Corporate Social Responsibility Performance Research Articles

Gender diversity, corporate social responsibility and real earnings management for policy management decision: evidence from emerging market

Purpose The study aims to examine whether board gender diversity and corporate social responsibility (CSR) affect real earnings management (REM) practices of public companies in Nigeria. Design/methodology/approach The study analyzes data of public companies for the period of 2011 through 2020. Data on board gender diversity, CSR and REM were collected from audited financial statements. Findings The empirical findings show that companies with greater diverse board are effective in restraining REM, thus supporting the theoretical framework of the study. Also, the result provides strong evidence of association between CSR performance and REM for policy management decision. Research limitations/implications The study is constrained by not considering all public companies in the country. Furthermore, it considered only gender among numerous important board attributes and environmental, social and governance (ESG) among numerous CSR attributes. Hence, future studies should consider other important attributes on REM and important attributes of board diversity and CSR on real earnings management. Originality/value To the best of the authors’ knowledge, this study is the first to investigate the relationship between heterogeneous board gender diversity, CSR via ESG and REM in emerging markets such as Nigeria. Therefore, it provides appropriate treatment of CSR with science and technology via EGS viewpoint of organizational operations and behavior of managing earnings. Therefore, developing better policy management for sustainable development

Literature Review Regarding Corporate Innovation

This paper systematically reviews the determinants and consequences of corporate innovation. The main findings are as follows. From a micro-level perspective, the diversification of the gender structure of the board of directors, the improvement of the welfare of employees, the corporate social responsibility performance, the external competitive environment, and the choice of innovation strategy can positively promote the company’s innovation and ensure the quality, efficiency, and success rate of innovation. From a macro perspective, judicial independence stimulates innovative activities, while the promulgation of the monopoly law and the uncertainty of the economic policy will dampen the incentives to innovate. As for the consequences of innovation, it helps enterprises transform and upgrade, brings efficient management mode more in line with the operation of enterprises, creates differentiated products for enterprises, helps enterprises reduce costs, and improves the efficiency of employees, etc. This literature review focuses on several latitudes and multiple aspects to elaborate their comprehensive impact on innovation so that readers can understand faster and more conveniently. Moreover, it provides direction for innovation for companies and can also make countries more aware of the importance of innovation. Collectively, this survey is a supplement to the existing literature and has practical implications.

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

PurposeThis study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR domains affect customers’ selection of banks.Design/methodology/approachThis study adopted a quantitative approach. Primary data were collected from 416 customers of 22 retail banks in HK. The theoretical framework of this study was developed from a literature review, prior studies by Oberseder et al. (2013 and 2014), and CSR initiatives implemented by leading retail banks in HK. Descriptive statistics and statistical tests were used to analyze the data.FindingsThe study found that CSR initiatives positively affect customers’ bank selection. CSR initiatives related to the customer and environment domains are likely to have a greater impact on customers than those related to the society domain and are not likely to significantly impact customers’ bank selection.Originality/valueThis study contributes to the CSR literature by offering enhanced insight into the dynamics of CSR and its effects on customer bank selection. Furthermore, this study tests consumers’ perceptions of CSR initiatives in each CSR domain in the banking sector in Hong Kong – a novel approach that has not been previously explored in existing studies. These findings can help banks review the effectiveness of their CSR initiatives and make informed decisions on which initiatives should pursue improved CSR performance and efficient resource allocation.

Job-hopping executives and corporate social responsibility

PurposeThe purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent firms.Design/methodology/approachWe conduct regression analyses using a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020 to examine whether CSR performance is similar from one firm to the next as executives switch jobs.FindingsWe find a positive relationship between the CSR performance of former and subsequent firms under job-hopping executives. This relationship is the strongest in the year of the job switch; it weakens in the second year and eventually disappears in the third year. In addition, we show that this relationship benefits different CSR stakeholder groups and is contingent on executive and subsequent firm attributes and job-hopping characteristics. Furthermore, we demonstrate that firms that hire a new chief executive officer from a firm with a strong track record in CSR, the new firm experiences a significant surge in CSR performance compared with firms that do not experience such a shock.Practical implicationsThis study has implications for executive hiring decisions.Originality/valueThis study extends the understanding of CSR determinants through the lens of inter-organisational ties associated with job-hopping executives.

Trick or treat? A bibliometric literature review of corporate social responsibility and earnings management

AbstractResearch QuestionThis study seeks to examine and synthesize the extant literature to summarize whether the essence of corporate social responsibility (CSR) genuinely stems from an authentic social commitment, or if it primarily serves as a tactic to obscure earnings management (EM) practices.Research MethodologyA systematic literature review methodology is employed to thoroughly assess 75 articles selected from the Web of Science and Scopus databases, integrating bibliometric techniques, and following the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) guidelines.Research FindingsAmid evolving economic and social landscapes, the research of the CSR‐EM relationship increases, particularly in Asian contexts. Further research found that ESG (environmental, social, and governance) was gradually introduced into the theoretical framework of CSR‐EM. However, most of the research does not study the impact of the three dimensions of ESG, respectively. The study concludes the four varied CSR‐EM relationships: positive, negative, mixed (depending on EM type), and no correlation, and suggests that this should be determined by both macro (e.g., political and economic environment) and micro determinants (e.g., industries and governance). Therefore, the CSR‐EM relationship cannot be simply generalized. At present, most studies study CSR as a whole, and some literature uses CSR disclosure and performance to measure CSR respectively. However, distinctions between CSR disclosure and performance, namely CSR decoupling, remain underexplored.Theoretical and Practical ImplicationsThis review synthesizes four key findings and summarizes seven relevant theories from existing literature, thus enriching the theoretical contributions of CSR‐EM research. It underscores the significance of both macro and micro factors on the CSR‐EM relationship, introduces the concept of CSR decoupling, and outlines directions for future studies. The review offers insights for policymakers on CSR‐EM dynamics and suggests strategies for companies to enhance CSR practices and reporting consistency.

Too much of a good thing: the dual effect of executive equity incentives on corporate social responsibility performance

PurposeResearch on the effect of executive equity incentives is equivocal. Based on agency theory, some scholars take the convergence of interest logic to highlight the benefits of executive equity incentives. In contrast, others adopt the entrenchment logic to emphasize the increased agency costs. This study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil how executive equity incentives impact corporate social responsibility (CSR) performance.Design/methodology/approachUsing the panel dataset of Chinese A-share listed firms from 2006 to 2022, this study integrates the convergence of interest and entrenchment logic to examine how executive equity incentives affect CSR performance.FindingsWe find that the relationship between executive equity incentives and CSR performance follows an inverted U-shaped form. According to the convergence of interest logic, executive equity incentives reduce agency costs when allocating resources to engage in CSR activities and enable firms to increase their CSR investments, ultimately realizing increased CSR performance. After a threshold, however, the accumulation of extensive equity incentives causes the entrenchment effect, resulting in declined CSR performance. Our empirical results also shed new light on its contingent perspective – the inverted U-shaped relationship is attenuated when firms’ stock liquidity is high.Originality/valueThis study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil the inverted U-shaped relationship between executive equity incentives and CSR performance. Our study opens promising avenues for further research on corporate governance and CSR strategies.

Board gender diversity and corporate social responsibility

Based on a total of 1,590 listed non-financial firms on the Taiwan Stock Exchange and the Taipei Exchange (formerly the Over The Counter securities market) covering the period of 2007~2020, this study examines whether firm's performance on Corporate Social Responsibility (CSR) is affected by corporate board gender diversity. Based on the Upper Echelons Theory, the Agency Theory and the Resource Dependence Theory, increasing the number of female director to achieve higher level of gender diversity brings forth traits such as compassion, kindness, helpfulness, empathy, interpersonal sensitivity, a willingness to nurture, and a greater concern for others' well-being. These traits help firms form policies that prioritize stakeholders' welfare. Moreover, board gender diversity corresponds to a more diverse and broad background, understanding and experience of business operations, enabling firms to better understand where the key interest groups they face are and what they value. This allows firms to make more effective and better-performing decision in CSR. Through correlation analysis and multiple regression estimation, the principal outcome shows that greater degree of board gender diversity is associated with better CSR performance, confirming the hypothesis that a more gender diversified board enhances the efficiency of monitoring and advising function of board and then forming corporate strategies and implementations toward a better stakeholders’ management.

Diversity of returnee executives' foreign experience and corporate social responsibility performance.

Top managers' past experiences (e.g., foreign experience) significantly impact their decision-making behavior, which may influence firms' sustainable development. The available literature, focusing on the role of the increase in the number of top executives with foreign experience in corporate social responsibility (CSR), yields mixed results. In order to clarify the ambiguous relationship between executive foreign experience and CSR, we empirically examine the effect of the geographic diversity of top executives' foreign experience on CSR. Based on a hand-collected dataset of the top management team's (TMT's) foreign experience, we demonstrate the positive impact of the geographic diversity of returnee executives' foreign experience on firms' CSR using Chinese A-share listed firms from 2009 to 2018. Moreover, this impact is stronger in firms with political connections with the central government and in regions with good market development. Furthermore, the mechanism analysis shows that returnee executives drive firms' CSR by promoting corporate donations and green innovation. This paper offers clear policy implications by suggesting that hiring returnees with a broad geographic scope of foreign experience as corporate executives is an efficient way to enhance firms' CSR.

A novel IFN-CSM-CoCoSo approach for multiple-attribute group decision-making with intuitionistic fuzzy sets: An application in assessing corporate social responsibility performance

With the rapid growth of the economy, enterprises have encountered a series of problems while pursuing economic benefits, such as food safety and environmental pollution issues, resource shortages and energy consumption issues, which affect the sustainable development of enterprises. Establishing a corporate performance evaluation system from the perspective of social responsibility, based on stakeholder theory and the importance of overall goals reflected in the weight of social responsibility indicators, is a very effective measure to achieve corporate social responsibility (CSR) goals through CSR motivation and stakeholders. The performance evaluation of CSR from the perspective of environmental accounting is a MAGDM. Recently, the CoCoSo technique and cosine similarity measure (CSM) technique was utilized to conduct the MAGDM. The intuitionistic fuzzy sets (IFSs) are utilized as a technique for conducting uncertain information during the performance evaluation of CSR from the perspective of environmental accounting. In this study, the intuitionistic fuzzy CoCoSo based on the CSM (IFN-CSM-CoCoSo) technique is built for MAGDM with IFSs. Finally, a numerical example for performance evaluation of CSR from the perspective of environmental accounting is conducted to verify the IFN-CSM-CoCoSo technique.

Communication strategies for effective CSR and stakeholder engagement in the oil & gas industry: A conceptual analysis

This conceptual analysis explores communication strategies for effective Corporate Social Responsibility (CSR) and stakeholder engagement in the oil and gas industry. The oil and gas sector faces increasing scrutiny from stakeholders, including communities, governments, NGOs, and investors, regarding its social and environmental impact. Effective communication is crucial for companies to build trust, manage expectations, and demonstrate their commitment to CSR. The analysis discusses key communication strategies that companies can employ to enhance CSR and stakeholder engagement. These strategies include transparency, dialogue, collaboration, and storytelling. Transparency involves providing clear and accurate information about the company's CSR initiatives, performance, and impact. Dialogue involves engaging with stakeholders to understand their concerns, gather feedback, and address issues. Collaboration involves partnering with stakeholders to co-create solutions and maximize the impact of CSR initiatives. Storytelling involves sharing compelling narratives about the company's CSR efforts to inspire stakeholders and build a positive reputation. The analysis also highlights the importance of tailoring communication strategies to the specific context of the oil and gas industry. This includes addressing the unique challenges and sensitivities associated with oil and gas operations, such as environmental risks, community impacts, and regulatory complexities. Overall, the analysis emphasizes the importance of communication in driving effective CSR and stakeholder engagement in the oil and gas industry. Companies that adopt transparent, dialogue-driven, collaborative, and storytelling-based communication strategies are more likely to build trust, enhance their reputation, and create positive social and environmental impact.

What Earnings Management Has to Do with Corporate Social Responsibility

With the continuing rise of attention towards societal challenges like, e.g., climate change, Corporate Social Responsibility (CSR) becomes an increasingly important topic for companies. While there is no question that CSR activities are on the rise, the connection towards Earnings Management in companies is less clear. Therefore, this research paper not only aims to provide an up-to-date picture on the literature addressing this interconnection, but also provides a profound base for a more solid theoretical framework. Thus, it delivers a critical basis for further empirical analyses in this field. In order to illustrate this interconnection between those two topics, this paper presents an SLR analysis of articles published in the Chartered Association of Business Schools (CABS) or Australian Business Deans Council (ABDC), focusing on empirical analyses of CSR performance and Earnings Management. Overall, it can be stated that CSR performance has a negative influence on Accrual-Based Earnings Management, while findings on the influence on Real Earnings Management are contradicting. Furthermore, the relationship of CSR performance and Accrual-Based Earnings Management/Real Earnings Management is especially vague when the used methods are moderated by different variables such as family involvement or managerial entrenchment. While the connection between Accrual-Based Earnings Management and CSR performance is widely covered in the existing literature, the relationship between Real Earnings Management and CSR performance is clearly less outlined. This research paper makes key contributions to the existing literature, as it combines and structures results of conducted studies during the last ten years and elaborates on the differences on commonalities of the results. This analysis also suggests that other factors that possibly influence Earnings Management or CSR should be included in a future research model for upcoming analyses. It places the findings of earlier studies into the context of the Ethical Approach, creating a roadmap for the future.

The Role of Company Reputation as a Moderating Variable in The Relationship Between CSR and Firm Performance

Purpose: This study focuses on whether the company's reputation moderates the role of CSR in improving financial performance.   Method/Design/Approach: This research was conducted on companies that follow the Corporate Image Index (CII) 2015-2019 and are listed on the Indonesian Stock Exchange. A company's CII score indicates its reputation level. A total of 180 observations met the research sample criteria.   Results and Conclusion: The results indicate that CSR has no direct relationship with good financial performance. However, reputation has a positive effect on financial performance. It has been proven that the more reputable a company is, the stronger its appeal to improve financial performance. Interestingly, when CSR is moderated by reputation, it shows a positive relationship with financial performance.   Research Implications: These results contribute to fixing previous findings by confirming the role of a firm's reputation in the association between CSR and firm performance. Therefore, ignoring a firm's reputation will mislead the conclusion of the benefits of CSR.

CSR performance of dual-class firms in different life cycle stages

ABSTRACT This paper investigates the relationship between corporate social responsibility (CSR) performance and different phases within a firm’s life cycle. Drawing on a sample of U.S. public firms spanning the period from 1991 to 2018, our empirical findings reveal distinct patterns: Younger firms with dual-class equity structures tend to allocate fewer resources to CSR initiatives compared to their single-class counterparts. However, as firms progress into the mature phase of their life cycle, dual-class firms exhibit superior CSR performance compared to single-class firms. Furthermore, we also observe that CEO compensation in dual-class firms tends to be higher during the mature phase. Those findings make a substantial contribution to the fields of agency theory, corporate governance, and business ethics.

Exploring the Mediating Role of Organizational Commitment in the Relationship between Corporate Social Responsibility and Employee Performance: Evidence from Henan's Universities

Aims: This study aims to examine the mediating role of organizational commitment in the relationship between Corporate Social Responsibility (CSR) and employee performance within Henan's universities, highlighting the strategic importance of CSR in enhancing organizational effectiveness and employee outcomes. Study Design: This study utilized a cross-sectional survey methodology to explore the relationships among Corporate Social Responsibility (CSR), Organizational Commitment (OC), and Employee Performance (EP) within Henan's higher education sector. A stratified random sampling approach was employed to select faculty and administrative staff from universities engaged in CSR initiatives. The analysis, conducted through Structural Equation Modeling and mediation analysis, aimed to understand both direct and indirect effects of CSR on employee performance, with a particular focus on the mediating role of organizational commitment. Place and Duration of Study: Zhengzhou University, Henan University, Henan Normal University, Henan Agricultural University and Henan Polytechnic University, in December 2023. Methodology: The study adopted a quantitative research design using a cross-sectional survey method to explore CSR's impact on organizational commitment and employee performance in Henan's universities. A stratified random sampling strategy was utilized to select faculty and administrative staff from universities engaged in CSR, aiming for a sample size of 328 to ensure statistical significance. Validated scales measured CSR, organizational commitment, and employee performance, with data analysis conducted through Structural Equation Modeling and bootstrapping for mediation effects. Results: In this study, the impact of Corporate Social Responsibility (CSR) on Employee Performance (EP) and Organizational Commitment (OC) within Henan's universities was examined. Findings indicate that CSR positively influences EP both directly and via OC, serving as a mediator. Significant relationships were confirmed: CSR to EP (β=0.433), CSR to OC (β=0.825), and OC to EP (β=0.442), all highly statistically significant (p<0.001). Mediation analysis showed CSR impacts EP through OC, accounting for about 45.73% of the effect. This underscores CSR's dual role in enhancing performance directly and by fostering organizational commitment. Conclusion: This study not only underscores the pivotal role of Corporate Social Responsibility (CSR) in enhancing employee performance within Henan's universities but also sheds light on the crucial mediating role of Organizational Commitment (OC). The dual pathway through which CSR influences employee performance underlines the significance of integrating CSR into the core strategic management practices of educational institutions. It signals to university administrators and policy-makers that CSR initiatives are not just external obligations but essential strategies for cultivating a committed and high-performing workforce. This realization opens up avenues for universities to re-evaluate and strengthen their CSR strategies, ensuring they are aligned with both organizational goals and employee values. Moreover, it encourages educational institutions to view CSR as a lever for organizational improvement and a bridge to deeper engagement with employees, ultimately contributing to the advancement of educational quality and societal contributions.

The Relationship of Corporate Social Responsibility with Business Performance—A Bibliometric Literature Review

The significant role of corporate social responsibility (CSR) in achieving sustainability and in meeting the expectations of stakeholders has been well documented. Using a collection of 2173 publications on CSR and its connections with business performance, this study conducted a bibliometric investigation using the Systematic Literature Network Analysis (SLNA) technique combined with network visualizations to demonstrate the current research trends, most topical themes and the developing areas of interest in the growing field of CSR and its linkages with business performance for an approximate period from 2004 to 2023 as published in the Scopus database of two decades. The goal was to explore the research gaps by analyzing the most cited authors and most impactful publications by year, location, subject area and document type. The study also outlined the trends by topic prevalence, commonly used keywords and citation networks based on co-occurrence and co-authorship to identify the current thematic gaps. The results reveal a mild rate of growth in scholarly interest around the field of CSR and business performance until 2022, where a manifold increase in publications was recorded. An expanding focus on human, social and organizational behavior, economic systems, financial and social performance, leadership, stakeholder management and management science was identified, although there is a scarcity of studies around issues regarding developing countries, climate change, CSR disclosure and small businesses. These findings demonstrate the current state of the research and offer interesting insights and timely research directions as a roadmap for future studies.

Impact of target firm’s social performance on acquisition premiums

This study investigates whether a target firm’s corporate social responsibility (CSR) influences the acquisition premium paid by an acquirer. Using the US public mergers and acquisitions (M&A) deals, this study finds that acquisition premium increases as targets’ perceived CSR quality increases, an effect incremental to previously documented drivers of such premiums. Additional findings reveal that the positive association between targets’ CSR quality and acquisition premiums is stronger for large targets and acquirers with high CSR performance. The study also documents that targets’ environmental performance has the strongest effects on acquisition premiums compared to other dimensions of CSR such as community, employees, diversity, or product. This study contributes to the literature by documenting the value of CSR in an unconventional manner using evidence from the M&A market. The findings are robust after controlling for the target-specific, acquirer-specific, deal-specific, and macro-economic variables and by using different proxies for CSR and acquisition premiums.

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.

Corporate social responsibility and firm-level systematic risk: The moderating effect of economic policy uncertainty

This paper investigates the relationship between corporate social responsibility (CSR) performance, firm-level systematic risk, and variations in economic policy uncertainty (EPU) levels. We examine a dataset of Chinese listed firms, finding that higher CSR performance should reduce firms' systematic risk during periods with relatively high levels of EPU. Furthermore, better satisfaction of primary and secondary stakeholders can help firms reduce systematic risk and increase performance when EPU is high. This evidence supports the implication of stakeholder theory that CSR investment can create substantial relational wealth essential to firms' risk management. Our results also imply that the CSR-systematic risk relationship can be positive when EPU is relatively low. Our findings indicate that the risk-mitigation benefits of CSR are state-contingent and can be better realized during downturns.

Corporate social responsibility and investment efficiency: The roles of national stakeholder orientation and legal origins

Utilizing an international setting consisting of 21,039 observations from 43 countries during the years from 2010 to 2019, spanning the period between the global financial and health crises, we first reveal that the two broad legal traditions of the country shape the positive connection between CSR performance and investment efficiency. We find a stronger positive linkage for companies operating under a civil law regime. Our findings also imply that U.S. firms buck the trend among English common law firms and have probably shifted their orientation to a more balanced consideration of stakeholders. Plus, we discover that legal origins are a stronger predictor of CSR perception by showing that stakeholders of the Scandinavian civil law system are more responsive to CSR activities than those in the German, French, and socialist civil law countries. Results are robust to a battery of sensitivity tests.

What drives construction SMEs on CSR implementation during economic uncertainty?

World uncertainty is currently at an exceptionally high level, leading to difficulties in business operations. This phenomenon raises questions about the necessity of corporate social responsibility (CSR) initiatives for vulnerable organizations such as small and medium-sized enterprises (SMEs) as they may deprioritize CSR to focus on surviving. The review of previous studies highlighted a limited theoretical understanding of CSR that existed during such challenging economic periods. This study aims to bridge this research gap by investigating the driving forces that motivate construction SMEs to implement CSR during economic uncertainty. Through a combination of literature review, semi-structured interviews, and hybrid fuzzy Decision-Making Trial and Evaluation Laboratory-Analytic Network Process methods, 13 drivers for CSR were identified and categorized into four clusters: human resources benefit, market pressure, organizational reputation, and financial benefit. Human resources benefit was recognized as the most influential cluster, and employee commitment and loyalty was the most critical CSR driver. This study contributes to the body of knowledge by theoretically explaining the prioritization of drivers to CSR performance regarding their interrelationships.