Engagement In Corporate Social Responsibility Activities Research Articles

Do Old Board Directors Promote Corporate Social Responsibility?

AbstractThis study investigates the influence of old directors on corporate social responsibility (CSR) using roughly 25,000 firm-year observations from 2001 to 2015 in the United States. We employ the widely used selection, optimization, and compensation (SOC) model from psychology to explain the CSR decisions of old directors. Our results indicate that firms with a higher percentage of old directors tend to have lower engagement in CSR activities. To address endogeneity, we adopt the difference-in-differences method and use the event of sudden deaths and unexpected retirements of old directors and find that our results remain robust. Our analysis also reveals that the negative impact of old directors on CSR is more significant in firms where directors receive fewer reputational spillover benefits from CSR initiatives and/or firms exhibiting poor corporate governance. In addition, this adverse impact of old directors comes from two effects: a reduction in efforts to enhance CSR strengths and an increase in inaction to address CSR concerns. Overall, these findings suggest that the CSR decision-making process of old directors involves assessing the costs and benefits of CSR engagements, consistent with our hypothesis derived from the SOC model.

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.

The effect of CEOs’ being the only children in the family on their CSR engagement

Purpose This study aims to investigate the influence of CEO’s only-child status on corporate social responsibility (CSR) practices. It seeks to extend the understanding of upper echelon theory by examining unexplored CEO characteristics and their impact on CSR decisions. Design/methodology/approach The paper uses manually collected CEO family information and Chinese Stock and Market Accounting Research data as a basis to examine the influence of CEOs’ early-life experiences on their engagement in CSR activities. The study applies attachment security theory from developmental psychology and uses upper echelon theory, particularly focusing on CEOs’ only-child status. A comparative analysis of philanthropic donations between CEOs who are only children and those who have siblings is conducted. The study also examines the moderating effects of corporate slack resources and CEO shareholdings. Findings Preliminary findings suggest that CEOs who are only children are more likely to engage in CSR compared to their counterparts with siblings. However, the difference in donation amounts between the two groups tends to attenuate with decreased slack resources and increased CEO shareholdings. Originality/value To the best of the authors’ knowledge, this research represents the first attempt to investigate being the only child in one’s family and the CSR-related decision of CEOs, which extends the upper echelon theory by introducing the family science theory into the management domain.

Influence of employee perceptions of corporate social responsibility on affective commitment

Orientation: The study attempted to establish the role played by different perceived corporate social responsibility (CSR) activities on the organisational commitment of employees.Research purpose: To investigate the nomological network of variables playing a role in the relationship between Perceived CSR and Affective Commitment.Motivation for the study: Understanding the contribution of perceived corporate social responsibility to the organisational commitment of employees could inform managerial attempts to facilitate positive employee attitudes.Research approach/design and methods: The current study utilised structural equation modelling to evaluate the hypothesised multivariate causal relationships in the proposed model. A convenience sample of 172 employees of a consumer goods company completed several questionnaires, including measures of Affective Commitment, Perceived CSR, Organisational Social Identity, Perceived Organisational Justice, Psychological Contract, as well as three cultural value orientations.Main Findings: The most significant finding of the study was the positive relationship between Perceived CSR and Affective Commitment. The results revealed that Perceived CSR has a positive impact on Perceived Organisational Justice and fulfilment of the Relational Psychological Contract. Both variables impacted on Organisational Social Identity, which was positively related to Affective Commitment.Practical/managerial implications: Organisations should ensure that employees are made aware of their CSR policies and activities through corporate communication. Organisations should also invest their resources in dealing with social problems that are regarded as important by employees and engage in fair human resource practices.Contribution/Value-add: Engagement in CSR activities could help retain and attract talented candidates and increase commitment and identification with the organisation.

Bringing Honor to Your Ancestors:CEO Early-life Exposure to Clan Culture and CSR

In this study, we examine a CEO’s early-life exposure to an environment characterized with strong clan culture and its implications on corporate social responsibility (CSR). Grounded in the upper echelons theory and imprinting theory, we propose that CEOs’ motivation to bring honor to their clansmen can influence their firms' engagement in CSR activities. We further examine the boundary conditions governing the above relation. Using a longitudinal data of the Chinese publicly-listed firms for 2010-2016, we find that this positive relationship between CEO early-life exposure to clan culture and CSR is weakened when the CEO has oversea experience and when the institutional development in the region where the firm is headquartered is better. Implications to the strategic leadership literature and CSR research are discussed.

Virtually Enhancing Public Engagement During the Pandemic: Measuring the Impact of Virtual Reality Powered Immersive Videos on Corporate Social Responsibility Communication

Many companies have applied virtual reality (VR), a new and popular technology, to their corporate social responsibility (CSR) activities. This study examines how 360-degree VR-powered videos might further enhance consumers’ engagement in CSR activities and facilitate business outcomes during a crisis setting. The researchers conducted an online survey study, during the coronavirus (COVID-19) pandemic, with 1422 representative U.S. residents and applied the structural equation modeling for data analysis. Results indicated that the four categories of gratifications-sought (i.e., being there, enhancement, interaction, and fun) on 360-degree VR-powered videos could all positively influence CSR engagement; in contrast, CSR skepticism would reduce such engagement online. Corporate social responsibility engagement further improved the organization-public relationships (OPRs) and ultimately influenced consumers’ word-of-mouth toward the company. Theoretical and practical implications of these findings were discussed.

Determinants of corporate social responsibility among farms in Russia and Kazakhstan: a multilevel approach using survey data

Building on the institutional theory of corporate social responsibility (CSR) and research on CSR in the agriculture of post-Soviet transition economies, the present paper investigates the institutional, organizational and individual factors of farm engagement in CSR activities. Based on a survey of 800 farms in Russia and Kazakhstan, the interaction between the farms’ social role and multilevel institutional characteristics is addressed. We observe notable positive effects of local labor sourcing, insecure land use conditions and farm size (in terms of land area) on farms’ CSR engagement. Individually owned farms, as opposed to corporate farms, tend to be more CSR affine. In addition, we find weak statistical evidence of CSR engagement among the farms affiliated with agroholdings. We discuss the results in the context of different levels of CSR analysis.

The Importance of Financial Misconduct of Institutional Investors on Corporate Social Responsibility

This study analyzes the effect of institutional investors with disciplinary history (IDH) on the corporate social responsibility (CSR) activities of investee firms. We use Registered Investment Advisers’ reported violations of laws and regulations to the Securities and Exchange Commission to identify IDH. We find that IDH discourage firms’ engagement in CSR activities and attribute this regularity to institutions’ disregard for social norms. Further, we find that both activist and non-monitoring IDH appear to drive the discouragement of CSR activities but that the investment horizon of investors does not appear to drive our results. We conduct extensive robustness tests to address endogeneity issues by employing two-stage least squares regression, regression discontinuity and difference-in-difference identification strategies. The results continue to hold when we conduct additional robustness tests such as propensity-score matching (PSM) methodology of entropy balancing approach. Overall, our results suggest that institutional investors’ track record of financial misconduct has an economically significant negative impact on investee firms’ CSR activities.

CSR and Firm Survival: Evidence from the Climate and Pandemic Crises

We analyse the relationship between the extent of a firm’s corporate social responsibility (CSR) and its long-term survival probability. We conjecture that a better CSR rating is associated with a lower probability of corporate failure and a longer survival period. Consistent with this, we document that four CSR dimensions (environment, community, employee relations, and product) out of six are positively related to firms’ survival probability. The positive association between CSR ratings and firm survival is stronger for firms operating in more competitive industries and those with weaker governance. We find that a firm’s engagement in CSR activities is particularly crucial for firm survival during pandemics and under adverse climate conditions. We establish causality in the relation between a firm’s CSR activities and its survival probability using instrumental variable (IV) and Heckman two-step analyses. Finally, we find that better financial performance, less stringent financial constraints, greater managerial discipline, and enhanced labor productivity are some of the channels through which firms engaging in more CSR activity achieve longer survival times.

The Value Relevance of Corporate Social Responsibility Expenditure: Evidence from Regulatory Decisions

We examine the value relevance of the corporate social responsibility (CSR) expenditure of Bangladeshi banks from 2007–2014 in response to a regulatory directive on banking firms’ engagement in CSR activities. We find a positive association between CSR expenditure and a firm's market value. Evidence of an inverse U‐shaped curvilinear association between CSR expenditure and market value suggests that the impact of CSR expenditure on a firm's market value has a certain limit. We also document that unexpected or abnormal components of CSR expenditure comprise value‐relevant information. Our study provides empirical evidence to support the value relevance of CSR expenditure as an explanation for why firms should invest in CSR and why they should inform various stakeholders about their CSR activities.

Does board diversity influence firms’ corporate social responsibility reputation?

PurposeBoard diversity positively impacts corporate social responsibility (CSR); however, there is limited evidence on how board diversity affects the reputation of organizations that are involved in CSR. The purpose of this paper is to examine the effect board diversity has on socially responsible firms’ corporate social responsibility reputation (CSRR). The authors specifically examine this relationship because an organization’s corporate reputation may be very different to its CSRR gained through engagement in socially responsible activities.Design/methodology/approachThe authors use the CSR reputation scores for the top 100 most socially responsible global companies provided by the RepTrak Database as a measure of CSRR. Board diversity measures are calculated for gender, ethnicity and education to measure their impact on social reputation. The sample for this study consists of 146 observations for the period 2013–2017.FindingsThe authors find a significant and positive relation between having a combination of women and ethnically diverse members on the board and firms’ CSRR. The authors also find a significant positive effect on CSRR when the board is composed of women and educationally diverse members.Research limitations/implicationsBoard diversity characteristics continue to impact organizations’ decision-making processes and their involvement in CSR activities as public stakeholders demand greater representation of females and minorities on the board. Because research on board diversity is in its infancy, the authors urge scholars to continue to investigate the impact board diversity has on an organization’s motivation to be socially responsible as well as how it affects their CSRR.Practical implicationsThe findings of this study highlight the importance stakeholders place on an organization’s social responsibility reputation and the positive effects of board diversity in managing their CSRR.Social implicationsThe findings provide evidence that the composition of the board can influence a company’s engagement in CSR activities and their CSRR as perceived by its stakeholders.Originality/valueThis study contributes to the CSR literature by introducing the concept of CSRR. To the best of the authors’ knowledge, this study also extends research in the diversity literature by examining the relationship between board diversity variables and an organization’s CSRR. The findings highlight the importance of having a diverse board composed of ethnically and educationally varied individuals and provide evidence of a link between organizations’ involvement in socially responsible activities and their CSRR.

Consumers' perceptions and responses towards online retailers' CSR

PurposeAnchored on social trust theory, social identity theory and signalling theory, this study investigates the process of how consumers respond to online retailers' corporate social responsibility (CSR).Design/methodology/approachFollowing the hypo-deductive research design, a unique model was developed to link online retailers' CSR with consumer purchase intention through brand identification and word of mouth (WOM). This model was subsequently tested and validated by conducting an online survey to 239 customers of a major online retailer in China, that is, JD.com.FindingsAnalysis using structural equation modelling demonstrates that online retailers' CSR is positively associated with consumer purchase intention, and brand identification positively mediates such an association. In addition, WOM exhibits a mediating effect on the relationship between perceived online retailers' CSR and consumer purchase intention and between brand identification and consumer purchase intention.Practical implicationsOnline retailers must endeavour to employ CSR as a strategy to enhance consumer purchase intention and behaviour. Moreover, they should develop communication programmes that highlight their engagement in CSR activities to improve their brand image and facilitate consumers' positive WOM.Originality/valueTo the best of the researchers' knowledge, this study is the first to examine the mediating roles of brand identification and WOM in the relationship between online retailers' CSR and customer purchase intention. Furthermore, this study extends current knowledge about online retailers' CSR and its potential impact in emerging economies by focussing on the context of China.

When Does Corporate Social Responsibility Disclosure Affect Investment Efficiency? A New Answer to an Old Question

Prior evidence that firm’s investment behavior is positively affected by its corporate social responsibility (CSR) disclosure, as one of the key CSR areas of the company, leaves unaddressed whether all kinds of disclosure have the same effect. Drawing on stakeholder theory, this study analyzes the issue in a more exhaustive way. A cross-sectional logistic regression model is used to test the hypothesized association, and the results imply that firms’ high (low)-quality disclosure regarding their engagement in CSR activities increases their chances of being from the investment-efficient (inefficient) group. The obtained results conclude that CSR reporting activity is not beneficial for companies unless a meaningful disclosure of sustainability information is made. Our results are robust to using alternative proxies for CSR disclosure quality. This study contributes to the scarce evidence on CSR reporting in Pakistan and provides a useful method for assessing quality of CSR reports.

Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility

In this study, we examine the impact of CEO celebrity status on the propensity of firms to engage in corporate social responsibility (CSR). Integrating identity and impression management theories, we argue that a firm’s engagement in CSR activities is affected by a celebrity CEO’s impression management motive to maintain his/her identity and status as a celebrity. We then explore three boundary conditions under which the effects of celebrity status on CSR may be strengthened. We find that celebrity CEOs’ engagement in CSR activities as an impression management tactic increases when uncertainty surrounding a firm’s expected performance is high, when firm performance is low, and the competitive intensity of the industry is high. The findings of this study provide useful insights into the specific ways by which celebrity CEOs attempt to protect their established status and reputation. This paper contributes to various domains of research concerning CEOs, impression management, and CSR.

Translating Corporate Social Responsibility into Action: A Social Learning Perspective

Interest in the microfoundations of corporate social responsibility (CSR) has grown over the past decade. In this study, we draw on social learning theory to examine the effects of prosocial leaders on followers’ motivation to engage in CSR practices, and consequently on their CSR performance. Further drawing from social learning theory, we propose that followers’ trait compliance and leader-member exchange moderate the above relationships by affecting the conceptual mechanisms of social rewards and role-modeling motives. We tested our hypotheses with data from a sample of 138 employees (i.e., followers) who were responsible for implementing an organization-initiated CSR practice. Our results showed that among followers who were high in trait compliance, leaders’ prosocial motivation was positively associated with followers' CSR motivation. In addition, followers’ CSR motivation was positively related to their objective CSR performance when they had a high-quality relationship with their leaders. Our findings advance our understanding of the conditions under which leaders will be more versus less influential on followers’ motivation and engagement in CSR activities. We discuss the theoretical and practical implications of our results.

The Directions of Interrelations Between the Company’s Performance and Corporate Social Responsibility (CSR) Activities

The interrelations between engagement in CSR activities and the company’s performance are still one of pivotal managerial problems. Ample findings related to this issue seem to reveal a rather hazy than clear picture. In this paper, an attempt has been made to complement this problematic issue with the results of the survey conducted among a group of Polish large and medium‑sized family businesses. The aim of the paper is to analyse relationships between the self‑assessment of the company’s performance and its engagement in various CSR activities. It seems to be interesting to identify what kind of relationship and mutual influences can be found between the company’s economic and non‑economic activities and whether its value aspects, in their broad meaning, exist. To identify this relationship, two groups of linear regression models were adopted (CSR activities or the self‑assessment of the company’s performance as dependent variables). The ultimate conclusion drawn seems to confirm that the problematic area mentioned above should be described rather by a circular than linear direction of influences which were called a multilevel chain of interferences.

Can ethical leaders drive employees’ CSR engagement?

PurposeThe association between ethical leadership and employees’ ethical behaviors is well-established. But can ethical leadership go beyond this and drive employees’ corporate social responsibility (CSR) engagement? The purpose of this study is to examine the association between ethical leadership and employees’ perception of their engagement in CSR activities while exploring the mediating role of person–organization fit.Design/methodology/approachUsing a quantitative research design, data were collected via self-administered questionnaires from 142 employees of multi-national companies in Malaysia. This study used partial-least squares structural equation modeling to test and validate the research model and hypotheses posited.FindingsThe results reveal that ethical leadership has a positive impact on employees’ CSR engagement, mediated through person–organization fit. Moreover, analyses were carried out to assess the predictive performance of the proposed model. Our results confirmed the predictive capability of the proposed model.Research limitations/implicationsThis study has provided a better understanding of employees’ CSR engagement, which is a crucial factor for effectiveness of CSR implementation in any organization. Finding evidence on the positive role of ethical leadership in driving employees’ CSR engagement extends both the leadership and CSR literature and offers new avenues for future research studies.Practical implicationsThis study has shown that ethical leadership can stimulate employees’ CSR engagement through creating a better person–organization fit. This understanding can help managers in finding ways for more effective involvement of employees in a company’s CSR activities and creating a better working environment.Social implicationsOrganizations can find better ways to involve employees in CSR activities through having ethical leaders who lead by example and champion social causes. Although ethical leadership will benefit society, it will also help employees experience a better fit between their values and those of the organization.Originality/valueDespite extensive research on CSR, its drivers and outcomes, there is still limited knowledge on the role of leaders in driving employees’ CSR engagement. Findings from an emerging economy (i.e. Malaysia) will offer fresh insights into the growing CSR and leadership literature.

Understanding employees’ motivation to engage in CSR: A grounded analysis

Employees’ participation in corporate social responsibility (CSR) is a channel that not only helps corporations convey their social responsibility messages but also, in the long run, enhances stakeholder-organization relationships and builds the corporate image. However, current literature and theories of motivation do not clearly present the internal and external aspects that motivate employees to engage in CSR. To narrow this gap and deepen the knowledge of the drivers behind employee participation, this research contributes to the literature by building a theory of employees’ motives for volunteering in CSR activities based on both the intrinsic and extrinsic sides. More specifically, we use grounded theory to investigate the underlying mechanisms that motivate employees to get involved in organizational CSR by interviewing 30 employees from different departments and various industries. In addition, this research takes Mirvis’s (2012) model a step further by looking into intrinsic and extrinsic factors that drive employee participation in organizational CSR. Interestingly, we find that religious influence and work-life balance have the effect of promoting employee engagement in CSR activities as intrinsic and extrinsic motives respectively. Finally, theoretical and managerial implications are offered.

Corporate social responsibility practices of banks in Bangladesh: a structuration theory perspective

The aim of this paper is to illuminate the role of the socio-economic, cultural and religious context in shaping corporate social responsibility (CSR) practices of banks in Bangladesh. The authors utilize content analysis of annual reports and websites of banks to identify CSR activities in healthcare, education and financial inclusion sectors. Structuration theory (ST) is used to explain how interactions between bank managers (as agents) with the social structures (institutions and government) shape CSR practices. The findings show that banks’ engagement in CSR activities is embedded in the social fabric of Bangladesh and not a result of the Global Reporting Initiative (GRI). It is also noted that Islamic banks focus their CSR activities on social justice, while other banks target education and other humanitarian issues. The authors contribute to the literature on the determinants of CSR by revealing the rationalizations of different actors in the production and reproduction of CSR practices in Bangladesh, an insight attributed to ST. The researchers conclude that Islamic beliefs influenced managers to mitigate poverty through CSR investments.

English

Although corporate social responsibility (CSR) has globally been recognized by both large and small businesses, little literature is currently available regarding the motivation and barriers for small and medium enterprises (SMEs) engagement in CSR practices. Until recently, the involvement of SMEs in social activities has received little attention by both scholars and practitioners. Therefore, this study is aimed at conducting a thorough literature review with regard to SMEs engagement in CSR activities. The study critically analyses the drivers and barriers to SMEs engagement in CSR practices, and then proposes strategies that SMEs can adopt to effectively participate in CSR activities. Key words: Corporate social responsibility (CSR), small and medium-sized enterprises (SMEs), drivers and barriers for SMEs engagement in CSR.