Firm CSR Research Articles

A Relational Study of Firm's Characteristics and CSR Expenditure

The role of companies and firms has been understood in terms of a commercial business paradigm of perspective that aims on economic profitability and success. However, in the past few years, as a consequence of rising globalisation and critical ecological issues, the perception of the role of companies in the broader societal context in which it operates, has been altered, by redefining the responsibilities of firms towards society and environment along with financial goals.The study proposed to analyse the impact of Firm characteristics toward Corporate Social Responsibility expenditure. The variables used in this research are size of firm, firm profitability, firm leverage, and sales of the firm. The populations are all firm BSE 30 index in 2007-2012 periods. The analysis methods are using multiple regression analysis. The research found that firm size, firm profitability, firm sales, have an influence toward the Corporate Social Responsibility expenditure, while firm leverage have no influence toward the Corporate Social Responsibility expenditure.

CSR Evaluation and Affective Attachment to CSR in DIfferent Identity Orientation Firms

We show empirically that organizational members of relational or collectivistic identity orientation firms as defined by Brickson (2005), feel more affective attachment to their organisation’s CSR stance than those of individualist identity firms. Analysis shows that when CSR activity is viewed as authentic, it leads to affective attachment to the organisation’s CSR stance, while an instrumental evaluation is correlated with a negative attachment to the CSR stance. We conclude that the motives behind CSR activity are particularly important for organisations with a relational or collectivistic identity orientations because of the affective attachment and related benefits it creates among employees. Note: The project was financed by The National Science Centre, Poland, decision no DEC-2012/05/B/HS4/02505

Institutional Effect on Corporate Commitment to 'Socially' Responsible Behavior

Prior studies examine organizational or CEO characteristics to find antecedents of CSR. We depart from these studies by focusing on a focal firm's 'social' environment. Specifically, drawing upon an institutional perspective, we suggest that a degree of CSR commitment largely depends on its institutional environment. Using Global Fortune 500 listed firm data over 2006-2011, we find that; 1) firms headquartered in a country following civil law system consistently make more commitment on CSR than those in a country following common law system; and 2) firms headquartered in a country with strong legal enforcement or higher corruption make less commitment on CSR. Our finding suggests that the future research should understand whether a focal firm's institutional environment promotes CSR before assessing the firm's CSR commitment.

Advertising corporate social responsibility

PurposeThe purpose of this paper is to examine how social topic information (STI) and corporate social responsibility commitment (CSRC) substantiate the firm's CSR claims and promote message persuasion.Design/methodology/approachA 2×2 between‐subjects experimental design was used to examine the impact of STI and CSRC on output variables using an online sample of 176 participants in Australia.FindingsThe study found that manipulation of STI had a statistically significant impact on outcome variables, but that CSRC did not.Research limitations/implicationsThe study was limited to Australia and used a fictitious brand in the experiment.Practical implicationsFor marketing communications and brand managers, this study informs CSR‐based corporate image advertising.Social implicationsSupport for more socially responsible businesses through responsible consumption can potentially transform product attributes and markets. More effective CSR communication is critical to this response.Originality/valueTo date, no research has examined how consumer persuasion of CSR advertising claims might be enhanced using message variables. This study has implications for theory and practice for the effective communication of pro‐social achievements, and suggests further research areas.

From implicit CSR to explicit CSR: a framework for understanding of CSR of Chinese firms in Africa

In this paper, we address the question of why and how Chinese firms are challenged for their CSR activities in Africa. Our theoretical analysis is built on a framework of explicit and implicit ...

Corporate Social Performance and Corporate Financial Performance: A Link for the Indian Firms

The present study addresses the issue of the relationship between Corporate Social performance and corporate Financial Performance in Indian context under good management theory. The study used S&P ESG India Index as a proxy of CSP/ CSR (Corporate social performance or Corporate Social Responsibility) of Indian firms for the first time over the 2005–2011 periods. We designed econometric models and controlled industry specific attributes and performed Weighted Least Square method for the analysis. Overall results show neutral though modest negative relationship between the CSP and CFP which eventually informs that if there would be any relationship, it would be negative.

Does CSR Pay Off in Asian Firms? A Meta-analytic Investigation of Moderating Effects

The question about whether CSR pay off in Asian firms has puzzled both academics and business leaders for decades. Through quantitative meta-analytical techniques based on 16,893 Asian firm samples reported in 25 studies, we test the prediction of stakeholder theory in the CSR ¨C business performance relationship in Asia. We also examine whether potential moderators affect this focal relationship, including economic development (developed vs. developing), industry type (manufacturing vs. service), firm size (SMEs vs. non-SMEs), organizational form (public vs. private), and measurement issues (archival vs. self-report). Our findings advocate a significant positive association between CSR and business performance of Asian firms, and CSR exerts a stronger positive effect on operational performance than on financial performance. Further meta-analytic evidence also suggests that moderating issues explain significant variance in the effect size across studies. Theoretical contribution for scholars and practical...

SME owner-managers as key drivers of corporate social responsibility in Uganda

This paper investigates how owner–managers of small and medium–sized enterprises (SMEs) influence the manifestations of socially and environmentally responsible practices in SMEs in Uganda. Using a case–study methodology, data were collected from 30 Ugandan SMEs across various sectors. The life–history method was used to collect data over three phases using semi–structured interviews in the form of life stories with participating SME owner–managers. CSR activities in SMEs are a clear reflection of the specific owners' beliefs, desires or experiences that drive their engagement in CSR. The study ultimately reveals that understanding the individual at the heart of the SME is the basis for understanding the firm's CSR direction. The findings give a Sub–Saharan African perspective of CSR in SMEs that should be of interest to academics and practitioners working in and around the area. Further research assessing whether CSR in SMEs contributes towards development is necessary - especially from a developing–country perspective.

Firm voluntary measures for environmental changes, eco-innovations and CSR: Empirical analysis based on data surveys

There are still few studies that show firm voluntary measures create a primary determinant of environmental changes. We clarify the meaning of voluntary measures and CSR. We utilize a survey carried out in Luxemburg on firm CSR practices jointly with the Community Innovation Survey 2008. We show through the estimation of a probit model that CSR is an important factor explaining environmental innovation. We contribute to the literature by developing a new indicator measuring the scale of the positive impacts on the environment coming from the firm innovation capacity. There is significant and positive effect of CSR and firm value on this scale.

A Comparison of MNC and Domestic Firm CSR in Emerging Markets: Evidence from Ghana

This study examines differences in expenditures on CSR between MNCs and domestic firms in the sub-Saharan nation of Ghana. Taking an institutional perspective and relating those ideas to the “asset...

Firm Characteristics and CSR Rating: Empirical Evidence from India

This study aims to find out the relationship between firm characteristics (such as: no. of employees, age of the firm, sales volume and profit before tax) and Corporate Social Responsibility (hereafter CSR) rating of the companies. By using stepwise regression analysis method it evaluates rating of 500 companies in India. The results show that no. of employees and sales volumes are the significant variables of CSR rating. However this association does not hold for profit before tax and age of the firm. In sum, the findings confirm that large firm (large no. of employees and high sales volume) are affording more on social responsibility than counter firms.

Doing Well While Doing Bad? CSR in Controversial Industry Sectors

In this article, we examine the empirical association between firm value and CSR engagement for firms in sinful industries, such as tobacco, gambling, and alcohol, as well as industries involved with emerging environmental, social, or ethical issues, i.e., weapon, oil, cement, and biotech. We develop and test three hypotheses, the window-dressing hypothesis, the value-enhancement hypothesis, and the value-irrelevance hypothesis. Using an extensive US sample from 1995 to 2009, we find that CSR engagement of firms in controversial industries positively affects firm value after controlling for various firm characteristics. To address the potential endogeneity problem, we further estimate a system of equations and change regression and continue to find a positive relation between CSR engagement and firm value. Our findings support the value-enhancement hypothesis and are consistent with the premise that the top management of US firms in controversial industries, in general, considers social responsibility important even though their products are harmful to human being, society, or environment.

Board independence, ownership and CSR of Malaysian large firms

The purpose of this study is to determine whether board independence and ownership have any influence on the decision on CSR disclosure. This study uses the proportion of pages in an annual report and a CSR disclosure checklist to measure the extent and quality of a firm’s CSR disclosure. Multiple regression and logistic regression analysis are employed to test the hypotheses. The paper finds that boards of family owned firms are negatively associated with the level and the quality of CSR disclosure. The fact that board independence is not significant on CSR disclosure could be due to the fact that CSR initiatives are strategic in nature. Finally, firm’s size, performance and leverage are found to have significant effects on CSR. This study was conducted among Malaysian top 100. The generalizability of the findings of this study is, thus, limited to Malaysian large firms. One of the major findings of this study is the ineffectiveness of the board of directors in ensuring firms discharge its social responsibility. Relevant authorities may need to come up with measures to ensure independent directors are effective. The study adds to the understanding of how ownership structure plays an influential role as oppose to independent board of directors on CSR disclosure in Malaysia.

An Agent-Based Model of Sustainable Corporate Social Responsibility Activities

An agent-based model of firms and their stakeholders' economic actions was used to test the theoretical feasibility of sustainable corporate social responsibility activities. Corporate social responsibility has become important to many firms, but CSR activities tend to get less attention during busts than during boom times. The hypothesis tested is that the CSR activities of a firm are more economically rational if the economic actions of its stakeholders reflect the firm's level of CSR. Our model focuses on three types of stakeholders: workers, consumers, and shareholders. First, we construct a uniform framework based on a microeconomic foundation that includes these stakeholders and the corresponding firms. Then, we formulate parameters for CSR in this framework. Our aim is to identify the conditions under which every type of stakeholder derives benefits from a firm's CSR activities. We simulated our model with heterogeneous agents by computer using several scenarios. For each one, the simulation was run 100 times with different random seeds. We first simulated the homogeneous version discussed above to verify the concept of our model. Next, we simulated the case in which workers had heterogeneous abilities, the firms had cost for CSR activities, and the workers, consumers, and shareholders had zero CSR awareness. We tested the robustness of our simulation results by using sensitivity analysis. Specifically, we investigated the conditions for the pecuniary advantage of CSR activities and effects offsetting benefits of CSR activities. Finally, we developed a new model installed bounded rational and simulated. The results show that the economic actions of stakeholders during boom periods greatly affect the sustainability of CSR activities during slow periods. This insight should lead to a feasible and effective prescription for sustainable CSR activities.

Corporate Social Responsibility of Large Family and Founder Firms

Based on socioemotional wealth theory, we argue that family and founder firms differ from other firms with regard to corporate social responsibility concerns. We further argue that the ownership and management dimensions of founder firms have opposite effects. Using a dataset of large public US firms, we show that family and founder ownership is associated with fewer corporate social responsibility concerns (CSR concerns), whereas the presence of founder CEO is associated with more CSR concerns. We therefore conclude that it is reasonable to distinguish between family and founder firms and their respective ownership and management dimensions when analyzing CSR in large firms.

Self Construal and Positioning of CSR Initiatives: Key Factors Influencing Employee Perceptions and Participation

AbstractCorporate Social Responsibility (CSR) initiatives impact a number of key stakeholder groups, including customers, shareholders, governmental organizations, and employees. Businesses should design CSR strategies to meet stakeholder needs. In this paper, we focus on the individual employee. Employees are a particularly important audience for CSR strategies and initiatives because they are often active participants in their employers’ CSR efforts. Corporations seek to involve employees in CSR programs in order to bolster the strength of their efforts, tie CSR initiatives to financial results, and position themselves as responsible and desirable employers. Likewise, actively engaged employees benefit from participation through increased job satisfaction, pride, learning, and in some cases, social and environmental responsibility that translates into their personal lives. Because of the pivotal role of employees in the success of CSR initiatives, it is critical that employers understand how to best communicate and position their plans to their diverse employee populations. Using survey findings gathered from 139 non-executive-level employees at a global chemical company we sought to understand how 1) independent versus interdependent self-construal and 2) strategic versus moral motivation impact the employees’ a) perception of the firm's CSR efforts/practices and b) willingness to participate in/contribute to CSR efforts. We found that independent self-construal and strategic motivation had the greatest positive impact on CSR perception and participation. There was no conclusive evidence of a significant interaction between self-construal and motivation.

Corporate social responsibility in the healthcare insurance industry: a cause-branding approach

As citizens find healthcare issues to be the most important for companies to address, cause-branding as a suitable analysis for competitive comparison of any healthcare insurance firm's CSR would be in order. When these healthcare issues are properly addressed through CSR programmes of appropriate service providers, society benefits from better health, and the company benefits from decreased claims. Possible backlash of negative publicity may occur when stakeholders envision the company as merely contributing to community welfare as a means of advertising its compassion in exchange for a greater portion of the healthcare insurance marketplace. Several healthcare insurance providers were inspected, one in greater detail, on a series of principles grounded in cause-branding strategies were included in the case study of CSR initiatives, followed by the practical applications of lessons learned from the case studies.

CSR Communication Intensity in Chinese and Indian Multinational Companies

ABSTRACTManuscript Type: EmpiricalResearch Question/Issue: Why do firms in China, which has a higher level of economic development, communicate less CSR than firms in India? We use a model that includes country‐, industry‐, and firm‐level factors to predict CSR communications intensity, a proxy for CSR activities.Research Findings/Insights: Using data on 68 of the largest multinational companies in China and India, our study shows that Indian firms communicate more CSR primarily due to a more rule‐based, as opposed to relation‐based, governance environment. Firms in the manufacturing industry tend to communicate more CSR. Firm‐level characteristics such as size, duality of CEO and board chairperson, and percentage of external members on the board also have a significant influence on CSR communications.Theoretical/Academic Implications: The main theoretical contribution of our study is to bring a three‐level perspective, relying not only on firm‐ and industry‐specific factors, but also on the governance environment, to the study of firms' CSR behavior. We show that the national governance environment dominates the national income level in affecting CSR communications intensity. We demonstrate that the macro institutional environment in a country strongly affects firm CSR behavior. Our findings suggest that CSR should be studied by considering multilevel antecedents.Practitioner/Policy Implications: Our study suggests that in order to improve the CSR of firms, policy makers in India and China must first try to improve public governance at the national level. Executives doing business with Chinese and Indian companies need to better understand the contrasting governance and their effects on the CSR practices in each country. For the international community and those concerned about product safety and other social issues related to China and India, our findings suggest that improvement will not be immediate since the governance environment changes relatively slowly.

AN INDUCTIVE TYPOLOGY FOR CORPORATE SOCIAL RESPONSIBILITY.

We develop a middle-range theory of CSR by proposing an inductive categorization that seeks to distinguish a firm's CSR behaviors in terms of strategy and value congruence. We propose to treat the normative foundation on the one hand (value) and stakeholders and issues on the other hand (strategy) as two dimensions of CSR that are conceptually independent of each other. We suggest that the CSR engagement of a corporation can be either on value or off value, and that it can be either on strategy or off strategy. Cross-classifying two levels of each of these leads us to consider four CSR prototypes which we label -- Robber Baron, Robin Hood, Book Keeper, and Statesman. Those prototypes are shown to exhibit specific characteristics on a set of features. Our framework for categorization of CSR, analysis of featural qualities of each type, and suggested pathways for migration, opens up both construct validity aspects and comparative studies into CSR. Rather than simply developing inventories of CSR activities, and seeking correlations with financial performance measures, it is possible to turn attention to a broad range of independent (i.e., CSR preconditions) as well as dependent (i.e., CSR consequences) variables, and attempt meaningful comparisons to achieve relevant benchmarks. Furthermore, it serves to bridge the gap between CSR scholarship and practice which seem to have evolved in parallel universes.