Corporate Social Responsibility Activities Research Articles

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.

Keeping them honest? Exploring the impact of labor unions on CSR

Purpose The role of labor unions in relation to corporate social responsibility (CSR) remains both ambiguous and crucial for union members and business leaders. Given the complex relationship between labor unions and corporations, this study aims to address whether labor unions keep corporations honest (by monitoring CSR activities) or potentially render CSR initiatives less necessary. Design/methodology/approach Using data from the MSCI Kinder, Lydenberg, Domini Database for firms in the Russell 1000 Index, this study examines the link between labor unions and CSR in U.S. companies over a six year period. Generalized least squares models were used to test the hypotheses for 3,937 firm-year observations. Findings The findings show that unionized companies generally pay less attention to CSR compared to nonunionized ones. The presence of labor unions and positive union-management relations both show a significant negative impact on CSR ratings, where positive union-management relations negatively affect CSR ratings more than just the presence of labor unions. Further, when considering the environmental, social and governance aspects of CSR separately, the results are more complex, suggesting that the relationship between labor unions and CSR varies depending on specific ESG dimensions. Originality/value CSR, a well-researched area, rarely addresses the companies' relationships with labor unions. Studies in South Korea and the UK have touched on the impact of labor unions on CSR, but in the USA it remains unexplored. This study extends this line of work by examining U.S. companies.

Environment vs. sports vs. art: effects of CSR activities on the perceived value of products and advertising in the food industry

Environment vs. sports vs. art: effects of CSR activities on the perceived value of products and advertising in the food industry

CSR spillover effects of corporate M&As by U.S. Acquirers

ABSTRACT This study explores CSR spillover effects within industries experiencing mergers and acquisitions (M&As), focusing on the response of non-target firms to M&As led by high-level CSR acquirers. We examine whether the involvement of socially responsible acquirers in M&As affects the CSR strategies of industry peers not directly engaged in these deals. Through an analysis of publicly listed U.S. firms from 1995 to 2018, we discover that non-target firms increase their CSR engagement following acquisitions by high-level CSR acquirers. Additionally, we observe that this spillover effect on CSR engagement is significantly amplified in industries characterised by high levels of competition. Our findings shed light on the extensive impact of M&As on CSR practices across industries, emphasising the importance of CSR spillover in influencing CSR activities industry wide.

The Practice of Green Washing Motivated by Financial Constraints: An Analysis in Global Economies

Objective: The aim of this study is to analyze if the practice of Greenwashing is related to the level of financial constraints of companies in the capital market.
  
 Theoretical Framework: This section presents the main concepts and theories that underpin the research. Relevant theories, models, or frameworks are highlighted, providing a solid foundation for understanding the research context.
  
 Method: To achieve this objective, this research proposes an econometric model that seeks to relate variables representing financial constraint conditions to the Greenwash score. For this purpose, financial data from 3,574 companies from 21 countries were analyzed for the period between 2016 and 2022. The proposed model in the research was analyzed through multiple linear regression with panel data.
  
 Results and Discussion: The results obtained allow inferring that the variables used to capture the level of financial constraint of companies are significantly related to the practice of Greenwashing. However, the Financial Risk and Debt Cost variables were negatively associated with the Greenwash score, showing a relationship with the dependent variable diverging from what was expected.
  
 Research Implications: The results of this research allow inferring for the analyzed sample that the practice of Greenwashing is impacted by the financial constraint situation of companies. Such a result can contribute to academic studies on best ESG practices and provide support for improving market monitoring regarding the manipulation of Corporate Social Responsibility actions by companies.
  
 Originality/Value: This study contributes to the literature by expanding the analysis of Greenwashing practice to a significant and representative sample of companies in relation to the largest global economies. The relevance and value of this research are evidenced by evaluating aspects of corporate management beyond financial ones, relating environmental and social aspects to the financial risks of companies in the capital market.

Corporate social responsibility in controversial industries: A literature review and research agenda

AbstractThis study reviews the extant literature about corporate social responsibility (CSR) activities of companies operating in controversial industries. We analyze 88 articles guided by the overall question of how such companies integrate CSR into their business practices, which topics are addressed, and what the effects of these engagements are on various stakeholders. We use Maon et al.'s (2009) integrative framework to structure our analysis and develop a research agenda. Our review suggests that controversial companies' motivations are not altruistic, but largely market‐based and reactive. No studies indicated that firm mission or values underpinned the motivation for undertaking CSR programs. We also found that the perspective of employees was underrepresented. Moreover, a large number of the articles (44.3%) in our dataset dealt with communication‐related topics, neglecting many other areas of the CSR process.

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.

A multi‐level model integrating corporate social responsibility and political activity in the European Union: What are the institutional implications for foreign companies?

AbstractMany multinational corporations develop business operations in Europe. The current research attempts to fill the gap on how corporations can increase their political influence in this geography by exploring the joint effect of corporate political activity (CPA) and social responsibility (CSR) on political embeddedness and financial performance. Based on institutional theory and on a sample of autochthonous (European Union [EU]) and allochthonous (non‐EU) firms with declared EU lobbying (from 2008 to 2019) we conducted two studies. Based on a multi‐level model, Study 1 finds strong and robust evidence that boardroom gender diversity and EU lobbyists interactively increase EU political embeddedness. Complementarily, Study 2, which relies on general linear Modeling, suggests that allochthonous corporations are more profitable when they display high‐level political embeddedness and lobbying expenditures, combined with adoption of United Nations (UN) guidelines. Overall, findings show that lobbying in Europe pays off, especially when corporations strive to be aligned with EU ethical values and aspirations. Hiring lobbyists to be based in Brussels and promoting gender equality help establish EU political connections. Subsequently, findings highlight the role that EU political embeddedness, lobbying expenditures, and UN guidelines play in leveraging financial performance, especially across non‐EU corporations. Regarding EU corporations, results show that a firm‐level investment on CPA‐CSR is particularly important. Overall, findings from this research support corporations that are growing businesses in Europe.

The Role Of Corporate Social Responsibility On Pakistani CSR Award-Winning Firms And Its Impact On A Firm's Financial Performance

The critical study in vogue spells out the relationship between CSR and an established firm's financial performance. The study sample size is the CSR Award-winning companies of Pakistan. We have scientifically derived this research on CSR activities which are not directly affecting a firm's revenue, sales, operations, etc. The results interpreted that Award-winning-firm policies of CSR received an encouraging impact on Companies' financial performance, productivity, routine operations, and social policies. The contemporary study results invariably find that the best Award-winning CSR company's social legislation properly obtains meaningful contribution on social CSR activities since CSR (-1) merely enjoys a linear relation with CSR.

Communicating about halal products to non-Muslim consumers – the role of fit and scepticism

ABSTRACT Globalization and migration have increased the Muslim population in many European countries and thereby the desire for products that meet religious needs. Several retailers have responded by offering halal products. Thereby, they also foster the inclusion of their Muslim customers as an act of corporate social responsibility (CSR). Yet, consumers are often sceptical regarding the motives of companies for CSR activities. This study addresses the question how the perceived fit between a company and its offering of halal products affects consumers’ cognitive and behavioural responses and how scepticism that the company offers halal products only for self-serving reasons impacts this effect. A total of 212 consumers in Austria completed an online survey. The results suggest that company-halal fit is a key factor in determining how consumers respond to a retail company’s initiative to offer halal food products. We found that a better perception of the company-halal fit results in a more favourable CSR image. This relationship is partially mediated by consumer scepticism about the company’s motives. Higher fit decreases scepticism about the company’s motives, while higher scepticism reduces the effect of company-halal fit on the CSR image. Moreover, results reveal a positive link between CSR image and word-of-mouth behaviour.

Plastic Politics of Delay: How Political Corporate Social Responsibility Discourses Produce and Reinforce Inequality in Plastic Waste Governance

Abstract As the global plastics pollution crisis grows in severity and complexity, diverse solutions are being proposed across the public and private sectors. Notably, multinational corporations (MNCs) from the petrochemical and consumer goods sectors have become increasingly involved. From providing recycling infrastructure to directly participating in drafting action plans and policies, MNCs are engaging as political actors in plastics waste governance, influencing discourses and actions globally, a process referred to as political corporate social responsibility (CSR). In this article, I examine Coca-Cola’s World Without Waste initiative as a case study of this process. I evaluate how Coca-Cola frames the problems of plastics waste, their solutions, and the roles that Coca-Cola asserts within this complex, transboundary environmental governance issue. Borrowing from literature on corporate climate delay tactics, I demonstrate how the initiative implements discourses and practices of delayed action, hindering comprehensive governance strategies. Through this analysis, I argue that political CSR actions can exacerbate the global plastics pollution crisis through ineffective and inequitable waste governance approaches that perpetuate uneven plastics pollution burdens.

Corporate Social Responsibility Practices of Global Automakers in Asia: Application of Carroll Model with Multi-Case Study Method

In spite of acknowledging the importance of sustainable and socially responsible practices; researchers have not been able to unanimously identify the priority areas of CSR for the automotive sector. This research was designed to understand the CSR activities of the global automakers in the Asian countries by applying the Carroll model wherein researchers wished to analyse the CSR programs of the global automakers, identify the priority CSR areas and assess the effect of CSR strategies on business performance of global automakers. Case study method was used in the existing study. This study utilised multiple case study research strategy whereby two automobile companies were studied in depth namely, Toyota and Volkswagen. The data for the study was secured from different- structured data sources like company reports, sustainability data records and media coverage. Data was analysed using content analysis. The study concluded that both companies are widely engaged in CSR initiatives that covered ethical, philanthropic, legal, and economic responsibilities. Toyota focused on their production process and policies that was employee centric, Volkswagen worked on industry modernization as well in their ethical practices. The philanthropic initiatives at both places worked towards education/training, employment generation, collaborations/partnerships, environmental and social welfare. Volkswagen also focused on sports and, art and cultural aspects in their humanitarian responsibilities. Both the peers were on the same page regarding economic practices where the cutting costs and improving efficiency was in focus. Both Toyota and Volkswagen gave more priority to the philanthropic and ethical aspect than the economic aspect. Both the companies experienced similar outcomes from these CSR initiatives like positive financial measures, quality metrics, brand identity improvement and differentiation, worker and consumer satisfaction, risk management and aversion, improved partnership opportunities.

Public Relations in a Digital Era: Localising the Global Corporations’ Activities and Social Media Uses in Tanzania

Public Relations concepts and practice in different democracies vary according to the nature of their political, cultural, social, and the level of technological orientation or advancement. With the digital age and the increasing trend in globalization, Global or Multinational Corporations have both challenges and opportunities towards meeting their business goals as to win hearts and minds of customers/publics in a diverse environment. Public Relations in Digital Age: Localising Global Corporations Activities and Social Media Uses in Tanzania, using Standard Chartered Bank, Coca Cola Company, and Barrick (Acacia) Mines, as case, has investigated the activities done by the Corporations, social media engagement, Corporate Social Responsibility activities and comparing local and global activities of the Corporations. The three Corporations’ profiles were surveyed to grasp their natures - activities and new media uses while a three- year content analysis was done through Corporations’ social networking sites (SNS) – Facebook, Twitter and You Tube to understand their uses of SNS in enhancing their roles through Public Relations. The findings show that despite their differences in nature, they all use their global business experiences in dealing with local activities. They have been responding to silent calls for glocalisation by identifying the basic needs of their customers/publics, for example, localizing the brand (Coca Cola to Coca Cola Kwanza), changing the brand name altogether (Barrick to Acacia), as well as stretching their Corporate Social Responsibility activities in health, education, environment and sports and entertainment while strengthening their ties with the government by not only responding to legal obligations like paying taxes but also supporting communication and health sectors. However, more glocalisation process is still in need as compared to what has been done in other countries in responding to cultural-centric and polycentric PR approaches. Moreover, the MNCs use both asymmetric and symmetric communication through Facebook, Twitter and You Tube. Twitter has been the mostly used SN especially in a symmetrical communication followed by Facebook. It has been also observed that the sensitivity of Corporation’s activities increases the engagement in CSR activities. Since, the area has not been extensively researched, the researcher calls for more studies on glocalisation of MNCs and new media uses in developing countries and Tanzania in particular in attempt to exploit the potentials of Public Relations.

Exploring the three-dimensional effect of corporate social responsibility on brand equity, corporate reputation, and willingness to pay. A study of the fashion industry

The fashion sector is considered one of the largest generators of the greatest negative externalities, and the results support this. However, they are making important efforts through actions within the framework of Corporate Social Responsibility to improve their commitment to society and sustainability. This research aims to evaluate the value that consumers place on Corporate Social Responsibility activities in the economic, social and environmental dimensions in the generation of brand equity, corporate reputation and willingness to pay. To achieve this, a methodology based on structural equations (PLS-SEM) has been used based on a questionnaire completed by 269 people. The findings show that each of the CSR dimensions contributes differently to the generation of BE, CR and WTP, also highlighting the value of brand credibility as a variable with an important mediating effect.

Impact of digital orientation and corporate social responsibility activities on the alliance relationship stability in contract farming

The current understanding of how digital orientation and corporate social responsibility activities collectively affect alliance relationship stability remains limited. This study explores the impact of these two strategic orientations on the alliance relationship stability in contract farming. Using a sample of Chinese agribusinesses, the results show that the two strategic orientations improve relationship quality between agribusinesses and farmers, which in turn enhances alliance relationship stability. Relationship quality fully mediates the effect of digital orientation on alliance relationship stability and partially mediates the effect of corporate social responsibility activities. The balance between the two strategic orientations is critical for alliance relationship stability.

Orientasi Eksternal, Tanggung Jawab Sosial Perusahaan, dan Emisi Polusi

Companies in open economies with stronger external orientations have come under pressure from customers and other stakeholders to implement global corporate social responsibility (CSR) activities since the 2000s. The purpose of this study proposes a relationship between CSR, the level of external orientation, and pollution emissions, such as pollution reduction. It uses an empirical methodology using secondary data for manufacturing companies. The results showed that external orientation is related to pollution emissions, corporate social responsibility is negatively related to pollution emissions, and there is a proven moderating effect on pollution emissions. The higher the external orientation but with high corporate social responsibility can withstand the increase in pollution emissions by manufacturing companies. 

기업의 부정적인 사건 발생시 CSR 활동과 소비자의 지각된 기업위선과의 관계에 관한 연구

This study examines the perception of corporate hypocrisy arising from corporate social responsibility activities and corporate crises. According to previous CSR studies, corporate social responsibility activities can mitigate negative evaluations from consumers that can occur in corporate crises. However, the positive image built through CSR activities can have a more negative impact depending on the type of company-related accident. In this case, consumers may feel a sense of betrayal and corporate hypocrisy towards the company, and it will have a negative impact on the company's CSR activities or business performance in the future. In this study, 4 scenarios were designed and studied to verify that there is a difference in perceived corporate hypocrisy depends on CSR activities and corporate crisis types. Result of this study are summarized as follows. First, corporate hypocrisy perceived by consumers was greater in criminal accidents than in corporate ability-type accidents in corporate crises. Second, corporate hypocrisy was greater when the type of CSR activity and the type of corporate crisis was congruent. Finally, this study shows that corporate hypocrisy has a negative effect on CSR authenticity and purchase intention. The findings suggest companies need to recognize the relationship between CSR activities and corporate crises and respond appropriately to negative reactions such as corporate hypocrisy. In this regard, theoretical and practical implications can be provided.

Institutional view of corporate social responsibility in the Iranian context

Purpose The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and practices. Design/methodology/approach Using a multiple case-study approach combining comparative and cross-sectional methods with semi-structured interviews, primary data was collected from eight corporations that actively participated in CSR activities in Iran. A microanalysis approach was used to examine the meanings and dynamics in the data. Through thematic analysis and pattern-matching techniques, the authors separately examined the roles of formal and informal institutions. Cross-case analysis was used to highlight the cases’ similarities and differences. Findings This study demonstrates that both formal and informal institutional structures exist in Iran and that both types influence CSR. This study also shows that informal institutions (such as personal values, culture, religion, traditions, charity and philanthropy) play a more explicit role than formal institutions (such as legal regulations and laws) in shaping CSR adoption policies and practices. The results indicate that, among institutions linked to CSR, formal and informal institutions are complementary and potentiate each other in Iran. Nevertheless, compared to formal ones, informal institutions play a more prominent role in shaping CSR policies and practices. Research limitations/implications The authors recognize that, although the eight corporations are large, and although they interviewed their key personnel, they do not claim that these findings are generalizable, owing to the qualitative nature of the study and the small number of selected corporations. Originality/value This study makes relevant theoretical and empirical contributions. First, it contributes to the growing body of CSR literature that highlights the necessity of linking informal and formal institutions. Although the CSR literature lacks research on informal institutions in developing economies, researchers have yet to push forward and explore how the CSR adoption process works in developing economies that have influential informal institutions.

What Earnings Management Has to Do with Corporate Social Responsibility

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