of green signaling and facilitates transitioning to dual-channel sustainable supply chains.

Does the Value of Banking Companies in Indonesia Influenced By Technology Investment, Family Ownership, Corporate Social Responsibility Costs, and Exchange Rates

This study aims to examine and analyze the effect of Technology Investment (IT), Family Ownership(FAM), Corporate Social Responsibility Costs (BCSR), and Exchange Rates (NT) on the dependent variable, Firm Value, which is proxied by Tobin’s Q. The sample used in this study consists of banks listed on the Indonesia Stock Exchange for the period 2015-2022, totaling 31 banks. The independent variables in this study are Technology Investment, Family Ownership, Corporate Social Responsibility Costs, and Exchange Rates. The dependent variable is Firm Value, measured by Tobin’s Q. The sampling method is purposive sampling. The data analysis method uses panel data regression to test the influence of the independent variables IT, FAM,BCSR, and NT on TBQ. The results of this study show that among the independent variables affecting the dependent variable Firm Value, IT has a significantly positive effect on Firm Value. The variables FAM and BCSR have a significantly negative effect on Firm Value, while NT has no effect on Firm Value.

Legality of Environmental Coordination Costs in The Construction of Housing Projects As A Form of Corporate Social Responsibility (Home Price Component Study)

This research aims to find out the application of Corporate Social Responsibility (CSR), to know the setting of environmental coordination costs charged to developers in housing construction against the sale price of houses in PT Harapan Inti Persada Indah (PT HIPI). This research is a type of normative jurisprudence, with legislative approaches, case approaches and conceptual approaches carried out around the area of serpong garder II and the office environment of PT HIPI. Using primary legal material sources such as the results of observations and interviews. The results of the research that PT HIPI has implemented its social responsibility but has not implemented it is not in accordance with the regulations of the legislation. As far as environmental coordination costs can make as CSR costs as well as influence the component of house sales price in PT HIPI.

The Impact of Corporate Social Responsibility on Financial Performance: The Case of Internet-based Enterprises in China

"With the development of the economy and society, enterprises are no longer just profit organizations. They need to meet the demands of people to fulfill their social responsibilities. The development of Corporate Social Responsibility in China has only been more than a decade, and it is still in the initial exploration stage. Most companies initially adopted a wait-and-see attitude towards it. This article will take the perspective of listed internet companies in China and construct a social responsibility evaluation index system to empirically analyze the relationship between social responsibility and financial performance of internet-based companies. It will explore whether the cost of Corporate Social Responsibility will have a negative impact on their economic benefits. Based on this, it will help internet-based companies correctly understand the important position of social responsibility in their management system and enhance their awareness of actively taking social responsibility."

EFFECT OF CORPORATE SOCIAL RESPONSIBILITY COSTS ON THE FINANCIAL PERFORMANCE OF SUGAR MANUFACTURING COMPANIES IN KENYA

<p>The impact of CSR costs on financial performance is becoming increasingly important to a wide variety of corporate stakeholders. It is considered to be one of the instruments that businesses need to use to establish and maintain a calm working atmosphere. Engaging in corporate social responsibility and their disclosures are common in the recent business setting around the globe. Corporate social responsibility has become more significant over the past decades, and the validity of research on how it is associated with firm performance remains uncertain and incomplete. Many public and private Sugar manufacturing firms in Kenya have been facing poor financial performance, and some are closing up, even after receiving funding from the government. Consequently, this study aimed to establish the effects of corporate social responsibility cost on the financial performance of sugar manufacturing companies in Kenya. The specific objectives of this study were; to assess the effect of community development costs on the financial performance of sugar manufacturing companies in Kenya, to examine the effect of environmental responsibility costs on the financial performance of public and private sugar manufacturing companies in Kenya, and to evaluate the effect of economic responsibility costs on the financial performance of sugar manufacturing companies in Kenya. The study was guided by the stakeholder theory, legitimacy theory and theory of the firm. The study adopted a correlation research design. The study's target population was 12 sugar manufacturing companies in Kenya. A census sampling technique was used to select all 12 sugar manufacturing companies in Kenya. A secondary data collection sheet was used to document information from audited financial statements of the companies downloaded from the website from 2012 to 2021. Panel Data was analyzed using descriptive and inferential statistics. Panel regression analysis indicated that community development costs, economic responsibility costs and environmental responsibility costs had a significant effect on financial performance with a coefficient of 0.2146, 0.2896, 0.2728 and p-value of 0.006, 0.000, and 0.000. The study depicted that corporate social responsibility costs had a significant effect on financial performance with an R2 of 0.29 which implied that corporate social responsibility costs explain 29% of the financial performance of sugar companies in Kenya. Therefore, the study concluded that corporate social responsibility costs improve financial performance. The study recommended that the management of sugar companies should provide more funds to community development costs, policymakers should develop strategic policies that would enhance the practice of economic social responsibility, and respond to environmental demands for a cleaner environment.<br /> <br /><strong>JEL:</strong> Q10; L60; L66</p>

Pengaruh Pengungkapan Corporate Social Responsibility Dan Biaya CSR Terhadap Kinerja Perusahaan Pada Masa Pandemi Pada Perusahaan Manufaktur Sub Sektor Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia (BEI) Tahun 2019-2021

This study aims to examine the effect of Corporate Social Responsibility (CSR) disclosure and CSR costs on company performance during the pandemic in food and beverage sub-sector manufacturing companies listed on the Indonesian stock exchange with the 2019-2021 research period. The sample in this research is 7 companies taken using purposive sampling technique. The independent variable used in this study is the disclosure of Corporate Social Responsibility (CSR) measured by 91 items according to GRI-G4 and CSR costs are measured by employee welfare costs and community costs, while the dependent variable is company performance measured using ROA, ROE and ROS. The research model used as a test tool is Partial Least Square (PLS) version 3.0. The results of the study show that Disclosure of Corporate Social Responsibility has a significant effect with the negative direction on company performance and CSR costs have no significant effect with the negative direction on company performance.

Does CSR increase cost stickiness?

This study aims to provide evidence of corporate social responsibility (CSR) engagement with cost stickiness. Cost stickiness is an asymmetrical cost behavior in which the magnitude of the increase in costs tends to be higher when there is an increase in activity compared to the decrease in costs when there is a decrease in activity. The pattern of changes in costs depends not only on the size of the activity but also on the direction of the change. The research hypothesis states that the involvement of CSR requires the long-term commitment of the company in value creation activities, so it is difficult to suppress committed resources instantly. This study uses employee welfare costs and donations as a proxy for CSR. The research sample is a manufacturing company in Indonesia, with the observation year of 2017–2020. The results of the study prove that there is cost stickiness in selling, administrative, and general costs, and the degree of cost stickiness increases when CSR costs are added to the research model. The results also confirm that changes in activity levels and changes in costs are not always the same. These findings provide new evidence for understanding how CSR affects cost stickiness in manufacturing firms.

The horizontal S‐shaped relationship between corporate social responsibility and financial performance: The moderating effects of firm size and industry dynamism

AbstractThe relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) is inconclusive. Building on CSR power and stakeholder power arguments, slack resource theory, and agency theory, this study constructs a three‐stage model to compare CSR benefits and costs. This comparison indicates a horizontal S‐shaped CSR‐CFP relationship. Using a sample including 27,628 firm‐year observations of Chinese listed firms from 2010 to 2020, we find evidence for this horizontal S‐shaped CSR‐CFP relationship, which reveals that the S curve is more pronounced for smaller firms and for firms operating in more dynamic industries. Our findings contribute to the CSR‐CFP literature, CSR power and stakeholder power arguments, and the evaluation of the moderating effects on the S curve. Accordingly, these findings highlight key implications for decision‐makers and policymakers.

The mediating role of real earnings management in the relationship between CSR practices and cost of equity: evidence from European ESG data

PurposeThe goal of this article was to look into the direct and indirect links between corporate social responsibility (CSR) activities and the cost of equity, using real earnings management (REM) as a mediator.Design/methodology/approachTo test the hypotheses, the authors applied linear regressions with panel data using the Thomson Reuters ASSET4 and I/B/E/S database on a sample of 540 European companies selected from the environmental, social and governance (ESG) index over the period 2011–2019.FindingsThe results show that REM partially mediates the relationship between CSR practices and the cost of equity in European firms belonging to the ESG index.Practical implicationsInstead of beautifying their business, companies should make efficient managerial and organizational improvements to meet their social duty. Regulators in Europe must strive for tighter enforcement while also attempting to raise public awareness of CSR. CSR can be profitable and helpful for primary stakeholders, according to the research.Originality/valueAlthough previous literature has investigated the direct correlation between CSR practices and the cost of equity, the present work focuses on considering the direct and indirect association between CSR and cost of equity through the mediating effect of REM, which has not been widely used in CSR studies so far.

Understanding the Practices of Strategic CSR in Controversial Industry: Case of Tobacco Company in Indonesia

How do tobacco companies take responsibility for social issues under the business existence on health problems and economic issues. The research focuses on a small amount of research in corporate social responsibility (CSR) duty under Tobacco Company. Through the Sampoerna Retail Community (SRC), PT HM Sampoerna Tbk shows a different takes problem-solving of CSR on controversial issues. Through qualitative research, the data, primary data (interviews and observations) and secondary data (documentation studies), coded and analyzed using keywords derived from theory. This study found that CSR in cigarette companies is a form of controversial industrial business strategy that departs from considering business processes' internal and external conditions. The results show SRC is a way for companies to be socially responsible by articulating external conditions (outside-in) dominated by public restrictions on tobacco products and as an internal strategy (inside-out) that departs from the logic of business sustainability. SRC is a form of company compliance with several state regulations, restricting cigarette products and preventing children's access to cigarettes as an outside-in strategy. In the inside-out context, SRC is the company's strategy to ensure all consumers can reach products, collaborating with Fast Moving Consumer Goods (FMCG) companies as an alternative to the uncertainty of controversial industry conditions, and reducing CSR costs.

Competition through environmental CSR engagement and cost of equity capital

We examine the capital market outcomes of firms’ competition over environmental corporate social responsibility (CSR) ratings. We hypothesize that if environmental CSR engagement contributes to reputational advantage that lead to lower cost of equity capital, firms would compete to acquire such reputational advantage in the market for environmental ratings. In line with our prediction, we find that firms that are further away from the worst practices common to their “toxic” industry peers have a lower cost of equity financing. Moreover, consistent with the resiliency argument, we document that higher relative environmental CSR performance help mitigate the negative impact of the 2008 global financial crisis on the cost of equity capital. Our results are robust to a battery of sensitivity checks, including use of multiple estimation methods, alternative proxies of cost of equity capital measures and potential endogeneity concerns.

PENGARUH GREEN INTELLECTUAL CAPITAL INDEX, BIAYA CORPORATE SOCIAL RESPONSIBILITY, DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2019

The purpose of this research is to examine and analyze the influence of Green Intellectual Capital Index, Corporate Social Responsibility Costs, and Company Size on Financial Performance in mining Companies listed on the Indonesia Stock Exchange in 2014-2019. This research is a quantitative research. The data used in this study are companies financial reports and annual reports. The sampling technique used purposive sampling method with 51 companies as pupulation. Samples that meet the criteria are 13 companies. The analytical technique used in this study is multiple linear regression analysis with the help of the SPSS program. The result show that Green Intellectual Capital Index partially has a significant positive effect on financial performance with a significant value of 0.011, the cost of Corporate Social Responsibility partially has an insignificant positive effect on financial performance with a significant value of 0.960, and Company Size is generally partial has no significant negative effect on financial performance with a significant value of 0.066. Simultaneously the variables of Green Intellectual Capital Index, Corporate Social Responsibility Costs, and Company Size have a significant effect on financial performance with a significant value of 0.032.

Enterprise Financial Characteristics and Corporate Social Responsibility Costs of Oil and Gas Businesses in Nigeria

Abstract This work evaluated the effect of entity characteristics on company social responsibility costs of oil and gas firms in Nigeria for 2010 - 2019. The independent variables of the study and measures of firm characteristics are total assets, total sales, financial leverage and firm age while the independent variable is corporate social responsibility. A sample of three firms was selected out of a population of eleven oil and gas businesses on the Nigeria Stock Exchange during the period. Supporting data were obtained from the selected firms and analyzed using multiple regression analysis. Findings from the analysis suggest that both total assets and total sales positively and significantly affect the corporate social responsibility costs of the firms. It was also found that financial leverage positively and insignificantly affects the corporate social responsibility costs of the firms. Finding further reveals that firm age negatively and insignificantly affects corporate social responsibility costs of the firms. In the light of the findings, it was recommended that the firm managers should invest in assets especially long-term assets that will yield future streams of returns for their firms. This is because investment in assets improves production and promotes the corporate social responsibility performance of the firms. It was also recommended that the firm managers should promote their products through various product promotion channels as total sales boast firm profitability and promote corporate social responsibility performance. It was further recommended that the firm managers should increase the proportion of debts in their firms’ capital structure. It was finally recommended that firm managers should use a modern approach while implementing their corporate social responsibility programs as opposed to the old style.

Differential Game Model for Disaster Relief Cooperation between Host Government and Private Sector

The decision of the private sector to fulfil corporate social responsibility (CSR) has become an issue of common concern for the host country government and the private sector in collaborative disaster relief. From the perspective of social responsibility, this paper describes the different cooperation strategies of non-cooperation, cost subsidy, and collaborative cooperation, and constructs a differential game model of disaster relief cooperation between the government and the private sector. The rate of reputational decay has a significant effect on system benefits. The optimal CSR cost subsidy rate is related to marginal revenue and has nothing to do with other factors. Compared with the non-cooperative case, in the situation of the cost of subsidies, as the host country government and marginal revenue is greater than the private sector of the marginal revenue through government subsidies for the private sector in CSR and the government's optimal level of CSR efforts remained unchanged, the optimal level of CSR efforts to improve the private sector, the government, and the private sector's earnings are improving; Compared with the cost subsidy, the optimal CSR effort level of the government and the private sector increases in the case of collaborative cooperation, and so does the system benefit.

Collecting channel selection and information value of a closed-loop supply chain with corporate social responsibility

PurposeThe paper aims to explore how the participants in the closed-loop supply chain (CLSC) select collecting strategies under the scenarios of information symmetry and asymmetry, and to investigate the value of corporate social responsibility (CSR) cost information for participants.Design/methodology/approachThis paper constructs a two-echelon CLSC Stackelberg game consisting of one manufacturer and one retailer, where the manufacturer undertakes CSR and is responsible for the remanufacturing of used products. First, the authors establish two collecting models under information symmetry: manufacturer-collecting and retailer-collecting. Second, the authors construct two collecting models under information asymmetry and propose a two-part tariff contract to coordinate the participants’ profits. Finally, the authors make a numerical analysis to verify the results.FindingsUnder information symmetry, the profit of the participant who does not undertake collecting is positively related to the collecting rate, and the other participant may not benefit from the increase in the collecting rate. Under information asymmetry, the manufacturer will still select the retailer-collecting channel. Asymmetric information only affects the retailer’s selection. In addition, the manufacturer’s private CSR cost information is always valuable to the retailer.Originality/valueThis paper first explores the influence of the CSR cost information value on the selection of collecting channel under information asymmetry in the CLSC. The results can help company managers choose optimal collecting channel under information symmetry or under information asymmetry.

Optimizing price, quality and CSR investment under competing dual recycling channels in a sustainable closed-loop supply chain

This paper deals with pricing, product quality, Corporate Social Responsibility (CSR) investment, and used products collection strategy in a closed-loop supply chain (CLSC) in which both the manufacturer and the retailer contribute to CSR. The market demand is affected by the retail price, product quality and CSR investments. We develop the centralized model (C-Model) and three decentralized models viz. MR-Model, MT-Model, and RT-Model depending on competition between any two of the manufacturer, the retailer and the third-party collector for collecting used products in the reverse channel. A joint revenue-and-cost sharing contract is proposed to address the channel coordination issue. Optimal decisions are derived and compared analytically to determine the most efficient decentralized model, and verified with the help of a real case study. Our study reveals that due to lower product quality, CSR investments, collection rate of used products and higher selling price, the MT-Model is disadvantageous to all channel individuals while the MR-Model gives the best performance under comparatively less competition. The proposed contract can coordinate the supply chain and provide more profit to both the manufacturer and the retailer than their decentralized profits. It is additionally noticed that higher CSR investment, cost savings and collection rate of used products lead to sustainable development.

NON DEBT TAX SHIELD, BIAYA CSR, KOMISARIS INDEPENDEN, KOMITE AUDIT DAN TINDAKAN PENGHINDARAN PAJAK OLEH BANK YANG TERDAFTAR DI BEI

This study aims to find empirical evidence on the influence of non-debt tax shield, corporate social responsibility costs, independent commissioners and audit committees on corporate tax avoidance measures. Population in this study are all banking companies listed on the Stock Exchange 2011-2015. The type of research used in this study is empirical research. The sampling technique used is purposive sampling. Based on sampling through purposive sampling, then obtained as many as 30 samples of banking companies with a total of 89 research observations. The results of this study found that non-debt tax shield, independent commissioners and audit committee have a positive effect on tax avoidance measures. While the cost of corporate social responsibility negatively affect the action of tax evasion company.

CORPORATE SOCIAL RESPONSIBILITY DAN KINERJA BANK TERDAFTAR DI BURSA EFEK INDONESIA

The purpose of this study is to examine the relationship between corporate social performance and financial performance. In addition, this study also aims to examine corporate social responsibility disclosure as a moderating variable the relationship between corporate social performance and financial performance of banking companies in Indonesia. The sample consisted of 35 listed bank in Indonesia Stock Exchange. The results of the study showed that the corporate social responsibility performance negatively effect financial performance. This means that the higher the cost of corporate social responsibility, the lower the company's financial performance. In testing the effect of moderating variable, the results of this study does not provide evidence that the corporate social responsibility disclosure as a moderating variable relationship between corporate social performance and financial performance. However, other results in this study showed that as the independent variable, the corporate social responsibility disclosure positively effect on financial performance, which means that the more items that disclosed the company, the higher the company's financial performance.

A coordination mechanism through cost sharing of corporate social responsibility and government subsidy in a two-echelon supply chain

PurposeThis paper aims to deal with the coordination problem of the supply chain through cost sharing of corporate social responsibility (CSR) and government subsidy.Design/methodology/approachWith respect to the coordination problem of the supply chain with CSR, this paper constructs a three-stage game model consisting of a dominant retailer, n suppliers and government. From the perspective of cost sharing and government subsidies, this paper discussed the decentralized and centralized decision-making, respectively. On this basis, this paper designed a coordination mechanism considering both cost sharing and government subsidies and explore the impact of cost sharing rate and government subsidy rate on CSR efforts, members’ profits and social welfare.FindingsCSR can improve the profits of supply chain members and the overall performance of the supply chain. Then the profits of supply chain nodal enterprises will be affected by the fulfillment level of CSR of their partners. Furthermore, excessive CSR will erode the supply chain profits and cause resource waste. High CSR costs often make retailers low CSR effort level, while a high CSR cost sharing rate can reduce the profits of suppliers and the supply chain. In addition, excessive government subsidies will lead to the decline of social welfare. Excessive government subsidies will cause the dependence of enterprises and affect their operating efficiency.Practical implicationsThe proposed coordination mechanism can effectively do with the coordination problem of the supply chain.Originality/valueThe proposed coordination mechanism considering cost sharing and government subsidies simultaneously can effectively deal with conflict problems and guarantee the supply chain members and the supply chain to maximize their profits and social welfare.