Corporate Social Responsibility Practices Research Articles

The Role of Corporate Social Responsibility in Enhancing Resilience and Sustainability of Manufacturing SMEs: A European Perspective

This study investigates the implementation of Corporate Social Responsibility (CSR) practices in the manufacturing sector, with a focus on comparing the experiences and outcomes of small and large enterprises in Europe. Utilizing a mixed-methods approach, the research examines how these enterprises adopt CSR practices and the resultant impacts on financial and environmental performance. The findings indicate that both small and large enterprises benefit significantly from CSR, evidenced by improvements in key financial metrics such as Return on Assets (ROA) and Return on Equity (ROE), as well as reductions in carbon emissions and enhancements in energy efficiency. Small enterprises, despite facing challenges such as limited financial resources and lack of expertise, achieve notable local community engagement and operational efficiencies through targeted CSR initiatives. Large enterprises leverage their extensive resources to implement comprehensive CSR strategies, resulting in substantial environmental and financial gains. The study highlights the importance of stakeholder engagement, government support, and a robust organizational culture in facilitating effective CSR adoption. These insights underscore the need for supportive measures to help SMEs overcome barriers and enhance their contributions to sustainable development.

Empowering Employees’ Environmental Citizenship Behaviour: Insights From Small and Medium‐sized Enterprises in Climate‐Threatened Tourism Destinations

This study addresses a gap in understanding how small and medium-sized enterprises (SMEs) can effectively inspire their employees to adopt voluntary environmental behaviours, specifically aimed at mitigating climate change impacts on climate-threatened tourism destinations. Through smart PLS-SEM analysis of 437 valid responses from SME employees, an extended theoretical framework is developed, encompassing factors such as environmental Corporate Social Responsibility (CSR), sustainable intelligence, environmental empathy, environmental engagement, affective place attachment, and environmental citizenship behaviours. Findings reveal the direct relationship between enterprises’ environmental CSR practices and employees’ environmental citizenship behaviour. Mediating roles of empathy, engagement, and place attachment are identified in predicting employees’ voluntary pro-environmental behaviours in mitigating climate change impacts on destinations. The study also highlights the moderation effect of employees' occupations on the relationship between environmental engagement and pro-nature conservation behaviour. Implications are drawn for empowering SME employees’ environmental citizenship behaviour and promoting sustainable co-management of vulnerable tourism destinations facing climate change threats.

Corporate Governance and Corporate Social Responsibility Practices in Listed Deposit Money Banks in Nigeria

The increasing emphasis on Corporate Social Responsibility and its potential impact on stakeholder’s satisfaction and financial performance have driven the need for this research. This study examined the relationship between corporate governance and corporate social responsibility (csr) practices among listed deposit money banks in Nigeria. Ex-post facto research design was employed. The population of the study comprised of the 15 deposit money banks in Nigeria listed on the Nigerian Exchange Group (NGX) as at 31st December,2022, which formed the sample size using census sampling method. Data were obtained from the annual audited financial reports of the banks from the period 2011 to 2022. Data were analysed using the Panel Corrected Standard Errors (PCSE) regression method. The findings revealed that there is a significant positive relationship between transparency measured by the transparency index and CSR practices, a significant positive relationship between environmental sustainability measured by the Dow jones sustainability indices and CSR, and stakeholders’ engagement measured by stakeholder’s feedback score has a positive but insignificant relationship with CSR practices. The study concluded that adherence to corporate governance codes, especially in areas of environmental sustainability and transparency, enhances csr practices. It recommended that Deposit money banks should pay keen attention to corporate governance practices, especially in environmental sustainability. Regulators are also advised to entrench stakeholders’ engagement committees in corporate governance codes to foster better stakeholder engagement.

CEO duality and corporate social responsibility: A moderation effect of founder CEO

With a panel of 6613 firm-year observations of NSE-listed firms during 2015–2020, we construct a corporate social responsibility (CSR) engagement score based on entropy measures to analyse the impact of chief executive officer (CEO) duality on CSR practices in India. This study shows that CEO duality negatively influences the CSR practices of the firm. We also examine the moderation impact of the founder status of CEO on the relationship between CEO duality and CSR practices and find a positive moderation effect. We have also checked the validity of CEO duality and CSR relationship under high and low external and internal monitoring. The results are in line with agency theory and the Uday Kotak committee and suggest the non-duality structure for strong corporate governance. We also extend the study by analysing the relationship between CEO duality and CSR practices across different business life cycles. The result shows that the duality structure of mature and declining firms negatively influences the CSR practices of the firm compared to introduction, growth, and shakeout firms. This result suggests that CEO duality of mature and declining firms utilize their power to maximise available resources for their personal benefits at the cost of other stakeholders. Further, the findings are robust to applying propensity score matching, two stage least squares, and three stage least squares.

Corporate Social Responsibility Disclosures and Cost of Equity Capital Evidence from Listed Interest Taking Banks in Nigeria

Disclosure of corporate social responsibility is strategic to the sustainability of any firm especially banks that have contributed to the economic development of Nigeria. When firms fail to adequately disclose their corporate social responsibility practices, providers of funds may be unaware of the risk and opportunities they are exposed to by investing in sech banks. The main objective of this study therefore was to examine the effect of corporate social responsibility disclosures on cost of equity of interest taking banks listed on the floor of the Nigerian Exchange Group from 2014-2023. The research design adopted for this study was ex post facto and secondary data were used. The population of this study consisted of 13 interest taking banks and 11 of these banks were purposively selected as the sample size. The panel regression analysis was employed in analyzing the data set and the statistical package employed was STATA version 16. The findings of this study revealed that community relations disclosures have a significant negative effect on the cost of equity capital; social donations disclosures have a positive but not statistically significant effect on the cost of equity capital while employee relations disclosures have a significant positive effect on the cost of equity capital of listed interest-taking banks in Nigeria. Based on the above findings, it was concluded that corporate social responsibility disclosures help reduce cost of equity of listed interest-taking banks in Nigeria. It was therefore recommended among others that management of these banks should be actively involved in community development and ensure transparent disclosure of these practices to stakeholders as this promote their sustainability and inclusiveness.

Decoding Corporate Social Responsibility Practises : India’s Unique Framework

Objectives: The Study aims to analyze the evolution and regulatory mandates of CSR in India, explore stake holder engagement dynamics, highlight leading Organisations driving sustainability and address challenges like transparency and accountability within the CSR landscape. Methods: The study employed a descriptive and analytical method, utilizing both primary and secondary data sources. Result: The study reveals India's diverse CSR landscape shaped by regulatory mandates, cultural values, and stakeholder expectations, showcasing a shift towards strategic initiatives addressing social and environmental challenges. While challenges like transparency and impact measurement persist, opportunities for improvement exist, emphasizing the need for integrating CSR into business strategies and fostering stakeholder engagement. Successful CSR practices underscore businesses' potential to drive inclusive growth and sustainable development while bolstering their reputation and competitiveness. Conclusion: India's Corporate Social Responsibility (CSR) landscape is characterized by a complex interplay of regulatory mandates, cultural values, and stakeholder engagement, all aimed at fostering inclusive growth and sustainable development. Despite notable progress driven by legislative requirements like the Companies Act 2013, challenges such as effective implementation and transparency persist. However, through enhanced accountability, regulatory reforms, and a focus on aligning CSR strategies with local needs and global sustainability goals, India can further strengthen its CSR framework. By leveraging insights from the study, policymakers, businesses, and civil society organizations can collaboratively address these challenges and unlock the full potential of CSR to drive positive societal impact and contribute to a more equitable, inclusive, and sustainable future for all.

Government Policies and Corporate Social Responsibility: Analyzing the Influence on Organizational Practices and Stakeholder Perceptions

This study investigates the influence of government policies on corporate social responsibility (CSR) practices and stakeholder perceptions. Utilizing a mixed-methods approach, the research combines quantitative data from surveys of 350 companies across various industries with qualitative insights from in-depth interviews and case studies. The findings reveal that mandatory regulations significantly drive CSR engagement, while financial incentives encourage voluntary CSR efforts. Stakeholder perceptions are more favorable towards CSR initiatives perceived as authentic and aligned with their values. Additionally, the impact of government policies on CSR varies across different industries and regions, emphasizing the importance of context-specific strategies. The study offers valuable insights for policymakers and business leaders on designing effective regulatory and financial tools to promote genuine and impactful CSR practices.

Corporate Social Responsibility Practices, Corporate Sustainable Development, Venture Capital and Corporate Governance: Evidence from Chinese Public Listed Firms

Corporate Social Responsibility Practices, Corporate Sustainable Development, Venture Capital and Corporate Governance: Evidence from Chinese Public Listed Firms

The value of corporate social responsibility practices in a world more concerned about sustainability: A literature review

Corporate social responsibility (CSR) has been seen as an opportunity to increase reputation, cost savings, business and financial opportunities, and create economic and sustainable value. The purpose of this review is twofold: first to draw attention to the complex relationship between common CSR practices used to deal with critical issues for our society and the impact they have on the trust and loyalty of stakeholders. Second, based on a study of 91 documents, to identify the advantages/weaknesses of implementing recognized standards (ISO 14001, ISO 26000, GRI, SA8000, AA1000) in different sectors of the economy. The standards provide a guideline for the elaboration, disclosure, and evaluation of the transparency reports of CSR. Some indicators used to measure CSR are more focused on environmental topics but recognizing social justice as a priority is critical to promoting the well-being of internal and external stakeholders. Furthermore, CSR standards play a crucial role in our world because they encourage ethical behaviors that reinforce the values and integrity of our society. The future research agenda should be oriented to monitor the impact of CSR initiatives in complex scenarios, consider the voices of non-specialized stakeholders, and integrate approaches that make visible the consequences of these practices.

Employees’ perceptions of corporate social responsibility in a selected manufacturing enterprise in South Africa

Despite small and medium enterprises (SMEs) being the backbone of any economy, their performance is not satisfactory. Corporate Social Responsibility (CSR) is frequently utilised to improve business sustainability and meet stakeholder responsibilities. However, literature focuses on CSR practices in larger corporations, neglecting the practice in SMEs. On the other hand, CSR research usually overlooks internal stakeholders such as employees. In order to bridge this gap, the researcher investigated internal stakeholders’ perceptions of CSR in a South African medium-sized organization located in the eThekwini municipal area, as this perspective is critical in developing a comprehensive CSR strategy. Data for this research was gathered through interviews and focus group discussions with managers and employees of the selected organization. Thematic content analysis was the primary method utilised for analysing the collected data, which was aided by NVivo 12 software for complete data processing and organization. The findings revealed that employees view CSR as a viable practice that encourages dedication and motivation to improve work performance. CSR implementation within the organization is seen as an effective motivational tool, resulting in greater output, increased staff dedication, decreased absenteeism, and increased employee turnover. The researcher argues that CSR can increase employee performance and emphasizes the necessity for SME managers to incorporate social, environmental and employee-related CSR projects into their business strategy to improve overall performance.

Corporate Social Responsibility Practices of Selected Airline Companies: Inputs for a Sustainable Aviation Service

This paper tries to identify the strategic corporate social responsibility of selected airline companies to ascertain inputs for the creation of a sustainable service delivery, by looking at the implementation level of its corporate social responsibility in the environmental, philanthropic, economic and ethical areas. The study shows that in terms of environmental responsibility, waste segregation has the highest level of practice, while carbon footprint reduction is the lowest. Philanthropic activities participated in by employees is the most frequently practiced among other philanthropic responsibility initiatives, while the provision of scholarship grants is the least practiced. For economic responsibility, the recruitment of diverse talent received the highest mean score indicating it as the most practiced activity, while financial management strategy practices is the most challenged. As far as ethical responsibility is concerned, the practice of honesty is prevalent, while direct stakeholder involvement in planning the manual of ethical operations is almost none. The study also explored whether there was a significant difference in the assessment of CSR strategies between the two groups of respondents. The results indicated that there was a significant difference in the assessments of employees and passengers in terms of environmental, philanthropic, economic, and ethical responsibilities in comparison to management administrators. Moreover, the challenges encountered in the implementation of CSR strategies were identified and ranked, providing insights into the perceived difficulties faced by airline companies in implementing CSR strategies. Based on the findings of the study, recommendations for responding to the challenges of implementing CSR strategies were proposed. These recommendations include additional signage for environmental awareness, ensuring the sustainability of philanthropic activities, crafting financial measures to address constraints, and ensuring sustainable implementation of its manual of operation. The findings and recommendations provides inputs to for a sustainable service delivery and promoting responsible business practices in the airline industry.

Unveiling the dynamic nexus between corporate social responsibility, innovations and financial performances in 21st-century Indian start-ups

Purpose With the rapid rise in the number of start-ups, corporate social responsibility (CSR) can principally contribute to the nation’s socioeconomic development, making it more critical. This study aims to explore the effect of sustainability practices on a firm’s performance with competitive advantage (CA) and innovation (INN) as the mediating variable. Design/methodology/approach An exhaustive literature review was done to identify the constructs relationship for this study, and a questionnaire was used to gather the data from the start-up owners. In total, 400 samples were received, and partial least squares structural equation modeling was used for testing and validating the proposed hypotheses. Findings CSR and financial performance (FP) have a significant relationship. According to this study’s findings, innovation and CA substantially mediate the relationship between a firm’s FP and CSR. This study will highlight how CSR practices stimulate organizational creativity, problem-solving and strategic thinking. It will also demonstrate how CSR can foster a culture of innovation that generates long-term value and positively impacts FP. Practical implications It will aid in improving the knowledge of start-up owners that CSR is more than just pure altruism or philanthropy; instead, it must be promoted strategically as an investment that boosts productivity and creativity while also bringing overall financial benefits to the company. It will ultimately enhance the start-ups’ ability to improve the economy and society. Furthermore, this study holds the potential to inform policy discussions and recommendations for fostering responsible business practices in the Indian start-up ecosystem. Policymakers can benefit from insights into how regulations and incentives can be designed to encourage start-ups to adopt CSR practices that not only fulfill legal obligations but also contribute to their CA and FP. Originality/value This study provides empirical validity to establish linkages between sustainability measures on the FP concerning start-ups that were not considered in the prior studies. Identifying the current conceptual framework and CA and Innovation as the two major factors influencing CSR in Indian enterprises is a novel contribution. This study aims to fill the research gap. By unravelling the intricate dynamics between CSR, FP and CA, the research contributes to the understanding of how start-ups can navigate the complex interplay of social responsibility and business success in the Indian context.

CONTRIBUTION OF CORPORATE SOCIAL RESPONSIBILITY AS A MEDIATOR IN FIRM VALUE

This research investigates the impact of Environmental, Social, Governance (ESG) and Corporate Social Responsibility (CSR) factors on the value of transportation companies listed on the Indonesia Stock Exchange. ESG and CSR have become increasingly important for businesses as stakeholders demand sustainable and socially responsible practices. The objective of this study is to comprehend how ESG and CSR affect firm value, with CSR acting as a mediator in this relationship. Additionally, the study explores the influence of Good Corporate Governance (GCG) on firm value and CSR. Quantitative methods are employed, utilizing secondary data analysis from annual reports of transportation companies listed on the Indonesia Stock Exchange. Regression techniques are used to analyze the data and test hypotheses regarding the influence of ESG, CSR, and GCG on firm value. The results indicate that ESG has a negative impact on firm value, while CSR has a positive impact. Furthermore, CSR acts as a mediator between ESG and firm value. Conversely, GCG does not significantly influence CSR or firm value. These findings suggest that transportation companies should prioritize CSR practices to enhance their firm value. Additionally, further research is needed to gain a deeper understanding of the relationship between CSR, firm value, and sustainability.

How does tax avoidance affect corporate social responsibility and financial ratio in emerging economies?

The purpose of this study is to better understand the relationship between financial ratios and tax avoidance in businesses that practice corporate social responsibility. Using a sample of 30 Tunisian financial institutions listed on the stock exchange from 2016 to 2022, we find that engaging in corporate social responsibility activities discourages tax avoidance behavior, particularly in businesses that actively participate in corporate social responsibility activities.In terms of financial metrics, we see that businesses with higher levels of rentability, cash flow, and sales growth are more likely to engage in tax avoidance. But, businesses with high liquidity are less likely to abandon tax avoidance.Based on the findings of this study, tax authorities may be able to predict whether a Tunisian company will engage in tax avoidance in the future by looking at its financial statistics. Furthermore, tax authorities may use corporate social responsibility activities to encourage businesses to pay taxes.

Challenges and Benefits of Implementing Corporate Social Responsibility in MSMEs

The growth of the tourism sector in Bali has a positive impact on the development of MSMEs. MSME players also need to apply the concept of sustainability in their operational activities to support sustainable tourism, one of which is through Corporate Social Responsibility (CSR) practices. This research explores in depth the perceptions of MSME owners towards CSR practices and the benefits obtained from CSR practices. This study also analyzes the challenges faced by MSMEs in implementing CSR. This study is qualitative research using the interview method in data collection. Interviews were conducted with two food and beverage MSME owners in Denpasar City. The results show that MSME owners need to understand the concept of sustainability fully. However, they have awareness regarding the impact of business operations on stakeholders. However, small business owners have several challenges, such as limited resources and finances, so they have yet to focus on CSR activities. The findings imply the critical role of academics and government in assisting MSME owners in adopting the concept of sustainability in their business practices.

Measuring Sustainability: A Validation Study of a Triple Bottom Line (TBL) Scale in Portugal

Studies on sustainability using the Triple Bottom Line (TBL) approach are increasing. However, there is no consensus on how to measure the economic, social, and environmental dimensions of sustainability based on TBL theory. Despite numerous proposals, there is a lack of integrated measures covering all three dimensions simultaneously and having a human-centered approach. This gap is particularly pronounced in Portugal, where no existing scale adequately meets the needs of academics and practitioners. To address this challenge, and based on existing measures that encompass the nature of each TBL dimension, we present and validate a 15-item TBL scale, with 5 items per dimension: economic, social, and environmental. To test convergent validity and contribute to the discussion regarding the links between TBL and Corporate Social Responsibility (CSR), we also analyzed the association between each TBL dimension and each CSR dimension. Using a sample of 635 participants, divided into two independent sub-samples, we conducted comprehensive statistical analyses, including exploratory and confirmatory factor analysis, reliability testing, and convergent and discriminant analysis, followed by invariance testing of the TBL scale. The results suggest that the proposed measure fits the Portuguese sample, and all psychometric results are robust. We also establish the links between the three dimensions of TBL—economic, social, and environmental—and the CSR dimensions, as convergent validity is verified between social TBL and employees' CSR practices. We discuss theoretical and practical implications, as well as limitations and suggestions for future research. Doi: 10.28991/ESJ-2024-08-03-06 Full Text: PDF

Corporate Social Responsibility in Rural Development: Insights from CSR Initiatives of a Public Sector Company

Corporate social responsibility (CSR) is emerging as a business-led solution for addressing development challenges, such as poverty, malnutrition, and inadequate infrastructure. However, there is limited research available on the process by which companies introduce innovative CSR practices to tackle these social problems. This study draws insights from a case study of CSR initiatives of a public sector company in India to examine the emergence and implementation of innovative CSR practices. The study reveals that CSR practices are influenced by the company’s commitment and institutionalising a dynamic process of implementation and stakeholder engagement, and governance of partner relations. It is found that stakeholder engagement and partnerships not only attribute legitimacy but also ensure greater participation of the local community in problem-solving and the creation of shared value. Moreover, the formation of partnerships and collaborations contributes to the development of better solutions that serve the needs of the local community. These findings have implications for the design and implementation of innovative CSR practices, particularly in resource-constrained rural settings.

CSR practices in small and medium-sized accommodations and their impact on the local communities

This study attempts to identify corporate social responsibility (CSR) practices for small and medium-sized accommodation businesses (SMABs) in the hospitality industry and how they contribute to the economic, environmental, and social context. Using a holistic approach to CSR, we conducted qualitative semi-structured interviews with a sample of fifteen SMABs in Jordan, classified as three-star or less. The study presents the CSR practices in SMABs, some barriers and challenges faced (e.g., gender gap and employees with special needs), together with recommendations to overcome them. This is one of the first studies to examine the CSR practices of SMABs in the Middle East hospitality industry, and their social, economic, and environmental impact. Findings add to existing gasps on CSR in SMABs, more focused on large businesses, and CSR’s impact on local community, a less researched dimension, and findings can be used by decision-makers to further improve CSR practices in the hospitality industry.

Optimising corporate social responsibility communication in Asia: A comparative case study of Uniqlo and Shein

PurposeFast fashion brands in Asia are increasingly incorporating corporate social responsibility (CSR) into their business strategies in response to the mounting environmental and social concerns. The study aims to provide insights into the current landscape of CSR practices and communication within the Asian context through focusing on two prominent Asian brands to understand how these fashion brands articulate and convey their CSR activities on their respective websites.Design/methodology/approachThis study used a qualitative content analysis to critically evaluate the CSR communication used by Uniqlo and Shein, with the incorporation of signalling theory as a theoretical framework to discuss the observed elements on their websites.FindingsThe results indicate that the two Asian fast fashion brands actively engage in CSR’s environmental and social dimensions. Notably, the social dimension is more prominently expressed on both brands’ websites than on other dimensions. Through a nuanced interplay of colour, imagery and keywords, these Asian fast fashion brands strategically signify their commitment to environmental stewardship and stakeholder well-being.Originality/valueThis study fills a gap in the literature by examining CSR programs on Asian-owned fast fashion brands’ websites through the application of signalling theory. The research contributes to the theoretical foundation of CSR communication outcome research, offering actionable insights for marketers entering the Asian fashion market to enhance brand reputation and legitimacy.

Responsabilidad Social Corporativa como Estrategia para Mejorar el Rendimiento Empresarial

How Corporate Social Responsibility (CSR) can improve business performance will be analyzed through a qualitative literature review. Relevant academic studies and sources were reviewed to explore the relationship between CSR and business performance. The findings indicate that CSR improves consumer perception and behavior, strengthening loyalty and sales. In addition, it contributes to customer loyalty and retention, increases job satisfaction and commitment, and attracts and retains talent. CSR also improves organizational climate and culture, facilitates market differentiation and fosters innovation. In financial terms, CSR translates into improved direct financial performance, better access to capital and more effective risk management. These benefits not only drive short-term financial success, but also ensure long-term sustainability and growth. Integrating CSR practices into a company's business model is not just a matter of regulatory compliance, but a strategic decision that can profoundly transform its performance and sustainability. CSR is a powerful tool for improving business performance across multiple dimensions, and stands out as a strategic priority for modern companies.