Determinants Of Corporate Social Responsibility Research Articles

Determinants of Corporate Social Responsibility in Nepalese Commercial Banks

The study attempts to examine the determinants of corporate social responsibility in Nepalese commercial banks. Corporate social responsibilities (CSR) is the dependent variable and the selected independent variables are return on assets (ROA), return on equity (ROE), bank age (BA), bank size (BS) and liquidity. The study is based on primary as well as secondary data. The primary data consists of questionnaires to 125 respondents from 18 commercial banks. The secondary data includes the observations from 18 commercial banks for the period of 2014/15 to 2020/21. The secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and the annual report of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of ROA, ROE, BA, BS and liquidity on determining CSR activities in Nepalese commercial banks. The result showed that ROA has a positive impact on CSR of Nepalese commercial banks. It indicates that increase in ROA of bank would leads to increase in CSR activites. Likewise, the results also showed that ROE has a positive impact on CSR. It means that higher the ROE, higher would be the CSR related activities. Similarly, the study also found that bank size is positively related to the bank CSR. This indicates that the larger the bank size, greater would be the CSR of such banks. Moreover, bank age also has a positive impact on CSR. It suggests that older banks are likely to perform greater CSR activities than newer banks. In addition, the study showed that liquidity has a negative impact on CSR. This means that higher the level of liquidity in the banks, lower would be the CSR activities of Nepalese commercial banks. The study revealed that the most dominant factor that determines the CSR is liquidity followed by ROE in the context of Nepalese commercial banks.

Determinants of Corporate Social Responsibility (CSR) Disclosure: A Systematic Literature Review

Determinants of Corporate Social Responsibility (CSR) Disclosure: A Systematic Literature Review

The determinants of corporate social responsibility (CSR) committee: executive compensation, CSR-based incentives and ESG performance

PurposeThis paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories.Design/methodology/approachSwitzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used.FindingsIt has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees.Practical implicationsThis empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide.Social implicationsCOVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues.Originality/valueThe impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.

Determinants and consequences of corporate social responsibility decoupling—Status quo and limitations of recent empirical quantitative research

AbstractThis study reviews recent empirical quantitative research on firm‐ and country‐related determinants of corporate social responsibility (CSR) decoupling and the consequences on firm value. Based on legitimacy theory and agency theory, top managers use CSR decoupling for self‐impression management and stakeholder attraction. Our review indicates that low (high) corporate governance quality increases (decreases) CSR decoupling and it has negative financial consequences for firms. We identify major research gaps and stress research recommendations for future CSR decoupling studies. Solid measures of CSR decoupling should compare quantitative performance measures and qualitative descriptions on CSR reports on strategies and processes. There is a great need to include automated text analyses of sustainability reports for future research designs. Due to extended regulations on CSR reporting from an international perspective, CSR decoupling remains a hot topic for researchers, business practice, and standard setters.

Determinants of corporate social responsibility: Evidence of manufacturing companies in Indonesia

This study examined the effect of earnings management and the board of directors on corporate social responsibility disclosure. In this study, earnings management is measured using the modified Jones model, while corporate social responsibility disclosure is calculated using the corporate social responsibility disclosure index (CSRI). This study uses the CSRI index based on the Global Reporting Initiative (GRI) reporting standards disclosed by companies in their annual reports. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in the 2017-2021 period that met the sample criteria. This research was conducted with a regression analysis model. The results of this study state that earnings management positively influences corporate social responsibility disclosure, and corporate governance proxied by the board of directors negatively affects corporate social responsibility disclosure

Determinants of Corporate Social Responsibility: Evidence from the Zimbabwe Stock Exchange Listed Firms

The study's aim was to examine the level of corporate social responsibility disclosure and the determinants of corporate social responsibility disclosure by Zimbabwe Stock Exchange listed firms for the fiscal year ending December 31, 2020. The level of corporate social responsibility disclosure for all active firms listed on the Zimbabwe Stock Exchange was reviewed using content analysis. The findings show that corporate social responsibility disclosure is still very low, with community involvement disclosure accounting for 40% of all corporate social responsibility information disclosed, followed by environmental disclosure (30%), products and consumer information disclosure (29%), and human resources disclosure (28% ). A positive relationship between corporate social responsibility disclosure and board independence, leverage, industry affiliation, and firm size was discovered using a multivariate regression analysis, as well as a negative relationship with profitability and ownership structure. However, no statistically significant relationship was discovered between corporate social responsibility disclosure and the presence of an audit committee.

The evolution and determinants of corporate social responsibility (CSR) disclosure in a developing country: extent and quality

PurposeThis paper examines the evolution and determinants of the extent and quality of corporate social responsibility (CSR) disclosure in a developing country (Mauritius).Design/methodology/approachCSR disclosures from annual reports of all listed companies were hand-collected for a 12-year period (2007–2018). The extent of disclosure was measured using a dichotomous index (41 items) while the quality of each disclosure item was assessed on a three-point scale. We rely on organisational legitimacy and resource dependence theories to investigate (1) trends in CSR disclosure extent and quality (2) the role of selected board and firm characteristics, namely the business qualifications of board members, extent of cross-directorships and the firm’s use of employee volunteering scheme, on CSR disclosure.FindingsCSR disclosure extent, notably in relation to environment and human resources, gradually increased to an overall score of 45%. Comparatively, the quality of disclosures was low, with an average score of 20%. The proportion of business-qualified directors is only positively associated with CSR disclosure extent. The extent of cross-directorships is negatively associated with CSR disclosure quality while employee volunteering is positively associated with disclosure extent and quality.Originality/valueThe findings reveal the relatively low quality of information being disclosed, and in spite of CSR and governance reforms, there seems to be limited influence from the board of directors and their networks; prompting a call to foster greater board engagement on CSR matters. The results also highlight the need for a multi-dimensional assessment of CSR disclosure.

Examining the Relationship between Size of the company, Ownership Structure, and Corporate Governance with Corporate Social Responsibility Disclosure in Iran

The scholars of social responsibility have focused on identifying the factors affecting corporate social responsibility disclosure (CSRD). Corporate social responsibility is a key factor in the survival of any organization. The purpose of the study was to examine the relationship between the size of the company, ownership structure, and governance structure to explain the determinants of Corporate social responsibility in Iran. Regarding this, the data of 127 companies listed on the Tehran Stock Exchange from 2009 to 2018 were collected and analyzed. Multiple regression model as panel data and fixed effects method was used to test the hypotheses. The results from the study tests indicated that the size of the company is an effective factor in Corporate social responsibility in Iran. The role of this factor is positive. Larger companies have been more successful in Corporate social responsibility. Moreover, the ownership structure is a determining factor and has improved the disclosure of social responsibility. The presence of major owners in the company potentially enhances the dissemination of information and protects the interests of minority shareholders, and the corporate governance structure has not been a determining factor in Corporate social responsibility in Iran. Indeed, the board's ability to perform its duties decreases when its size is large.

The corporate social responsibility challenge on financial performance: Portuguese business situation.

According to the definition that the European Commission (2001) offered us, corporate social responsibility is a set of measures that an organization can adapt, to improve the well-being of its stakeholders and promote the balance of economic, social, and environmental performance. The stakeholder theory clarifies that this decision-making must take into consideration all groups of people, being the only way of having a proportional benefit. Based on this premise, in this study, we intend to unravel the main determinants of corporate social responsibility in 63 Portuguese companies. To accomplish that, we used panel data, withdrawn from the SABI database, in the period comprehended between 2008 and 2018, applying the Probit model and the dynamic GMM for robustness check. The sample is composed of 42 companies that find themselves listed in the Portuguese stock exchange and 21 that do not. We can verify that the outcomes allow the analyses of nine variables, among them, only the audit, the asset rotation ratio, the debt ratio, the size, age, and financial autonomy show themselves as statistically positive in the implementation of corporate social responsibility practices. Even though the outcomes were not what we initially predicted, they revealed the positive impact of such practices. We consider them necessary and a reality that companies should pursue, even for the gains of capital that it might represent. We firmly believe that being socially responsible constitutes an essential practice from which all of us can benefit, contributing to life improvement in the community and for environmental sustainability.

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

Do negative investor attitudes drive corporate social responsibility? Evidence from China

AbstractThis study explores the association between negative investor attitudes and corporate social responsibility. We conjecture that negative investor attitudes may drive firms to engage more actively in corporate social responsibility to improve shareholder perceptions. Consistent with this expectation, we find that firms facing negative investor attitudes exhibit better CSR performance, and this association is more pronounced in firms that receive more attention from investors and attach more importance to investor relationships. Overall, this study highlights the influence of investor attitudes on corporate social responsibility and contributes to the literature on the determinants of corporate social responsibility.

Determinants of corporate social responsibility disclosure of banking sector in Pakistan

PurposeThis study aims to examine the key determinants of corporate social responsibility (CSR) disclosure of all listed banks that operate their function in an emerging market, Pakistan.Design/methodology/approachThis study applied the principles of systems-oriented theories such as legitimacy, stakeholder and agency theory. The hypothesis is linking the bank’s social disclosure and its determinants are developed. The relevant data was gathered from the bank’s annual reports and Pakistan Stock Exchange from 2008 to 2018. Further, governance attributes and performance measures are used as the predictor variable and the CSR score as the predicted variable. This study applied panel data analysis on the sampled banks to examine the proposed hypothesis for empirical estimation.FindingsThis study’s inclusive results confirm that the hypothesized determinants of board size, foreign directors on board and female directors on board positively impact the CSR disclosure potential. Board size significantly explains the CSR disclosure in all bank samples. The determined performance measures, profitability and liquidity show a significant positive relationship with CSR disclosure except for few exceptions.Research limitations/implicationsThis study’s results lack generalizability due to its unique setting; future researchers can extend the research scope in national–international settings and a regional context.Practical implicationsThis study enriches the literature on CSR disclosure determinants and is relevant to practice in an emerging context. It can be helpful from a policy perspective; institutions (bodies) that regulate banks should recognize the governance and performance aspects essential to enhancing CSR disclosure and enhancing the bank’s performance hence value.Originality/valueThis research offers empirical evidence that sheds light on the key governance attributes and performance measures that partially affect CSR disclosure and its extent. In doing so, this study’s findings contribute to the literature significantly, along with regulators, shareholders, deposit holders, individual–institutional investors.

CEO power and corporate social responsibility decoupling

ABSTRACT While extending the scarce literature on determinants of corporate social responsibility (CSR) decoupling, we examine the impact of CEO power on CSR decoupling. Using panel data of US firms for 2002–2017, we find that CEO power increases CSR decoupling. Our results remain consistent after controlling for the endogeneity problem. Aligned with the managerial power theory, our results suggest that firms with powerful CEOs are more likely to manage CSR performance through decoupling.

Determinan Pengungkapan Tanggung Jawab Sosial Perusahaan (CSR) Pada Perusahaan Manufaktur Industri Barang Konsumsi di BEI 2014-2018

This study aims to determine the determinants of corporate social responsibility (CSR) disclosure, namely leverage, company size, and industry sensitivity. The population in this study are consumer goods industrial manufacturing companies listed on the Indonesia Stock Exchange (IDX), as many as 47 companies. The sample in this study used a purposive sampling technique as many as 19 companies. The results of this study indicate that based on the partial test (t test), the variables Leverage, Firm Size, and Industry Sensitivity have a positive and significant effect on Corporate Social Responsibility (CSR) Disclosure. Simultaneously (f test) proves that, Leverage, Company Size and Industrial Sensitivity have an effect on Disclosure of Corporate Social Responsibility (CSR) in consumer goods manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018.

Determinants of corporate social responsibility among farms in Russia and Kazakhstan: a multilevel approach using survey data

Building on the institutional theory of corporate social responsibility (CSR) and research on CSR in the agriculture of post-Soviet transition economies, the present paper investigates the institutional, organizational and individual factors of farm engagement in CSR activities. Based on a survey of 800 farms in Russia and Kazakhstan, the interaction between the farms’ social role and multilevel institutional characteristics is addressed. We observe notable positive effects of local labor sourcing, insecure land use conditions and farm size (in terms of land area) on farms’ CSR engagement. Individually owned farms, as opposed to corporate farms, tend to be more CSR affine. In addition, we find weak statistical evidence of CSR engagement among the farms affiliated with agroholdings. We discuss the results in the context of different levels of CSR analysis.

Firm-Level Determinants of Corporate Social Responsibility


 
 
 This paper examined firm-level determinants of social performance among small and medium-sized enterprises (SMEs) in Ghana, using specific traits, such as firm age, firm size, financial performance, leverage and managerial competence. It contributes to our knowledge on how firm-level characteristics influence the corporate social responsibility (CSR) initiatives among SMEs. The study analysed primary data of 423 SMEs, using regression analysis. It documented positive relationships between managerial competence, financial performance and CSR, and a negative relationship between leverage and CSR. The thrust of the study is that, besides managerial competence, financial performance variables were far more important determinants of the social performance of SMEs than non-financial ones. Therefore, it recommended that policy makers that desire active participation of the SME sector in addressing societal problems should institute measures that will improve their financial performance. These could include providing cheaper alternatives to accessing funds and maintaining a sustainable macroeconomic environment that support the financial prosperity of this sector. Finally, since it has been proven that managerial competence improves social performance, SME owner/managers are being encouraged to invest a lot of time and resources in sharpening their managerial competencies.
 
 

Internal and external determinants of corporate social responsibility practices in multinational enterprise subsidiaries in developing countries: evidence from Ethiopia

The purpose of the study is to investigate the internal drivers and external determinants of corporate social responsibility (CSR) strategies practiced by multinational enterprises’ (MNEs) using institutional theory and the resource-based view. We propose that MNEs’ local business orientations and political behaviors are highly related to firms’ CSR selection as internal and external determinants, respectively, and we integrate the actual CSR practices from different characteristics to exploring and exploiting strategies. A multiple regression analysis was conducted by using survey data collected from MNE subsidiaries operating in Ethiopia. We found that firms who are oriented to raise competitiveness with collaborative attitudes toward host governments seek more exploring CSR practices. On the other hand, firms’ local orientation that is to build legitimacy with accommodative attitudes toward host governments has positive relations with exploiting CSR practices. Furthermore, contrary to the expectation the result revealed that exploiting CSR practices are positively related to both orientations, which implies that traditional CSR practices are treated fundamentally of importance in developing countries.

Nexus Between Corporate Social Responsibility, Environmental Disclosure and Financial Reporting Quality Among Listed Firms in Nigeria

This paper seeks to provide a novel approach and insight into the synergies between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) which is emerging and changing rapidly. The study examined the nexus between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) among corporate entities listed on the Nigeria Stock Exchange (NSE). Data were collected from a sample of 169 listed firms in Nigeria. The research used a panel data set comprising of 624 firm year observations spanning the period 2015 to 2017. The empirical results of the study revealed that there exists a significant relationship between environmental disclosure(ED), firm size (FS), and financial reporting quality (FRQ). However, empirical evidence shows an insignificant relationship between social disclosure (SD), leverage and financial reporting quality (FRQ). We therefore recommend a proposal for the establishment of an inductive corporate social responsibility/environmental disclosure/financial reporting framework that future scientists/scholars can institute to explore the determinants of corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) in developing countries.

The impact of government intervention on corporate environmental performance: Evidence from China's national civilized city award

The national civilized city is the most influential city brand in China. Employing Propensity Scores Matching (PSM) design and difference-in-difference (DID) approach based on the quasi-natural experiment of participating in national civilized city award (NCCA) campaign, our paper examines the effect of government intervention on the corporate environmental performance (CEP, hereafter). We find that the environmental performance of firms located in civilized cities is higher than that of firms in non-civilized city during the event period. Then, the effect is more pronounced for state-owned enterprises, heavily polluted firms and firms in regions with officials having stronger promotion incentives. We also confirm that local officials who have achieved the title of NCCA are more likely to be promoted. Finally, we find that NCCA campaign would destroy firms’ financial performance in short-run but the effects reverse in future. Our results indicate that CEP is in the interest of local governments, providing a new perspective for understanding the determinants of corporate social responsibility in emerging markets.

Communicating the stakeholder engagement process: A cross‐country analysis in the tourism sector

AbstractStakeholder engagement (SE) is considered a best practice in sustainability reporting, as it increases companies' social legitimacy and reputation. Companies have to properly communicate the SE activities, paying attention to the social, cultural, and political factors that affect the perception of stakeholders. This is particularly relevant in the tourism sector, which is a typical multistakeholder context. In the academic literature, few studies have investigated the role of the country‐specific determinants of corporate social responsibility, and none of them adopt a cross‐country approach. The objective of this paper is to analyze the disclosure of SE, observing the content of nonfinancial reports and company websites of all companies belonging to the Global Reporting Initiative database. Cross‐country analysis confirms that European and non‐European firms approach SE activities differently. The research offers a contribution to the development and improvement of company relations with stakeholders from a value cocreation perspective, identifying the areas of interest on which firms can work to advance the SE communication process.