Corporate Social Responsibility Strategies Research Articles

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.

Governing Corporations in National and Transnational Spaces: Cross‐Level Governmental Orchestration of Corporate Social Responsibility in South Korea

AbstractThe loose spatial and temporal coordination of national and transnational governmental corporate social responsibility (CSR) strategies enables multinational corporations (MNCs) to externalize irresponsible behaviours. Political CSR (PCSR) and ‘government and CSR’ studies show how governmental authority shapes CSR at the domestic and transnational levels but provide only limited insights into how to govern MNCs across levels and over time. Combining the concept of orchestration with insights from power transition theory, we theorize cross‐level governmental orchestration as power‐imbued, dynamic, and involving multiple modes of orchestration. Through an analysis of how the South Korean state has deployed CSR domestic and transnational strategies over 30 years, we induce three configurations of cross‐level governmental orchestration, blending coercive, directive, delegative and facilitative modes of orchestration, and identify the mechanisms behind Korea's transition from one configuration to another. Our results: (1) contribute to PCSR and ‘government and CSR’ studies by conceptualizing a systemic and dynamic view of cross‐level orchestration of governmental CSR strategies; (2) advance transnational governance studies by consolidating orchestration theories and considering coercive power, and (3) add to power transition theory by explaining how regulatory capacity‐building enables shifts of cross‐level orchestration configurations.

HOW DOES CSR STRATEGY IMPACT CORPORATE CASH POLICY IN EMERGING MARKETS? EVIDENCE FROM THE COVID-19 OUTBREAK

This study investigates the impact of corporate social responsibility (CSR) strategy on corporate cash policy in emerging markets, with a specific focus on the COVID-19 pandemic period. By analysing data from 7,731 firm-years across 30 developing countries during the period 2002-2021, the study finds that CSR has a negative effect on cash holdings. In other words, firms with lower CSR investment tend to hold more cash. However, an interesting finding is that the negative impact of CSR on cash holdings lost its significance during the COVID-19pandemic. This suggests that during this unprecedented period of economic uncertainty and disruption caused by the pandemic, firms with higher CSR were more inclined to hoard cash as a precautionary measure. In contrast, in normal times, the dominant motive for holding cash appears to be related to agency concerns. Furthermore, the study identifies countryspecific variations in the relationship between CSR and cash holdings. For instance, firms in Brazil and Saudi Arabia tend to use cash retention as a response to higher CSR, while firms in Argentina, Malaysia, Mexico, Poland, Taiwan, and Turkiye exhibit the opposite behaviour, using higher CSR as a signal for reduced cash holdings. Additionally, the study sheds light on industry-specific differences in the relationship between CSR and cash holdings. Beverage, construction and material, industrial material, oil, gas, and coal, technology hardware and equipment, telecommunications service provider, and travel and leisure firms are more likely to use cash holdings as a substitute for CSR, while alternative energy and media firms show the opposite pattern, using higher CSR as a signal for reduced cash holdings.

What Is the Relationship between Corporate Social Responsibility and Financial Performance in the UK Banking Sector?

This study rigorously investigates the intricate dynamics between Corporate Social Responsibility (CSR), quantified through Environmental, Social, and Governance (ESG) scores, and financial performance (FP), measured via the return on assets (ROA) and return on equity (ROE), within the UK banking sector. Our analysis is based on a comprehensive dataset from Bloomberg. This research encapsulates data from 32 banks publicly listed on the London Stock Exchange over a six-year span from 2017 to 2022. Employing panel data regression models while controlling leverage and bank size, we delve into the relationship between banks’ CSR engagements, as reflected in their ESG scores, and their financial outcomes. Our findings indicate a negative correlation between the ESG score and both the ROA and ROE, suggesting that elevated CSR commitments may inversely impact short-term financial returns. This finding not only challenges prevailing narratives within the sector but also fosters a crucial discourse on the balance between ethical banking practices and profitability. The implications of this research study are manifold, extending to policymakers, banking executives, and investors, suggesting a revaluation of CSR strategies in alignment with long-term value creation and sustainable banking. This study not only enriches academic discourse on CSR within the financial sector but also serves as a beacon for future inquiries into the evolving landscape of responsible banking, advocating for a nuanced understanding of CSR’s role in shaping the financial and ethical contours of the banking industry.

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.

Aggressive CSR strategy and CSR awarding: managerial opportunism versus social activism

PurposeDespite the extensive body of research on absolute corporate social responsibility (CSR) performance, limited attention has been given to the distinct concepts of optimal and aggressive CSR engagement, as well as their associations with CSR awarding. This study aims to differentiate between optimal and aggressive CSR engagement and examine their relationship with CSR awarding while considering the moderating influence of board characteristics from the perspectives of stakeholder and agency theories.Design/methodology/approachThis empirical analysis draws on an international dataset comprising 43,803 observations from nine sectors across 41 countries. We employ a least squares dummy variable regression approach that accounts for country, industry and year effects to conduct the analysis.FindingsThe results reveal that engagement in aggressive CSR activities beyond the optimal level leads to the generation of a social reputation through CSR awarding. However, the influence of board characteristics on this relationship is significant. Specifically, the presence of a dedicated CSR committee encourages CSR awarding in the context of aggressive CSR engagement. Conversely, board independence constrains the relationship between aggressive CSR engagement and CSR awarding. Notably, board gender diversity does not have a discernible impact on this connection.Practical implicationsOur evidence provides valuable insights to help firms seeking to enhance their social reputation through CSR activities better allocate their resources and avoid unnecessary financial commitments.Originality/valueThis study advances the current understanding by exploring the relationship between aggressive CSR engagement and the recognition of CSR awards. Furthermore, it scrutinises the factors that dictate when such aggressive CSR engagement translates into enhanced social reputation, as evidenced by the attainment of CSR awards.

A Case Study Examining the Effects of Corporate Social Responsibility on the Financial Performance of Iraqi Commercial Banks

The study examines the relationship between corporate social responsibility (CSR) and financial performance in leading Iraqi banks. Data was collected from company websites and reports, and regression analysis was used to examine the relationship between variables. The findings suggest that banks should evaluate their CSR strategies, align with corporate values and societal needs, and consider sustainability and long-term impact. Collaboration among banks and stakeholders can lead to more impactful initiatives. Stabilizing net profits through operational efficiency improvement, risk management, and new revenue streams is crucial for sustained profitability. Strategies to enhance profitability include diversifying revenue streams, optimizing capital allocation, and optimizing operational efficiency.

Management tone and corporate social responsibility: Evidence from Chinese listed companies' involvement in rural revitalization

This study delves into the correlation between management tone in annual reports and corporate engagement in rural revitalization by analyzing data from publicly listed Chinese companies between 2016 and 2022. Our investigation reveals a significant positive correlation between an optimistic management tone and elevated corporate involvement in rural revitalization efforts. The findings underscore that a management's positive and forward-looking stance can stimulate enhanced corporate contributions toward rural development, with a more pronounced effect observed in case of non-state-owned entities and those under financial constraints. Furthermore, evidence suggests that the manipulation of management tone negatively affects corporate engagement in rural revitalization. These insights accentuate the critical role of management tone in shaping corporate social responsibility (CSR) initiatives, particularly within the realm of rural development. The study has strategic implications for corporate governance and communication, given that management tone can influence CSR activities and strategies, and suggests policy avenues for encouraging corporate participation in rural revitalization.

Corporate Social Responsibility and Financial Performance of Commercial Banks in Rwanda: A Case of BPR Bank Rwanda Plc

Corporate Social Responsibility (CSR) denotes firms’ commitment to conduct their activities ethically by considering their social, economic and environment effects. CSR can be vital for commercial banks in Rwanda in creating lasting corporate image that serve to benefit their financial performance. The present research examined the contribution of CSR on financial performance of commercial banks in Rwanda using a case of BPR Bank Rwanda Plc, located in Nyarugenge District, Rwanda. A descriptive and correlational research design was adopted using both quantitative and qualitative approaches. The target population of this research was 125 employees from the bank and sample size of 96 selected using stratified random sampling technique. Data collection was done using questionnaire and interview guide. Secondary data was obtained using desk research from financial statements published by the bank. Pearson correlation and multilinear regression analyses were performed to measure the effect. The findings on employee trainings (r=0.233, p=0.022) was significantly and positively related to financial performance of commercial banks. Since the p-value was less than 5%, then the correlation was statistically significant. Similarly, charity work (r=0.283, p=0.005) and community development projects (r=0.475, p=0.000) positively influence the financial performance of BPR, since the p-value were less than 5%. All the indicator variables of CSR were seen to have positive effect on financial performance of commercial banks though with low correlation.  The regression model (F=23.917, p=0.000) was statistically significant since the p-value was less than 5%. The researcher recommends that bank managers should analyze the viability of the current CSR strategies before launching new strategies. It is only after critical analysis that managers can use new CSR strategies. They should also make sure that any new CSR strategies are aligned to the overall mission and vison of the bank.

Corporate Social Responsibility and Organizational Results, a Managerial Perspective

Purpose: This study investigates, from a corporate social responsibility (CSR) perspective, the relationships that exist between selected interested publics and the results of the organization from the point of view of its administrator.   Design/Methodology/approach: For this purpose, a survey was conducted and analysed using partial structural equations. This study was conducted in four states in the central region of Mexico. The variables under study were: environmental, social, employee and investor’s commitment as perceived by managers and organizational results. First, the validity of the construct was verified, and subsequently, the relationships between the variables for which the results were satisfactory were analysed.   Findings: The relationships between environmental, social, employee, and customer commitments were verified. Finally, the relationship between the client's commitment and the results perceived by the administrator is verified. It is concluded that more efforts are being made in this line of research to identify the progress of Mexican organizations’ CSR strategies. Suggested research for future work is also presented, considering new trends in the approach presented.   Originality/value: The results confirm the of the manager/director’s commitment is essential to CSR and their results. In the Mexican case, there are few studies related to this important topic. This research could be also helpful for Latin-American business.

Exploring the Role of Corporate Social Responsibility Strategies for Business Success - Taking Tesco as an Example

Exploring the Role of Corporate Social Responsibility Strategies for Business Success - Taking Tesco as an Example

Making Big Business Everybody’s Business: Aboriginal leaders’ perspectives on commercial activities influencing Aboriginal health in Victoria, Australia

BackgroundThe commercial determinants of health is a rapidly expanding field of research; however Indigenous perspectives remain notably underrepresented. For Indigenous peoples the intersection of globalisation, colonialism and capitalism may amplify commercially-driven health inequities. This study aimed to explore the perspectives of Aboriginal leaders regarding the influence of commercial activities on Aboriginal health and wellbeing in Victoria, Australia.MethodsSemi-structured interviews with 23 Aboriginal leaders from across five sectors (n = 15 urban, n = 8 rural/regional) were analysed through reflexive thematic analysis.ResultsThree overarching themes were identified encompassing (i) harmful commercial practices and processes, (ii) improving corporate engagement and (iii) opportunities for self-determination through business. Participants expressed concern over aggressive marketing by the gambling industry, commercial exploitation of Aboriginal culture, the privatisation of public services, and lack of oversignt of corporate social responsibility strategies. Simultaneously, Aboriginal-led businesses were viewed as opportunities for cultural connection, and financial empowerment and self-determination.ConclusionNumerous commercial entities and activities are perceived to influence Aboriginal health and wellbeing. This study highlights the need for stronger policy and regulation to mitigate harmful industry practices while incentivising the potential positive impacts of the commercial activities on Aboriginal health and wellbeing.

Relationship between Occupational Pension, Corporate Social Responsibility (CSR), and Organizational Resilience: A Study on Listed Chinese Companies

Numerous researchers acknowledge that the occupational pension protects employees. However, in China, the total cost of occupational pensions is shared between employees and employers, representing a significant financial commitment. This study aimed to explore the effect of the occupational pension on corporate social responsibility (CSR) and organizational resilience. Drawing on insights from cost-stickiness and resource-based theories, we developed a model that elucidated the influence of occupational pensions on firms’ approaches to CSR within the context of COVID-19 and how this, in turn, impacted organizational resilience. This study categorized CSR into strategic and responsive activities, employing the concept of cost stickiness as a framework. We analyzed a sample of 34,145 observations from Chinese A-share listed companies spanning the period 2010–2023 to examine the influence of occupational pension adjustments on CSR strategies. The findings of this study revealed that the cost pressure associated with contributions to occupational pensions prompted firms to decrease their engagement in responsive CSR activities while enhancing their strategic CSR initiatives. Furthermore, it was observed that strategic CSR contributed to improved organizational resilience, whereas responsive CSR did not exhibit the same effect. The relationship between occupational pension contributions and CSR was found to be significantly and negatively moderated by factors such as the minimum wage and population aging. Conversely, the relationship between CSR and organizational resilience was significantly and positively moderated by digital transformation and marketing capabilities.

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.

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

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

International diversification and corporate social responsibility disclosure quality: Employee versus environmental dimensions

AbstractMultinational enterprises (MNEs) face increasing institutional complexity as they expand internationally, which has a significant effect on their corporate social responsibility (CSR) strategy. In this study, we investigate an under‐explored difference between MNEs' employee and environmental CSR disclosure quality concerning the extent to which CSR reports are indicative of substantive activities. We propose that as international diversification increases institutional complexity, MNEs lower the disclosure quality of environmental CSR yet improve the disclosure quality of employee CSR due to their different institutional implications. In addition, we examine the effect of MNEs' home country cultural differences regarding uncertainty avoidance on the relationship between international diversification and employee and environmental disclosure quality. Based on a sample of 335 global MNEs from 31 countries, we found general support for our hypotheses.

An Analysis of Corporate Social Responsibility Practices and Their Impact on Local Communities in the Case of Samsung Electronics in India

This paper delves into Samsung Electronics’ corporate social responsibility (CSR) initiatives in India and assesses their impact on local communities. It examines a range of programs aimed at social and economic development, from educational enhancements to healthcare access and environmental sustainability. The study seeks to provide a nuanced understanding of how these initiatives are planned, executed, and received by the communities they intend to serve. The analysis includes an exploration of Samsung’s Smart Class Program, which has transformed educational experiences by integrating digital technologies into classrooms in underserved areas. This initiative’s effect on student engagement and learning outcomes is evaluated to gauge its contribution to educational advancement. The paper also investigates Samsung’s healthcare projects, such as the deployment of mobile healthcare units and telemedicine centers, which have been instrumental in bringing medical services to remote and marginalized communities. Additionally, the research addresses the challenges Samsung faces in implementing its CSR initiatives, including issues of scalability and sustainability. It discusses the strategies the company has employed to overcome these hurdles and the lessons learned from these experiences. The paper emphasizes the importance of collaboration between corporations, government entities, and NGOs in enhancing the effectiveness of CSR activities. The paper provides a comprehensive overview of Samsung Electronics’ CSR practices in India and their significant contributions to community welfare and sustainable development. It highlights the potential of corporate social responsibility as a powerful tool for driving positive social change and underscores the need for ongoing commitment and innovation in CSR strategies to meet the evolving needs of local communities.

Environmental corporate social responsibility practices and firm innovation: Complementarities and empirical evidence from Spanish firms

This study examines the complementarity effect of combining different types of environmental corporate social responsibility (ECSR) practices on firm innovation. We apply the complementarity approach to test whether the adoption of different ECSR practices (i.e. practices for fewer materials per unit produced [materials], less energy per unit produced [energy], or decreasing environmental impact [impact]) generates super-additive effects on firms’ innovation, measured by innovations type: adoption, new-to-the-market, and new-to-the-firm innovation. We use data from the Spanish Community Innovation Survey for the period 2009–2014. The results show that the best combination of ECSR practices depends on the innovation type. For innovation adoption, all possible combinations of the three practices produce super-additive effects; however, the complementarity patterns differ for new-to-the-market and new-to-the-firm innovations. For new-to-the-market innovation, energy practices appear to be a key factor in fostering innovation when combined with materials or impact practices. For new-to-the-firm innovation, the combination of these three ECSR practices shows complementarity effects. These findings provide useful insights for the design of corporate social responsibility strategies.

Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management

The management and marketing literature has increasingly emphasized the significance of corporate social responsibility (CSR) in determining company performance over the past few decades. While there is growing recognition of the potential impact of CSR initiatives on business outcomes, there remains a lack of consensus on the specific mechanisms through which CSR influences performance. This ambiguity underscores the need for further research to elucidate the relationship between CSR and business performance. Our research seeks to address this gap by examining the role of CSR-based human resource management as a potential mediating factor in this relationship. This focus is particularly pertinent given the pivotal role that employees, as key stakeholders, play in shaping organizational outcomes. By analyzing data from a sample of small and medium-sized manufacturing companies using partial least squares structural equation modelling (PLS-SEM), we found evidence supporting the hypothesis that CSR initiatives can positively impact business performance. Importantly, our findings suggest that the effectiveness of a company's CSR strategy in enhancing performance may be contingent upon the extent to which these initiatives are geared towards improving human resource management efficiency. In conclusion, current study contributes to the evolving understanding of the complex interplay between CSR and business performance, highlighting the critical role of human resource management practices in mediating this relationship.

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.