Model Of Corporate Social Responsibility Research Articles

The Direct and Moderating Effects of Endogenous Corporate Social Responsibility on Firm Valuation: Theoretical and Empirical Evidence from the Global Financial Crisis

AbstractResearch has produced inconclusive results concerning the effects of corporate social responsibility (CSR) on firm financial performance, with only 59 percent of studies demonstrating positive effects. Yet, still unaddressed is how CSR impacts the key driver of financial performance – firm growth. We develop new multidisciplinary theory integrating stakeholder and risk management theories with multi‐period capital asset pricing. We test the direct and moderating effects of Social, Institutional, Strategic, and Technical CSR using a simultaneous equations model of endogenous CSR and Tobin’s q ratio. Our 2004–12 sample of S&P 3000 firms show that all CSR dimensions directly bolster firm performance, while select dimensions moderate the relationship between firms’ sales or asset growth and capitalized market value in the periods surrounding the 2008 Global Financial Crisis (GFC). These results deepen understanding of how different forms of CSR influence market value, and refine estimates of CSR’s direct and moderating impacts on the growth‐value relationship.

Society 5.0: balancing of Industry 4.0, economic advancement and social problems

PurposeThe purpose of this paper is to report about research how Society 5.0 balances Industry 4.0, responsible economic development and resolution of social problems by advancement of corporate social responsibility (CSR) in organizations.Design/methodology/approachDrawing from organization, sustainable development and social functionalism theories, the authors designed an integral model of CSR in line with goals of a forward-looking and socially responsible society. This study includes analyzing of present governing principles, multidisciplinary and multifunctional consideration and developing of integral framework for CSR in organizations.FindingsThis study’s findings suggest incorporation of technology in models of CSR, a regionally grounded solving of individuals’ social problems and changing of CSR’s environmental, social and economic dimensions according to circumstances of Society 5.0.Practical implicationsThis study has created guidance for improvement of CSR practice in organizations through its responsible operating and behavior grounded on the governing environmental and social circumstances in modern society. It also revealed new possibilities for interest-based usage of human-centered society among individuals and organizations.Originality/valueThe reported study proposed an integral model of CSR for solving the main social problems with usage of advanced technologies in responsible economic growth founded on circumstances of Society 5.0, previously not considered in literature.

Enhancing sustainability in the contemporary model of CSR: a case of fast fashion industry in developing countries

PurposeThis study aims to point out the importance and the relevance of sustainability issues and the need for their enhancement in the contemporary model of corporate social responsibility (CSR) as the top priority for business entities. Furthermore, it also highlights ways to enhance sustainability in the contemporary CSR model in the fast fashion industry of developing countries.Design/methodology/approachLiterature review has been extensively done through available databases, including ProQuest and ScienceDirect.FindingsThis study delivers a full insight into the current state of research on the CSR model and sustainability in developing countries. The prevalent corporate environmental sustainability practices of global apparel brands are identified to propose ways to enhance sustainability in the contemporary CSR model.Research limitations/implicationsThe growth of fast fashion industry brings the risks of unsustainability to developing countries. Thus, it is a must for the garment and textile companies to enhance a sustainable CSR model through promoting sustainable leadership and integrating corporate culture.Originality/valueTo the best of author’s knowledge, this study is the first to emphasise the role of sustainable leadership in promoting a sustainable CSR model in the fast fashion industry of developing countries.

Cycle Relations: A proposed-CSR Model to Increase University’s Intake

<p><em>Most higher education institutions in Central Java, especially in Salatiga have done some Corporate Social Responsibility (CSR) programs to achieve their goal which is increasing their intake yearly. This is a descriptive qualitative research which tries to investigate the implementation of CSR model proposed named ‘Cycle Relations’ in one academic year. Interview and literature study are used to gain the data, and then analyzed qualitatively. 7 higher education institutions in Salatiga-Central Java and also 19 high schools which are spread in 7 cities in Central Java are used in this study. The reason why these institutions were involved was that this study was a continuation from a previous study. This result shows that indeed the CSR program the insitutions carried out impact towards their intake either directly or indirectly. The study indicates that those higher educations have done their ‘Listen and Respond’ to create their sustainable CSR program.</em></p>

Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia

Mining is an important industry in Indonesia. A nickel mining company has operated for almost 45 years. It has managed corporate social responsibility (CSR) programmes in the neighbouring local community. In addition to the environmental conservation and mitigation, as well as socioeconomic enhancement, the CSR is expected to nurture resilience in the local communities. This study’s goal is to examine the effect of CSR on community resilience (COM-R) in the surrounding community. To analyse the effect of CSR practise on COM-R, Partial Least Squares -Structural Equation Model (PLS-SEM) is used. Results show that CSR has a positive effect on and a significant relationship with COM-R. Results also indicate that CSR’s contribution to COM-R enhances community collective efficacy, community action, and adaptation. Thus, the verified CSR and COM-R model benefits other researchers, companies, and governments to be further explored.

A KEY CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY FRAMEWORK: INDIAN CONTEX

There is an extensive and speckled history associated with the different models and evolution of the concept of Corporate Social Responsibility (CSR).However,a historical review and understanding of different models is not there in the educational literature that represents the evolution of the academic understanding of the concept alongside with the public and international events that influenced the social outlook with regards to corporate performance. The main aspire of this paper is to provide a distinctive historical perspective, challenges and issues and models of CSR and provide sustainable growth of business and community.

The state-of-the-art of corporate social responsibility reporting practices and their contribution to sustainable development. Analysing CSR patterns framed by sustainable development theories as benchmark for modern entrepreneurs

This paper presents an overview of corporate social responsibility (CSR) theories that can be implemented by modern entrepreneurs within practical business context. The research study comprises a state of the art on the literature review of corporate social responsibility practices. There is a research gap in the field of CSR impact for entrepreneurship as well as a literature gap on CSR models and their relevance for modern entrepreneurs. This research focuses upon the importance of conceptualising CSR practices in the entrepreneurship context. Nowadays, entrepreneurs aim to contribute to the economic progress of society without compromising the well-being of future generations. Entrepreneurs need innovation, because for the modern businessmen social responsibility becomes a vital asset influencing the success of the business.

CSR processes in governance systems and structures: The development of mental modes of CSR

AbstractWhen corporate social responsibility (CSR) as a sensemaking process is assessed from a corporate governance perspective, this implies that stakeholders do not only influence companies by promoting and enforcing regulations and other corporate guidelines. They also influence companies by promoting regulation on influence pathways, by demanding that companies develop formal mechanisms that allow companies and stakeholders to discuss and in some cases agree on changes to principles and policies. This perspective suggests that regulation is an outcome of power relations and is, as such, a reflection of certain mental models. As such, mental models reveal the political bias in corporate governance perspectives. For this reason, CSR research needs to be clear about the underlying assumptions about corporate governance, and corporate governance research needs to disclose which mental models of CSR influence the outcomes. Taking a governance perspective on the development of mental models of CSR helps to understand the interaction between CSR and processes of sensemaking at the institutional, organizational and individual levels.

CSR reporting practices: an integrative model and analysis

ABSTRACTUsing stakeholder theory, this study explores the antecedents and outcomes of corporate social responsibility (CSR) reporting practices. We draw on a large dataset of all available CSR reports for publicly traded North American companies to empirically test an integrative model of CSR reporting practices. We argue that CSR reporting is driven by top management team (TMT) and CEO considerations, stakeholder relationship management, and firm-specific characteristics, such as industry membership and economic performance. We find that some of the aforementioned antecedents decrease the potential for corporate social irresponsibility (CSI) through the mediating role of the CSR report.

Can CSR help achieve sustainable development? Applying a new assessment model to CSR cases from Egypt

PurposeThe purpose of this paper is to develop an assessment model for corporate social responsibility (CSR) that is interlinked to sustainable development and examine the model on CSR cases in Egypt, exploring whether CSR is embedded into the core agenda of the corporations. This analysis helps in understanding the state of CSR in Egypt and countries with a similar socio-economic background.Design/methodology/approachThe study presents a sustainable development assessment model for CSR, based on combining and modifying Archie Carroll’s model of Hierarchy of Corporate Responsibilities (1979, 2010) and Donna Wood’s Corporate Performance Model (1991) to include sustainable development imperatives. The proposed model analyzes two CSR practices of corporates. Qualitative analysis using in-depth interviews was conducted in the two case studies: a global multinational company represented in Egypt and a family business typical of many Egyptian corporates.FindingsGeneralizing from the results of the assessment in Egypt and countries with similar circumstances, most CSR practices in such a context still fall under philanthropy and few under human development or the business case. The lack of the formal institutional framework for organizing the role of the State in CSR promotion leads to missing the opportunity of linking CSR to the Sustainable Development Goals or similar strategies.Originality/valueThe paper presents a CSR assessment model adopted in developing countries, with a focus on incorporating sustainable development indicators since the 1990s. This methodological development since 2010 is timely and particularly useful for relating CSR to the recent global focus on sustainable development.

Corporate sustainable actions through United Nations sustainable development goals: The internal customer's response

Designing sustainable corporate social responsibility (CSR) strategy utilizing the United Nations sustainable development goals (SDGs) framework to deal with consumption in a sustainable and responsible fashion is increasingly a requirement in emerging economies. This paper examines sustainable social initiatives (SIs) via a CSR model and social lens as part of the SDG framework for multinational enterprises (MNEs), to determine the perception of the internal customer and stakeholder (i.e., the employee) alongside their identification and voluntary engagement in their organization's SIs. The study examines internal customers (as the employee) of two MNEs who reside in a developed country and two developing countries from emerging economies. The findings indicate that identification with the SDG‐based SIs selected by MNEs for this study mediates the relationship between perception of their organization's perceived CSR and engagement in these initiatives, for employees in developing countries (and emerging markets) but not the developed country. This suggests the importance that internal employees “identify” with SDG‐based SIs in emerging markets in particular and builds on significant managerial implications for MNEs in these markets alongside their voluntary work with nonprofits as part of their SIs and CSR strategy. The findings also confirm the importance of MNEs adopting SIs that are not only relevant to the global United Nations SDG framework but also relevant to the actors, collaborators, and nonprofit organizations involved in these SIs, including stakeholders and in particular the internal customer (i.e., employee) who volunteer their time to implement these SIs in the communities where MNEs reside.

Institutional Model of Corporate Social Responsibility

Purpose: The purpose of this study is to present the structure of a model emphasizing the role of formal and informal institutions in implementing the concept of corporate social responsibility (CSR). Design/Methodology/Approach: In the article the following research methods were applied: method of literature critical analysis allowing to assess the knowledge on the impact of institutions on the effects of CSR concept implementation, methods of analysis and synthesis allowing to present in a comprehensive and multifaceted manner the research issue and identification of factors which determine developing the socially responsible business model and modelling methods implementing the idea of CSR. Findings: The social and economic reality proves that in the modern, very complex and global world, institutions are becoming increasingly important. Therefore, the concept of CSR should include the institutional environment because the quality of institutions, both formal and informal, influences the quality of binding standards and social values.The quality of institution is also affecting the social culture, development of social awareness and sensitivity e.g., regarding natural environment issues and civil society, living conditions and level of education; therefore, factors which are particularly emphasised in the idea of CSR. Practical Implications: The conducted analysis revealed that reference literature presented only marginally the role of formal and informal institutions in developing the concept of corporate social responsibility (CSR). In order to close this gap, the article presents the model of CSR emphasizing the importance of institutions and their role in implementing the concept of CSR. The proposed model may contribute to achieving better results within the implementation of CSR in practice, in the area of economic rationality, natural environment as well as social and economic, moral, ethical, traditional and cultural life. Originality/Value: The proposed model is a progressive model presenting in an optimal manner the concept of CSR from the perspective of formal and informal institutions. The model of CSR concept taking into account the institutions may become ground for further in-depth research into this concept and constitute the imperative in rationalizing the concept of CSR in practice.

Examining relationships among cultural factors and expectations of CSR

PurposeStudies have explored expectations of corporate social responsibility (CSR) among cultures, but findings are mixed. A more nuanced view of cultural dimensions rather than using Hofstede’s aggregate country scores can offer a stronger empirical foundation for studying the effects of culture. Based on two cultural dimensions and Carroll’s four-dimensional model of CSR, the purpose of this paper is to test the relationship between individualistic/collectivistic values and individuals’ expectations of different types of responsibilities (economic, legal, ethical and philanthropic), the relationship between long-term values and individuals’ expectations of different types of responsibilities and the degree of skepticism about CSR related to these values.Design/methodology/approachThis study surveyed panel participants in two countries, South Korea (collectivistic and long term) and the USA (individualistic and short term), chosen because they are at extreme ends of the cultural values continuum. Multi-dimensional aspects of the cultural variables were tested in the samples rather than using national scores as proxy variables for culture. Data were quantitative and various statistical tests including structural equation modeling were used for analysis.FindingsThe findings show that horizontal collectivism and the planning dimension of long-term orientation are positively associated with CSR expectations, whereas the tradition dimension of long-term orientation is negatively associated with CSR expectations. In addition, vertical individualism is positively associated with skepticism toward CSR activities.Research limitations/implicationsThe differences in types of individual-collectivism (horizontal and vertical) as well as the different aspects of long-term orientation had an effect on the results, pointing to the importance of exploring the nuances of the dimensions as well as the importance of testing them within the sample rather than using aggregated national scores.Originality/valuePrevious studies that used a proxy variable for culture assumed that collectivistic cultures have higher expectations for CSR. While empirically supporting the assumption of the relationship between cultural factors and CSR expectations at the individual level, the study found that people who view themselves as autonomous within a group but accept inequality within the group (vertical individualism) are more likely to be skeptical of CSR activities and suggests that skepticism about CSR may be more closely related to individual viewpoints or to particular contexts or particular corporations rather than to cultural factors, which has implications for international corporate communication.

Development Strategy of Corporate Social Responsibility in the Context of New Era—Based on the Analysis of Network Governance

Based on the theory of network governance and taking corporate social responsibility (CSR) in the new era as the governance goal, this paper puts forward the internal regulation model and external communication model of CSR. We find that, every enterprise's CSR performance should be matched with its own development conditions, and we should adjust the content of CSR periodically. It’s the precondition of improving the CSR performance in China. Secondly, we should give full play to the positive leading role of the core enterprises in the social networks, and improve the government's supervision mechanism, in order to achieve sustainable development of enterprises while improving the performance of corporate social responsibility.

Achieving Sustainable Development Goals in the Niger Delta: A Corporate Social Responsibility Pathway

Is corporate social responsibility (CSR) practice of international oil companies contributing to the achievement of Sustainable Development Goals in the Niger Delta? The international community prescribes a role for business in the good of society. In a similar vein, a significant segment of the literature suggests a positive role for CSR practice. However, adequate analysis of how this is unfolding remains a task yet to be accomplished. This paper examines whether CSR practice in the aforesaid region is contributing to the attainment of SDGs. It focuses on the new CSR model – Global Memorandum of Understanding (GMoU) – initiated in 2005 and 2006 by Chevron and Shell respectively, specifically in relation to goals number one, two and three, which focus on poverty, hunger, better health, and well-being. Relying on data generated from secondary sources, the paper addresses the aforementioned question, and argues that recent oil multinational companies’ CSR practice is yet to properly respond to the development needs of local community people.

FORMATION OF A CORPORATE SOCIAL RESPONSIBILITY STRATEGY OF COMPANIES IN EU COUNTRIES

Business cannot act in isolation from society since it itself is a part of society. The fact that corporate social responsibility (hereinafter – CSR) has become a global business concept that defines key ideas and a modern format for entrepreneurship is no longer questionable. Every year, more and more companies are joining the initiative of non-financial reporting, which acts as a “business card of a social image.” The presence of social and ethical business standards greatly contributes to the formation of a positive business image and increases corporate competitiveness. At the same time, the growth of social, environmental, and economic problems of a global scale raises public expectations and, therefore, requirements for socially responsible activities of companies, inducing them to continuously improve the quality of CSR practices, finding innovative approaches to solving socially important problems, which is reflected in the global development trends of socially responsible business. The formation of models of state regulation of corporate social responsibility (CSR) in developed countries took place over several decades and, at the present stage, they are characterized by a high degree of development. The author aims to study the genesis of development of models of state regulation of corporate social responsibility, analyse principles of the formation of social responsibility strategy, and propose areas for improving CSR for companies operating in the European business space at the modern development stage in view of implementing the concept of sustainable development. After analysing the national models of CSR state regulation, we note that in the research of scientists, there from three (American, European, Asian) to seven models: American (US), European (Continental), British, Scandinavian, Asian (Japanese), African, model of BRICS countries or more. But, of course, the US model of CSR, formed in the specific conditions of the free market, is the largest. Key conclusions of the involvement of European companies in the implementation of the CSR strategy are as follows: involvement depends on the size of the company (CSR policy is applied by 48% of small and 65% of medium-sized companies); the implementation of the CSR policy does not depend on the company’s field, but there was a geographical discrepancy (for example, 33% of the SME in France and 83% in Finland); among all companies, 50% use the CSR strategy; only 8% of the EU company receive privileges or subsidies from the state for implementing the CSR policy; more than 75% of SME representatives among respondents can determine the benefits of corporate social responsibility. In the majority of the EU countries, state programs of support and stimulation of the abovementioned processes, in which the state defines socially responsible behaviour for business, engages private and public sector companies in the joint fulfilment of socially important tasks, stimulates business to socially responsible activity, are developed and operate. On the basis of determining the factors influencing the formation of social responsibility strategy and matrix of the appropriateness of SRB introduction, areas for improving strategic management based on social responsibility standards were formed.

Development of Banking CSR Model for Community Empowerment Slum Area in Medan City

Nowdays, there are 200.29 hectares of slum in Medan. The slum area is in 42 urban villages spread across 9 sub-districts. For the handling of slums in Medan, this is done through the Kotaku Program with funding for central and regional collaboration. Other parties that are expected to be involved in handling this slum area are the banks, in this case Bank Sumut, through their corporate social responsibility (CSR) funds. This is because Bank Sumut, which is a regionally owned company, has a commitment every year to channel CSR funds to all regencies / cities in Sumatera Utara. In 2015, Bank Sumut channeled CSR funds amounting to Rp. 13,746 billion. This study aims to find a new model of Bank Sumut CSR that is directed at empowering slum communities in the city of Medan. Research method with a qualitative approach. Data analysis by analyzing typological data. The output of this study is the Bank Sumut CSR model of community empowerment in slum areas in Medan City or scientific publications in national scientific journals and international journals. Bank Sumut's research results have a CSR Program that has been proven to help the community and its targets in the future should be directed to help empower the slum communities in the city of Medan. Bank Sumut's CSR model for the empowerment of slum communities in the city of Medan must reach infrastructure development, social assistance, and economic assistance with management involving Kotaku, the community, and non-governmental organizations.

The Extractive Sector and Corporate Social Responsibility: A Case of Chevron Nigeria

Businesses become more pervasive and more powerful as the size and scale of their operations grow. This is especially true of businesses in the extractive sector which traverse national or state boundaries and operate wherever opportunities for profit are available. In their quest for profit, some of these companies leave negative footprints that push socioeconomic and environmental issues to the forefront, raising questions about their need to take responsibility for the sustenance of the society. This paper explores Corporate Social Responsibility (CSR)—its desirability or undesirability—and the theoretical bases for and against CSR, and why being socially responsible is the new reality for businesses. CSR models in Africa and around the world are identified with an emphasis on the Global Memorandum of Understanding (GMoU), adopted by Chevron Nigeria as an instrument for community engagement in Nigeria’s Niger Delta. The paper offers recommendations on essential features of good CSR models for businesses in the extractive sector. It concludes that the CSR business models of companies in the extractive sector must be structured, transparent and contextually sensitive to address the critical question of how the society can benefit from their operations and exploitation of the natural resources.

An Examination of Corporate Social Responsibility and Employee Behavior: The Case of Pakistan

The internal dimension of Corporate Social Responsibility (CSR) refers to the socially responsible behavior of an organization towards its employees. The CSR relationship to employee behavior has received some attention but in general, there is little knowledge about the underlying explanatory mechanisms that can describe this relationship. In this study, a theoretical model of mediation and moderation is developed to explain how CSR can influence employee behavior. Organizational identification and work engagement are used as proxies for employee behavior in the model and internal dimension of CSR is assumed to affect both of them positively. Further, it is proposed that CSR influences the organizational identification positively and this relationship will be stronger in a collectivist culture, which will eventually lead to higher work engagement. A proposed model was tested on a sample of bank employees in Pakistan by using the Structural Equation Modeling (SEM) method. The results of this study provide contextual and empirical insights into how CSR influences employee behavior.

Does CSR matter in the pharmaceutical distribution industry?

PurposeGiven the important role of corporate social responsibility (CSR) in today’s business world, this study aims to investigate how it affects the performance of pharmaceutical distribution companies by using the balanced scorecard (BSC).Design/methodology/approachDrawing upon the existing literature, a questionnaire consisting of 32 questions was prepared and distributed to examine ongoing practices and to probe uninvestigated domains related to CSR. To confirm the efficiency of the research model and the accuracy of the measurement model – which was utilized to examine the correlation between different variables – variable scores were acquired from a national study and were entered into a structural equation model.FindingsAnalysis of 933 completed questionnaires revealed the existence of large correlation between subsets of the considered dimensions. The questionnaire contained five underlying dimensions: employee relations, corporate governance, societal concern, economic and financial concern and environmental concerns. All CSR variables can be condensed into these five dimensions, which are the main features of the CSR model proposed for the Iranian pharmaceutical distribution companies. Not only did the results support the research model but also indicated that CSR’s impact on BSC and its four components – financial perspective, customer perspective, internal process perspective and learning and growth perspective – was both positive and significant.Practical implicationsThis paper identifies five dimensions through which CSR practices can effect positive changes in an organization’s performance in relation to the four BSC perspectives. Thus, in focusing on these dimensions, a company increases its likelihood of enhancing its performance and, consequently, realizing significant gains. In addition, as managers play the most significant role in CSR implementation, they should support all associated practices to achieve their strategic goals.Originality/valuePharmaceutical distribution companies tend to apply CSR – which is commonly described as informal and voluntary humanitarian activities – to different domains, including the workplace, marketplace, community and environment. This study contributes to the existing literature by shedding light on various domains in which CSR practices are applied to enhance organizational success in pharmaceutical distribution companies.