Effect Of Corporate Social Responsibility Research Articles

How does corporate social responsibility contribute to innovation performance? The moderating role of social media strategic capability and big data analytics capability

PurposeThe purpose of this study is to investigate the impact of corporate social responsibility (CSR) on innovation performance and examine the moderating role of social media strategic capability and big data analytics capability. Specifically, the authors explore the effects of both external and internal CSR on innovation performance.Design/methodology/approachThe authors collected data from 221 senior, middle and research and development (R&D) managers of high-tech firms in China, using a questionnaire survey with a six-month interval.FindingsThe empirical results show that both external and internal CSR positively influence innovation performance. Furthermore, social media strategic capability has a positive moderating effect on the relationship between CSR and innovation performance, while big data analytics capability moderates the relationship between external CSR and innovation performance.Research limitations/implicationsThe data comes from high-tech firms in China, which may limit the generalizability and external validity of the findings. Future studies should replicate this study in other industries and types of organizations.Practical implicationsThe study suggests that high-tech firms should engage in both external and internal CSR activities to promote innovation performance. Moreover, leveraging social media strategic capability and big data analytics capability can enhance innovation performance.Originality/valueThis study contributes to the literature on CSR outcomes by empirically exploring the effects of external and internal CSR on innovation performance, thus extending stakeholder theory. Additionally, by revealing the contingency effects of social media strategic capability and big data analytics capability, this study enriching the research on dynamic capabilities theory in the context of digital transformation.

Losing the meaning of being a socially responsible service worker: Moderating effects of customer and coworker incivility

This study investigates how a service company's corporate social responsibility (CSR) activities enhance frontline service employees' (FSEs) job performance and the contextual variables that moderate the effect of CSR on FSEs. It is proposed that FSEs' perceptions of their company's level of CSR involvement, called CSR perceptions, positively affect their customer orientation and job performance. It is also suggested that two types of harmful workplace contexts—customer and coworker incivility—reduce the positive impact of CSR perceptions. Three-month time-lagged data collected from 435 frontline employees in 21 hotels in South Korea showed that FSEs' CSR perceptions lead to higher levels of customer orientation and supervisor-rated job performance. It was also shown that customer incivility moderates the positive effect of CSR perceptions but coworker incivility does not. These results suggest that negative experiences related to customers decrease the positive effect of CSR more than those related to the workplace atmosphere or culture. Further, the theoretical and practical implications of the results are discussed.

Board cultural diversity and bank social performance: The mediating role of corporate social responsibility strategy

AbstractThe study investigates how board cultural diversity (BCD) affects bank stakeholder engagement through improved corporate social performance (CSP) and whether banks' corporate social responsibility (CSR) strategy mediates the relationship between BCD and banks' social performance. Adopting an international sample of 379 banks from 2010 to 2019, we found that BCD improves engagement in socially responsible issues in the banking sector. Moreover, we show a mediating role of strategic CSR on the relationship between BCD and banks' social performance. Hence, we contribute to the research on the role of corporate governance mechanisms as drivers of CSR engagement. Furthermore, based on the mediation effect of strategic CSR, we advance the discussion on the link between BCD and banks' social performance. Our findings provide implications for banks and policy‐makers, indicating the opportunity to promote cultural diversity, which supports socially responsible banking, while a CSR strategy positively impacts the stakeholder approach in the banking industry.

The two sides of corporate social responsibility and the quality of internal control audit opinions

Although corporate social responsibility (CSR) activities provide a strong signal of management integrity, the involvement of the client in irresponsible CSR should alert the auditor to the risk of material misstatement. Framing management integrity assessments by relying on responsible CSR activities can lead to auditors' unintended alignment with their clients' preferred outcomes. Motivated by the increasing frequency of clean internal control opinions (ICOPs) regarding clients that subsequently misstate, we explore whether auditors' overreliance on responsible CSR influences the quality of ICOPs. We find that clients' CSR involvement is associated with fewer adverse ICOPs, but this CSR effect is asymmetric because it is only explained by responsible CSR activities and not by irresponsible CSR activities. Importantly, the ‘good side of CSR’ is associated with fewer adverse opinions being issued to misstated clients. Additional analyses show that only irresponsible CSR activities increase the risk of financial misstatements. Our findings provide support for the Public Company Accounting Oversight Board's warning that certain conditions inherent in the audit environment, such as the assessment of management integrity, can lead to auditors unconsciously favouring confirming evidence (represented by responsible CSR activities) instead of relying on disconfirming evidence (represented by irresponsible CSR activities) that could raise issues about management's integrity and ethical commitment.

Developing the interconnection between green employee behavior, tax avoidance, green capability, and sustainable performance of SMEs through corporate social responsibility

Small and medium-sized enterprises (SMEs) are essential to any economy, as they contribute significantly to the gross domestic product (GDP) and create jobs. Nonetheless, the negative environmental impact of SMEs draws attention to the sustainability of SMEs. In order to achieve sustainable performance, businesses must possess a combination of factors that confer a competitive advantage and facilitate the attainment of objectives that culminate in a triple-bottom-line performance. Although prior research has identified the effects of employee behavior and corporate social responsibility (CSR) on firm performance, less is known about the effects of green employee behavior (GEB), green capability (GC), and CSR (to the community – to the environment) on sustainable firm performance (SFP). Current research bridges the literature gaps by answering how GC, GEB, and tax avoidance (TA) in SMEs correlate to achieving SFP. The study utilized a sample of 375 small and medium-sized textile enterprises in Pakistan and employed partial least square structural equation modeling (PLS-SEM) to analyze the data. The findings suggest that the relationship between corporate social responsibility (CSR) and sustainable firm performance is mediated by green capability. Additionally, corporate social responsibility to the environment does not influence the link between tax avoidance and sustainable firm performance, which still does not shadow the importance of tax avoidance and requires serious attention from the management.

The impact of CSR and corporate ability on purchase intention in e-commerce websites: an examination across genders

ABSTRACT This study aims to investigate the impact of corporate social responsibility (CSR) and corporate ability (CA) on customer purchase intention on e-commerce websites. Also, the effect of trust as a mediator between CSR-purchase intention and CA-purchase intention relationships is examined. Finally, the role of gender as a moderator in the relationships between model variables is explored. This research is a type of Structural Equation Model (SEM), and data were collected from customers of e-commerce websites who made online purchases at least five times a year. The results reveal the positive effect of CA and negative effect of CSR for e-commerce websites in promoting purchase intention of their customers. Additionally, gender moderates the relationship between CSR-purchase intention and CA-purchase intention. The finding can be useful to startup companies that operate in the field of e-commerce. Further, online vendors can improve the quality of their service using the findings of this research.

The Effect of CSR on Buyback Decisions with Brand Image Mediation and Credibilitys Merek: Case of Wardah Halal Cosmetics in Indonesia

Corporate social responsibility (CSR) is becoming one of the most critical challenges, where companies need to survive in an increasingly competitive business world. Therefore, the research conducted in this study is an investigation effort on the impact of customer CSR perception on repeat purchase intent, mediated by brand image and brand credibility, with the aim of uncovering the benefits of CSR values that have been applied within the company. This study used a purely quantitative approach, in collecting data on 290 people with female gender who had become customers of Wardah halal cosmetics, using questionnaires through online surveys. Smart PLS-SEM 4.0 software is used to analyze data. The results showed that perceptions from customers showed that the CSR activities produced by the company did not directly have a significant effect on the decision to repurchase its products. However, CSR significantly has a direct influence on its mediation variables, namely: (1) Brand Image; and (2) Brand Credibility. The results obtained provide an important reference for the academic world in terms of conducting empirical research on this subject, as well as benefits for marketers and company managers who want to develop their marketing strategies using CSR elements for the expected improvement of sustainable business development.

Corporate social responsibility, stakeholders’ governance and idiosyncratic risk

This paper examines the relationship between corporate social responsibility (CSR) and idiosyncratic risk and tests the impact of stakeholder governance on the relationship between CSR and idiosyncratic risk. Selecting all A-share listed companies in Shanghai and Shenzhen from 2017 to 2021 as the research subjects. It is found that: CSR can effectively reduce the level of idiosyncratic risk; the governance of investors, creditors, employees, and consumers strengthens the inhibiting effect of CSR on idiosyncratic risk, and the governance of suppliers weakens the inhibiting effect of CSR on idiosyncratic risk.

The effect of corporate social responsibility on open innovation: the moderating role of firm proactiveness

PurposeOpen innovation (OI) is an effective way to achieve firms' sustainable development in emerging markets. This study aims to investigate the effects of business and philanthropic corporate social responsibility (CSR) on OI and the moderating role of firm proactiveness in such relationships. This study also examines the effects of OI on firms' financial and innovation performance.Design/methodology/approachThis study uses multisource data from 688 firms in China, including data from surveys of top managers and objective data. The Tobit model, Poisson model, and ordinary least squares regression are adopted to test the hypotheses.FindingsThe results suggest that business CSR and philanthropic CSR both have positive effects on OI. Proactiveness weakens the positive effect of business CSR on OI, while strengthening the effect of philanthropic CSR on OI. The results also show that OI increases firm innovation and financial performance.Originality/valueCSR enables firms to build wild, deep and trust-based relationships with external actors, which may benefit firms in open search of knowledge. However, it has not received adequate attention in the literature on OI. The findings contribute to the research on OI drivers from the perspective of social activities and enhance the understanding of how different types of CSR and firm proactiveness work together to influence OI.

Corporate social responsibility and performance among rural banks in Ghana: the moderating role of governance structures

PurposeThis paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the surmised nexus.Design/methodology/approachAnnual data for 122 Ghanaian rural banks from ARB Apex Bank, World Development Indicator (WDI) and World Governance Indicator (WGI) for the period 2014–2020 were compiled for analysis. A two-stage system generalized method of moments (GMM) estimator was used in examining the relationships under study.FindingsThe findings suggest that CSR has a significant negative effect on return on assets (ROA), return on equity (ROE) and stability (Z-score). On the other hand, further results showed that CSR positively influences net interest margin (NIM). Again, the results suggest that government effectiveness exerts a positive moderating influence on the effect of CSR on performance from all four measurement criteria (ROA, ROE, NIM and Z-score) in the Ghanaian rural banking sector.Originality/valueThe study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating influence of governance structures is also assessed on the relationships to guide policy on rural banking.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0116.

Spatial Impact of Industrial Structure Upgrading and Corporate Social Responsibility on Carbon Emissions: Evidence from China

Identifying the spatial attributes of economic, social and environmental development is a prerequisite for China to raise the quality of development. Based on the parallel data of 30 Chinese provinces from 2010 to 2019, this study uses a spatial econometric model to explore the spatial impacts of corporate social responsibility (CSR) and industrial structure upgrading on carbon emissions. The regulating effect of CSR during industrial structure adjustment for carbon emission reduction was also analyzed. It was found that regional carbon emissions were reduced due to CSR and industrial structure adjustment, and the former was beneficial during industrial structure adjustment for carbon emission reduction. The carbon emissions in neighboring areas have also been suppressed to some extent as a result of industrial structure adjustment. However, CSR can encourage some “free riding” behaviors, due to the economic externalities, which emit more carbon into the surroundings. Additionally, carbon emissions show different responses to CSR in various regions. Therefore, strategies must enhance overall social responsibility and formulate different policies in various regions to promote CSR as an influential factor in curbing carbon emissions. Moreover, spatial governance should consider the comparative advantages of different regions, form complementary advantages and fully enhance the cooperation between CSR and industrial structure upgrading on carbon emission reduction.

CORPORATE SOCIAL RESPONSIBILITY AS A BUSINESS STRATEGY TOOL FOR ENTERPRISE DEVELOPMENT

The article reveals the relevance of evaluating the effectiveness of socially responsible activities of corporations. The purpose of the article is to analyze current models and methods of assessing the effectiveness of corporate social responsibility in order to determine their advantages for practical use by companies. It was determined that the interpretation of the concept of corporate social responsibility depends on the content and purpose of the analysis of the business environment and business strategy, rules, principles and influence of interested parties. Models of corporate social responsibility (CSR) were analyzed, the features of which are determined by components: economic responsibility, legal responsibility, ethical responsibility, charitable activity (philanthropy). The advantages and disadvantages of the American CSR model are identified. The European model is analyzed, in which, depending on the features, the continental, British and Scandinavian models are distinguished. The features of the Japanese CSR model and its advantages are revealed. It is established that CSR is implemented through programs of internal, external and mixed types. Three approaches to assessing CSR are defined (minimalist approach, which is based on assessing the degree of compliance by the company with the rules and obligations provided for by law; approach, which is based on highlighting one or several key areas of corporate social activity; complex approach, which is based on a holistic view of CSR, which determines the measurement of a large number of social, environmental and economic indicators). The problem of assessing the effectiveness of CSR is defined, which boils down to the development of a unified procedure or methodology for determining the effectiveness of social investments. The areas of CSR assessment are outlined in accordance with ISO 26000 "Guidance on social responsibility". An analysis of the most common methods of assessing CSR effectiveness was carried out (Social Return on Investment (SROI), LBG method, Dow Jones sustainability index, BACO index, effective social investment and social partnership program, use of Robin Hood Foundation metrics, FTSE4 Good Index). The trends in the development of CSR, which companies should take into account in their activities, have been determined.

Impact of Carbon Emission Disclosure and Corporate Social Responsibility on Indonesian Manufacturing Companies

This study aims to examine the effect of carbon emission disclosures (CED) and corporate social responsibility (CSR) on the financial performance of manufacturing companies in Indonesia. The research utilizes secondary data extracted from the financial statements and annual reports of companies listed on the Indonesia Stock Exchange (IDX) during the period from 2017 to 2019. The analysis employs multiple regression panel data using SPSS software to assess the relationships between variables. These findings contribute to the understanding of the relationship between environmental disclosure, corporate social responsibility, and financial performance in the context of manufacturing companies in Indonesia. The negative impact of carbon emission disclosure on financial performance highlights the importance of managing and reducing carbon emissions to enhance financial outcomes. Additionally, the non-significant effect of CSR on financial performance suggests that other factors might have a more significant influence on companies' financial success. Furthermore, when considered simultaneously, both carbon emission disclosure and corporate social responsibility demonstrate an influence on financial performance.

Corporate social responsibility and firm performance: a threshold analysis of European firms

PurposeThis paper aims to investigate the reciprocal nonlinear relationship between corporate social responsibility (CSR) and firm performance (FP).Design/methodology/approachThe authors used a sample of 814 European firms over the period 2008–2017. The Panel Smooth Transition Regression (PSTR) model was performed as an econometric approach.FindingsFirstly, results show a threshold effect in the CSR–FP relationships within the two directions. More specifically, the authors found that firms are more likely to engage in CSR by surpassing a threshold of 1.231% for return on assets (ROA) and 0.821% for Tobin’s Q ratio. Secondly, the authors also found that the impact of CSR on FP is positive and significant only if the environment, social and governance score surpasses the threshold of 56.780% when the dependent variable is ROA and 41.02% when Tobin’s Q ratio measures performance.Research limitations/implicationsA significant part of the literature supports the linear relationship between CSR and FP from the unique direction (CSR → FP). This study comes to fill this gap by assessing the possible nonlinear relationship. In addition, this nonlinear relationship is tested under the two directions. Therefore, defining the threshold of FP that allows companies to engage in CSR, on the one hand, and the threshold of engagement in CSR that improves FP, on the other hand, could be an exciting topic.Practical implicationsTo get the full benefit from CSR effects, firms should be with better financial performance to be socially responsible.Originality/valueTo the best of our knowledge, few studies have explored the nonlinear relationship between CSR and FP. In addition, this study raises the question of whether this relation is causal. The authors assess the two nonlinear relationships between CSR ? FP and FP ? CSR by determining the optimal thresholds.

Examining the effects of CSR on organizational attractiveness: perception study of job seekers in India

PurposeThe purpose of this paper is to study the effect of corporate social responsibility (CSR) effectiveness on job seekers’ organizational attractiveness (JSA). Deriving inspiration from Carroll’s theory, the study specifically tries to measure the impact of CSR on JSA with the four dimensions pertaining to economics (PECO), pertaining to legal compliance (PLCO), pertaining to ethics (PETH) and pertaining to philanthropic (PPH). Furthermore, the paper also tries to examine the moderating role of company selection (COM SEL) done based on high or low CSR reputation and JSA.Design/methodology/approachManagement and engineering students enrolled in premier institutions and universities of Western Odisha in India are surveyed for their perceptions of CSR and JSA. Purposive and convenience sampling are applied to collect data from 456 job seekers. Based on the analysis, the study proposes two main models (Models 1 and 2) wherein Model 1 tries to measure the effect of CSR on JSA and Model 2 checks the moderating effect of COM SEL on CSR and JSA. In addition, robustness of the study is tested using control variables (Models 3 and 4). Data is treated through SmartPLS 3.3 software. The structural equation modelling (partial least squares-SEM) method is applied to test the hypotheses and for further analysis.FindingsThe result reveals an interesting insight. There is a positive and significant effect of PECO, PLCO and PPH on JSA. Moreover, no such significant effect is observed between PETH and JSA. Further, the findings are contrary with respect to COM SEL, that partially moderates the effect of CSR on JSA. However, the results reveal that COM SEL has a substantial moderating effect on the PPH dimension of CSR and JSA.Practical implicationsThe results highlight that CSR positively and significantly affects JSA in terms of PECO, PLCO and PPH, thereby emphasizing that organizations must be more focused on these perspectives of CSR. Further, though the results did not exhibit any significance with PETH, it is essential that organizations should strengthen the ethical aspects of CSR as well and align them with the CSR strategic actions. The study also confirms the moderating effect of COM SEL on PPH dimension of CSR and JSA, thereby supporting the philanthropic approach in this domain. Further, the organizations should foresee the philanthropic factor of CSR as a competitive advantage to attract potential job seekers.Originality/valueThis research attempts to contribute to CSR and HR literature in two ways. First, it is the first attempt to use PLS-SEM with an attempt to understand job seekers’ perception of CSR and JSA with Indian data consisting of students belonging to premier business management and engineering institutes. Second, the study is an attempt to empirically measure the moderating effect of COM SEL on JSA. To sum up, the study will provide insights to organizations to help craft CSR strategies for attracting more job seekers.

Quadruple Helix Model Philosophy to Enhance Corporate Social Responsibility (CSR) Creativity

This study explains and analyzes how the Quadruple Helix model improves Corporate Social Responsibility (CSR) creativity. Government, industry, academia, and society collaborate on innovation and development under the Quadruple Helix paradigm. This strategy lets stakeholders collaborate to boost CSR's beneficial impact. The Quadruple Helix model in CSR is examined using ontological, epistemological, and axiological methods. This study analyzes CSR, the Quadruple Helix model, and scientific philosophy literature. This study found that the ontological approach examines CSR stakeholders' reality and interactions. The epistemological method examines how entities collaborate to learn about CSR. The axiological method evaluates CSR initiatives for fairness, sustainability, and social relevance. The Quadruple Helix CSR methodology can boost innovation and effect. Government, industry, academia, and society may collaborate and innovate to create more holistic and sustainable CSR solutions. Understanding the Quadruple Helix model's CSR philosophy. This study shows that collaborative and multidisciplinary approaches improve CSR creativity and effectiveness. More research is needed to confirm these findings.

Does it pay to polarise? The impact of brand activism on brand perceptions and purchase intentions in entrepreneurial marketing

As consumers are showing an increasing awareness of societal and environmental issues, corporate social responsibility (CSR) has long become standard in marketing communications. Thus, it is no longer suitable for building a distinctive brand image. In this context, the concept of brand activism, in which brands take a bold stand on political issues, has gained prominence. Based on theoretical considerations, it can be assumed that brand activism is a promising approach, particularly for companies with a small market share, such as start-ups. Furthermore, as brand activism polarises, it can be expected that consumers’ perceived self-congruence with a brand is a prerequisite for its successful implementation. Against this background, this paper describes an online experiment to study the effects of CSR and brand activism in an entrepreneurial context. The results show that CSR and brand activism have a positive effect on brand perceptions, although purchase intentions are not found to be significantly influenced by either approach. Furthermore, no significant differences between CSR and brand activism could be found. Finally, the results indicate significant positive effects of self-congruence on brand perceptions and purchase intentions. This study shows the potential value of brand activism for start-ups while illustrating the importance of a careful analysis of stakeholders’ values to prevent negative effects on brand equity.

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

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

The Impact of Corporate Social Responsibility on Speed of OFDI under the Belt and Road Initiative

Since the implementation of the Belt and Road Initiative (BRI), Chinese firms have actively responded to the government’s call to accelerate outward foreign direct investment (OFDI). Based on resource dependence theory and institutional theory, this study investigates the impact of corporate social responsibility (CSR) on the speed of OFDI under BRI and its boundary conditions. The results show that CSR can promote the speed of OFDI under BRI because CSR can help a firm accumulate strategic resources, including external benefits such as a good corporate image, and internal resources such as human capital and dynamic capabilities, and thus enhance legitimacy in host countries and its ability to resist potential risks. We also find that both state ownership and CEO political connections weaken the positive effect of CSR, and if the firm is in the key provinces or key industries of BRI, the positive relationship between CSR and the speed of OFDI under BRI will decrease. Our study contributes to the literature on international business and provides suggestions for firms participating in BRI.

Doing well by doing good: unpacking the black box of corporate social responsibility

AbstractBusinesses worldwide have increasingly embraced the corporate social responsibility (CSR) concept in their operations, and hence the popular saying ‘doing well by doing good’. Previous literature has not yet reached a consensus on the nature of the relationship between CSR and corporate financial performance (CFP). To contribute to the resolution of the issue, this article examines the relationship through evidence from China’s renewable energy enterprises. To evaluate the effect of CSR on CFP, this study takes CSR as a construct that consists of corporate responsibilities for (i) shareholders, (ii) employees, (iii) customers, suppliers, and consumers, (iv) the natural environment, and (v) social contributions. Based on data of the listed firms in China’s renewable energy from 2010 to 2016, this study shows that overall CSR can enhance CFP. For China’s renewable energy industry, shareholder and environmental dimensions of CSR positively affect CFP, while the responsibility for non-shareholder stakeholders, particularly for customers, suppliers and consumers, demonstrates a negative effect. No significant effect is identified between the responsibility for social contributions and CFP, and neither is between employee responsibility and CFP.