Corporate Social Responsibility Value Research Articles

Digital economy development, corporate social responsibility and low‐carbon innovation

AbstractThe coordinated development of digitization and greening is the internal demand for the comprehensive transformation and upgrading of enterprises worldwide. Based on data of China's A‐share listed companies from 2012 to 2019, this article empirically confirms the stimulating effect of digital economy development on corporate low‐carbon innovation. The mechanism tests show that the above stimulating effect is due to both the reduction effects of financing constraints and environmental uncertainty brought by the rapid development of the digital economy. In addition, this article discusses the value of corporate social responsibility (CSR) and finds that the promotion of CSR can significantly improve the policy effect of digital economy development in enabling corporate low‐carbon innovation, especially for private listed enterprises in high‐pollution industries. The findings of this article deepen our understanding of how to promote corporate low‐carbon sustainable development in the digital era.

Corporate social responsibility and financial reporting quality: evidence from US firms

Purpose This study aims to examine the relationship between corporate social responsibility (CSR) and measures of financial reporting quality. Design/methodology/approach The authors explore the link between CSR and several indicators of firms’ financial reporting quality. Estimation with firm and year fixed effects is based on a sample of US publicly traded firms covering the period from 1991 to 2018. Findings Empirical results demonstrate that firms with higher CSR scores are associated with higher accuracy of financial forecasts, fewer earnings surprises and greater coverage by financial analysts. This positive relationship is more profound for firms that face low agency concerns, firms that have a higher level of customer awareness, firms that have more long-term institutional ownership or firms that do not face financial constraints. Originality/value The study contributes to the ongoing debate on the value of CSR. The results support the stakeholder value maximization view of CSR and identify the impact of several factors on its relationship with the quality of financial reporting.

Do stockholders appreciate CSR? The role of firm visibility, financial slack, and monitoring

Although numerous past studies have examined the association between corporate social responsibility (CSR) and firm value, the findings have been inconsistent. This study examines how firm visibility, financial slack, and monitoring affected the relationship between CSR and firm value. We find that CSR performance and its three dimensions, that is, environmental, social, and governance—have positive effects on firm value. The results also show that under slack resources and strong corporate governance, the positive effect of CSR on firm value is strongly supported. These results suggest that managers should be aware that they can also attract shareholders’ interests in the stock market while addressing stakeholders’ concerns, especially when the firm has available financial slack and strong board monitoring.

Corporate Social Responsibility of Companies in the Context of Russian Military Aggression in Ukraine

The war in Ukraine became a test for many foreign companies from the point of view of implementing the principles of corporate social responsibility, which they had previously declared. This especially affected international businesses, including Polish companies, that actively worked on the Russian and Ukrainian markets, whose economic interests for many years related to cooperation with Russian partners and the sale of Russian goods on the market of Ukraine. This article is devoted to the issue of corporate social responsibility of businesses in the context of Russian military aggression in Ukraine. The main objective of the presented paper was to identify and clarify the role of corporate social responsibility and business attitudes towards corporate social responsibility and its impact on decisions on possible cooperation in times of war. In addition, the specific objective was to identify the effects of Russia’s aggression against Ukraine on business activities conducted by Polish entrepreneurs, considering their attitudes towards corporate social responsibility principles. This goal was achieved through an analysis of the literature on the subject and in-depth interviews conducted with a sample of 100 Polish entrepreneurs. The results indicated that Polish entrepreneurs felt significant negative consequences of the conflict. After Russia’s aggression against Ukraine, most surveyed companies suspended (47,1%) or ended cooperation (43.1%) with Russian partners or exported products to Russia. Contrary to expectations, only some companies (18.4%) cited corporate social responsibility values among the reasons for this decision. It was also shown that there was no relationship between corporate social responsibility involvement and the declared ratings of companies remaining in Russia. In addition, companies reporting to suspend their activities during the conflict are considering a return to earlier cooperation in the future.

CSR dan Nilai Perusahaan: Peran Odd-Even Effect Dewan Direksi, Umur dan Ukuran Perusahaan

Firm value is one indicator in investing. The study aims to examine the effect of Corporate Social Responsibility (CSR) on firm value by using firm age, board of directors odd-even effect and company size as moderating variables for companies listed on the Sri Kehati Index from 2013-2019. The research sample consisted of 84 observations and data were analyzed using multiple linear regression models and Moderated Regression Analysis (MRA). The results of the study show that CSR has a positive and significant effect on firm value. The results also show that firm age, board of directors odd-even effect and firm size moderate the relationship between CSR and firm value.
 Keywords: Board Meeting Efficiency; Company Value; Corporate Social Responsibility; Company Size; Company Age

A win‐win way for corporate and stakeholders to achieve sustainable development: Corporate social responsibility value co‐creation scale development and validation

AbstractThe present study intends to develop and validate a multidimensional evaluation standard for customers' participation in corporate social responsibility (CSR) value co‐creation (VCC), which has grown exponentially since the start of the Internet commonweal platform era. A Delphi study was conducted with a group of 30 professionals and local community members. Initial items for measuring CSR VCC were derived from the Delphi study. These items were then used to devise a questionnaire that was ultimately administered to 844 customers. Exploratory and confirmatory factor analysis resulted in 28 items based on five factors: customer participation, customer response, corporate response, interaction, and sustainability. Both convergent validity and discriminant validity were verified between factors. Finally, structural equation modeling was used to verify the nomological validity of the scale. This evaluation scale is expected to provide a criterion that can help companies effectively manage CSR aspects of corporate‐customer VCC and help customers choose CSR campaigns they can trust.

Improve employee-organization relationships and workplace performance through CSR: Evidence from China

Although CSR research in China has received increasing scholarly attention, employee-centered CSR is still an understudied topic. To fill the void, the purpose of this study is to demonstrate the effects of employees' CSR perceptions on the quality of employee-organization relationships and workplace performance, as well as the underlying mechanisms explaining such effects, in the Chinese context. Guided by both managerial and relational approaches of corporate social responsibility (CSR) research, we conducted a survey (N = 248) with employees from a large private company in the electric and energy industry in China. Data were analyzed via path analysis using R packages (e.g., lavaan) and results revealed that CSR perceptions can lead to positive employee-organization relationship quality and increase employees' extra-role performance. We also found that these effects can be further explained by increased employee-organization identification or perceived corporate ability. In addition, a qualitative analysis of employees' responses showed that the influence of government and Confucianism was reflected in employees' expectations for their employer's CSR initiatives. This study contributes to the scant research on employee outcomes and the underlying mechanisms of employee-centered CSR in China. Practically, we add empirical evidence addressing the value of internal CSR for professionals and educators.

How Political Actors Co‐Construct CSR and its Effect on Firms' Political Access: A Discursive Institutionalist View

AbstractThis paper explores how corporate social responsibility (CSR) can incentivize political actors to increase firms' political access. Taking a discursive institutional perspective, I argue that the types of access negotiated depend on how political actors co‐construct the multiplicity of CSR meanings. To study this process, I focus on the empirical case of the European Union (EU), offering a novel analysis of event observations, policy documents, and interviews with Commission officials, Euro‐parliamentarians, and other stakeholders. I find that the value of CSR is highly contested in the EU political arena. I then elucidate four discursive strategies through which political actors interactively refined, reframed, and reinterpreted the meaning of CSR and its relevance for firm access in ways beneficial to their perceived interests. The findings highlight the importance for nonmarket strategy studies to conceptualize CSR as a co‐constructed idea and access as negotiated, putting the micro‐dynamic relationship between firms and political actors centre stage.

Does a Government Mandate Crowd Out Voluntary Corporate Social Responsibility? Evidence from India

ABSTRACTThis study investigates the implementation of a Government of India mandate that requires firms to spend at least 2% of their profits on corporate social responsibility (CSR). The results show that qualifying firms that voluntarily engaged in CSR before the mandate reduce their CSR spending afterward. Despite increasing advertisement expenditure likely to offset the lost signaling value of voluntary CSR, stock prices and operating performance of former voluntary CSR spenders who qualify under the law decline. Our results suggest that regulatory intervention in CSR can both diminish its signaling value and lead to a reduction in voluntary CSR spending.

The Influence of Intellectual Capital and Corporate Social Responsibility on Financial Performance and Company Value

The purpose of this study was to examine the effect of Intellectual Capital and Corporate Social Responsibility on Financial Performance and Firm Value (Study on Banking and Insurance Companies Listed on the Indonesia Stock Exchange in 2016-2019). The variables studied in this study were Intellectual Capital, Corporate Social Responsibility, Financial Performance, and Company Value. The type of research used in this research is quantitative. This study uses secondary data from the financial statements of banking and insurance companies (annual reports) listed on the Indonesia Stock Exchange in 2016-2019. The analytical method used is using multiple linear regression analysis with the help of the SPSS 26 program. The results of this study indicate that (1) Intellectual Capital has no effect on Financial Performance (2) Intellectual Capital has no effect on Firm Value (3) Corporate Social Responsibility has no effect on Financial Performance (4) Corporate Social Responsibility has no effect on Firm Value.

CSR Practices and Corporate Financial Performance: Evidence from China

Purpose - The purpose of this paper is to explore the relationship between corporate social responsibility (CSR) and corporate present and future value. Design/methodology/approach - This paper intends to prove the relationship between CSR and corporate value once again by selecting A-share companies listed on the China Shenzhen Stock Exchange and Shanghai Stock Exchange from 2010 2017. This paper also examines the effect of five dimensions of CSR on corporate value in China. Findings - Empirical evidence shows that CSR is conducive to corporate value. The fulfillment of social responsibilities improves firm value in the future. Further, the regression results show that the social responsibility of the non-state-owned enterprise (Non-SOEs) group has a more significant effect on corporate financial performance than on the state-owned enterprise (SOEs) group. Research implications or Originality - This study has limitations. First, the grouping is only divided into two groups of SOEs and non-SOEs, and we did not consider foreign investments, that is, foreign-funded enterprises, for the comparative analysis. Second, only the linear relationship between CSR and corporate value was tested. In the future, we must determine whether there exists a nonlinear relationship between the two key concepts. Finally, there exists no research on CSR and corporate value by specific industries. Thus, the relationship between the five dimensions of CSR and corporate value should be investigated by specific industries.

Pengaruh Efektivitas Pesan CSR melalui Instagram terhadap Pembentukan Citra lia s. Associates Branding dan Design Agency

Nowadays, the importance of Corporate Social Responsibility (CSR) belongs not only to large companies but also to any organization. Along with the changing times and the development of today's technology, we can see companies trying to accommodate digital technologies in communication in implementing CSR. The primary value of Corporate Social Responsibility (CSR) is the image or reputation of the company. Implementation of CSR by lia s. Associates to date have used Instagram social media to communicate about CSR. Digital technology easily communicates CSR to stakeholders and consumers through social media. This research uses quantitative methods with an associative approach, namely research that asks about the relationship between two or more variables. The theory of research used in this study is stimulus-response theory. This study's results significantly influence the effectiveness of CSR messages in forming the company's image. In this study, it was also seen that the message was produced and conveyed to the audience and stakeholders of lia s. Associates Branding & Design Agency is quite effective through Instagram content. The message of Corporate Social Responsibility (CSR) in lia s. Associates Branding & Design Agency can be said to be very good. By using and utilizing content visually and well-informed storytelling, many respondents in this study, could understand the intended message.

STUDENTS’ ATTITUDES TOWARDS CSR IN THE CONTEXT OF DECISIONS RELATED TO TAKING UP A JOB AND REQUIREMENTS FOR EMPLOYERS

The aim of this article is to present the challenge to shape attitudes towards corporate social responsibility (CSR) of future employees and managers. CSR could be an important factor that may influence the career decisions of future employees. The research concentrates particularly on the cognitive and behavioral components of CSR. Therefore, the theoretical part of this paper presents the importance of CSR within the process of an employee applying for a job, and shows how employees need to feel the appreciation from management for their commitment to CSR values. This paper also emphasizes the importance of the education system in shaping CSR attitudes. Within the empirical part of the paper a research problem is presented, which targets the difference between actual CSR knowledge and CSR behaviors and decisions. A survey was conducted among 266 students from the Faculty of Management at the University of Lodz. The findings indicate significant discrepancies between the declared knowledge and choices of students with regard to applying for a job and the requirements for employers. The presented attitudes of the respondents are inconsistent and require further answers.

The impact of Corporate Social Responsibility on corporate financial performance: an empirical study on shipping

ABSTRACT Corporate social responsibility (CSR) attracts steaming attention in global maritime business, stimulated by critical priorities, such as the IMO 2020 regulations for environmental compliance and initiatives including the Poseidon Principles and ESG practices. The CSR implications for shipping corporate performance and value creation deserve updated empirical investigation. Based on international standards and ISO 26000 regulations, the paper proposes and sets up an innovative Corporate Social Responsibility (CSR) Index. This challenging metric tool is incorporated on a sample of 50 listed shipping companies in NYSE, NASDAQ, and Oslo markets, covering broadly all major shipping business sectors (bulks, tankers, containers, LNGs, cruises), over 2010–2019. The proposed CSR Index integrates 17 CSR components based on the ISO 26000 standard, as an alternative empirical index of the CSR impact on shipping company financial performance and value. The empirical results support the hypothesis of a significant positive correlation between CSR and shipping corporate performance and value and underline the preference of investors for shipping companies with established good CSR practices.

Does audit firm tenure enhance firm value? Closing the expectation gap through corporate social responsibility

PurposeThis study aims to examine the moderating effect of audit firm tenure on the association between corporate social responsibility (CSR) and firm value. Prior studies provide mixed results on this association, which may be due to differing theoretical expectations related to CSR and firm value. It is also possible that external stakeholders are unable to differentiate between positive and negative CSR investments, as CSR reports are generally not assured by independent third parties. Thus, the authors propose that audit firm tenure may be used by external stakeholders to evaluate CSR performance.Design/methodology/approachThe authors use an ordinary least squares regression to examine the moderating effect of audit firm tenure on the relation between CSR and firm value after controlling for other determinants of firm value and various internal and external governance mechanisms documented in the literature. The sample consists of 15,707 firm-year observations from US firms during the sample period of 2000 to 2012. The authors measure CSR quality using rating scores from MSCI ESG STATS (formerly the KLD database), audit firm tenure as the number of years the incumbent auditor has served the client and firm value using Tobin’s Q.FindingsThe results indicate that CSR is positively associated with firm value when audit firm tenure is long but not when tenure is short. The results are robust to alternative measures of firm value, CSR performance scores, and individual CSR dimensions. The evidence supports the argument against mandatory audit firm rotation in the USA.Research limitations/implicationsFuture studies could examine a similar issue in alternative settings and/or look at cross-sectional variations among firms on the association between CSR and firm value by other auditor traits such as auditor industry specialization and big-name reputation. Additionally, as auditor alone is unable to ensure the quality of management disclosures and their accountability, future studies could examine the moderating effect of internal and other external governance mechanisms on the association between CSR and firm value, exploring when the signaling effect of auditor tenure on CSR reporting quality and its effect on firm value is most salient.Practical implicationsThe findings are important to regulators and investors. The authors provide evidence that longer audit tenure serves as a signaling device for external investors with regard to the quality of a firm’s CSR performance. Hence, the study facilitates regulators’ cost-benefit analysis related to mandating audit firm rotation. The evidence suggests that mandating a term limit on auditor tenure may have the unintended consequence of eliminating a signaling effect of auditor tenure on the quality of CSR disclosures under information asymmetry. This supports the Public Company Oversight Board’s decision to forgo the requirement of mandatory audit firm rotation in the USA.Originality/valuePrior literature presents mixed findings on the association between CSR performance and firm value based on a variety of underlying theories (economic, stakeholder and contingency theory). Literature on mandatory auditor rotation has concentrated on the auditor tenure effect on perceived and actual audit quality as reflected in earnings quality. Relying on agency theory, this study posits that auditor tenure serves as a signal for the quality of CSR activities in the absence of CSR assurance reporting as CSR quality can be difficult to evaluate. The authors provide evidence that audit tenure moderates the association between CSR activities and firm value and longer audit tenure makes it more likely that the CSR activities are associated with increased firm value.

The Effects of Corporate Social Responsibility on Corporate Reputation: The Case of Incheon International Airport

This study aims to intensively analyze the effects of Incheon International Airport’s implementation of Corporate Social Responsibility (CSR) on its reputation. CSR activities constitute a significant role as management strategies and sustain their business reputation in the airport industry based on the Incheon International airport in Korea. The purpose of this study is to provide CSR activities to promote the sustainable development of airports by verifying the impact of CSR on airport reputation through mediate variables within the airport industry in consideration of the value and importance of CSR. A survey was conducted for a total of 297 Incheon International Airport users, and the collected data was analyzed using the structural equation model. As a result, it was found that CSR has a positive effect on reputation. Therefore, CSR activities can positively enhance customer perception, strengthen the importance of sustainability, and play a very important role in Korea’s airport industry. It is expected that the results of this study will be used as basic data to emphasize the relative importance of airports’ CSR activities to enhance the reputation of airports in Korea and have a positive impact on sustainable development.

Assessing Companies Through CSR and Profitability in Manufacturing Sector Companies in Indonesia

The purpose of this study is to examine the impact of Corporate Social Responsibility (CSR) on company value, with profitability as a moderating variable, for manufacturing sector firms listed on the Indonesia Stock Exchange during the period 2015-2019. This study employs quantitative methodologies, such as testing numerical data and statistical tests. The population of this study consists of all Indonesia Stock Exchange-listed manufacturing firms (IDX). This study uses a strategy of purposive sampling based on specific criteria to acquire representative data from 26 companies. Through the website www.idx.co.id, secondary company data in the form of financial reports and annual reports of manufacturing businesses listed on the Indonesia Stock Exchange are collected. The results of previous study indicate that CSR has a positive and considerable impact on the value of a company. Profitability has a favorable and substantial effect on the value of a company. Profitability can moderate the correlation between CSR and enterprise value. This demonstrates that the degree of company earnings can improve the link between corporate social responsibility and firm value.

A new dimension in the value of corporate social responsibility: Demotivating undesirable job habits during crisis

Recent studies on the pandemic have focused on the DOs and DON’Ts of recovery remedies, but few have investigated the pandemic-spawned fundamental internal problems of the enterprises in order to diminish the impacts of the mega-crisis and relieve the need for recovery efforts. It is incontestable that employees are one of the major victims of the pandemic crisis; their negative emotions caused by the increasing career and financial instability have heightened the challenges of their enterprises that are striking for survival. This research has identified a breakthrough that extends the effect of CSR efforts from the traditional societal focus to internal employees, to whom CSR is found to mediate the undesirable escape habits and anti-crisis behaviours resulted from crises. This strengthens the understanding and value of CSR, while presents management with a novel mixed strategy to stabilize employee emotions and assemble their competence to get through a crisis.

A theory of firm opacity and corporate social responsibility

We investigate theoretically the effect of firm opacity, the degree of information asymmetry between firms and outside investors, on whether Corporate Social Responsibility (CSR) activities signal firm value. In our model, a profit-maximizing firm chooses whether to conduct costly CSR activities observable to potential investors and whether to undertake internal corporate and managerial actions that improve its value, which is unobservable to potential investors. We show that the firm is more likely to perform CSR when it undertakes the value-enhancing internal actions in equilibrium, and hence, CSR signals the firm’s value and increases investors’ expected valuation of the shares, only when the firm is moderately opaque. Empirical implications regarding the effect of firm opacity on the correlation between CSR and firm value are discussed.

Corporate social responsibility and credit rating around the world: The role of societal trust

AbstractWe hypothesize that societal trust alleviates moral hazard concerns that undermine credit rating agencies’ perceived value of corporate social responsibility (CSR). We test our hypothesis using a large global sample and find a more salient relationship between CSR and credit rating only in countries with high societal trust. Our findings reconcile the mixed empirical worldwide evidence on this relationship. Additional tests provide further evidence that it is societal trust, not other country‐level factors, that drives our results.