Corporate Social Responsibility Practices Research Articles

Balancing core purpose and voluntary corporate social responsibility practices: a study of charitable organizations

Balancing core purpose and voluntary corporate social responsibility practices: a study of charitable organizations

CSR in MSMEs: A Systematic Literature Review and Future Research Agenda

The purpose of this study was to conduct a systematic literature review on corporate social responsibility (CSR) in micro, small, and medium enterprises (MSMEs). MSMEs stand as pivotal contributors to economies worldwide, fuelling innovation and economic growth. As the business landscape evolves, the relevance of CSR practices among these enterprises becomes increasingly apparent. This study aims to collect, analyze, and synthesize findings that already exist in the literature on CSR practices among MSMEs, as well as formulate possible research directions for the future. This study seeks to bridge the knowledge gap by delving into CSR practices within MSMEs, examining both manufacturing and service sectors. It aims to identify the unique internal and external factors influencing the effective implementation and success of these CSR strategies. We will identify the specific challenges faced by MSMEs in adopting CSR, as well as analyze the benefits they can achieve through the implementation of CSR practices. The systematic literature review research methods are systematic steps to collect, analyze, and synthesize relevant literature on CSR among MSMEs. Research results emphasize the importance of CSR practices for MSMEs, acknowledge the limitations of existing research due to limited data and context-specific considerations, and highlight the theoretical and practical implications of such research for developing CSR strategies and guidelines for MSMEs. Provides a comprehensive overview of the complexities, challenges, and benefits associated with implementing CSR practices in MSMEs across various sectors and contexts. This research addresses the pressing need to understand the role of CSR in MSMEs. As these enterprises navigate the dynamic business landscape, equipping them with insights into effective CSR practices can bolster their contributions to sustainable development.

Does financial distress suppress CSR gap? The moderating effect of state ownership and market competition

AbstractCompanies will prioritize external corporate social responsibility (CSR) practices over internal ones, a phenomenon known as the corporate social responsibility gap (CSR gap). Previous studies have mostly focused on its consequences, little is known about its antecedents. We argue that such practice is illegitimate because it goes against stakeholder expectation that primary stakeholders' interests should be prioritized, but it also has potential to gain differentiation benefit for intense investment on external CSR. Drawing on compensatory orchestration logic and the three types of firm legitimacy, we argue that firms that have gained high pragmatic legitimacy are more likely to engage in morally illegitimate but differentiation gaining activities such as CSR gap. Using financial distress to indicate low pragmatic legitimacy, we predict that distressed firms are inclined to practice low CSR gap. Considering the competing logics in China, we further argue that this negative relationship will be less pronounced if firms are state‐owned or operating in a competitive industry. Using Chinese listed firms from 2010 to 2019 as an empirical sample, the results provide support for our arguments.

Collaborating a Dependent Business Model: Corporate Social Responsibility - Evidence from India

The research concludes that businesses in developing nations, notably India, exhibit a steadfast commitment to Corporate Social Responsibility (CSR). Despite marked advancements in CSR procedures, there remains a judgment for businesses to transcend self-interest and embrace a broader societal perspective. For multinational corporations (MNCs), robust CSR practices are indispensable for upholding their reputational integrity. The research utilizes secondary data of the Net Profit after taxes, CSR Spending and Budget for the Fiscal Years 2017–18 to 2021–22, Share prices for the fiscal years 2017–18 through 2021–22 on the BSE and NSE, and Sector-wise distribution of CSR initiatives from company websites, online databases, and annual reports. The findings suggest that businesses in developing nations, including India, are committed to CSR. While there has been an improvement in CSR practices, businesses are still not consistently going above and beyond or solely focusing on themselves. This study contributes valuable insights into the evolving CSR terrain within India, shedding light on the strides made and the persistent challenges encountered in fostering a symbiotic relationship between corporate profitability and social responsibility. By delineating these nuances, the research seeks to inform stakeholders and policymakers about the trajectory of CSR evolution, thereby fostering a conducive environment for sustainable and responsible business practices. The study provides valuable insights into the CSR landscape in India and the ongoing efforts to integrate responsible business practices.

Perceptions and Attitudes of SMEs and MNCs Managers Regarding CSR Implementation: Insights from Companies Operating in the Retail Sector

To establish a responsible business environment, it is important to analyze the way corporate social responsibility (CSR) is implemented within the business world. In this respect, managers play a crucial role in designing and applying the CSR concept and practices. Therefore, this paper aims to identify and analyze the perceptions and attitudes of medium-sized enterprises (SMEs) and multinational companies (MNCs) managers in the Romanian retail sector related to CSR implementation. A documentary research approach and a qualitative research methodology through the use of four focus groups were utilized to fulfill the above-mentioned purpose. Additionally, the authors employed content analysis and Nvivo 14 software to process the collected data. The findings indicate that the size of firms represents a key element of managers’ perceptions and attitudes regarding CSR. Particularly, SME managers have a lower level of familiarity with the concept and the potential advantages for business compared to MNC managers. Furthermore, when it comes to CSR practices, MNCs use a comprehensive approach to meeting the demands of their stakeholders, whereas SMEs prioritize the requirements of their employees. One major obstacle in implementing the CSR concept continues to be the high expenses involved in the businesses.

The effect of academic top executives on corporate social responsibility: potential motivation and its outcomes

This paper investigates whether there is ethical or opportunistic motivation behind academic top executives’ (ATEs) engagement in corporate social responsibility (CSR) by exploring how ATEs relate to CSR practices and their consequences on corporate misbehavior and performance. We find that firms run by ATEs invest more in CSR. Moreover, CSR firms with ATEs are unlikely to be involved in corporate fraud and aggressive tax avoidance, especially when firms have low institutional ownership and fewer analysts and are located in low law enforcement and socially dishonest environments. We also document that the CSR performance brought by ATEs is positively associated with subsequent firm performance. Overall, our study suggests that academic experience has important implications for understanding executives’ ethical leadership and driving firms’ ethical CSR.

The peer effects of corporate social responsibility in China: A pre-registered report

In recent years, businesses worldwide have shown a growing interest in adopting corporate social responsibility (CSR) practices. The driver of corporate CSR engagement has attracted widespread attention. This study seeks to examine how firms react to the CSR practices of their peers in China. The ordinary least square would be used to validate our hypothesis and the instrumental variable approach would be utilized to alleviate endogeneity threats. In addition, we propose two channels, named as market competition hypothesis and institutional pressure hypothesis to account for this peer effect. We plan to provide some empirical evidence to support both channels.

Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism

This study aims to investigate the influence of corporate social responsibility (CSR) on both financial and non-financial performance in the Pakistani banking sector by applying a quantitative research approach to the primary data from 405 branch managers in the Pakistani banking sector. Both financial and non-financial performance indicators are analyzed in relation to CSR practices. The CB-SEM findings of this study reveal a significant and positive correlation between CSR and both financial and non-financial performance. Our results demonstrate that CSR initiatives contribute to improved financial performance, reputation, and innovation within the sector. These findings confirm the importance of prioritizing social responsibility initiatives to enhance overall performance in the banking industry. This study provides valuable insights into the impact of CSR on performance in the context of the Pakistani banking sector. The research contributes to the existing literature by highlighting the positive relationship between CSR and financial/non-financial performance. The findings underscore the relevance of CSR practices for banks in Pakistan and emphasize the potential benefits of incorporating social responsibility initiatives into their operations. This study serves as a foundation for future research, encouraging further exploration of CSR's role in the banking industry and its implications for sustainable business practices.

Qualitative Study on Corporate Social Responsibility Practice and Wellbeing in Industrial Parks: Evidence from Selected Industrial Parks in Ethiopia

The study's main objective is to understand the development of internal and external CSR in industrial parks and explore its relationship with employees and community well-being. This study employed an exploratory research approach. The study relies on semi-structured interviews and FGD with employees and the community of three selected industrial parks in Ethiopia. The study utilized thematic analysis and the NVivo-11 version for the analysis. The results show that various CSR practices are implemented in industrial parks. There is a positive relationship between most CSR practices and well-being, except for insurance, employment, and infrastructure. Moreover, the study explored some CSR activities specific to IPs, i.e., meal service, dormitory, transportation, and consumer cooperatives. Besides the knowledge contribution, the study has a practical contribution to industrial park managers, government agencies, policymakers, and multinational companies to practice CSR better as it enhances the employees' and community's well-being. This study is unique not only because it explored CSR practices that are specific to industrial parks, but also the relationship between internal and external CSR with employees' and community well-being, respectively. 

Impact of Green Financing on CSR and Environmental Policies and Procedures

Despite increasing global attention towards sustainable development, the empirical linkage between green financing and the enhancement of environmental and social governance (ESG) practices within industries remains underexplored. This study investigates the influence of green financing on Corporate Social Responsibility (CSR) and environmental policies and procedures in 40 Chinese industries from 2010 to 2020. By employing a baseline regression and a difference-in-differences methodology, this paper aims to quantify the extent to which green financing initiatives have impacted CSR activities and the adoption of rigorous environmental policies and procedures in the Chinese industrial sector. The results indicate that industries with access to green financing have shown significant improvements in their CSR engagements and the stringency of their environmental policies and procedures compared to those without such financial incentives. Specifically, the difference-in-differences analysis reveals a positive and statistically significant effect of green financing on the adoption of more stringent environmental policies and the enhancement of CSR practices. We identify the specific areas within CSR and environmental policies that are most influenced by green financing. We assess the effectiveness of green financing as a tool for promoting sustainable industrial practices. The analysis utilizes a comprehensive dataset, including industry-specific financing and ESG performance indicators, to conduct a longitudinal assessment over the decade in question. Based on these findings, the study concludes with a policy implication that emphasizes the critical role of green financing as a catalyst for improving CSR and environmental standards in industries. It suggests that policymakers and financial institutions should consider expanding green financing mechanisms to accelerate the transition towards more sustainable industrial practices.

Analyzing Media Impact on Public Engagement with CSR Practices

This study examines the impact of media on public engagement with Corporate Social Responsibility (CSR) practices using a qualitative approach. The focus of the analysis is on the narratives formed by digital and traditional media and their influence on public perceptions of CSR activities. Data were gathered from content analysis of 100 news articles and 50 social media posts related to CSR activities of five multinational companies over the past year. The results indicate that consistently positive media narratives about CSR tend to enhance company reputation and public support, while negative exposure triggers less favorable public reactions. The study also found that influencers and digital activists play a crucial role in shaping online discourse about CSR, significantly influencing public perceptions. These findings suggest that companies need to design effective CSR communication strategies and continuously monitor and evaluate these strategies to ensure sustained positive impact on public engagement with CSR activities

Corporate social responsibility practices and value creation through open innovation approach: Evidence from the STOXX Europe 600 Index

AbstractIn the current business setting, companies must adopt new practices to remain competitive due to complex products, changing market demands, and stakeholder pressures. Many successful businesses are turning to sustainability‐oriented innovations as a means of both increasing their growth potential and engaging in corporate social responsibility practices. This approach benefits both the company and society. However, the full potential of implementing sustainability practices through open innovation has yet to be fully explored, and the impact on firm value is unclear. Additionally, there is currently a lack of international standards for representing sustainability as an open innovation approach. This study aims to shed light on the potential benefits of adopting sustainable practices through the open innovation approach. We highlight the value that sustainable innovation can create and analyze a sample of European‐listed companies from the STOXX Europe 600 Index from 2011 to 2020. Our findings show that the ESG score best represents sustainability as an open innovation approach. Moreover, we demonstrate that adopting sustainability as an open innovation approach practice positively impacts firm value. This suggests that companies can enhance their value and promote sustainable innovation success by embracing this approach. Overall, this paper contributes to the literature on sustainability and open innovation, specifically within the legitimacy theory framework. It emphasizes that stakeholder pressure to build a more sustainable and ethical economic system presents a challenge that can also be an opportunity for companies.

Assessing the Relationship between Corporate Social Responsibility and R&D Effectiveness of Firms

Practices of corporate social responsibility often generate synergetic effects and improve financial and overall firm’s performance. However, in the high-tech industries, research and development (R&D) efficiency remains a key element of development strategy, and a shift towards sustainable activities can be considered as a trade-off. This study investigates the empirical link between corporate social responsibility practices and R&D effectiveness in R&D-intensive industries. Specifically, this research assesses the impact of environmental, social, and governance information disclosure, the availability of third-party rating, and long-termism on R&D returns. We employ the Hausman–Taylor estimator to analyze three R&D-intensive industries, namely pharmaceuticals, biotechnology and software, for the period from 2012 to 2019. Empirical results show that, in general, higher values of corporate social responsibility metrics are associated with the weaker R&D returns. The findings of this research might be meaningful for managers in making informed decisions with respect to corporate social responsibility practices.

CSR perceptions and practices in small hotels in urban cities

PurposeThis study aims to examine the perception and practices related to Corporate Social Responsibility (CSR) implemented in Small and Medium-sized Enterprises (SMEs), focussing on small hotels in London.Design/methodology/approachA qualitative research design comprising detailed semi-structured interviews was employed with 12 small hotel owner-managers in central London and its outskirts. The study adopts a social constructionist approach to explore CSR perspectives and practices, along with a social capital framework to investigate how CSR is perceived at the individual level and consequently manifested into CSR practices.FindingsThe findings indicate that a small hotel’s implementation of CSR is influenced by long-term versus short-term considerations, as well as socio-economic and socio-political conditions. Individual-level factors, like hoteliers’ CSR conceptualisation and personal and business values, affect CSR adoption in small hotels. Lastly, institutional-level factors, such as ineffective institutional participation and the hotelier’s cultural background against the cosmopolitan context of a big city, have contributed to a muted response to socially responsible issues.Research limitations/implicationsThis study was conducted with a limited sample of 12 participants from small hotels in London and its outskirts, which may limit the generalisability of the findings. Future research could enhance these findings by involving a larger and more diverse group of participants from various urban areas, potentially employing a quantitative research approach for broader applicability. This study’s insights can guide policymakers in educating small business owners on CSR benefits and implementation. It also proposes how governments could encourage sustainable practices among small hotels seeking to enhance their reputation. Moreover, these findings enable small businesses to develop their stakeholder strategies for greater CSR initiatives.Originality/valueThis study integrates social capital theory into investigating CSR in small hotels in London, broadening the literature on CSR perception and integration, particularly in SMEs and the hospitality sector.

Market penalty, collective punishment, and buffering: A study on the insurance‐like effect of CSR in environmental violations

AbstractWhile the existing literature finds that corporate social responsibility (CSR) can provide insurance‐like protection in negative events, it remains unclear how CSR buffers firms from market penalties for negative events. To address this concern, we conduct event studies and regressions using data from the environmental violations by Chinese publicly traded companies and their interlocked companies from 2009 to 2021. Our results show that the market reacts negatively to environmental violations. The market penalty diffuses through director networks and leads to the collective punishment of interlocked firms. CSR has an insurance‐like effect that buffers market penalties and collective punishment for environmental violations. Long‐term CSR has a stronger insurance‐like effect than short‐term CSR. Additionally, the insurance‐like effect of CSR still exists during repeated environmental violation events. This paper contributes to the literature on the insurance‐like effect of CSR and provides a reference for corporate CSR practice and investors' CSR decisions.

Deconstructing the applications of CSR policies in Indian coal mining sector

Purpose This study aims to comprehensively analyse the implementation and effectiveness of corporate social responsibility (CSR) policies within the context of the Indian coal mining sector. Furthermore, it investigates the alignment between CSR initiatives and the unique challenges faced by the coal mining sector and examines the outcomes and impacts of these initiatives on the employees of the sector and their perspective on the situation. Design/methodology/approach This study adopts a comprehensive qualitative research method, including a review of the literature, case studies and stakeholder interviews. This study seeks to deconstruct the application of CSR policies. Findings The analysis developed a deeper understanding of the complexities surrounding CSR policies in the Indian coal mining sector, offering insights into strategies for enhancing the effectiveness and relevance of these initiatives while fostering sustainable development. Practical implications This study reveals a rich tapestry of theoretical implications and how they connect to important organisational and societal paradigms. The results of this qualitative analysis can work as a foundation for creating scales to measure the level of efficiency of CSR policies implemented by different companies. Furthermore, this study goes beyond theoretical knowledge and gives companies, regulators and communities information they can use. By looking at how CSR policies work in the real world, a road map for responsible resource extraction and community growth can be made. Originality/value The findings are unique in exploring the CSR initiatives and the unique challenges faced by the coal mining sector. This study offers insight on the employees of the sector and their perspectives on the situation and delves into the multifaceted dimensions of CSR practices.

Exploring Customer Relationship Research in Family Businesses: A Scoping Review and Future Insights

This paper aims to demonstrate the relevance of customer relationship research in the context of family businesses, to structure existing literature, and to identify promising areas for further research. By conducting a scoping review of relevant peer-reviewed journal articles published from 2005 to 2021 and adhering to the Prisma protocol for enhanced transparency and quality, this paper underscores the pivotal role of customer relationship management in the success of family businesses, emphasizing a tendency towards conservative and traditional approaches. The owner-manager involvement, especially in the BtoB segment, is recognized as a distinct advantage, urging an exploration of specific strategies for managing customer relationships in both B to C and B to B sectors. Also, social capital is deemed crucial, extending its significance beyond customers to suppliers and employees, focusing on the influence of generational transitions on stakeholder relations. The imperative for deliberate relationship strategies during successions is emphasized. Moreover, the significance of customer orientation for success, impacting satisfaction, loyalty, and overall performance, highlights the necessity for empirical studies to gain nuanced insights. Additionally, consumer behavior towards family businesses, shaped by the communication of familial identity, underscores the need for further research on diverse communication approaches. Lastly, acknowledging the positive impact of corporate social responsibility practices on loyalty and reputation in family businesses underscores the call for context-specific investigations, taking into account corporate social responsibility reporting regulations across countries.

Evaluating the UN Global Compact Communication on Progress as a CSR Benchmarking Tool

Corporate social responsibility (CSR) extends beyond mere profit-seeking to encompass the ethical behavior of a company toward society, mitigating negative and generating positive impacts on the environment, consumers, employees, communities, and all stakeholders. The UN Global Compact (UNGC) is the world’s largest voluntary CSR initiative, and its Communication on Progress (CoP) requirement is a key reporting mechanism that allows participating companies to transparently showcase their progress and efforts regarding CSR. As more and more companies are reporting CSR practices, it is crucial to establish a global, standardized, trusted, accessible, and useful database that can be used by different stakeholders, including the companies themselves in the benchmarking process. This paper examines whether the UNGC CoP can be used as a sustainability benchmarking tool, based on well-established criteria, and compares it with other existing reporting frameworks. Results indicate that the UNGC CoP can be considered a benchmarking tool, being applicable to nearly all phases of the benchmarking process. The study also shows that the CoP stands out regarding other frameworks due to ample coverage of the sustainable development goals (SDGs), number of reporting companies, accessibility to all stakeholders, and consolidation of the information into one platform.

A Behavioral Model of Responsible Sourcing in Supply Chains: The Role of Dual-Sourcing Bias

Decision on what consumer reactions (support or boycott) to promote is important for nongovernmental organizations and policymakers looking to influence firms’ adoption of corporate social responsibility practices. We study how consumer reactions—paying more for certified products or boycotting in the event of responsibility violations—are effective in improving a firm’s uptake of responsibility practices in the sourcing domain. We first build a stylized model to study how consumer reaction affects a firm’s incentives toward responsible sourcing and find that only boycotting reactions by consumers reliably increases a firm’s sourcing from responsible suppliers. We then include behavioral aspects to our stylized model to derive a more nuanced understanding of how consumer reactions affect responsible sourcing. Through behavioral experiments, we first show that a supporting consumer reaction induces a dual-sourcing bias in firms’ sourcing decisions. We then develop a behavioral model of responsible sourcing, incorporating this dual-sourcing bias. Our analysis modifies the normative predictions of the stylized model by showing that a supporting reaction, irrespective of magnitude, always improves responsible sourcing if the boycotting reaction from the market is weak, and that promoting a boycotting reaction always improves responsible sourcing, irrespective of the product type. Our results lead us to a comprehensive and applicable insight for practice: in the supply chains of products with few brand substitutes, creating a supporting reaction in the market is the way to improve firms’ responsible sourcing, and in supply chains of products with many brand substitutes, promoting a boycotting reaction among consumers will lead to more responsible sourcing.

Deliberative ideals and hegemonic practices – political CSR in extractive industries

Purpose Political Corporate Social Responsibility (CSR), based on ideas about deliberative democracy, have been criticised for increasing corporate power and democratic deficits. Yet, deliberative ideals are flourishing in the corporate world in the form of dialogues with a broad set of stakeholders and engagement in wider societal issues. Extractive industry areas, with extensive corporate interventions in weak regulatory environments, are particularly vulnerable to asymmetrical power relations when businesses engage with society. This paper aims to illustrate in what way deliberative CSR practices in such contexts risk enhancing corporate power at the expense of community interests. Design/methodology/approach This paper is based on a retrospective qualitative study of a Canadian oil company, operating in an Albanian oilfield between 2009 and 2016. Through a study of three different deliberative CSR practices – market-based land acquisition, a grievance redress mechanism and dialogue groups – it highlights how these practices in various ways enforced corporate interests and prevented further community mobilisation. Findings By applying Laclau and Mouffe’s theory of hegemony, the analysis highlights how deliberative CSR activities isolated and silenced community demands, moved some community members into the corporate alliance and prevented alternative visions of the area to be articulated. In particular, the close connection between deliberative practices and monetary compensation flows is underlined in this dynamic. Originality/value The paper contributes to critical scholarship on political CSR by highlighting in what way deliberative practices, linked to monetary compensation schemes, enforce corporate hegemony by moving community members over to the corporate alliance.