Effect Of Corporate Social Responsibility Research Articles

The effect of CSR and corporate ethical behavior on implicit cost of equity: the mediating role of integrated reporting quality

Purpose The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using integrated reporting quality (IRQ) as a mediating variable in European companies belonging to the environmental, social and governance (ESG) index. Design/methodology/approach The authors use a panel data set of 540 European firms from the ESG index from 2013 to 2022. The data were collected from I/B/E/S and Thomson Reuters ASSET4 database and analyzed using the structural equation model to test hypotheses. Findings In the instance of ESG European firms, the findings indicate that CSR practices and corporate ethical behavior are negatively related to the COE. From the result of the Sobel test, this study indicated that IRQ has only indirect mediation on the relationship between CSR, ethical behavior of the company and implicit COE. Practical implications The findings have some policy and practical implications that may help regulators and managers in improving the COE and helping companies envision their future growth opportunities in a context where responsibility, ethics and disclosure are central to corporate valuation. Using the implicit COE is a better estimate of shareholder requirements in the context of ESG companies. Originality/value This research concentrates on ESG companies since they are more likely to contribute to environmental protection, which attracts responsible investors. Furthermore, the findings may be useful to worldwide managers and investors who use responsible practices as a criterion in their decision-making.

Linking corporate social responsibility to organizational commitment: the role of employee job satisfaction

Purpose This study aims to examine the impact of an organization’s internal and external corporate social responsibility (CSR) initiatives on employee job satisfaction and organizational commitment. Design/methodology/approach Drawing on the social identity perspective, the authors proposed and tested a mediation model to understand the psychological mechanisms underlying the effects of CSR. The study sample comprised 263 employees from Italian manufacturing firms. Findings Our findings indicate that external CSR orientation is positively associated with employee job satisfaction and organizational commitment. Furthermore, the mediating effect of job satisfaction partially explains the positive relationship between external CSR orientation and organizational commitment. Moreover, we found that the positive impact of external CSR on employee outcomes is strengthened when combined with internal CSR. Practical implications This research has practical and theoretical implications for organizations seeking to enhance employee engagement and commitment through CSR initiatives and sheds light on how CSR can shape employee attitudes and behaviors toward the organization. Originality/value This study brings a novel contribution to the field by examining the impact of both internal and external CSR initiatives on employee job satisfaction and organizational commitment.

Corporate social responsibility and labor investment efficiency: evidence from China

PurposeWe expect to provide a complete theoretical framework and large sample evidence on the impact of corporate social responsibility (CSR) on the efficiency of labor investment. We also hope to provide micro-evidence based on labor investment behavior for the two-sided impact of corporate CSR behavior.Design/methodology/approachThis paper measures labor investment efficiency by estimating the difference between actual and expected net hiring of enterprises. CSR is measured on the basis of the CSR score of Chinese listed companies published by Hexun.com. A regression model is constructed to analyze the relationship between CSR and labor investment efficiency. Possible endogeneity problems are controlled by lagging independent variables, propensity score matching method and difference-in-difference method.FindingsResults show that CSR can improve labor investment efficiency by reducing over-hiring and under-hiring in emerging markets. The existence of the mediating effect of agency cost, information disclosure quality and employment fluctuation confirms that CSR improves labor investment efficiency through two mechanisms of corporate governance and labor market friction. The improvement effect of CSR on labor investment efficiency is more significant in non-state-owned, high CEO shareholding ratio and high-average urban wage enterprises.Originality/valueIn conclusion, our study is an important supplement to the existing research on the factors affecting labor investment efficiency. Our research conclusions will be helpful for enterprises in developing countries or enterprises in labor-intensive industries to improve labor investment inefficiency. The conclusion of the mechanism analysis in this paper provides more complete and reliable microscopic evidence for accurately identifying the specific path of CSR's impact on labor investment efficiency. This paper verifies the positive impact of CSR from the perspective of labor investment efficiency in the context of a developing country, which provides evidence for the theoretical conflicts related to CSR based on the effectiveness of enterprise labor investment decisions.

Connecting the dots: A systematic review of corporate social responsibility, information asymmetry, and economic implications

AbstractThis paper conducts a comprehensive review of the theoretical and empirical connections between Corporate Social Responsibility (CSR), Information Asymmetry (IA), and their economic consequences. It employs a bibliometric analysis on 73 Web of Science manuscripts using VOSviewer1.6.18 software, combining this analysis with a literature review. The results reveal four thematic areas categorized into three clusters: CSR and IA, the impact of CSR and IA on internal risk control and corporate performance, and the broader effects of CSR and IA. The systematic literature review finds a prevailing consensus that CSR can alleviate IA issues, leading to positive economic outcomes like increased stock liquidity, enhanced investment efficiency, and reduced cost of capital. This study's uniqueness lies in its integration of bibliometric analysis and systematic literature review to provide a holistic summary of both theoretical frameworks and the economic implications of the CSR‐IA relationship. It offers valuable insights and recommendations for future research in this field.

CSR Disclosure and Bank’s Financial Performance Nexus: Evidence from Pakistan.

Present research intends to evaluate the nexus among the corporate social responsibility (CSR) disclosure and financial effectiveness of banking industry in Pakistan. This investigation applies a quantitative research approach using panel data from a sample of Pakistan’s commercial banking institutions over timeframe limited from 2009 to 2020. The outcomes of mixed effect model visualize that there is inverse significant association among CSR disclosure ROE. Whereas no statistically significant linked in the context of short-term financial performance, by using a proxy of ROA. The results suggesting that the focus on CSR events and initiatives may have a detrimental effect on financial effectiveness. It is generally acknowledged that CSR offers numerous non-financial benefits, such as enhancing social media campaigns and luring ethical investors from both domestic and foreign markets. In developing countries context (i.e., Pakistan), we can conclude that the “cost of the CSR initiatives” and “shift of focus view” can affect the performance of banking industry. The lack of a positive correlation among corporate social responsibility (CSR) and financial performance in the Pakistani financial services sector can be attributed to a lack of interest and engagement in socially conscious investing. These findings indicate that the adoption of socially responsible investment has not gained significant cultural traction in Pakistan. The results emphasize the importance of banks, regulators, and stakeholders reassessing the balance between social responsibility and financial performance, considering the possible negative consequences of revealing CSR initiatives.

The Role of Purchase Intention on the Effect of Company Image, CSR, Promotion and Brand Image on Tokopedia Purchase Decisions in Surabaya and Sidoarjo

Online shopping marketing strategy requires some efforts for increasing the purchasing decision by the customers. Therefore, understanding the factors which affect such purchasing decision if important. This study explores the effects of company image, Corporate Social Responsibility (CSR), promotions, and brand image on purchasing decision. The data were collected from 123 respondents from the customers of Tokopedia online business in Sidoarjo and Surabaya, Indonesia. The data were analyzed using structural equation modelling techniques (SEM-PLS) using Warp-PLS., It was found that both company image and CSR significantly influence purchasing decisions, while promotions do not exhibit a significant effect. Brand image also emerged as a significant positive influences on purchasing decisions. Additionally, the study investigated the mediating role of purchase intention in these relationships. It was revealed that purchase intention partially mediated the influence of promotions and brand image on purchasing decisions but did not mediate the effects of company image and CSR. The discussion further underscores the significance of company image and CSR in shaping purchasing decisions, aligning with prior research. However, discrepancies with previous studies were acknowledged, suggesting avenues for further exploration.. Suggestions for future research include conducting studies with larger and more diverse samples, employing longitudinal designs to track evolving consumer behavior, and exploring additional variables such as pricing strategies and customer service.

Market penalty, collective punishment, and buffering: A study on the insurance‐like effect of CSR in environmental violations

AbstractWhile the existing literature finds that corporate social responsibility (CSR) can provide insurance‐like protection in negative events, it remains unclear how CSR buffers firms from market penalties for negative events. To address this concern, we conduct event studies and regressions using data from the environmental violations by Chinese publicly traded companies and their interlocked companies from 2009 to 2021. Our results show that the market reacts negatively to environmental violations. The market penalty diffuses through director networks and leads to the collective punishment of interlocked firms. CSR has an insurance‐like effect that buffers market penalties and collective punishment for environmental violations. Long‐term CSR has a stronger insurance‐like effect than short‐term CSR. Additionally, the insurance‐like effect of CSR still exists during repeated environmental violation events. This paper contributes to the literature on the insurance‐like effect of CSR and provides a reference for corporate CSR practice and investors' CSR decisions.

Corporate Social Responsibility: Impact on Firm Performance for an Emerging Economy

Corporate Social Responsibility (CSR) was usually referred to as a concept where companies initiate voluntary action towards social and environmental concerns in the context of business operations related to the stakeholders of the company prior to the CSR Act 2013 in India. Post-2013, the voluntary initiative was replaced by regulatory guidelines to address social and environmental concerns. The CSR applicability–investment gap was used as a base concept in this study with instrumental theory; the study offers a strategic perspective of CSR and how organizations emphasized maximizing stakeholders’ value. In order to further investigate the effect of CSR on corporate financial performance (CFP) through the measure of shareholders’ value, i.e., the return on equity (ROE), the study used the sample from the National Stock Exchange (NSE)-Nifty-100 indexed companies of Emerging Economy—India for a span of fourteen years (2009–2023). The vast majority of research in this domain is conducted in developed countries; the research gap is filled by this study by considering India and drawing samples from multiple industries. The empirical model was developed by using panel data regression, where the dependent variable was ROE, and the independent variables were earning per share (EPS), log total income (LTI), CSR applicability/profit after tax (CRSAPPPAT), and CSR investment/profit after tax (CSRIPAT). The findings also highlighted the CSR applicability and investment of the firms during pre- and post-Sustainable Development Goal (SDG) periods. The same was also analyzed for the firms committed to CSR and not committed to CSR. The results indicated that there is no significant impact of the CSR/ESG initiatives (applicability and investment) on the ROE of the firms. The performance could be better if the companies minimize the CSR/ESG promise–performance gap through effective communication with stakeholders.

Corporate violations and bank debt cost: The insurance effect of corporate social responsibility

AbstractIn enhancing oversight within China's capital markets, it has become imperative to investigate the economic ramifications of corporate transgressions in the banking sector. This study applied the tenets of the insurance effect theory to scrutinize the transmission mechanism delineating the impact of corporate violations on bank debt costs, with a specific focus on the ameliorative role played by corporate social responsibility (CSR). The findings underscored a positive correlation between corporate violations and bank debt costs, while CSR emerged as a mitigating factor in this relationship. Notably, organizations demonstrating proactive engagement in CSR activities exhibited a capacity to attenuate the adverse influence of violations on bank debt costs. However, it was discerned that the insurance effect of CSR diminished when companies recurrently breached regulatory norms. These outcomes contribute substantively to fortifying capital market supervision, urging enterprises to conscientiously fulfill their social responsibilities to engender a more cautious approach from financial institutions.

Corporate social responsibility and corporate fraud: The mediating effect of analyst attention

This article delves into the relationship between corporate social responsibility (CSR) and corporate fraud from the perspective of analyst attention. By selecting listed companies as research samples, the regression results demonstrate that the manifestation of CSR inhibits the occurrence of corporate fraud, reducing both the tendency and intensity of fraud. Analyst attention plays a partial mediating role in this inhibitory mechanism. Heterogeneity tests further reveal that the inhibitory effect of CSR is more pronounced in state-owned enterprises. Endogeneity tests further validate the robustness of the regression results.

Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management

The management and marketing literature has increasingly emphasized the significance of corporate social responsibility (CSR) in determining company performance over the past few decades. While there is growing recognition of the potential impact of CSR initiatives on business outcomes, there remains a lack of consensus on the specific mechanisms through which CSR influences performance. This ambiguity underscores the need for further research to elucidate the relationship between CSR and business performance. Our research seeks to address this gap by examining the role of CSR-based human resource management as a potential mediating factor in this relationship. This focus is particularly pertinent given the pivotal role that employees, as key stakeholders, play in shaping organizational outcomes. By analyzing data from a sample of small and medium-sized manufacturing companies using partial least squares structural equation modelling (PLS-SEM), we found evidence supporting the hypothesis that CSR initiatives can positively impact business performance. Importantly, our findings suggest that the effectiveness of a company's CSR strategy in enhancing performance may be contingent upon the extent to which these initiatives are geared towards improving human resource management efficiency. In conclusion, current study contributes to the evolving understanding of the complex interplay between CSR and business performance, highlighting the critical role of human resource management practices in mediating this relationship.

The evolution of CSR reporting in the oil and gas industry and its future direction: A conceptual review

Corporate Social Responsibility (CSR) reporting has become increasingly important for industries worldwide, particularly in sectors with significant environmental and social impacts such as the oil and gas industry. This paper presents a conceptual review of the evolution of CSR reporting within the oil and gas sector, examining its historical development, current practices, and future directions. The evolution of CSR reporting in the oil and gas industry can be traced back to growing societal and stakeholder pressures for transparency and accountability. Initially, CSR reporting focused primarily on philanthropic activities and compliance with regulations. However, with mounting concerns over environmental degradation, climate change, and social justice issues, stakeholders demanded more comprehensive reporting practices. In response, oil and gas companies have adopted various frameworks and standards, such as the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs), to guide their CSR reporting efforts. These frameworks help companies disclose their environmental, social, and governance (ESG) performance in a systematic and comparable manner, enhancing accountability and facilitating stakeholder engagement. Looking ahead, the future direction of CSR reporting in the oil and gas industry is likely to be shaped by emerging trends such as increased emphasis on climate-related disclosures, integration of ESG factors into corporate strategy and decision-making, and the rise of digital technologies for data collection and reporting. Moreover, there is a growing recognition of the need for industry-wide collaboration and standardization to improve the credibility and effectiveness of CSR reporting. This conceptual review highlights the evolving landscape of CSR reporting in the oil and gas industry and underscores the importance of continuous improvement and innovation in meeting the evolving expectations of stakeholders and society.

CSR attribution: Is it the cornerstone of CSR success?

PurposeThe current study aims to propose and empirically investigate a conceptual model of the most relevant antecedents and consequences of Corporate Social Responsibility (CSR) attribution, thus providing a practical and concise model as well as examining brand attachment as a mediator explaining the relationship between CSR attribution and its consequences.Design/methodology/approachA between-subjects experimental design was employed. The study included two experimental conditions; intrinsic and extrinsic CSR attribution and a control condition. An online self-administered survey was utilised for data collection. The sample was a convenience sample of 336 university students. Both one-way between-groups ANOVA and Partial Least Squares-Structural Equation Modelling (PLS-SEM) were utilised for hypotheses testing.FindingsThe most significant antecedents of CSR attribution in order of importance are the firm's approach to CSR communication, past corporate social performance, CSR type and the firm's call for customers' participation in its CSR. CSR attribution exerted a significant direct positive impact on brand attachment and trust. Three significant indirect consequences of CSR attribution were PWOM intention, purchase intention and brand loyalty intention. Whereas trust played a significant mediating role between CSR attribution and its three indirect consequences, brand attachment exerted significant mediation only between CSR attribution and brand loyalty intention. Brand attachment might mediate the relationship between CSR attribution and purchase intention. However, brand attachment failed to play a mediating role between CSR attribution and PWOM intention.Originality/valueSeveral studies marginally investigated CSR attribution. Despite the vital role of CSR attribution in how consumers receive firms' CSR engagement, the availability of CSR attribution-centric studies is limited. By introducing a model of the most relevant antecedents and consequences of CSR attribution, this study aids in understanding the psychological mechanism underlying consumers' CSR attribution and provides valuable implications.

Driving employee organizational citizenship behaviour through CSR: An empirical study in the context of luxury hotels

In the recent years, there has been a rising interest among luxury brands to be environmentally responsible and promote employee discretionary behaviour. However, the underlying mechanisms that explain why, when, and how employees demonstrate discretionary environmental attitudes and behaviour in luxury contexts are not well-known. To accelerate this discourse; the current study examines the impact of environmental corporate social responsibility (CSR) on employees' organizational citizenship behaviour towards environment. Drawing insights from social cognitive theory, this study empirically validates a conceptual model through the data collected from 406 employees of luxury hotels and analysed using structural equation modelling. The results confirm the significant effect of environmental CSR on employees' organizational citizenship behaviour towards environment. The results also reveal that employee environmental commitment and green work engagement partially mediate the proposed relationship. Moreover, contrary to expectations, gender did not moderate the influence of environmental CSR on employee environmental commitment and employee green work engagement, whereas the relationship between environmental CSR and organizational citizenship behaviour towards environment was stronger for males than females. We argue that creative environmental CSR assignments in luxury hotel chains help employees develop engagement, identification, and commitment with the environmental strategy of the hotels towards solving grave environmental problems that modern societies are grappling with.

Exploring the Mediating Role of Organizational Commitment in the Relationship between Corporate Social Responsibility and Employee Performance: Evidence from Henan's Universities

Aims: This study aims to examine the mediating role of organizational commitment in the relationship between Corporate Social Responsibility (CSR) and employee performance within Henan's universities, highlighting the strategic importance of CSR in enhancing organizational effectiveness and employee outcomes. Study Design: This study utilized a cross-sectional survey methodology to explore the relationships among Corporate Social Responsibility (CSR), Organizational Commitment (OC), and Employee Performance (EP) within Henan's higher education sector. A stratified random sampling approach was employed to select faculty and administrative staff from universities engaged in CSR initiatives. The analysis, conducted through Structural Equation Modeling and mediation analysis, aimed to understand both direct and indirect effects of CSR on employee performance, with a particular focus on the mediating role of organizational commitment. Place and Duration of Study: Zhengzhou University, Henan University, Henan Normal University, Henan Agricultural University and Henan Polytechnic University, in December 2023. Methodology: The study adopted a quantitative research design using a cross-sectional survey method to explore CSR's impact on organizational commitment and employee performance in Henan's universities. A stratified random sampling strategy was utilized to select faculty and administrative staff from universities engaged in CSR, aiming for a sample size of 328 to ensure statistical significance. Validated scales measured CSR, organizational commitment, and employee performance, with data analysis conducted through Structural Equation Modeling and bootstrapping for mediation effects. Results: In this study, the impact of Corporate Social Responsibility (CSR) on Employee Performance (EP) and Organizational Commitment (OC) within Henan's universities was examined. Findings indicate that CSR positively influences EP both directly and via OC, serving as a mediator. Significant relationships were confirmed: CSR to EP (β=0.433), CSR to OC (β=0.825), and OC to EP (β=0.442), all highly statistically significant (p<0.001). Mediation analysis showed CSR impacts EP through OC, accounting for about 45.73% of the effect. This underscores CSR's dual role in enhancing performance directly and by fostering organizational commitment. Conclusion: This study not only underscores the pivotal role of Corporate Social Responsibility (CSR) in enhancing employee performance within Henan's universities but also sheds light on the crucial mediating role of Organizational Commitment (OC). The dual pathway through which CSR influences employee performance underlines the significance of integrating CSR into the core strategic management practices of educational institutions. It signals to university administrators and policy-makers that CSR initiatives are not just external obligations but essential strategies for cultivating a committed and high-performing workforce. This realization opens up avenues for universities to re-evaluate and strengthen their CSR strategies, ensuring they are aligned with both organizational goals and employee values. Moreover, it encourages educational institutions to view CSR as a lever for organizational improvement and a bridge to deeper engagement with employees, ultimately contributing to the advancement of educational quality and societal contributions.

Walking the Walk: Corporate Social Responsibility and Product Recalls in the Automotive Industry

Purpose: The purpose of this paper is to disentangle a unique way in which corporate social responsibility (CSR) affects firm value in the context of product recalls in the automotive industry.
 Methodology: Using a sample of product recall events in the automotive industry between 2002 and 2018 and controlling for the spread of product recalls across product lines, this study explores the underlying economic channels through which CSR improves investments in quality. For robustness check, self-selection bias is corrected for using a 2SLS approach and alternative measures for product failures and CSR.
 Findings: The authors find that firms with higher CSR scores are associated with a lower frequency of recalls. Moreover, higher CSR scores are associated with a higher likelihood of voluntary recalls, higher product quality, higher capital expenditures, and higher employee productivity.
 Unique Contribution to Theory, Practice, and Policy: This study offers insights to managers, investors, and board members, showing the potential benefits of engaging in CSR activities. This study contributes to the literature on the effect of CSR on different managerial decisions and the factors that affect product recalls. Additionally, the study reveals the connection between CSR and product recalls.

Moderating effect of CSR on the Direction and Strength of the Relationship between Corporate Governance Mechanism and Integrated Reporting Quality: An Evidence from India

Grounding upon the perspective of agency theory, the current study intends to inspect the association between Governance Practices of Companies, in the form of board attributes and Quality of Integrated Reporting among selected listed Indian companies. Further the study also aims to evaluate, whether the association between the board’s attributes and IR quality is moderated by the Corporate Social Responsibility (CSR). For the purpose of testing hypothesis, the study has considered a sample of 25 top Indian corporates of energy industry listed in the BSE-500 group. The period of the study extends from 2017-18 to 2021-22. Pooled OLS regression analysis is used to test the impact of corporate governance practices on the IR quality and evaluate if CSR moderates the strength and direction of their relationship. To ascertain the IR disclosure score of the sample companies, a checklist is developed built on IR Framework devised by the International Integrated Reporting Council (IIRC) and the technique of visual content analysis is applied. Further board size, firm size, leverage, ROE, ROA, Market to Book value ratio are considered as the control variables to strengthen the panel data model. The study found that board characteristics had a positive relationship with IRQ. It is also revealed that CSR positively moderates the association between Corporate Governance mechanism and IRQ. The significance of Corporate Governance in the process of managerial decision making is the major theoretical development of this research.

Why are enterprises willing to assume social responsibility? Answers from the perspective of innovation

Previous studies have examined the innovation effect of corporate social responsibility (CSR) by measuring R&D investment or patent output, and there are still different opinions. Using the data of Chinese listed companies, we analyse the influence of CSR on innovation and its mechanism. We find that the active fulfillment of CSR is beneficial to the improvement of the scale and quality of innovation. The mechanism test shows that undertaking more CSR enables enterprises to obtain more financial subsidies, which promotes the improvement of innovation scale and quality. In addition, media attention reinforces the innovative effect of CSR. Heterogeneity research shows that for non-state-owned enterprises (non-SOEs) and enterprises located in areas with imperfect market mechanisms, actively assuming CSR is conducive to improving innovation performance. However, for SOEs and enterprises located in areas with mature market mechanisms, the innovative effect of CSR is not significant.

The Influence of Good Corporate Governance and Disclosure Corporate Social Responsibility towards Mining Sector Company Value

This study aims to determine and explain the effect of GCG and CSR on firm value. The population of this study was all mining companies listed on the Indonesia Stock Exchange for the 2016-2019 period as many as 47 companies. The sample in this study was 16 companies. The sampling technique was purposive sampling. The data analysis technique in this research was Partial Least Square (PLS). The results show that (1) Good Corporate Governance (GCG) has an insignificant and negative effect on firm value, (2) Corporate Social Responsibility (CSR) has a significant effect but negative coefficient on firm value, (3) Good Corporate Governance ( GCG) and Corporate Social Responsibility (CSR) simultaneously have a significant and positive effect on firm value.

How Corporate Social (Ir)Responsibility Influences Employees’ Private Prosocial Behavior: An Experimental Study

AbstractThe micro-level corporate social responsibility (CSR) literature has broadly demonstrated the effects of CSR on employees’ behavior but has mostly been limited to employees’ behavior within the work domain. This business-centered focus overlooks the potential of organizations to change employees’ private social and environmental behavior and thus to address grand societal challenges. Based on the social psychology literature on moral consistency and moral balancing, we conduct three experiments to investigate whether employees’ private prosocial behavior is consistent with their organization’s corporate social (ir)responsibility or whether employees aim to balance their private prosocial behavior, e.g., by compensating for their organization’s CSR activities with a reduced willingness to contribute outside the work domain. Our results provide support for a consistency effect such that employers’ environmental CSR activities increase employees’ donations and willingness to volunteer outside work. Environmental corporate social irresponsibility activities, on the contrary, reduce employees’ private donations and willingness to volunteer. We further find that the positive effects of environmental CSR are partly explained by the strengthening of employees’ environmental self-identity. Our findings highlight that organizational activities have consequences for employees’ moral behavior outside the work domain and thus have important implications for research and practice.