Discretionary Corporate Social Responsibility Research Articles

Corporate Social Responsibility policies and practices on unvaccinated employees during the COVID-19 pandemic: case studies of Israel and United States

PurposeThe article addresses the tension between Corporate Social Responsibility (CSR) and the right to work in times of the COVID-19 pandemic. Accordingly, it explores the operation of corporations in adopting policies of mandatory vaccination and the role of the courts regarding these CSR patterns.Design/methodology/approachThe article examines court case studies of CSR practices regarding unvaccinated employees during the COVID-19 pandemic in Israel and the United States.FindingsThe findings show that the Israeli system adopted the regulating for individual discretionary CSR approach, whereas the American system adopted the regulating for ethical-public CSR approach. Adopting the latter infringes upon the right to work of unvaccinated employees. While in Israel, the possibility of compelling employees to vaccinate is denied, in the American model, mandatory vaccination is possible. As opposed to the American model, in the Israeli model, there is an obligation to consider proportionate measures to isolate the employees while allowing them to continue working.Originality/valueThe article introduces two possible notions of regulating CSR in times of the pandemic – regulating for individual discretionary CSR which is labor-oriented and regulating for ethical-public CSR which is focused on public aspects. While the former posits that corporations should advance individual interests of employees and their right to work, the latter claims that corporations should advance the public interest in health. Following the problems resulting from the Israeli and American cases, the article draws on the lines for a suggested approach that courts should embrace.

Corporate social responsibility and employee attitudes: The moderating role of employee age

AbstractThis study examines the role of corporate social responsibility (CSR) on employee engagement and job satisfaction. Using 322 responses from employees of selected companies in Ghana, and employing hierarchical regression analysis, the study examines the direct impact of economic, legal, ethical and discretionary CSR practices on employee satisfaction and engagement in organisations. The study further explores the moderating role of employee age on the relationship between CSR and employee engagement and satisfaction. The results provide evidence that economic, legal, ethical and discretionary CSR practices influence higher employee engagement and satisfaction levels at work. However, the study finds no evidence of employee age moderating the association between each of the four CSR dimensions and employee job attitudes (engagement and satisfaction). These findings are insightful and provide a response to calls for research on these issues. The study contributes to the literature by demonstrating that ethical CSR practices strongly influence employees' satisfaction and engagement levels; legal and discretionary CSR activities also have an influence, though to a lesser extent; and the economic dimension of CSR activities has the least impact. The managerial, practical and further research implications of these findings are discussed.

Joint effect of CEO overconfidence and corporate social responsibility discretion on cost of equity capital

The study investigates the joint impact of chief executive officer (CEO) overconfidence and corporate social responsibility (CSR) discretion on firms’ cost of equity capital (CoE). Overconfidence can cause CEOs to underestimate risks and to shift resources from CSR to risky projects. Such a concern could be relieved if investors were to observe the CSR efforts made by overconfident CEOs. This conjecture is empirically supported by the negative CoE effect jointly by CSR scores and CEO overconfidence. The joint effect is distinctive from the negative CoE effect introduced by CSR alone. Further evidence reveals that, for the firms operated by CEOs with greater overconfidence, investors charge lower CoE if CSR activities involve less managerial discretions. When CSR is decomposed into nondiscretionary CSR (NCSR) and discretionary CSR (DCSR) components, CEO overconfidence strengthens the differential CoE effect between the NCSR and DCSR, mainly through the more profound negative CoE impact of NCSR relative to DCSR. Taken together, we find that investors’ perceived risks associated with CEO overconfidence can be alleviated by diverting firm resources to CSR initiatives that have a connection to the firm’s economic factors.

Firm strategy and CSR: the moderating role of performance management systems

AbstractLittle empirical research has explored whether or not firm strategy is linked with corporate social responsibility (CSR) and to that end we explore the impact of low-cost and differentiation strategies on CSR. Using a sample of 229 Italian firms, a low-cost strategy is negatively associated with ethical and discretionary CSR, while a differentiation strategy is positively associated with both. Given its focus on nonfinancial outcomes and stakeholders, we test if a performance management system (PM system) acts as a moderating influence. We find that a PM system positively moderates the negative association between a low-cost strategy and ethical and discretionary CSR, while also positively moderating these relationships with respect to a differentiation strategy. These findings advance the literature on strategy and CSR, while demonstrating the contingent effect of PM systems. The findings are discussed along with limitations and directions for future research.

CSR in Ghana’s gold-mining sector: Assessing expectations and perceptions of performance with institutional and stakeholder lenses

PurposeThis article examines community expectations and perceptions of the corporate social responsibility (CSR) performance of a multinational mining company following a unique incident of cyanide spillage from a tailings (processed ore effluents) storage facility. CSR remains a critical component of stakeholder management in developing countries due to the continuous environmental and social impacts of mining development. The article employs the stakeholder and institutional theories to assess the CSR manifestations of a large-scale mining company in the context of pressures at the plant level.Design/methodology/approachWe employ a mixed method design using survey and stakeholder interviews to collect, analyse, and present findings within legal, ethical, and discretionary CSR categories. The survey data were statistically analysed by calculating the standard deviations of the three CSR dimensions to compare and understand the data variations in respect of the perception ratings of respondents on a four-point Likert scale, while interview data was evaluated using an inductive approach based on thematic networks.FindingsThe findings suggest that unfulfilled expectations for employment generate wider consensus towards demands to share in mining benefits based on rising perceptions of inequity and social exclusion. Additionally, host communities within farming areas engage in speculative development in anticipation of CSR-related compensation resulting in a homogenised expectation. Further, this study reveals that reactive CSR practices are interpreted as both insincere and patronising, contributing to a negative perception of mining activities in affected communities.Research limitations/implicationsAs a single-case study, the findings may be inadequate for theoretical generalisations and therefore limited to the context of the study.ImplicationsRethinking stakeholder and institutional theories, and exploring new assumptions in the context of the mining industry in Ghana, may expand the current discourse within the academic, corporate, and statutory communities.ContributionThis study adds to and expands the assumptions of stakeholder and institutional theories in a mining context within local communities. It may also improve the knowledge of managers of large-scale mining companies on effective stakeholder management.

Spaces for contestation: The politics of community development agreements in Sierra Leone

Across mineral-rich sub-Saharan Africa, it has become increasingly common for mining companies to support development schemes in host communities where resource extraction takes place. The negotiation of so-called ‘community development agreements’ (CDAs), provides an opportunity to address the social and environmental impacts of mining, while at the same time serving as a platform through which company-community relations can be mediated. Unlike discretionary corporate social responsibility programmes, in many countries, CDAs are embedded in law, invoking parties’ mutual commitments and responsibilities. Such initiatives have been heralded as ‘game–changers’, promising equitable redistribution of wealth, structured community development and stable investment climates for extractives companies. However, factors that concern the process of their negotiation, coupled with structural weaknesses, can affect their implementation, transforming them into spaces of contestation which can threaten their potential. Drawing upon fieldwork carried out in Sierra Leone between 2013–2018, this paper critically explores the contested nature of CDAs. Focusing on two different case studies in the south and east of the country, it argues that such agreements will only contribute to genuine development in host communities if the longstanding issues that have stalled the pre-existing forms and instruments of community development are systematically addressed.

The New Company Act and the Past and Future of Corporate Social Responsibility: The Legislative Structure and Court Practices of Taiwan's Corporate Social Responsibility Theory

有鑑於2018年7月公司法修正明文化企業社會責任理論的基本原則，本文以我國法下的公司負責人責任制度為觀察重點，分別由立法層面與法院實務層面回顧企業社會責任理論於我國法下的具體落實情形，首先在立法層面將企業社會責任理論再細分為裁量型企業社會責任與義務型企業社會責任，並且在法院實務層面回顧我國既已發展的案例，指出我國法院在處理裁量型企業社會責任案例時，未來應更加著重於個案中的程序合法性與公司負責人個人利益衝突，以及我國法院在處理義務型企業社會責任案例時，已參酌商業慣例與公司自願性的公開承諾以形塑公司負責人的義務範圍。本文最終指出，企業社會責任理論於本次修法以前，即已存在於我國法院實務，未來研究重點應置於相關案例之評析，以協助我國法院進一步細化企業社會責任理論。 The amendment of Taiwan's Company Act in July 2018 confirmed the basic principle of corporate social responsibility theory. In light of that, this article focuses on the liability of corporate responsible persons under Taiwan's laws and reviews the implementation of corporate social responsibility under Taiwan's laws from the perspectives of legislation and court practices. It firstly classifies the corporate social responsibility theory into discretionary corporate social responsibility and obligatory corporate social responsibility from the perspective of legislation and then reviews the developed case laws in Taiwan's court practices. It suggests that when handling cases involving discretionary corporate social responsibility in the future, Taiwan's courts should pay more attention to the procedural legality and the personal conflicted interests of the corporate responsible persons in the individual case. It also identifies that when handling cases involving obligatory corporate social responsibility, Taiwan's courts have considered commercial practices and the company's voluntary public commitment to shape the scope of obligation of corporate responsible persons. In sum, this article highlights that the corporate social responsible theory has existed in Taiwan's case laws before this amendment, and future studies should focus more on commenting these cases to assist Taiwan's courts in substantiating the corporate social responsibility theory.

The Corporate Social Responsibility of Ukrainian Agroholdings: the Stakeholder Approach Revisited

The agricultural sector in Ukraine and other transitional and developing countries is distinguished by the prominence of agroholdings, i.e., large-scale industrialized corporations, that offer extensive support to their stakeholders through the corporate social responsibility (CSR) initiatives. The stakeholder approach as a part of business ethics scholarship explains stakeholder salience in terms of the turbulence of the business environment. Drawing on the Luhmannian theory of complex social systems, the present paper shows this turbulence to be a relative concept that makes sense primarily in relation to the limited ability of dominant formal institutions, such as the function systems, to process the complexity of the societal environment. In line with this argument, the Ukrainian agroholdings are shown to direct their CSR efforts to stakeholders whose salience arises out of the transition-specific institutional shortcomings, such as the imperfections of land and labor markets. Paradoxically, the Ukrainian institutional environment has been conducive not only to the rise of agroholdings but also to the emergence of societal expectations which the agroholdings must face. The broader business ethics implication of the argument is the functional equivalence of the discretionary CSR activities and the quality of the dominant formal institutions, such as the function systems.

Impact of executive citizenship and organizational commitment on corporate social responsibility

Purpose – This Malaysian study aims to use upper echelons theory and social identity theory variables to determine the chief executive officer (CEO) characteristics and attitudes associated with economic corporate social responsibility (CSR), legal-ethical CSR and discretionary CSR in Malaysian firms. The authors hypothesize that CSR engagements in the form of altruistic behaviour, with executives being part of the upper echelon, would tend to be expressing their values at individual level through the firm if they are affectively committed to their company. Design/methodology/approach – Using a sample of 151 Malaysian firms that took part in an annual CEO survey in 2010, the study measures executive citizenship as CEOs’ having critical attitude towards public issues such as public transportation, public education and crime. Hierarchical regression analyses are used to associate the CEO attitudes with the firms CSR. Findings – The authors find that executive citizenship attitude is significant and positively related to firm’s legal–ethical CSR. The authors also find that executive organizational commitment has a significant positive impact on dimensions of CSR. Additionally, the executive tenure impacts the level of philanthropic CSR of the firm. Originality/value – In Malaysia, firms have a strong incentive to engage in CSR to enhance their reputation and legitimacy because of the government’s influence on commercial activities. Our study is the first to examine how this notion of legitimization efforts at the individual level affects firms CSR activities.

CSR stakeholder engagement and Nigerian tobacco manufacturing sub‐sector

PurposeThe purpose of this paper is to investigate the stakeholder engagement approach, level, rationale and implications for corporate social responsibility (CSR) management and governance in the Nigerian tobacco sub‐sector.Design/methodology/approachData were obtained from the published social reports of British American Tobacco Nigeria (BATN). These data are used to analyse BATN's CSR initiatives and stakeholder engagement against Arnstein's citizenship participation model and reasons for companies' engagement in CSR initiatives. Other literature, such as news reports and articles were used to contextualise the analysis.FindingsFindings suggest that the engagement appears too controlled and lacking in authenticity; and that the stakeholder engagement framework needs to be developed to improve informed and balanced stakeholder participation and progressive CSR programmes.Research limitations/implicationsThe findings may not be readily generalisable, as the study was based on one company, although the data included a seven year company social report and other independent and external literature, e.g. news reports, to help contextualise the social reports. More research may be needed from other sub‐sectors to demonstrate generalisability.Practical implicationsThe findings suggest that entirely discretionary CSR and stakeholder engagement may reduce its developmental impact and sustainability. To avert this, especially in Nigeria, some framework is needed to increase informed participation of relevant stakeholders and encourage a sustainable CSR practice.Originality/valueTo the best of the author's knowledge, this is the first case study that explores CSR and stakeholder engagement in the Nigeria tobacco sub‐sector.

Measuring and Examining the Relevance of Discretionary Corporate Social Responsibility in Tourism

This article investigates the implementation of environmentally focused discretionary corporate social responsibility (CSR) within the U.K. conference sector. A new framework is proposed that organizes and communicates information detailing business performance regarding 10 environmental policy initiatives (expressed by the acronym GREENER) using a CSR response scale (expressed by the acronym VENUE). This GREENER VENUE framework fills a void in the CSR literature by focusing on discretionary practices, by exhibiting psychometric and conceptual properties enabling its application within a multitude of contexts. Grounded in theory, the framework is simple to implement, practical, easily understandable, and highly relatable. Applying the GREENER VENUE framework to data collected via a self-administered Internet questionnaire of the U.K. conference sector reveals the majority of conference venues are classified as Eager. The study also examines the efficacy of the proposed framework toward influencing U.K. venues’ performance on a range of environmentally friendly best practices relative to environmental accreditation.

Corporate Social Responsibility: Time for a Stock Take

This paper describes three approaches for understanding corporate social responsibility (CSR) - academic, prescriptive, practice. The academic approach includes Bowen’s (1953) description of social responsibilities of businesspeople during the early 1900s, and Carroll’s (1991) pyramid of responsibilities - economic, legal, ethical, philanthropic. There are two prescriptive approaches: United Nations Global Compact and the ISO 26000 Social Responsibility. However, based on two Singapore company case studies, it can be seen that corporate practices differ tend to differ where CSR components such as corporate giving are discretionary. Several research questions are proposed to understand for why companies would differ in their discretionary CSR.

Discretionary corporate social responsibility: introducing the GREENER VENUE

PurposeThe purpose of this paper is to propose a conceptual comparative framework measuring the implementation of corporate social responsibility (CSR) within the UK conference sector.Design/methodology/approachA self‐administered internet‐based survey was conducted to examine the implementation of ten environmental policy initiatives, expressed by the acronym “GREENER”, using a CSR response scale, expressed by the acronym “VENUE”.FindingsThe greatest proportion of UK venues can be classified as “Eager”, with a quarter of respondents being deemed as “Unmotivated” or in “Eternal denial” regarding their implementation of CSR. It was also found that both size of venue space and venue type have significant effects on the level of CSR implementation.Research limitations/implicationsEnvironmental performance indicators are not the only components of CSR, there are others, including social, economic and ethical. Further research may expand the framework from a uni‐dimensional environmental framework to a multi‐dimensional framework, through the inclusion of some or all of these CSR components.Originality/valueThe GREENER VENUE framework contributes to two important areas hitherto overlooked in the CSR literature: first, it develops a framework with emphasis toward discretionary practices and illustrates the strength of this method through application to the sizeable and rapidly growing UK conference industry. Second, the framework exhibits conceptual and psychometric properties that enable its application to broad and diverse contexts. It is theoretically grounded but at the same time practical, easy to implement, easily understandable and highly relatable to organisational managers, frontline employees and many other key stakeholders of any industry.

The impact of corporate social responsibility on the cost of bank loans

This study examines the link between corporate social responsibility (CSR) and bank debt. Our focus on banks exploits their specialized role as delegated monitors of the firm. Using a sample of 3996 loans to US firms, we find that firms with social responsibility concerns pay between 7 and 18 basis points more than firms that are more responsible. Lenders are more sensitive to CSR concerns in the absence of security. We document a mixed reaction to discretionary CSR investments. Low-quality borrowers that engage in discretionary CSR spending face higher loan spreads and shorter maturities, but lenders are indifferent to CSR investments by high-quality borrowers.

Corporate Social Responsibility Practices, Corporate Identity, and Purchase Intention:A Dual-Process Model

The relationships among corporate social responsibility (CSR) practices, corporate identity, and purchase intention were evaluated for 4 corporations: Microsoft, Nike, Philip Morris, and Wendy's. Discretionary CSR practices and moral/ethical CSR practices emerged as significant predictors of the corporate social values dimension of identity. Relational CSR practices, however, contributed mainly to the expertise dimension of corporate identity. Also, familiarity with CSR practices of a corporation had a significant effect on corporate identity, which in turn affected purchase intention. For 2 of the 4 companies, Nike and Wendy's, both corporate expertise and corporate social values were significant predictors of purchase intention. For Microsoft, only the expertise dimension was predictive of purchase intention, whereas for Philip Morris, only the corporate social values dimension was a significant predictor of purchase intention. The results are interpreted within a dual-process model of corporate identity.