Drivers Of Corporate Social Responsibility Research Articles

Driving corporate social responsibility to be innovative: Insights from a systematic literature review

AbstractCorporate social responsibility (CSR) is increasingly under pressure to tackle social and environmental challenges using innovative approaches that benefit both companies and society. This study presents a comprehensive overview of the relevant research on the intersection of CSR and innovation since 1996. Through a bibliometric analysis and literature review of 1362 articles, the study identifies three distinct stages in the evolution of this dual theme: an infancy stage (1996–2005), a rapid growth stage (2006–2015), and an explosive growth stage (2016‐present). By analyzing the studies, subfields, and theories in each stage, we identify the approaches and challenges in CSR innovation research. Notably, digital organizational culture, sensitivity analysis, and social enterprise have emerged as current major concerns, while sustainable development and analysis methods have emerged as challenges in addressing CSR innovation. Based on these findings, we propose several future research opportunities for CSR innovation research.

What drives construction SMEs on CSR implementation during economic uncertainty?

World uncertainty is currently at an exceptionally high level, leading to difficulties in business operations. This phenomenon raises questions about the necessity of corporate social responsibility (CSR) initiatives for vulnerable organizations such as small and medium-sized enterprises (SMEs) as they may deprioritize CSR to focus on surviving. The review of previous studies highlighted a limited theoretical understanding of CSR that existed during such challenging economic periods. This study aims to bridge this research gap by investigating the driving forces that motivate construction SMEs to implement CSR during economic uncertainty. Through a combination of literature review, semi-structured interviews, and hybrid fuzzy Decision-Making Trial and Evaluation Laboratory-Analytic Network Process methods, 13 drivers for CSR were identified and categorized into four clusters: human resources benefit, market pressure, organizational reputation, and financial benefit. Human resources benefit was recognized as the most influential cluster, and employee commitment and loyalty was the most critical CSR driver. This study contributes to the body of knowledge by theoretically explaining the prioritization of drivers to CSR performance regarding their interrelationships.

Corporate Social Responsibility (CSR) and its Influence on Organizational Reputation

Purpose: The main objective of the study was to examine Corporate Social Responsibility (CSR) and its influence on organizational reputation.
 Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.
 Findings: The findings reveal that there exists a contextual and methodological gap relating to Corporate Social Responsibility (CSR) and its influence on organizational reputation. Preliminary empirical review revealed a strong positive correlation between CSR activities and organizational reputation across industries and geographical contexts. Companies prioritizing CSR initiatives like environmental sustainability and ethical practices are perceived more favorably by stakeholders, underscoring CSR's role in enhancing reputation and trust. Transparent communication of CSR efforts through various channels strengthens this reputation further. Additionally, the study identifies mediating and moderating factors such as CEO characteristics and industry norms, emphasizing the importance of strong leadership and tailored strategies. Ultimately, integrating CSR into strategic decision-making, transparent communication, and adaptation to stakeholder expectations are crucial for building a positive reputation that fosters long-term success.
 Unique Contribution to Theory, Practice and Policy: The Stakeholder theory, Institutional theory and the Resource Based View theory may be used to anchor future studies on Corporate Social Responsibility (CSR). The study provided comprehensive recommendations based on its findings. Firstly, it suggests prioritizing CSR initiatives aligned with core values and business objectives to enhance reputation and build stakeholder trust. Secondly, transparent communication strategies should be adopted to convey CSR efforts effectively, fostering credibility and engagement. Furthermore, integrating CSR into overall business strategy and operations ensures its alignment with organizational culture and decision-making processes, maximizing its impact. Investing in stakeholder engagement enhances the effectiveness of CSR initiatives by involving diverse stakeholders in program design and evaluation. Additionally, monitoring and evaluating CSR impact through both quantitative and qualitative metrics is essential for accountability and continuous improvement. Lastly, leadership commitment and organizational culture are emphasized as crucial drivers of CSR, with senior executives playing a pivotal role in fostering an ethical and socially responsible environment that enhances organizational reputation and sustainability.

Sustainable development during economic uncertainty: What drives large construction firms to perform corporate social responsibility?

AbstractWhile the world is grappling with economic uncertainty, corporate social responsibility (CSR) has been extensively studied with a focus on favorable economic conditions. This study aims to investigate and prioritize the drivers for CSR in large‐sized construction organizations during economic uncertainty. Based on the literature review and discussions with experienced professionals, 13 critical drivers for CSR were identified and categorized into four clusters. Using the combination of fuzzy Decision Making Trial and Evaluation Laboratory and fuzzy Analytic Network Process (DANP), drivers for CSR performance during economic uncertainty were ranked regarding their interrelationships. Among 13 drivers, the results illustrated that enhancing company reputation was the most critical driver for CSR, followed by long‐term economic benefit, employee commitment and loyalty, and credibility gain. This study expands the current understanding of CSR practices in the construction industry, shedding light on its unique characteristics during economic uncertainty.

Business response to mandatory corporate social responsibility with evidence from India

AbstractThere has been a lot of discussion on the shift from voluntary to mandatory corporate social responsibility (CSR) and its impacts in different countries across the globe. India is unique in this context as the reporting and expenditure of a certain amount under CSR has been mandated for companies. This article analyzes the changes and responses of Indian businesses post‐2014, when new CSR rules were enacted. The key objectives of this study are to assess the level of awareness and compliance, thematic and geographical focus areas for CSR projects, and drivers and barriers to the adoption of mandatory CSR. We performed a secondary analysis of the data from 60 companies, followed by extensive primary research through in‐person interviews and offline questionnaire responses with 100 key CSR professionals from different companies in India. A key finding from the study is that the awareness of CSR policy and the pool of CSR funds has increased. The policy mandates have been a good driver in improving transparency and reporting quality. However, there is a predominant focus on four thematic areas of education, healthcare, hunger, and poverty alleviation despite the government's efforts to expand in other areas. The geographical spread of expenditure is limited to a few key industrial states in India, limiting CSR's contribution towards national development. The study adds to the CSR literature associated with institutional and stakeholder theories by looking at the response of legally bound organizations toward society and the environment. Finally, the study provides valuable information for governments and regulatory authorities considering the mandatory implementation of CSR expenditure across the globe.

The role of firm-level CSR governance characteristics as a driver of comprehensive CSR reporting – the moderating role of profitability

PurposeThis study aims to examine the impact of firm-level corporate social responsibility (CSR) governance characteristics on the extent, quality and comprehensiveness of CSR reporting of Pakistani listed enterprises.Design/methodology/approachThis study used content analysis of corporate annual reports and stand-alone CSR reports available on corporate websites in 2021 to identify CSR-related governance features and to calculate CSR reporting scores. Multivariate regression is used to test relationships. In addition, the analysis tested the moderating role of profitability in these relationships.FindingsFirm-level CSR governance characteristics contribute to the extent, quality and comprehensiveness of CSR reporting in a developing country. Further, results confirm that profitability moderates the relationship between CSR governance and the extent and comprehensiveness of CSR reporting.Research limitations/implicationsThis study employed cross-sectional data and focused on a single developing country. Future studies might include a cross-national sample and longitudinal data to demonstrate the broader relevance of these findings. The outcomes of this study are restricted to CSR disclosures based on CSR reports and annual reports. Future research may examine additional corporate communication channels, such as websites and social media platforms.Practical implicationsThis research validates the important role of CSR governance mechanisms as a driver of comprehensive CSR reporting. Business leaders and policymakers can facilitate improved corporate reporting by requiring companies to implement CSR-related governance mechanisms.Originality/valueThis is the first study to test the influence of firm-level CSR governance mechanisms in promoting the quantity, quality and comprehensiveness of CSR reporting in a developing country.

Sustainable development through corporate social responsibility adoption and its drivers: evidence from corporate industrial sector.

Corporate social responsibility (CSR) is a vital strategy for promoting firms' sustainable development goals, encompassing social, environmental, and economic factors. In emerging economies, manufacturing firms face mounting challenges in ensuring their sustainability. This study aims to identify the key drivers of CSR and examine their impact on CSR adoption in the manufacturing industry of Pakistan. The study employs the survey method to collect data, utilizing a one-to-one interview approach with a matrix-style questionnaire administered to a panel of experts selected through purposive sampling technique. Interpretive structural modeling (ISM) combined with Matrices' Impacts Cruise's Multiplication Appliquée a UN Classement (MICMAC) and structural equation model (SEM) are used for data assessment, modeling, and analysis. The findings indicate that compliance with government regulations and stakeholders' pressure are the essential drivers of CSR adoption and positively influence CSR adoption. Consequently, firms should consider adopting CSR strategies to enhance their sustainability based on the outcomes of this analysis.

The effect of prosocial orientation on CSR scope: the moderating role of the CSR department

Purpose Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to examine what factors influence a firm’s decision in its scope of CSR. In exploring what factors influence CSR scope, the authors examine the relationship between a firm’s prosocial orientation and CSR and further examine its boundary conditions by the existence of CSR department. Design/methodology/approach This study uses a data set – the Social Value Survey – administered by the Center for Social Value Enhancement Studies based in the context of Korean firms. Based on 86 firm responses, statistical models were performed to test hypotheses. Findings The findings show that a firm’s prosocial orientation is positively associated with CSR scope. Further, this study shows that there is a negative moderating effect of the CSR department for the relationship between the prosocial orientation and CSR scope. Originality/value This study attempts to contribute to the extensive line of work on the antecedents of CSR by exploring the simultaneous existence of various drivers of CSR and the interplay between the drivers. And this study enhances the understanding on what factors influence the decision of CSR scope within a complex system of diverse stakeholder relationships. Additionally, this study has potentially shed light on the role of CSR departments to determine CSR scope.

Localizing corporate social responsibility in China: The role of geographic proximity to political and financial centers

Early studies on corporate social responsibility (CSR) in China focused on political factors, but recent research highlights the increasing role of markets and finance. This study aims to investigate whether politics remains the primary driver of CSR as the Chinese CSR market evolves. Specifically, it examines the influence of geographic proximity, particularly political and financial centers, on CSR performance in China. Analyzing political and financial attributes of various cities, the study identifies key drivers of CSR engagement. Using 24,399 annual observations of listed company headquarters' locations and distances from political and financial centers, the research reveals that the economy has replaced politics as the main driver of CSR in China. Firms closer to administrative and financial centers demonstrate stronger CSR performance. Additionally, the study emphasizes the significance of shared prosperity demonstration zones initiated by the Chinese government, which drive CSR activities. These findings highlight the impact of geographic location on CSR performance and the alignment between common prosperity and CSR in China. By contributing to literature on geographic location and CSR, this study provides insights into institutional factors influencing firms' CSR engagement.

Do venture capitalists with foreign experience drive corporate social responsibility better? Evidence from China

AbstractUsing a manually collected dataset, we examine the effects of venture capitalists with foreign experience on firms' corporate social responsibility (CSR) engagement. By analysing firm‐, deal‐ and venture capitalist‐level samples, we find that venture capitalists with foreign experience significantly improve their portfolio firms' CSR; this finding holds across extensive robustness tests. Venture capitalists with foreign experience promote CSR more significantly if they join the board of directors or invest in the firm's early stages. Our results suggest that venture capitalists with foreign experience transplant the client demands, management practices and social norms they have experienced abroad to their firms.

A Corporate Social Responsibility (CSR) Model to Achieve Sustainable Business Performance (SBP) of SMEs in the South African Construction Industry

This paper purposes to develop a corporate social responsibility (CSR) model to guide small and medium enterprises (SMEs) in the South African construction industry (SACI) towards sustainable business performance (SBP). A theoretical CSR model was developed from the literature and validated through Partial Least Squares Structural Equation Modelling (PLS-SEM), using primary questionnaire data obtained from 110 SMEs in the SACI, who are registered on the construction industry development board (cidb) register of contractors between Grade 1 and 6 general building (GB) and/or civil engineering (CE). The PLS-SEM results indicate that CSR drivers influencing the CSR practices of SMEs, along with CSR implementation challenges experienced by SMEs, influence the perception of SMEs pertaining to the relationship between the integration of CSR and SBP all of which influences the CSR activities considered by SMEs to achieve SBP, thus implying that the holistic adaption of the PLS-SEM (CSR model) by SMEs in the SACI equates to more SBP. However, SMEs practicing CSR activities to achieve SBP are subjected to specific CSR: drivers and implementation challenges as well as SME owner perceptions.

Does digitization drive corporate social responsibility?

This study investigates the effect of firm-level digitization on corporate social responsibility (CSR) performance. Using a sample of Chinese A-share listed companies from 2010 to 2020 and a textual data mining approach, we find that digitization is positively associated with CSR performance with multiple tests suggesting that this relationship is causal. The study also finds that firm-level digitization promotes CSR by improving innovation inputs and outputs, stimulating innovation, and improving innovation capacity. The findings are more prominent for firms with lower financing constraints, larger sizes, and higher asset cash recovery rates.

Enhancing employee advocacy of the firm's corporate social responsibility (CSR) activities

PurposeThe paper aims to investigate how perceived psychological benefits from employee participation in corporate social responsibility activities affect organizational citizenship behavior across two Asia–Pacific countries with different national cultures.Design/methodology/approachA stakeholder relationship model, based on social exchange theory, underpinned the investigation that also tested the mediating role of organizational pride. In a cross-cultural context, data were collected from 319 full-time employees in Thailand and the US and analyzed with SEM-PLS.FindingsAnticipated psychological benefits of hedonic value and perceived community value were found to be significant antecedents of organizational citizenship behaviors, operationalized as customer-directed CSR advocacy. Organizational pride played a partial mediating role.Originality/valueThis study addresses a lack of micro-level CSR research into the relationship between psychological benefits of employee participation in CSR and organizational citizenship behavior. Specifically, this is the first study to link CSR drivers with customer-directed employee advocacy of the firms CSR activities. The study is also the first to compare relationships between an Asian and Western context for CSR drivers of organizational citizenship behaviors.

Does leadership gender diversity drive corporate social responsibility and organizational outcomes? The role of organization size

Corporate scandals, environmental damages, and employment conditions have highlighted the importance of corporate social responsibility (CSR). However, little is known about (1) the simultaneous effects of board and top management team (TMT) gender diversity on CSR, (2) the mediating role of CSR between leadership (board/TM) gender diversity and organizational outcomes, and (3) the above-noted effects vary between large versus small organizations. Drawn from social role theory, we test our hypotheses using multisource time-lagged data from 248 organizations. The results indicate that both board and TMT gender diversity are positively associated with CSR. Moreover, CSR had a positive effect on both perceived organizational performance and employee productivity, with CSR also mediating the relationship between board gender diversity and perceived organizational performance. The findings also show the moderating effect of organization size on the CSR–organizational outcomes relationship. Our results refine (differential effects of gender diversity on CSR depending on the role), extend (some unprecedented effects were found for perceived organizational performance and employee productivity), and qualify (effects were significant for large organizations) social role theory. Our research addresses the above-noted knowledge gaps and informs the contextual leadership gender diversity practice for improved CSR and organizational outcomes. JEL Classification: M12, M14

Employee wellbeing and cost reduction drivers of corporate social responsibility: Evidence from Congolese mining sector.

This research proposes an internal organizational framework that explains why firms implement corporate social responsibility (CSR). Based on the perspective of managers in the mining sector of the Democratic Republic of Congo (DRC), wellbeing of employees and cost reduction were identified as internal driving factors of CSR. This study was carried out on a sample of 103 mining, using a structural equation through LISREL. The findings of the study reveal; first, that firms' pursuit of cost reduction positively influences the implementation of CSR; second, firms are driven by CSR in order to ensure the wellbeing of their employees, fostered by compliance with labor standards in the mining sector. Therefore, CSR compliance was included as a mediating variable. Lastly, the lack of resources remains a barrier to CSR implementation. This research adds to the growing body of literature on CSR antecedents by demonstrating that in the Congolese mining sector, CSR implementation is linked to the wellbeing of employees as well as compliance to labor standards and regulations, cost reduction, and financial resources as well as human resources. This research responds to deficiency in novelty and lack of academic studies on drivers of CSR in the mining sector in Sub-Saharan regions.

The Mechanism of Corporate Social Responsibility on Financial Performance in Indonesia in The Basic Materials and Chemical Industry in Indonesia

This study aims to analyze the mechanism of corporate responsibility for financial performance in the basic and chemical industries in Indonesia from 2016 to 2020. Independent variable of corporate social responsibility; the dependent variable is financial performance with 3 variables namely net profit margin, return on assets and return on equity. for this study the authors also add mediating variables and control variables, there are 2 mediating variables namely economic development and industrial competition, regarding control variables namely Sales Sales, Earnings Per Share and the last is Earnings Before Interest and Taxes. This study took data on basic and chemical industry companies that had carried out corporate social responsibility on the Indonesia Stock Exchange from 2016 to 2020. The selection of research samples was based on a purposive sampling method. The population used in this study is all sectors of basic industry and chemicals listed on the Indonesia Stock Exchange (Indonesia Stock Exchange or IDX), with a total of 75 companies. Through empirical analysis, we can understand that Corporate Social Responsibility can have a positive impact on financial performance, and we can also understand that GDP and market share have a significant role in driving Corporate Social Responsibility on financial performance. The effect of Corporate Social Responsibility mediation on financial performance is more significant. Finally, Operating Income, Earnings Per Share, and Sales Revenue are not significant enough as control variables for financial performance.

How does institutional cross‐ownership affect firm productivity? The importance of the corporate social responsibility channel

AbstractThis paper investigates the effect of institutional cross‐ownership on firm productivity and whether this effect occurs indirectly through corporate social responsibility. Based on a sample of French firms from the 2001–2015 period, we found that institutional cross‐ownership, particularly pressure insensitive cross‐ownership, positively affects firm productivity. This result suggests that the professional knowledge and monitoring experience gained by institutional cross‐owners lead them to increase firm productivity. This positive effect is less pronounced in highly competitive product markets. The results also showed that corporate social responsibility is a channel that allows institutional cross‐owners, particularly pressure insensitive cross‐owners, to influence firm productivity. This result suggests that institutional cross‐owners drive corporate social responsibility investments leading to enhanced firm productivity.

Drivers of digital corporate social responsibility during unprecedented crises: an institutional perspective

PurposeThis study explores the role of institutional pressures and top management support in digital corporate social responsibility (CSR) adoption. It also investigates the impact of digital CSR on social trust and corporate sustainability.Design/methodology/approachData were collected from 279 managers of Jordanian companies. Smart PLS was utilized to analyze the research model and test hypotheses.FindingsThe results reveal that coercive pressures, normative pressures, memetic pressures and top management support significantly impact digital CSR adoption. The results also show that digital CSR significantly impacts social trust and corporate sustainability.Originality/valueThis study provides worthwhile insights into the literature on drivers of digital CSR, social trust and corporate sustainability in unprecedented crises. This study enriches the literature on the relationship between institutional theory and innovative IT solutions adoption theories. The review of prior research confirms an absence of empirical examinations of the causal relations among institutional forces, digital CSR, social trust and corporate sustainability.

Do women drive corporate social responsibility? Evidence from gender diversity reforms around the world

In this study we investigate the effect of female director on corporate social responsibility (CSR) by taking the advantage of the introduction of legal gender quota that led to the exogenous change in the female representation in corporate board around the world. We find that the “gender quote” reforms effectively increase gender diversity and improve CSR performance. When comparing the legislation-based regulations with governance code-based regulations, we find that the former brings stronger effects on CSR performance. Finally, the effects are more pronounced in countries with higher gender equality or common law legal systems.

Does social security policy matter for corporate social responsibility? Evidence from a quasi-natural experiment in China

The factors driving corporate social responsibility (CSR) have emerged as an important research area. Firm characteristics and external environments affect CSR, but the influence of social security seems inconclusive. Using firm-level data of listed companies in China for 2009–2017, we examine the relationship between CSR and social security policy. Our results suggest that firms strengthen social responsibility after social security policies are implemented, with the motivation to reduce the wage premiums caused by the policy. We conduct a series of robustness tests to corroborate our findings. Furthermore, we show that the relationship between social security policy and CSR is moderated by ownership, financing constraints, and cost transfer capability. Overall, this paper is the first to prove that social security policy can simultaneously increase labor protection and CSR.