Economic Corporate Social Responsibility Research Articles

Impact of CSR disclosure on profitability and firm performance of Malaysian halal food companies

The purpose of this study is to examine the impact of corporate social responsibility (CSR) disclosure on the profitability and firm performance of Halal food companies in Malaysia. Applying a quintitative method, the study utilised a dynamic GMM-based statistical technique for analysing the data from 75 public-listed Halal food companies in Malaysia from 2012 to 2021.The findings highlight a substantial relationship between CSR disclosure and profitability (ROA) as well as firm performance (TBQ) of Halal food companies in Malaysia. The result showed economic, environmental, and social CSR disclosures have a significant effects on ROA and TBQ in dynamic models. The outcome of the study implies that actively engaging in economic, environmental, and social CSR practices provides with a competitive advantage, contributes to long-term viability, and attracts socially conscious investors. It also emphasises the strategic importance of comprehensive CSR strategies for encouraging positive stakeholder relationships, managing diverse aspects of sustainability, and enhancing overall business success, including employee engagement and motivation.

CORPORATE SOCIAL RESPONSIBILITY IN THE SOUTH AFRICAN RETAIL SECTOR: ARE EMPLOYEES AWARE OF WHAT THEIR EMPLOYERS ARE DOING?

Corporate social responsibility (CSR), which is the adoption of responsible business practices concerning economic, environmental, and social CSR, is an important topic among marketers aiming to develop market value with various stakeholder groups, including employees. Previous research is limited to developed market economies and has focused mainly on external stakeholder groups. This study explored South African retail employees’ awareness of their organizations’ CSR initiatives. The sample size was 229 South African retail employees, from lower-level employees up to middle and senior management. The study made use of a computer-aided self-administered survey, distributed via LinkedIn. The results indicated that lower-level employees are less aware of economic, environmental, and social CSR initiatives implemented by their organizations than those in middle and senior management, but that there was no significant difference between middle and senior managements’ levels of awareness of their organizations’ CSR initiatives. The results also indicated that employees have higher levels of awareness when it comes to internal economic CSR, external economic CSR, and external social CSR, as opposed to internal environmental CSR, external environmental CSR, and internal social CSR initiatives. The findings of the study can assist organizations to customize internal CSR communication strategies.

Impact of corporate social responsibility practices on consumer purchase intention of apparel products with mediating role of consumer-retailer love

PurposeCompanies with corporate social responsibility (CSR) practices care about customers, society, the environment and workers. This study aims to examine the impact of CSR practices (i.e. economic CSR, environmental CSR and societal CSR) on consumers’ purchase intention of apparel products, with the mediating role of consumer-retailer love on this relationship.Design/methodology/approachData gathered using purposive sampling technique from 300 young online consumers using purposive sampling were analyzed using partial least squares structural equation modeling via SmartPLS3.0.FindingsThe results reveal that CSR practices (i.e. environmental CSR and societal CSR) have a positive influence on purchase intention for apparel products. Moreover, consumer-retailer love mediates the relationship between CSR practices (i.e. economic CSR and environmental CSR) and consumers’ purchase intention for apparel products.Practical implicationsApparel retail marketers should focus on key determinants when designing CSR campaigns and communicating these CSR initiatives in social media and annual reports. They should also focus on their service quality to create a good perception (images) that helps measure the emotional response (love) between the retailer and consumers.Originality/valueBy applying the triple bottom line framework and the stimulus-organism-response model in a single framework, this study is unique and highlights the role of consumer-retailer love as an important mediator on the impact between CSR practices (i.e. economic CSR, environmental CSR, societal CSR) and consumers’ purchase intention of apparel products. The findings represent a new contribution to the existing literature, as there has been very limited research on this relationship in a developing nation context.

Beyond the business case? Retracing the walk of Corporate social responsibility and financial performance relationship in the Oil and Gas sector

AbstractThe relationship between corporate social responsibility (CSR) and financial performance (FP) has not been thoroughly investigated in the literature. In particular, the nature of the relationship between the two constructs has not been investigated in depth. Therefore, drawing on the resource‐based view and Stakeholder theory, this study theoretically and empirically examined the relationship between economic perspective of CSR and FP analyzing the mediating role of competitive advantage under the empirical settings of the downstream Oil and Gas companies of Pakistan. Based on the 178 responses from the managerial level employees of these firms, the empirical outcomes stands with the assumption of the study that the implementation of CSR in the Oil and Gas industry is economically driven and have a positive relationship with FP, while competitive advantage partially mediates the relationship between economic CSR and FP. The outcomes of the study carry the important managerial and practical implications for Oil and Gas firms which are fallen in the business case.

Building food consumer loyalty through economic corporate social responsibility: the moderating effects of environmental and social dimensions

Research into the impact of Corporate Social Responsibility (CSR) on consumer behaviour has consistently revealed that CSR initiatives possess the potential to mould specific consumer attitudes and behaviours that, in turn, profoundly influence the overall success of businesses. Building upon the theoretical framework of the expectation disconfirmation theory, this study seeks to delve deeper into the intricate dynamics that underlie the influence of consumers’ perceptions of a company’s CSR efforts on their satisfaction levels and, consequentially, their propensity to exhibit brand loyalty. Previous CSR studies have ignored the possible interactions between CSR dimensions. This study tests the moderating role of social and environmental aspects of CSR in the relationship between economic responsibility and consumer satisfaction, influencing consumer loyalty. A sample of 252 Spanish consumers was used to test the hypotheses. The findings suggest that each aspect of CSR has varying levels of impact, and their interplay also significantly affects satisfaction and consequent loyalty. The economic aspect most influences consumer loyalty, and its effect is amplified as social or environmental aspects increase.

Corporate Social Responsibility Investment by Public Sector Organisations: A Systematic Literature Review

Corporate Social Responsibility (CSR) has gained prominence in business studies due to the increasing awareness of its importance to firms and stakeholders. Unlike previous CSR studies, which mostly focused on private sector organizations, this study systematically reviews CSR investment by public sector organizations. The objectives include identifying empirically tested CSR dimensions, theories mostly applied in public sector organization CSR studies, theories mostly applied, the industries in which CSR-public sector studies were conducted, and areas suggested for further studies. Findings reveal that social and legal CSR dimensions were the most single-focused dimensions in CSR-public sector studies, with limited attention to economic or environmental CSR as a single dimension. However, social and environmental dimensions rank highly in terms of combined dimensions. The findings also indicate that 78% of the reviewed empirical studies adopted stakeholder theory to explain CSR investment by public sector organizations. On industrial focuses, 54% of the reviewed studies focused on more than one industry. It was also revealed that the manufacturing industry was the most investigated, while water and construction were among the least investigated sectors. Further research was suggested in understanding the impact of CSR investment on firm performance, factors influence CSR investment, use of large sample size, use of different industries and geographical areas, and the trend on CSR investment by organizations. This study contributes to the body of knowledge by establishing research gaps for future CSR investment studies in public sector organisations.

Unraveling the Antecedents of CSR Authenticity in Pakistan's Textile Sector, with a Focus on the Moderating Effects of CSR Commitment

The Authenticity of Corporate Social Responsibility (CSR) has become a major concern of organization and particularly the textile sector of Pakistan. This study aimed to develop a conceptual framework that shows the influential factors affecting CSR Authenticity. The theoretical foundation of this framework stems out of Triple Bottom Line Theory and Stakeholder Theory. The reliable databases and repositories of research articles were searched to find the literature for this framework that included JSOTR, SAGE, Science Direct, Emerald, Wiley and Taylor & Francis. The search of literature has furnished a conceptual framework that suggests CSR FIT, CSR Impact and CSR Competencies as CSR Attributes are predictors of CSR Authenticity. Additionally, CSR Dimensions namely Environmental CSR, Economic CSR and Social CSR also predict CSR Authenticity. Moreover, it has been identified by literature that these all predictors cast their influence by the moderating effect of CSR Commitments. Finally, the study concludes by describing limitations and significance of study with directions to academicians and policy makers.

Intrinsic drivers of the reputation for CSR: a cognitive analysis of consumer expectations

PurposeThe appraisal of corporate reputation based on third-party corporate social responsibility (CSR) indices appears to have been institutionalized. The endorsement of such an approach by sustainability custodians and influencers undermines the uptake of the morality and legitimacy of CSR. This study takes a social realist perspective, which suggests that social phenomena such as CSR and corporate reputation are shaped by social structures and power relations. This study aims to contribute to a deeper understanding of the complex relationship between CSR and corporate reputation and understand ways in which the constructs are influenced by cognitive factors.Design/methodology/approachThis study surveyed 411 respondents across five shopping malls and analyzed the data using path analysis of the structural equation modeling (SEM) technique. The mall-intercept survey sought to critically assess expectations of CSR vis-à-vis evaluation of corporate reputation. Based on a case study of three Johannesburg Stock Exchange listed companies, CSR expectations were measured along the philanthropic, economic, ethical and legal dimensions, while evaluation of corporate reputation was based on product quality, financial performance and social responsibility. SEM path analysis was used to extrapolate the predictive outcomes of CSR on corporate reputation.FindingsReputation for product quality and social responsibility is underpinned by the fulfillment of ethical CSR expectations, while philanthropic gestures enhance the evaluation of financial performance. Legal CSR significantly influences the reputation for social responsibility and product quality. Fulfillment of economic CSR expectations influences the reputation for product quality. However, no relationship was established between economic performance and social responsibility. Involvement in economic, philanthropic and particularly, legal CSR, are not indicative of the reputation for financial performance. Conversely, companies’ involvement in economic CSR does not suggest a higher propensity for social responsibility.Research limitations/implicationsThe predictive outcomes of CSR expectations on corporate reputation can reveal situated understanding of actual perceptions of corporate behavior.Practical implicationsEthical business conduct is synonymously associated with social responsibility while espoused corporate philanthropy signals strong financial performance. The awareness of consumers’ cognitive evaluation of corporate reputation can offer a pathway to corporate communication professionals, policy makers and agencies to rethink and reposition CSR efforts.Social implicationsInsensitivity to taken-for-granted cultural prescriptions and reliance on market-based reputational rankings undermine mutually beneficial stakeholder relationships and the social license to operate.Originality/valueThis study brings to the fore, cognitively dominated indicators of consumers’ perceptions of the reputation for CSR, to foster nuanced and halo-removed approaches to social responsibility. The authors show for the first time how companies’ skewed focus on corporate philanthropic giving paradoxically signals a capitalistic notion of social responsibility and unethical business conduct. This study offers a halo-removed orientation to the appraisal of CSR and corporate reputation.

DAMPAK KEBERHASILAN CORPORATE SOCIAL RESPONSIBILITY (CSR) PT. ASTRA INTERNASIONAL TERHADAP KESEJAHTERAAN MASYARAKAT

Corporate Social Responsibility (CSR) is a company's commitment to participate in economic Corporate Social Responsibility (CSR) is a company's commitment to participate in economic development that adjusts the achievement of economic performance with social and environmental performance. CSR is expected to have an impact on the welfare of the community after receiving the program from the company. Tanon Hamlet, Ngrawan Village is one of the recipients of the CSR program of PT. Astra International through the Kampung Berseri Astra (KBA) program. From the observations, the CSR program has had an impact on the community. However, there is no research that proves the truth. This study aims to: 1) knowing the implementation of the CSR program provided by PT. Astra International towards the whole community and village government. 2) knowing the impact of the CSR program of PT. Astra International towards the welfare of society. This type of research is descriptive qualitative. Data were obtained by conducting in-depth interviews with KBA managers, village heads, and communities receiving CSR programs. Test the validity of the data using technical triangulation and source triangulation. The results showed that the implementation of CSR consisted of Stage I, Stage II, Stage III, Stage IV, Stage V and 4 pillars consisting of: pillars of education, pillars of health, pillars of environment and pillars of entrepreneurship and evaluation; evaluation and rewards. In the implementation, it has fulfilled the triple bottom line concept. CSR PT. Astra International has a positive impact on people's welfare.

The interplay between corporate social responsibility and knowledge management strategies for innovation capability development in dynamic environments

PurposeThis paper aims to analyze unexplored connections between economic, environmental and social dimensions of corporate social responsibility (CSR) and knowledge management (KM) strategies (exploration, exploitation), also considering environmental dynamism as an influencing variable on these connections. The predicted CSR-KM interplay suggests, from stakeholder and knowledge-based views of the firm, the existence of ideal configurations between CSR and KM strategies that generate differentiated impacts on companies’ innovation capabilities, especially in dynamic environments.Design/methodology/approachStructural equation modeling by means of the partial least squares technique was used to test the study’s hypotheses after collecting survey data from Spanish companies of the renewable energy sector.FindingsThe study findings show that in highly dynamic environments, companies will tend to commit prominently in CSR, although their orientation (economic, environmental, social) and effects on innovation capabilities will depend mainly on the selected KM strategies. Social and environmental CSR are found to be highly related to KM exploration, whereas economic CSR is highly related to KM exploitation. Nevertheless, while a significant indirect effect of economic CSR by means of the KM exploitation strategy on innovation capabilities is found, the proposed indirect effect of both environmental and social CSR through the KM exploration strategy on innovation capabilities is not significant.Practical implicationsThe results suggest that company managers should be aware of the advantages of following specific paths of investment in KM and CSR initiatives in highly dynamic environments, as there is a potential payoff in terms of innovation capability improvement. The results also suggest that “good” relationships with stakeholders, built from specific CSR investments, make firms able to get valuable knowledge that it is useful to develop KM strategies for innovation capability development.Originality/valuePrevious studies do not consider the interplay between KM strategies and CSR as a catalyzer for developing a firm’s innovation capabilities. This paper contributes to the KM and innovation literatures by introducing CSR into the conversation about how to improve innovation capabilities in dynamic and sustainable industries by using configurations of KM strategies and specific CSR investments in economic, social and environmental areas.

The Influence of Disclosure of Corporate Social Responsibility (CSR) on Company Value with Investor’s Attention as Intervening Variable (Empirical Study on Infrastructure Companies Listed on the Indonesia Stock Exchange 2018 - 2020)

This study aims to examine the effect of Corporate Social Responsibility (CSR) disclosure on firm value with investor's attention as an intervening variable in infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) in 2018-2020. The value of the company in this study is calculated by the company's stock return. With more information provided by the company, it will attract investors' attention and will reduce information asymmetry. The population in this study was taken from companies listed on the Indonesia Stock Exchange (IDX) in the Infrastructure sector in 2018-2020. Sampling was taken using purposive judgment sampling method which finally found 18 of the 71 companies listed on the IDX website. The analytical tool used is partial regression analysis (Partial Least Square/PLS). Resulting that social Corporate Social Responsibility (CSR) disclosure has a positive and significant influence on the value of the company while the disclosure of Corporate Social Responsibility (CSR) economy and environment has a negative effect on the value of the company, and the disclosure of corporate social responsibility (CSR) economically, socially and environmentally has a negative effect on the value of the company with investor's attention as an intervening variable.Keywords:Disclosure of Corporate Social Responsibility (CSR), Company Value, Investor's Attention, Economic CSR, Environmental CSR, Social CSR.

The mediating role of organizational identification between corporate social responsibility dimensions and employee opportunistic behavior: Evidence from symmetric and asymmetric approach triangulation

ABSTRACT Hospitality studies on corporate social responsibility (CSR) have largely examined its role in stimulating positive behaviors but overlooked its role in preventing negative behaviors among employees. Drawing from social identity theory, the present study addresses this gap by investigating four CSR dimensions’ impact on employee opportunistic behavior. The joint use of covariance-based structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) supported examining the research model. Using two-wave data from 281 U.S. hospitality employees, SEM findings reveal that legal and philanthropic dimensions of CSR serve as a valuable shield against opportunistic behavior. Moreover, organizational identification (OI) fully mediates the effects of economic, legal, and ethical CSR on opportunistic behavior, whereas philanthropic CSR exerts no effect through OI. This study advances CSR studies by examining the CSR–opportunistic behavior nexus using combined symmetric and asymmetric approaches. FsQCA findings make a methodological contribution to the net effects of CSR, by determining two configurations that explain opportunistic behavior.

Corporate social responsibility and green behaviour: Towards sustainable food‐business development

AbstractLiterature in the field of corporate social responsibility (CSR) has mainly focused on customers, particularly on their loyalty, behavioural intent and satisfaction. That is, the effectiveness of CSR dimensions has been less considered by scholars. Hence, this research strives to explore the effect of CSR dimensions on the green behaviour among employees of food businesses in Iran. In this vein, the mediating role of green trust and the moderating role of gender in the relationship between the CSR dimensions and the green behaviour of employees have been investigated. The samples of this research included 415 employees of food businesses and companies in Iran. The findings reveal that the CSR dimensions (economic CSR, ethical CSR and philanthropic CSR) directly and indirectly—through the mediating variable of green trust—played an important role in shaping the green behaviour of employees. In this study, the direct and indirect effects of legal CSR on green behaviour among employees were not confirmed. Furthermore, the results represent that the gender variable moderates the effect of the CSR dimensions on the green behaviour of employees, highlighting that economic CSR and ethical CSR played a prominent role in shaping the green behaviour of respectively males and females. In addition, the theoretical and practical implications of the research discussed the impact of green behaviour on producing environmentally friendly products in order to sustainable development in the food business.

Women directors, educational background and firm value of Spanish listed companies

PurposeThis study aims to evaluate changes in the presence of women on Spanish boards after the Unified Good Governance Code of Listed Companies (2006) and the Organic Law 3/2007 on Gender Equality, and this study compares the educational background of women and men directors. Also, this study analyses the influence of gender diversity and educational background of women directors on economic performance, corporate social responsibility (CSR) and, ultimately, firm value. In addition, this study explores the differences in board gender composition and its effect on firm value during the crisis and post-crisis periods. Finally, this study analyses the different influence of women directors depending on their typology.Design/methodology/approachThis study uses a system of structural equations and a sample of 4,101 directors of 30 Spanish companies listed on IBEX-35 over 2008–2017.FindingsThe results show that women’s presence on boards has grown since 2008, and they have higher educational background than men. This study finds that women directors improve economic performance and CSR, though results are non-significant for firm value. Women directors with a bachelor’s or master’s degree increase economic and social performance but reduce firm value. Women directors with business or industry-related studies positively influence CSR but business specialisation negatively affects economic performance and firm value.Originality/valueThis study analyses the direct and indirect effect of women directors on firm value, the influence of their educational background and the potential differences arising from the economic situation (crisis) and the type of board position they hold.

Research on the Influence of Network Position on Corporate Social Responsibility: Moderating Effect Based on Ownership Concentration.

Based on the social network theory and the institutional theory, this study examines the influence of corporate network position on corporate social responsibility (CSR), and further explores the moderating role of ownership concentration. Given the characteristics of CSR in different aspects, this study explores the relationship between corporate network position and economic CSR, environmental CSR, and social CSR from the two aspects of the centrality and structural holes of interlocking directorate network based on the data of 1,034 Chinese A-share listed companies from 2010 to 2019. The results show that the centrality and structural holes of interlocking directorate network have positive effects on the overall level of CSR, and the impacts on economic CSR and environmental CSR are stronger than that on social CSR. In addition, ownership concentration has a positive moderating effect on the relationship between corporate network position and CSR. These findings enrich the depth of research on CSR, clarify the influence of the characteristics of interlocking directorate network on CSR in different dimensions, and supplement the knowledge of existing research.

The influence of corporate social responsibilities on sustainable financial performance: Mediating role of shared vision capabilities and moderating role of entrepreneurship

AbstractThis study examined the roles of economic, social, and environmental proactive corporate social responsibility (CSR) on sustainable financial performance among small and medium‐sized enterprises (SMEs) in China. The study also explored the moderating role of entrepreneurship and mediating role of shared vision capabilities in the relationships between economic, social, and environmental proactive CSR and sustainable financial performance for SMEs in China. This quantitative study used questionnaires to collect data from respondents. The PLS‐SEM method was used to analyse a sample of 490 Chinese SMEs in the manufacturing sector. The results indicated that economic, social, and environmental proactive CSR were positively associated with sustainable financial performance. The results also showed that shared vision capabilities positively mediated the relationships between economic, social, and environmental proactive CSR and sustainable financial performance. Entrepreneurship significantly moderated the relationships between economic and social proactive CSR and sustainable financial performance. The findings of this study are suitable for policymakers when developing policies related to CSR, entrepreneurship, and sustainable financial performance.

The Impact of Corporate Social Responsibility Performance on Competitive Advantage and Business Success

This study investigates how types of corporate social responsibility (CSR) practices (economic, legal, ethical, philanthropic, and environmental) affect competitive advantage and business success in an emerging country. Data were collected by surveying 869 respondents from manufacturing, real estate, trade, and service sectors. The data analysis applied partial least square structural equation modeling. The results showed that ethical, legal, and philanthropic CSR initiatives have a positive effect on competitive advantage. Economic CSR practice is the only factor that affected both competitive advantage and business success. The competitive advantage also directly affected business success. Environmental CSR practice did not show a significant relationship with competitive advantage or business success. The findings of this study may be beneficial in informing managers’ decisions on CSR investment to gain competitive advantage, and in turn, business success in a developing context.

Lord, please save me from my sins! Can CSR mitigate the negative impacts of sharing economy on consumer trust and corporate reputation?

The explosive growth of Airbnb not only provides travelers with novel accommodation experiences at prices that suit their budget, but also challenges the existing regulatory and market structures. While Airbnb with its distinct peer-to-peer (P2P) accommodation business model is considered a disruptive innovation in the hospitality industry, little is known about its negative side. This gap in extant literature has motivated the present study, aiming to establish whether the negative aspects of Airbnb undermine consumers' overall trust in the company and its corporate reputation, and whether this link is moderated by corporate social responsibility (CSR). Data required to answer these questions was collected via a survey in which 348 potential Airbnb users in Taiwan, selected using a nonprobability purposive sampling technique, took part. Partial least squares-structural equation modeling (PLS-SEM) was employed to analyze the data. The results indicate that consumers' overall trust in Airbnb is negatively affected by various factors, ranging from legal, regulatory, and taxation issues to fake reviews/listings. The moderation analysis findings further reveal that, while the overall trust−corporate reputation link is strengthened by the environmental and philanthropic CSR, it is weakened by economic CSR, which can lead to unfavorable consumer attitudes and behavioral intentions.

Implementation of Corporate Social Responsibility Strategy to Enhance Firm Reputation and Competitive Advantage

Corporate social responsibility (CSR) is an important strategy for firms to gain a positive reputation. This study aims to identify the mediating role of firm reputation on the relationships of CSR dimensions (economic, legal, ethical, philanthropic and environmental) and competitive advantage, and how a firm directly gains competitive advantage through CSR implementation. Data were collected by surveying 869 managers, as representatives of small and medium enterprises, and large enterprises, in the trade and service, real estate and manufacturing sectors in Vietnam. Then, SmartPLS 3.0 software and the partial least squares structural equation modelling method were used to process the data and test the hypotheses. The empirical results are impactful and enhance the existing literature on strategic management. The results show that implementing environmental, ethical, philanthropic and legal CSR activities contribute positively to increase the firm reputation and thus generating competitive advantage. The findings indicate that the implementation of economic CSR activities does not enable firms to gain a reputation. In contrast, active involvement in environmental CSR activities results in building firm reputation, thereby creating a source of competitive advantage for firms. The study provides guidelines for top-level management to adjust their CSR strategies more effectively to improve reputation and competitive advantage.

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.