Corporate Social Responsibility Index Research Articles

Analysis of CSR Index, Profitability, Sales Growth and Its Effect on Financial Performance on the Indonesia Stock Exchange in 2017-2020

The purpose of the research to determine the effect of corporate social responsibility disclosure on the performance of automotive companies on the Indonesia Stock Exchange (IDX) in 2017-2020, to determine the effect of profitability on the performance of automotive companies on the Indonesia Stock Exchange (IDX) in 2017-2020, to determine the effect of sales growth on the Indonesia Stock Exchange (IDX) in 2017-2020 and to determine the effect of corporate social responsibility diclosure, profitability and sales growth simultaneously on the performance of automotive companies on the Indonesia Stock Exchange (IDX) 2017-2020. The data collection techniuqe used in this study of documentation which learn the documents related data research such as the financial statements of automotive companies on the Indonesia Stock Exchange (IDX). In addition, the data analysis techniuqe used is multiple linear regression technique. The results in the study are 1) The company’s CSR index has a partial effect on the performance of automotive companies on the Indonesia Stock Exchange in 2017-2020 which is known as value Tcount > Ttable (2.172 > 1.69092), then H0 is rejected and Ha is accepted. 2) Profitability has a partial effect on the performance of automotive companies on the Indonesia Stock Exchange (IDX) in 2017-2020 which is known as value Tcount > Ttable (2.000 > 1.69092), then H0 is rejected and Ha is accepted. 3) Sales growth has a partial effect on the performance of automotive companies on the Indonesia Stock Exchange (IDX) in 2017-2020 which known a value Tcount > TTable (3.632 > 1.69092) the H0 is rejected and Ha is accepted. 4) The company’s CSR index, profitability and sales growth have a simultaneous effect on the performance of automotive companies on the Indonesia Stock Exchange (IDX) in 2017-2020 which known as value Tcount > Ttable (4.425 > 2.87) the H0 is rejected and Ha is accepted. 5) The percentage influence of the company’s CSR index, profitability and sales growth on Return On Assets is 0,593% while the remaining 40,7% is influenced by the other factors not examined.

The Bucharest Stock Exchange: A Starting Point in Structuring a Valuable CSR Index

The aim of this article was to identify the role and specific mechanisms of the stock exchange in promoting corporate social responsibility (CSR) and CSR communications among companies listed on the Romanian capital market given country membership of the European Union. Taking into account the quality of the Bucharest Stock Exchange (BSE) as a member of the Sustainable Stock Exchanges, as well as BSE’s concerns about promoting CSR, a CSR index was built to capture the specific actions of companies listed on this market. The public companies were considered representative for the promotion of CSR based on their size and other relevant features. The index can be seen by companies that can further develop it, test its validity, and employ it as a tool to reassure investors who will decide to spend their money to buy shares and stocks of organizations ranked in the BSE.

GRI Standars Based Corporate Social Responsibility Disclosure Toward Market Reaction In Energy Companies Listed in Indonesia Stock Exchange

This study aims to analyze of the implementation Corporate Social Responsibility (CSR) disclosure on market reaction to energy companies listed on the Indonesia Stock Exchange. This is based on environmental issues that are growing, especially in energy companies in Indonesia, the development of previous research, and the effective implementation of the Global Reporting Initiative that uses the 2016 GRI standard which was approved in 2016 by the Global Sustainability Standards Board (GASB). The way to measure CSR disclosure is by using GRI-based CSR index 2016 while the market reaction is measured by using Cumulative Abnormal Return (CAR). This research focuses on energy companies that are growing rapidly in Indonesia. In addition, that energy companies are companies that fall into the category of companies high-profile.companies High-profile are companies which were highlighted by the public for the actions on the environment

Navigating offshoring supply chain management decisions between cost advantages and corporate social responsibility risk

In the globalised world, companies would source major parts of their production, mainly for economic reasons, from low-cost countries. Therefore, it is important to understand implicit corporate social responsibility (CSR) risk when making offshoring decisions. This article presents a transparent composite index of CSR risk for a list of 170 countries. Combining the country CSR index with GDP per capita can help firms identify attractive offshoring destinations with relatively low CSR risk. This innovative approach allows companies to reconcile CSR considerations with economic success when designing international supply chains.

Коксування трамбованих вугільних шихт. Вміст газового вугілля ≤ 40%

COKING OF RAMMED COAL CHARGES. GAS COAL CONTENT ≤ 40% © N.V. Mukina (Coke-chemical production of PJSC “ArcelorMittal Kryvyi Rih", 50095, Kryvyi Rih, Krivorozhstal st., 1, Ukraine), D.V. Miroshnichenko, Doctor of Technical Sciences (National Technical University "Kharkiv Polytechnic Institute", 61002, Kharkov, Kirpichev str., 2, Ukraine) The article presents the results of studies of coking coal charges, characterized by the content of coals of the gas group up to 40%. The coal concentrates included in the composition of the coal charge for tamping the coke production of PJSC ``ArcelorMittal Kryvyi Rih" were studied. The initial samples were studied using a set of standardized methods with the determination of data from technical, petrographic and granulometric analysis, as well as the chemical composition of the ash. In addition, burst pressure values and Hardgrove grindability coefficients were determined in the samples taken. Based on the data obtained, the following indicators were calculated: sintering and coking properties of the charge, the average size of a piece of coal, the ash basicity index, and the basic-acid ratio. The presence of coals in the raw material base of KHP "ArcelorMittal Kryvyi Rih" was established, differing both in terms of sieve, technical, petrographic and plastometric analyzes, and in terms of grinding capacity, bursting pressure and chemical composition of the mineral part. It is shown that an increase in the sintering capacity, determined by both plastometric and petrographic methods, and the coking capacity of the charge leads to an improvement in the mechanical strength of blast-furnace coke. Graphic dependencies are built and mathematical equations are developed, they allow predicting the value of the mechanical strength of the coke obtained from them, according to the data of laboratory studies of coal charges. A linear relationship has been established between the CRI and CSR indices of the obtained experimental coke. Mathematical dependencies have been developed and it makes it possible to predict with sufficient accuracy the values of CRI and CSR of laboratory coke according to the data of the basic-acid ratio and basicity index of the ash of the initial coal charge. Keywords: coal, charge, rammer, laboratory tests, coke quality.. Corresponding author D. V. Miroshnichenko, e-mail: dvmir79@gmail.com

Impact of Corporate Social Responsibility on profitability of banks in Pakistan: Application of GMM Approach

The present study investigates the effects of corporate social responsibility (CSR) on financial performance of commercial banks in Pakistan employing the generalized method of moments (GMM) estimator on a panel data. A diverse sample of 25 banks is selected for the analyses for a period of 11 years (2010-2020) based on consistently available data. In addition to the CSR index, some bank-specific and macroeconomic variables are used as control variables to test for the effects of CSR initiatives on profitability of banks in Pakistan. Our findings demonstrate that the CSR drives and commitments on social expectations reward the banks with larger profit margins. Consequently, the results tend to validate the stakeholder theory where socially responsible enterprises lead towards greater financial performance. The control variables like capital intensity, credit risk, bank size, liquidity, age of the bank, proportion of non-executive directors, tangibility and GDP growth divulge mixed results. The diversity in results propose a number of policy and managerial implications both for policy makers and banks managers.

Corporate Social Responsibility Disclosure and Corporate Values: the moderation effect of Profitability

Objective: This research aimed to examine whether corporate social responsibility disclosure affects corporate values by using profitability as a moderating variable, and to examine the aspects of CSR disclosure that were most widely disclosed by companies. The CSR index measurement used 91 items which were divided into 3 categories, namely economic, environmental, and social categories. Methods: The regression test used in this research was multiple linear regression using Moderated Regression Analysis (MRA) to determine the effect of CSR disclosure on corporate values, with profitability as the moderating variable. Originality: The originality of this research was to identify the CSR categories that were mostly disclosed by companies in Indonesia, and to identify whether CSR disclosure could increase company value, especially in developing countries where the fulfillment of disclosure obligations was still low. Results: The results of the analysis showed that the disclosure of Corporate Social Responsibility disclosure had no effect on corporate values, and profitability could be a moderating variable to increase the effect of CSR disclosure on corporate values. The most widely disclosed CSR category was the social category, and every year CSR disclosure has increased. Theoritical Contributions: This research used signal theory to explain the effect of CSR disclosure on corporate values. Social/management contributions: CSR disclosure had no affect on the value of the company because it was still not maximally fulfilling the obligation to disclose social responsibility, and the financial factor such as profit was still the focus of determining the value of the company which was a positive signal for investors.

Corporate Social Responsibility Moderates the Nexus between Financial Inclusion and Islamic Financial Stability

This research work checks the influence of the financial inclusion index (FI) and corporate social responsibility index (CSRI) on financial stability, profitability, and return on equity of the Islamic banks of Pakistan. Further, research works to check whether the corporate social responsibility index plays a moderating role in the association between the financial inclusion and financial stability of Islamic banks and windows of Islamic conventional banks of Pakistan. The corporate social responsibility index was measured through the contribution of social activity to society. Financial inclusion was measured through financial access to the entire society without any discrimination against society. In this paper, samples of the Islamic banks including the Islamic window of the conventional banks for 2005 to 2020 are investigated. Further, the data is selected of the variables from the financial statement and balance sheet of the banks. The fixed effects and generalized moments of the method are employed to check the affiliation between the FI and CSR on the stability and profitability of Islamic banks. The generalized moment of method (GMM) has been employed on the panel data set to control the endogeneity from the model. The empirical results of this research study have the following conclusion: Firstly, FI has a constructive and significant impact on the financial stability and profitability of the banks. Secondly, corporate social responsibility has a positive and significant impact on stability and profitability. Finally, the interaction term corporate social responsibility has a positive and significantly moderating effect on the relationship with the financial inclusion on the stability (FS) and profitability on the Islamic banks.

A paradigm shift in corporate social responsibility: India’s transition from mandatory regime to the COVID-19 era

PurposeThis study aims to examine the pattern of corporate social responsibility expenditure (CSRE) incurred by Indian companies after the inception of Companies Act 2013. It also highlights the resultant change brought in the corporate social responsibility (CSR) spends of the companies because of COVID-19 pandemic.Design/methodology/approachThe CSR index provided by the Ministry of Corporate Affairs under Companies (CSR Policy) Rules 2014, is adopted to measure the extent of CSRE made by top 30 Indian companies listed on Bombay Stock Exchange. To study the pattern of CSRE in various domains mentioned in the CSR index, the study is conducted over four points of time. Three alternative years since the commencement of the Companies Act 2013 i.e. 2014–2015, 2016–2017 and 2018–2019 have been taken up. Additionally, the financial year 2019–2020 is included as it marks the inception of the COVID-19 pandemic.FindingsThe findings show that the CSRE made by companies is increasing every year over all points of time taken in the study. In addition to this, Indian companies have voluntarily contributed a substantial amount towards COVID-19 relief over and above the required mandatory limits.Practical implicationsThe gradual increase in CSR contributions even above the mandated amount and voluntary contribution towards COVID-19 relief by Indian companies implies that the nature of CSR in India is still philanthropic.Originality/valueThe study contributes to the CSR literature after the implementation of the mandatory CSR provisions in India and in the wake of the global pandemic caused by COVID-19 as so far there is no such study available in the extant literature.

Best Practices of CSR Reporting in Romania

AbstractThe aim of the study is to examine the content and quality of online CSR reports of the eight large companies with the highest CSR index scores in Romania in 2020. The CSR reports of the eight large companies examined were analysed on the basis of two types of web content: on the one hand, on the basis of CSR content published on the company website and on the other hand on the basis of data published in sustainability or CSR reports uploaded to the website. The research method was thematic content analysis. The analysis criteria of the mentioned content were developed on the basis of the reporting principles of the GRI framework and the ISO 26000 standard. The findings showed that the principles of content and quality of non-financial reporting prevailed in the sustainability reports, while the data published on the websites was more for wider information.

The Impact of Social Responsibility Performance on the Value Relevance of Financial Data in the Banking Sector: Evidence from Poland

Corporate social responsibility (CSR) is inevitably becoming an increasingly important part of almost every business. This is particularly true for the banking industry, which suffered substantial losses in reputation and public trust in the aftermath of the global financial crisis. Not surprisingly therefore, banks around the world have visibly intensified their CSR efforts. One of the key dimensions of CSR regards the reliability and transparency of a firm’s communication with the market, which suggests that information disclosed by responsible companies may be more value relevant. The related evidence, especially in the banking sector, is however modest and mixed. The paper aims, therefore, at empirical investigation of the impact of social responsibility performance on the value relevance of financial data in the Polish banking sector. The research employs multivariate regression analysis based on the Ohlson model and the Chow test for structural breaks. The examined sample covers 154 bank-year observations of 17 banks listed on the Warsaw Stock Exchange from 2009–2020. The results suggest that financial disclosures of banks included in CSR indices are generally more value relevant. Additionally, more responsible banks exhibit higher (lower) responsiveness of market values to net earnings (book values of equity) compared to their less socially responsible counterparts.

CSR communication and firms’ ability to win public procurement contracts

PurposeThis paper aims to examine the link between the corporate social responsibility (CSR) communication efforts of companies and their ability to obtain public procurement contracts.Design/methodology/approachThe authors are exploiting a database with the number of public procurement contracts won by SBF 120 companies in France and a constructed CSR index over the period of 2007–2015. The authors provide estimates of the amount of public contracts won by those companies.FindingsThe results suggest a striking influence of CSR communication on the ability of firms to win contracts.Research limitations/implicationsThis study focused on the case of the SBF 120 companies under the French regulatory system and European directives, which are different from the obligations in North American countries. Second, our constructed CSR index may be too simplistic in nature, and its application is limited only to the French context. Third, we do not have any evidence about the efficiency of well-ranked firms in our study. CSR reporting is still considered to be a form of communication, even if formal, that can contain information that does not especially reflect reality, as the scandals of several companies have shown in recent years (e.g. Volkswagen, Eiffage, Enron).Practical implicationsCompanies should consider Business-to-Government (B-to-G) market when investing in CSR actions.Originality/valueThis is one of the first empirical studies measuring the impact of CSR on the ability of companies to win public contracts.

An Assessment of Customer Accounting Approach’s Impact on Maximizing the Firm Value

The Purpose of the study: the key purpose of the study is to discuss the importance and relevance of Customer Accounting to the Egyptian business environment, and to evaluate the role it plays in maximizing the value of the firm. The Methodology of the study: the researcher conducted a questionnaire to test the hypotheses of research, the sample chosen included 95 respondents from the intended groups who benefit from customer accounting in the 30 companies in the corporate social responsibility index (S&P) listed in the Egyptian stock of exchange, the intended groups selected are: Accountants, Financial Managers, Financial Analysts and investors. The study results’: the results of the study proved the importance of customer accounting’s approach for the Egyptian business environment. As well, the evaluation of customer accounting showed that its advantages prevail over the disadvantages, which indicates that it plays a vital role in maximizing the value of the firm.

The More You Talk, the More You Win: CSR and Firms’ Ability to Win Public Procurement Contracts

This paper examines the possible link between the corporate social responsibility (CSR) communication efforts of companies and their ability to obtain public procurement contracts by focusing on the study of the business-to-government (B-to-G) market. By exploiting a database with the number of public procurement contracts won by SBF 120 companies in France and a constructed CSR index over the period of 2007-2015, the results obtained showed a striking influence of prior CSR communication on the ability of firms to win more contracts during a given year. Our results also underlined the fact that budget constraints may incline public procurers to not base their choices on a company’s CSR communication.

An integrative framework for stakeholder engagement: reconciling and integrating stakeholders’ conflicting CSR priorities in management decision-making

ABSTRACT CSR implementation is inextricably linked with effective stakeholder engagement, and integrating stakeholders’ CSR priorities in management decision-making a prerequisite for effective stakeholder engagement. While the literature points to the need to build such linkages, no mechanism exists that reconciles never mind integrates stakeholders’ (often conflicting) views. Addressing these omissions, we propose that there is a need for a framework that (1) reconciles and integrates the often conflicting priorities of stakeholders; (2) helps to construct a ‘unified’ CSR index inclusive of all stakeholders’ views; (3) fosters consensus-driven management decision-making; and thereby (4) facilitates effective CSR stakeholder engagement and implementation. We construct an ‘AHP-based Integrative Framework for Stakeholder Engagement’. We construct a ‘unified’ combined CSR index for Saudi businesses as well as the wider Saudi society as external stakeholders based on 18 CSR indicators identified as relevant through primary data collection. Based on combined rankings for the 18 CSR indicators, the most desirable ‘common’ CSR attributes are determined for all stakeholders. Notably, the popular notion that the Saudis view CSR in terms of philanthropy as a means of fulfiling their charitable obligations is not supported. The ‘AHP-based Integrative Framework for Stakeholder Engagement’ delivers measurable and transparent consensus-driven objective decision-making in setting CSR priorities inclusive of all (internal and external) stakeholders’ views enabling participatory stakeholder engagement and CSR implementation, as well as objective CSR evaluations and comparisons improving the performance-disclosure gap. While this research focuses on CSR, we demonstrate the ‘AHP-based Integrative Framework for Stakeholder Engagement’ serves as a general framework that delivers effective stakeholder engagement in any management decision-making reconciling and integrating various stakeholders’ often conflicting priorities into common objectives thereby enabling organisations the best possible informed management decisions inclusive of all (internal and external) stakeholders views.

Corporate Social Responsibility and Sustainable Employability: Empirical Evidence from Korea

A firm’s corporate social responsibility (CSR) aids in social well-being, but it is costly. It is thus necessary to study whether a firm’s CSR activities are valuable in terms of costs and benefits for shareholders’ interest. Recent studies reported that firms’ CSR activities help to develop the corporate environment and improve financial performance. In addition, prior studies explained that a firm’s CSR activities can have a positive effect on financial performance by increasing employees’ commitment to their firm. The purpose of this study research is to examine the effect of CSR activities on sustainable employability through empirical analysis. We measured the sustainable employability using the percentage of regular employees and then examined the effect of CSR activities on sustainable employability using 3802 firm-year data for Korean listed firms. From the empirical results, we found that firms engaging in CSR activities improve more in terms of sustainable employability than do firms who are not engaging in CSR activities. We also found that the companies engaging in a high CSR index score showed greater sustainable employability than did those with a low CSR index score. The results of this study suggested a way to increase sustainability in terms of employment by supporting a rational basis for companies to adopt CSR. These findings are expected to contribute to academia and the capital market by providing empirical evidence that a company’s CSR activities have a positive impact on sustainable employability.

Corporate Social Responsibility in South Europe during the Financial Crisis and Its Relation to the Financial Performance of Greek Companies

This paper aims at presenting the notion of corporate social responsibility in Europe by examining its application in Southern European countries, Greece, Italy, Spain and Portugal. These major Mediterranean countries, beside the geographical proximity and common features, were at the center of the financial crisis in Europe in 2009. The aforementioned countries are under evaluation on the one hand as a European region and on the other hand as independent ones. Considering the complexity of CSR, its aspects through time, its diversity depending on the geographical position and the necessity of ethical CSR as part of business activity, this paper presents a new categorization of existing quantitative indicators and a method of evaluation that covers the multidimensional notion of CSR. The new model, which combines quantitative indicators, is used to measure CSR during the period from 2009 until 2016 and reflects companies’ ethical policy, the degree of understanding their moral obligations. The longitudinal comparative analysis is the starting point for further improvement as the countries, except for Portugal, are fluctuating within low levels and the Mediterranean region as a whole in average ones. Furthermore, having estimate CSR index, the examination of the financial performance of Greek companies within the period 2015–2016 confirms the majority of the literature that the adoption of CSR’s good practices, is not only a moral rule, but contributes at least partly, to the development of their effectiveness. As a conclusion, the structure of a commonly acceptable measurement model of the National Social Responsibility and the longitudinal measurement will be a useful tool for all involved institutions, with immediate results to both the society and the companies.

The Impact of Company Characteristics Behavior (Size, Profile and Institutional Ownership) On Disclosure of Corporate Social Responsibility

The term Corporate social responsibility (CSR) defined as corporate social responsibility, which is an issue of corporate environmental management and is value-added for many multinational companies, including companies located in Indonesia. Corporate awareness in maintaining the environment around the company is much demanded by community social institutions (NGO-environment), to maintain the natural and social balance of the community. Therefore, the implementation and disclosure of CSR for the company is expected to be able to add value to the sustainability of the company itself. Company awareness in establishing good relations with the community, stakeholders, and government can be done for the existence of the company through CSR disclosure, disclosure of financial performance, and the institutional structure of corporate ownership. The company orientation, which originally only a shareholder orientation with the economic orientation paradigm being a stakeholder orientation, will have social and environmental impacts on the company's operations. This study conducted to determine the effect of corporate characteristics behavior (size, profile, institutional ownership) on disclosure of corporate social responsibility. CSR disclosure uses the Corporate Social Responsibility Index (GRI G4). The sampling method used was purposive sampling with a sample of 150 companies listed on the Indonesia Stock Exchange for 2017-2019. The data used are secondary data obtained from www.idx.co.id and the official websites of all related companies. The data analysis method used is multiple regression analysis (OLS). The results of hypothesis testing conclude that the company profile and institutional ownership structure significantly influence the disclosure of social responsibility; Meanwhile, the size of the company does not significantly affect the disclosure of social responsibility.

Do creditors value corporate social responsibility disclosure? Evidence from Ghana

Purpose Drawing on risk mitigation theory, this study aims to examine the link between corporate social responsibility (CSR) disclosure and the cost of debt financing (CDF). In particular, this paper seeks to determine whether firms with higher CSR disclosure scores have a lower CDF. Design/methodology/approach This paper uses a panel data analysis of non-financial Ghanaian firms listed on the Ghana Stock Exchange from 2006 to 2019. The CSR index constructed from firms’ annual reports and sustainability reports is used as a proxy for the extent of CSR information disclosures by Ghanaian companies. Findings The empirical results demonstrate that CDF is positively related to CSR disclosure scores. Besides, the results show that the levels of long-term debt increase with CSR disclosure in a highly risky industry. However, the finding does not meet the lenders’ expectations in terms of CSR attracting favourable debt financing sources. Research limitations/implications The research is based only on the quantity of the CSR information disclosed by Ghanaian companies and does not account for the quality of the CSR disclosures. The empirical model omits some control variables such as the age of the firm and external business conditions. The results should not be generalized, as the sample was based on three listed industries in Ghana for 2006–2019. Originality/value This study extends the scope of previous studies by examining the importance of CSR disclosures in financing decisions. More precisely, it focuses on the relatively little explored relationship between the extent of CSR disclosures and access to debt financing. Moreover, this study focuses on the rather interesting empirical setting of Ghana, which is characterized by its low level of CSR awareness. Achieving a better understanding of the effects of CSR information is useful for corporate managers desiring to meet lenders’ expectations and attract debt financing sources.

Impact of Bank-Specific, Corporate Governance and Environmental Factors on Bank Efficiency and Profitability in Pakistan

The study aims to investigate the impact of bank-specific, board structure, gender diversity, and environmental factors on bank efficiency and profitability in Pakistan by taking a sample of seventeen commercial banks for the period 2013-2018. Data envelopment analysis (DEA) and return on assets (ROA) are used as a proxy to measure bank efficiency and profitability. Panel estimation techniques and Generalized Method of Moments (GMM) are used to conceptualize the research framework and to test the hypotheses. The findings indicate a negative relationship of non-performing loans, advances, level of involvement of women into other committees, and CSR index with ROA; while more presence of women on board reveals a positive and significant impact on ROA that is consistent with critical mass theory. However, CEO duality shed a positive impact on technical efficiency; while bank size signifies an inverse relationship with ROA and technical efficiency. Moreover, deposit influences ROA positively; while board size finds a positive and significant relationship with ROA and technical efficiency. The findings are important for various stakeholders as they can efficiently take their decision-making to better understand the factors influence bank performance. This study recommends future researchers do the same research by inculcating a larger sample size.