Corporate Social Responsibility Outcomes Research Articles

Implementation of CSR in Environmental Social Accounting Realizing Corporate Responsibility for Sustainability and Community Welfare

Purpose: This study examines the integration of Corporate Social Responsibility (CSR) into environmental social accounting to promote corporate sustainability and community welfare. The goal is to assess how CSR practices contribute to long-term corporate value while ensuring transparency in reporting social and environmental impacts. Research Design and Methodology: The research employs systematic literature review methodology, analyzing academic papers, reports, and case studies on CSR and environmental social accounting. The review identifies frameworks and practices that help companies measure and report CSR outcomes effectively. Findings and Discussion: The study highlights the effectiveness of CSR integration in enhancing corporate reputation, stakeholder trust, and sustainability efforts. It also identifies challenges in reporting consistency, mainly due to the lack of standardized frameworks, which can lead to discrepancies in evaluating CSR performance. The role of technology in improving CSR reporting accuracy and transparency is emphasized. Implications: The research offers practical insights for businesses integrating CSR into their operations. It suggests adopting standardized reporting frameworks and digital tools for better data collection. These steps will enhance CSR’s impact on corporate performance and community welfare, fostering long-term sustainability.

Exploring the Relationship between Top Management Team Characteristics and Corporate Social Responsibility: A Literature Review and Bibliometric Analysis

In the evolving landscape of corporate governance, the role of Top Management Teams (TMTs) has transcended traditional decision-making paradigms, becoming integral to the implementation of Corporate Social Responsibility (CSR). While the existing literature has identified general trends in TMT diversity, stability, and leadership styles, there is a lack of comprehensive analysis focusing on the interplay of these characteristics and their direct implications for CSR strategies. This study employs a literature review and bibliometric analysis of the existing literature up to 2023, utilizing the Scopus database to discern trends and patterns in the TMT–CSR relationship. Findings reveal that TMT characteristics, including diversity in gender, age, and professional background, significantly influence CSR strategies, enhancing organizations’ responsiveness to stakeholder needs. Notably, diverse TMTs demonstrate a greater capacity for developing comprehensive CSR initiatives, particularly when led by executives committed to sustainability and ethical practices. The analysis indicates a growing scholarly interest in this intersection, with a marked increase in publications over the past decade, highlighting the strategic importance of TMTs in shaping CSR outcomes. However, the identified research gaps suggest a need for further exploration of context-specific approaches, particularly in varying regional and industry settings, as well as longitudinal studies to capture the dynamic nature of TMT–CSR relationships over time.

The impact of corporate social responsibility on employee outcomes in the hospitality industry: A multi-motive and cross-cultural meta-analysis

Corporate social responsibility (CSR) in the hospitality industry has received increased attention from both practitioners and researchers in the past two decades, due in part to growing concerns regarding hospitality operations' impact on the environmental, social, and economic well-being of their communities. While research has enhanced our understanding of CSR's influence on hospitality employees, an integrated literature synthesis is still needed. Leveraging the multi-motive CSR framework, we aim to (1) synthesize CSR's impact on hospitality employee outcomes (i.e., performance, job satisfaction, and organizational identification); (2) investigate how the instrumental, relational, and moral motives of employees mediate the CSR–employee performance relationship; and (3) test how country-level factors moderate the relationship between CSR employee outcomes. Meta-analytic results using 87 studies, 33,567 individuals, and 160 effect sizes show a positive relationship between CSR and employee outcomes. Further exploring the multi-motive framework, meta-analytic structural equation modeling (MASEM) results show that instrumental, relational, and moral motives fully mediated the CSR–employee performance relationship. Additionally, results of subgroup tests indicate that the CSR–employee outcome relationship was stronger for employees working in highly developed countries and horizontal-individualistic cultures. Our findings highlight how CSR enhances employee performance through underlying psychological mechanisms, with implications for theory and practice.

Integrating Corporate Social Responsibility (CSR) and Sustainability Linkages with Employees’ Perceptions and Competence-Mediating Role of CSR Culture

The study examines the effect of corporate social responsibility (CSR) culture on the relationship between CSR strategy–sustainability linkages, ethics and the CSR outcomes in public sector organizations in India. Using a sample of 200 lower-, middle- and upper-level CSR managers, a mediation model by Baron and Kenny was outlined and tested. Results demonstrate that CSR strategy–sustainability linkages and ethics have a positive relationship with CSR culture and CSR outcomes. Further, CSR culture has a positive relationship with the CSR outcomes of employees’ CSR perceptions and competence. While CSR culture fitfully mediated the relationship between ethics and competence, partial mediation was found in all other cases. Thus, the adoption of strategic and sustainable CSR not only leads to desirable CSR outcomes but is also associated with a better fit between CSR and culture. Hence, strategic and sustainable CSR and organizational ethics must facilitate greater congruence between CSR and organizational culture.

Bad practice versus good intentions: the interdependencies of perceived governance practice and the success of corporate social responsibility activities

ABSTRACT Rationale The dual, complementary relationship between organisational governance and corporate social responsibility (CSR) has been widely neglected in both academia and the field. This research aims to empirically test how the congruence (vs. incongruence) of CSR activities and perceived organisational governance practice affects consumer attitudes towards organisations. Methodology For this purpose, an experimental study with a one factor between-subjects design was employed using the factor of congruence vs. incongruence between perceived organisational governance practice and CSR. Respondents (N = 264) were randomly assigned to one of the two stimuli. Findings The results indicate that perceived (in)congruence between an organisation’s governance practices and CSR has a significant direct impact on the brand attitude towards the organisation. The findings also reveal that the higher the incongruence is, the greater is the perceived hypocrisy and the more negative is the brand attitude towards the organisation. Practical implications Organisations should first review and potentially optimise their governance practices before initiating CSR programmes; otherwise, they risk a negative backlash in terms of brand damage. Research contribution This study extends existing knowledge by introducing the organisational governance-CSR (in)congruence dimension and by providing empirical evidence that perceived governance practices influence CSR outcomes.

The Relationship between Corporate Social Responsibility and Financial Performance

With the rise of sustainable development, Environmental, Social, and Governance (ESG) factors have become crucial for evaluating corporate social responsibility. This research therefore examines the relationship between CSR and company financial outcomes using statistical regression analysis. Strong evidence is noted that the relationship of financial outcomes with Corporate Social Responsibility (CSR) activity postulates a positive relationship amid CSR's shareholder accountability and both the comprehensive CSR index and corporate performance. These findings point out that integration of ESG criteria in investment decisions is important because they provide insight that a company is bound to sustain and meet up with its resistance in the long run. Further, research has outpointed the significance of corporate governance directing CSR efforts towards infusing business with transparency and responsibility. Focusing on sustainability and social responsibility enhances the way a company is perceived, attracts investment, and helps to mitigate risks linked with the environment and society. These are the main observations that underline the importance of public awareness and the necessity for organizations to develop future-oriented CSR approaches that would positively feed into a more sensitive corporate environment and sustainable economic development.

The Role of Human Resource Management in Conducting CSR at an IT Company in Indonesia

This study delves into the role of Human Resource (HR) department in corporate social responsibility (CSR) initiatives at PT Sigma Cipta Caraka (hereinafter: Telkomsigma). Through a qualitative analysis, the current practices of human resources concerning the corporate social responsibility programs at the company were scrutinized. The results indicate that the management of these programs predominantly falls under the purview of the Corporate Communications department, with minimal engagement from HR department. To enhance the efficacy of the program initiatives and cultivate a more cohesive approach to CSR within the organization, fostering collaboration between HR and Corporate Communications is imperative. By bridging these departments and aligning their efforts, Telkomsigma can optimize the impact of its CSR endeavors and reinforce its commitment to sustainable and socially responsible practices. This study underscores the significance of interdepartmental cooperation in driving meaningful the CSR outcomes and advancing the company's overarching goals of community engagement and environmental stewardship

Going green, going strong: maximising restaurant performance with sustainable practices

ABSTRACT The food and services sector contributes to global carbon emissions, impacting climate change. This study, organised in a developing country, aims to explore how restaurants in the hospitality industry can enhance their environmental and financial performance through corporate social responsibility (CSR), green orientation, green innovation and environmental strategies. Using partial least squares structural equation modelling, data from 283 restaurant employees were examined. The findings show that CSR and green orientation directly enrich both environmental and financial performance. Moreover, green innovation mediates the association with CSR, green orientation and performance outcomes, with the influence of green innovation on performance further moderated by environmental strategies. These results show that incorporating CSR, green orientation, green innovation and environmental strategies can substantially benefit restaurant performance. This study offers constructive insights into the distinctive challenges and opportunities for sustainability in the food and services industry in the context of a developing country, where short-term economic pressures often dominate long-term sustainability goals.

Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance

In an era marked by increasing environmental concerns, this study investigates the impact of corporate social responsibility (CSR), transformational leadership (TL), and green organizational culture (GOC) on the environmental performance of the Malaysian manufacturing sector. Utilizing the resource-based view and ability-motivation-opportunity theory, this study explores GOC's mediating role between CSR, TL, and environmental outcomes, offering insights into enhancing sustainability in manufacturing. Through a survey of 375 Malaysian manufacturing professionals from October 2022 to January 2023 and using Structural Equation Modeling for analysis, the research confirms that CSR, TL, and GOC significantly enhance environmental performance. It highlights the critical role of transformational leadership in driving sustainability efforts and the positive influence of a green culture. This study contributes practical strategies for managers and policymakers to merge leadership, culture, and social responsibility in promoting environmental sustainability. Emphasizing the benefits for the Malaysian economy, it advocates for manufacturing firms to incorporate these findings into their CSR strategies, fostering a culture and leadership conducive to superior environmental results. This approach is vital for aligning with sustainable development goals, thereby boosting both ecological and economic growth.

Positive Outcomes of Corporate Social Responsibility for Companies and Society

To explore the complicated field of corporate social responsibility (CSR), this study performs a thorough narrative review of the literature. It achieves this by clarifying the benefits that CSR could bring to society as well as to companies. According to the study, corporate social responsibility (CSR) goes beyond philanthropy and serves as an imperative strategy that improves a company's competitive advantage, reputation, and brand image. The study highlights the several benefits companies may achieve, such as enhanced staff morale, reduced risk, increased market share, and sustained financial prosperity. The article also explores the social impact of corporate social responsibility (CSR), presenting it as a driving force behind improving living standards, advancing equity, and aiding in protecting the environment.

Nexus between green human resource management practices and corporate social responsibility: does transformational leadership make difference?

Purpose The purpose of this study was to investigate the connection between green human resource management (GHRM) and corporate social responsibility (CSR). In addition, this study also investigates how the impact of GHRM varies depending on the extent of transformational leadership. Design/methodology/approach Adopting a quantitative approach, the sample consists of 376 employees who hold leadership positions in the academic body and those who work in human resources units at universities who won the Web Metric Award. Findings Results have shown that all GHRM practices were found to have a significant and positive effect on CSR. In addition, the findings revealed that transformational leadership positively moderates the relationship between GHRM and CSR. Originality/value The findings of this study contribute to the existing body of knowledge by providing empirical evidence of the positive relationship between GHRM practices, transformational leadership and CSR performance. In addition, the study highlights the moderating influence of transformational leadership on the relationship between GHRM and CSR, suggesting that transformational leadership can increase the efficacy of GHRM practices in promoting CSR outcomes.

Employee corporate social responsibility and well-being: the role of work, family and culture spillover

PurposeConsidering the conservation of resources (COR) theory, this research investigates the mediating roles of work, family and culture on the relationship between employee corporate social responsibility (CSR) and employee well-being.Design/methodology/approachSelf-administered questionnaire data from 403 employees working across multiple organisations in the United Kingdom were analysed using path analysis with SmartPLS.FindingsOrganisations can only maximally benefit from their CSR investment when specific HR strategies are in place, as no direct relationship between CSR and well-being outcomes was observed. Family-to-work spillover and work–family culture were significant mediators in the relationship between employee CSR and well-being.Research limitations/implicationsCSR strategies targeted at improving employee well-being do not necessarily do so in a direct approach. They, therefore, may not serve the desired performance outcomes of organisations. Boundary conditions of applying the crossover model of COR theory were observed.Originality/valueThis research contributes to the limited knowledge of the effectiveness of employee-related CSR strategies on HRM and well-being outcomes from an employees' perspective. Employee-related CSR strategies are unlikely to improve employee well-being if the inter-individual level of analysis, i.e. interchange between work, family and culture, is not considered.

Are sustainable firms more innovative? The case of China

Although the impact of corporate social responsibility (CSR) on business and market performance has been getting attention in China, its influence on innovation outcomes has not been fully investigated. This study utilises patent information and CSR measurements from Orbis and Refinitiv, respectively, and empirically investigates the determinants of corporate innovation, focusing specifically on the influence of CSR. We find a positive relationship between CSR and innovation outcomes, namely patent applications and patents granted, which are also found in developed countries. Furthermore, our findings provide new insights into inconclusive factors such as the impact of Chinese economic policies or government ties on innovation performance. In particular, we find that government-owned firms no longer have a relative advantage in innovation.

The Effect of Philanthropic Corporate Social Responsibility on Local CSR Awareness: Examining the Role of Corporate Transparency in Ghana

Corporate Social Responsibility (CSR) refers to a broad spectrum of an organization's societal responsibilities. Philanthropic CSR initiatives, which go beyond legal and ethical duties, are increasingly seen as critical to improving CSR outcomes. However, the extent to which such initiatives influence local CSR awareness, particularly in emerging economies such as Ghana, and the role of corporate transparency in mediating this relationship leaves a gap in literature. This study used a quantitative research approach to estimate the effect of philanthropic CSR on local CSR awareness among Chinese companies operating in Ghana, with a particular emphasis on the mediating role of corporate transparency. Data was collected using a standardized questionnaire. Confirmatory Factor Analysis (CFA) and Covariance-Based Structural Equation Modelling (CB-SEM) were used to investigate the hypothesized relationships and assess the proposed model's fit. There is a significant positive relationship (β = 0.202, p < 0.001) between philanthropic CSR and local CSR awareness. The relationship between philanthropic CSR and CSR awareness was also found to be mediated by corporate transparency, with a substantial indirect effect (= 0.268, p 0.001). The study concludes that philanthropic corporate social responsibility has a partial mediation effect on local CSR awareness via corporate transparency. The findings provide practical insights for corporations working in emerging economies, emphasizing the significance of improving their stance on corporate transparency in regards to undertaking philanthropic CSR initiatives with an expected outcome of raising local CSR awareness.

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

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

Employing Machine Learning to Deduce a Causal Link Between Corporate Social Responsibility and Financial Performance

Incorporating Corporate Social Responsibility (CSR) into business strategy has become noteworthy, as that pertains to the discretionary initiatives a business entity undertakes to enhance its operational sphere’s societal and ecological circumstances. The evaluation of a company’s success is closely tied to its financial performance, which pertains to its capacity to produce earnings and enhance shareholder worth. The correlation between CSR and financial performance has been a topic of significant discourse, with numerous studies examining this subject from diverse perspectives. Nevertheless, establishing a causal association between the concepts above poses a formidable challenge, owing to the intricate nature of the association and the likelihood of extraneous variables exerting an effect. This study suggests a model for CSR based on Machine Learning (ML), referred to as the Machine Learning-based Corporate Social Responsibility Model (ML-CSRM). This model aims to establish a causal relationship between CSR and financial performance. The paper commences with a comprehensive exposition of CSR and its correlation with financial performance. The discourse delves into the intricacies of ascertaining the causal relationship between the two. The method under consideration utilizes Latent Dirichlet Allocation (LDA) and text clustering techniques to examine extant legal documents about CSR. The study presents the proposed method’s simulation results [Pearson’s Correlation Coefficient, precision, recall, Root-Mean-Squared Error (RMSE), and R-squared] and discusses the proposed approach’s outcomes. The outcomes of this research carry significant ramifications for both commercial enterprises and the broader community, given that they offer discernment into the correlation between CSR and economic outcomes.

The Effects of Message Specificity on Outcomes of Corporate Social Responsibility (CSR) Communication: Testing Perceived Social Distance as a Mediator

Despite growing scholarly attention to what determines effective corporate social responsibility (CSR) communication, consumers’ limited awareness of and attention to CSR messages remain critical challenges for organizations. This study aims to examine the effects of message specificity on an organization’s intended outcomes of CSR communication and to explore the mediating role of perceived social distance in these relationships by applying construal level theory (CLT). We conducted an online experiment (n = 293), and the results revealed that message specificity had a positive impact on consumer-company identification, word-of-mouth intention, and CSR participation intention. Moreover, perceived social distance significantly mediated the relationships between message specificity and the outcomes of CSR communication. Applying CLT, this study offers theoretical implications for the psychological mechanism of how message specificity generates desired outcomes in CSR communication. In addition, we tested these mediation effects in the context of the geographic proximity (close vs. remote) of the CSR communication to participants; the practical implication is that reducing perceived social distance through message specificity is even more effective for geographically distant CSR campaigns.

Drivers and outcomes of CSR engagement in UK SMES

ABSTRACTBuilding on insights from the motivation-opportunity-ability (MOA) theory, we develop and test a conceptual framework of perceived antecedents, contingencies, and broader performance outcomes of corporate social responsibility (CSR) engagement within small and medium enterprises (SMEs). By following a micro-level approach and using multisource data including a sample of 219 responses from UK entrepreneurs and objective performance data, we reveal the importance of perceived individual-level characteristics such as the entrepreneur’s personal values and competence, as well as the moderating role of perceived firm-level employee supportiveness in strengthening CSR engagement. We further highlight the positive effects of CSR engagement on a broad range of business, social and environmental performance outcomes as revealed by the entrepreneurs in our sample.

Executive compensation, internal control quality, and corporate social responsibility in China

AbstractWe explore the relations among executive compensation, internal control quality (ICQ), and corporate social responsibility (CSR), focusing on improving the CSR outcomes of listed firms in China. Our findings are fourfold. First, we document that executive compensation and ICQ have a significant positive impact on CSR. Second, we find that executive compensation positively affects ICQ; hence, we identify ICQ as a channel that can further improve the impact of executive compensation on CSR. Third, we discover that the documented effects are stronger in state‐owned firms than in non‐state‐owned firms. Fourth, we observe that regulatory changes have both positive and negative impacts on CSR. Our findings are less vulnerable to endogeneity and have key implications for policy makers.

Exploring the role of analysts in identifying and communicating the value of bank CSR activity

PurposeIn this study, the authors investigate if analysts, as knowledgeable information intermediaries, can correctly identify bank corporate social responsibility (CSR) activities and can reliably transmit that information to investors. Hence, the authors specifically explore if analysts perceive and behave differentially in the presence of genuine bank CSR activities (strengths). The authors also analyze if financial markets differentially assess bank CSR strengths. The authors further explore the viability of focusing on analyst and financial markets to validate genuine bank CSR strengths.Design/methodology/approachThe authors use COMPUSTAT and CRSP for firm and financial data, I/B/E/S for analyst reporting data and MCSI Research KLD for CSR data. The sample consists of 329 distinct banks and 2,525 bank-year observations from 2003 to 2016. The primary CSR score is the total number of CSR strengths less the total number of CSR concerns, across six of the seven dimensions for each firm in each year of the sample (Adjusted CSR Score). In addition, the authors estimate all the analyses with dis-aggregated measures of total CSR strengths and total CSR concerns (Adjusted Total Strength Score).FindingsThe authors find that analysts correctly distinguish and construe bank CSR strengths from CSR concerns. Specifically, bank CSR strengths increase analyst following and forecast accuracy, while decreasing analyst forecast dispersion. The authors further find that bank CSR strengths increase bank market returns. These results are reversed for bank CSR concerns. Additionally, the authors demonstrate that this method using knowledgeable intermediaries can help validate bank CSR strengths.Research limitations/implicationsThe sample is limited to US banks and financial markets. The regulatory and information environment is likely to be different from global or emerging markets. However, since banks in many countries aspire to emulate the US banks, these results would be a precursor of banking sectors conditions in emerging markets. Additionally, the availability of data limits the sample to a period that ends in 2016. To the extent that the importance of ESG and CSR concerns has increased in the intervening time, the results may not accurately reflect the current state of the market.Practical implicationsThis investigation benefits researchers, customers, banking executives, regulators and activist groups. First, the authors show that in addition to customers, analysts and the financial markets appreciate bank CSR strengths. Second, despite sophisticated financial reporting by banks, analysts correctly distinguish and construe bank CSR strengths. Third, the authors demonstrate a method for bank marketing researchers to validate genuine bank CSR activity, as well as provide additional support for customer related bank CSR outcomes. Fourth, the findings highlight the importance for banks to have high-quality CSR reporting. This might be especially helpful to a bank rebuilding its reputation after a CSR failure. Finally, this investigation using US banks could serve as a precursor for future bank CSR research and help develop CSR reporting guidelines for banks in emerging economies.Social implicationsThis investigation benefits researchers, customers, banking executives, regulators and activist groups.Originality/valueThis investigation benefits researchers, customers, banking executives, regulators and activist groups. First, the authors show that in addition to customers, analysts and the financial market appreciates bank CSR strengths. Second, despite sophisticated financial reporting by banks, analysts correctly distinguish and construe bank CSR strengths. Third, the authors demonstrate a method for bank marketing researchers to validate genuine bank CSR activity, as well as provide additional support for customer related bank CSR outcomes. Fourth, the findings highlight the importance for banks to have high-quality CSR reporting. This might be especially helpful to a bank rebuilding its reputation after a CSR failure. Finally, this investigation using US banks could serve as a precursor for future bank CSR research and help develop CSR reporting guidelines for banks in emerging economies.