External Corporate Social Responsibility Research Articles

Does financial distress suppress CSR gap? The moderating effect of state ownership and market competition

AbstractCompanies will prioritize external corporate social responsibility (CSR) practices over internal ones, a phenomenon known as the corporate social responsibility gap (CSR gap). Previous studies have mostly focused on its consequences, little is known about its antecedents. We argue that such practice is illegitimate because it goes against stakeholder expectation that primary stakeholders' interests should be prioritized, but it also has potential to gain differentiation benefit for intense investment on external CSR. Drawing on compensatory orchestration logic and the three types of firm legitimacy, we argue that firms that have gained high pragmatic legitimacy are more likely to engage in morally illegitimate but differentiation gaining activities such as CSR gap. Using financial distress to indicate low pragmatic legitimacy, we predict that distressed firms are inclined to practice low CSR gap. Considering the competing logics in China, we further argue that this negative relationship will be less pronounced if firms are state‐owned or operating in a competitive industry. Using Chinese listed firms from 2010 to 2019 as an empirical sample, the results provide support for our arguments.

Social reputation, loan contracting and governance mechanisms

Purpose This study aims to investigate whether social reputation via corporate social responsibility (CSR) awarding facilitates access to debt and decreases the cost of debt and whether governance mechanisms moderate this relationship. Design/methodology/approach The sample covers the period between 2002 and 2021, during which CSR award data were available in the Thomson Reuters Eikon/Refinitiv database. The empirical models are based on country, industry and year fixed-effects regression. Findings While the main findings produced an insignificant result for access to debt, they indicated strong evidence for the positive relationship between CSR awarding and the cost of debt. Moreover, the moderating effect highlights that while the sustainability committee helps CSR-awarded companies access debt more easily, independent directors help firms decrease the cost of debt via CSR awarding. Furthermore, the results differ between the US and the non-US samples, earlier and recent periods, high- and low-leverage firms and large and small firms. Originality/value For the first time, to the best of the authors’ knowledge, the authors assess whether social reputation via CSR awarding facilitates access to debt and decreases the cost of debt in an international and cross-industry sample. Little is known about the effect of social reputation on loan contracting, although social reputation conveys broader information that goes beyond the firm’s internal (performance) and external (reporting) CSR practices. The authors also draw attention to the differing roles of distinct governance mechanisms in leveraging social reputation for loan contracting.

Do female family managers affect corporate social responsibility in Chinese family firms?

ABSTRACT This study investigates the relationship between female family directorship and Corporate Social Responsibility (CSR) in the specific context of Chinese family firms. It explores the moderating influences of gender inequality, family ownership and economic policy uncertainty. Based on social role theory, we find that female family directorship is associated with a stronger commitment to external CSR engagement than to internal CSR. Moreover, gender inequality and family ownership attenuate the relationship between female family directorship and external CSR, while economic policy uncertainty enhances their impact on external CSR. Overall, we contribute to the literature at the intersection of family firms, female leadership, and corporate social responsibility.

Internal Versus External Corporate Social Responsibility Effects on Employees of a Multinational Subsidiary in Russia: The Roles of Morality and Attributions

Internal Versus External Corporate Social Responsibility Effects on Employees of a Multinational Subsidiary in Russia: The Roles of Morality and Attributions

The Effect of Corporate Social Responsibility and Sustainable Development Practices on Employer Branding—A Case Study of an International Corporation Operating in Poland

Corporate social responsibility (CSR) and sustainable development practices and employer branding (EB) significantly influence the effectiveness of recruitment processes, human resource management (HRM), and an employer’s image. The main aim of this study was to assess the effectiveness of internal and external CSR practices in an international corporation operating in Poland. The empirical study consisted of two stages. In the first stage, an in-depth interview was conducted with a group of managers in the examined company. In the second stage, the company’s employees and local residents (non-employees) were surveyed with the use of questionnaires. The study demonstrated that CSR activities addressing environmental issues were most effective. External CSR practices received greater recognition among white-collar (office) employees, whereas blue-collar (manual) employees were more appreciative of internal CSR measures—in particular, financial support schemes. The effectiveness of internal and external CSR practices has been rarely compared in the literature, and the present study was undertaken to fill in this knowledge gap.

Skeletons in the closet: How and when internal and external corporate social responsibility affect employees' internal whistleblowing behaviors

AbstractThe micro‐level corporate social responsibility (CSR) literature has underscored the economic benefits of an organization's CSR investments, such as bolstering employees' organizational commitment and improving work performance. Yet, research on the potential influence of CSR in fostering socially oriented outcomes among employees has been rather scarce. This study aims to investigate the influence of CSR on employees' internal whistleblowing behaviors and the underlying mechanisms. A three‐time‐point survey was distributed across the service, manufacturing, construction, and financial insurance industries in Chinese enterprises. The findings reveal that both internal and external CSR positively impact employees' internal whistleblowing behaviors through the mediating role of moral courage, with internal CSR demonstrating a stronger effect. Organizational loyalty positively moderates the mediating role of moral courage in the relationship between internal CSR/external CSR and internal whistleblowing behaviors. Theoretically, this study presents a pioneering endeavor in establishing the link between CSR and employees' internal whistleblowing behaviors, underscoring the significant role that employees' perceptions of CSR play in enhancing societal well‐being and ethical governance. Besides contributing to the micro‐level CSR literature, this study also provides practical insights for organizations seeking to leverage CSR as a tool for promoting employees' ethical conduct.

Generous to a fault: Differential impact of CSR investments on financial gains in Indian market multinationals

To date, the extant Corporate Social Responsibility (CSR) literature has overlooked the performance consequences of different forms of CSR investments made by Emerging Market Multinational Corporations (EMNCs). Addressing this knowledge gap, and drawing on legitimacy theory, we examine the impact of external CSR investments (e.g., social and community philanthropic support activities) and internal CSR investments (e.g., working conditions, employee rights and equal employment opportunities) on financial performance of EMNCs, while also accounting for the moderating effects of internationalization location choices. We test our hypotheses on a panel consisting of 1513 unique Indian EMNCs, in the 2014–2019 time-period. On applying various estimation techniques, the findings reveal that both external and internal CSR investments are positively associated with financial performance of EMNCs, while the destination location of foreign investments and home-host geographic and institutional distance moderate these relationships. This study offers new empirical evidence on the financial implications of different types of CSR investments available to EMNCs and advances legitimacy theory by expanding its dimensional and contextual scope.

Sustainable investments in the face of social unrest and risk: A new perspective on corporate social responsibility

In recent years, corporate social responsibility (CSR) activities have become increasingly prevalent as corporate initiatives, owing to their influence on companies and their societal dimensions. To address the gap in the literature on the effect of CSR activities on firms and their value, this study develops a theoretical model of real options considering market uncertainty and analyzes the relationship between a firm’s investment in CSR activities and the risk to its assets. The analysis demonstrates the existence of an optimal level of investment in CSR activities and shows that at this level, the beta of the firm’s assets undergoes the most significant decrease. Furthermore, by examining the relationship between the monetization potential of investment and the beta of assets, this study demonstrates that CSR activities can effectively reduce asset risk. It evaluates a firm’s value and beta from the perspective of investment in CSR activities and the potential for investment success, demonstrating the utility of this investment. It also highlights that the effectiveness of external CSR activities in increasing a firm’s value is contingent on their recognition and visibility in situations of significant social unrest and provides a practical implication that companies should consider engaging in outward-facing CSR activities.

Micro understanding of the macro: employee perception, corporate social responsibility and job performance

PurposeThis study was aimed at obtaining a micro understanding of corporate social responsibility (CSR) by investigating the effect of perceived CSR on job performance. Especially, an attempt is made to explore the mediating role of perceived organizational support and the moderating role of collectivism on the relationship between perceived CSR and job performance.Design/methodology/approachThis study collected questionnaire data from 219 employees of Chinese manufacturing firms, then used hierarchical multiple regression analysis to test our theoretical model.FindingsOur empirical results demonstrate that perceived internal and perceived external CSR are positively associated with job performance. In addition, perceived organizational support mediates the relationship between perceived CSR and job performance, and collectivism positively moderates the relationship between perceived external CSR and perceived organizational support.Practical implicationsThis study highlights the importance of adopting various strategies to conduct CSR practices, enhancing perceived organizational support and leveraging employee collectivism, which would be beneficial to improve job performance.Originality/valueThis study reveals employees’ underlying attitudes and behaviors responses to perceived CSR, thereby deepening the micro understanding of CSR. In addition, it extends the literature on social exchange theory by dividing perceived CSR into perceived internal and perceived external CSR and exploring their separate effects on job performance. Moreover, the study reveals the mediating role of perceived organizational support and the moderating role of collectivism, enriching the knowledge based on social exchange theory.

Corporate social responsibility and green supply chain efficiency: conditioning effects based on CEO narcissism

Accelerating the construction of the green supply chain system and improving the efficiency of the green supply chain is the key to promoting the high-quality development of enterprises. In view of this, based on stakeholder theory, higher order theory and expectancy theory, this study focuses on the impact of corporate social responsibility (CSR) on corporate green supply chain efficiency (GSCE) and the moderating role of chief executive officer (CEO) narcissism. A regression analysis of the observed sample reveals that CSR significantly enhances GSCE. Further decomposing CSR into internal CSR and external CSR to reveal the impact of different types of CSR on GSCE, we find that internal CSR fulfillment has a significant positive impact on GSCE, and this relationship is strengthened when CEOs are narcissistic. Furthermore, external CSR has a significant negative impact on GSCE, and this relationship is also strengthened by CEO narcissism. The main contribution of this paper is to study the relationship between CSR and green supply chain efficiency, decompose CSR into internal and external CSR, enrich the research on the intrinsic mechanism of value creation of CSR. It also enriches the research in the context of CSR from the perspective of CEO personality traits, providing new ideas and suggestions for manager selection and corporate greening governance in practice.

Internal versus External Corporate Social Responsibility: Company Age and Size Moderate CSR Efficacy

Corporate social responsibility (CSR) efforts by established legacy brands are often seen as inauthentic. What can brands do to genuinely engage in CSR efforts? This study investigates internal CSR as a potential solution. CSR type (internal and external) and extrinsic cues (brand size and age) interact to affect congruence, authenticity, and subsequent purchase intention for companies that communicate these efforts on social media. Through a series of three experiments, we compare the effectiveness of internal and external CSR in influencing consumer perceptions. Results confirm that CSR is not a one-size-fits-all solution for brands. We find that Internal CSR is more effective for legacy (older, larger) brands, while external CSR is more effective for novel (newer, smaller) brands. This paper is among the first to conceptualize internal CSR as a potential strategy for legacy brands that often struggle for authentic ways to get involved with social issues. Results indicate that consumers want to see larger, older brands try to "fix" themselves before they attempt to fix the world.

Examining Employee Perceptions of External Corporate Social Responsibility Initiatives in the Nepalese Banking Sector: A Descriptive Analysis

The study aimed to explore employee perceptions of external corporate social responsibility (CSR) activities in the Nepalese banking sector. The study used a descriptive research design and collected primary data using questionnaires distributed to employees of commercial banks in Nepal. A real sample was used, and the sample size was 40 participants. The study results show that employees have a positive perception of their company's external CSR efforts, including charitable contributions and environmental initiatives. Importantly, demographic factors like gender, marital status, age, years of service, and education do not significantly influence these perceptions. Thus, the organization’s commitment to external CSR appears consistent across diverse employee demographics. Future researchers can explore the relationship between employees' active involvement in CSR activities, such as volunteering, and their perceptions of the company's CSR commitment.

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

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

Corporate Social Responsibility and Employee Satisfaction: The Mediating Effects of Work-Life Balance Support and Work Stress

Businesses embrace the concept of corporate social responsibility (CSR). This study investigates the individual effect of perceived internal CSR and external CSR on employees’ job satisfaction. Moreover, this investigation explores the mediating roles of perceived work-life balance support (WLBS) and work stress (WS). The researchers use partial least square structural equation modeling to test the data from employees in Taiwan. The results prove that perceived internal CSR and external CSR positively and significantly affect job satisfaction. Perceived WLBS partially mediates the perceived internal CSR–job satisfaction and perceived external CSR–job relationships, whereas WS partially mediates only the perceived internal CSR and job satisfaction relationship. Moreover, perceived WLBS and WS sequentially mediate the CSR and job satisfaction relationship. The study’s findings suggest that it is vital for firms to strengthen internal and external CSR engagements to promote WLBS, thereby reducing WS and ultimately increasing employees’ job satisfaction.

Can external and internal corporate social responsibility contribute to green customer behaviour? The mediating role of green trust in hotels

AbstractTo date, hospitality literature has mainly used an aggregated measure of corporate social responsibility (CSR) to assess hotels' green trust (GT) and green customer behaviour (GCB). The differential impact of internal and external CSR on GT and GCB is crucial as this may lead to different levels of impacts on hotels' environmental performance. This study investigates how internal and external CSR impact customers' GT and GCB. It also investigates how GT mediates the relationship between internal and external CSR and GCB. Using survey data from 304 customers from eight green hotels in Manila and employing the PLS‐SEM technique for analysis, the results show that internal and external CSR positively impact GT and GCB. Moreover, GT mediates the relationship between internal CSR and GCB, but not between external CSR and GCB. This study extends stakeholder theory and the theory of planned behaviour by providing novel insights into how customers' GT and GCB may differ in relation to internal and external dimensions of CSR.

Internal corporate social responsibility a strategic tool for employee engagement in public organizations: Role of empathy and organizational pride

BACKGROUND: The macro-level corporate social responsibility (CSR) has been researched widely in recent years, however, micro-level CSR has recently gained attention. Employees are more influenced by employee related internal CSR initiatives than the external CSR activities. Internal CSR ensures favorable behavior of employees towards their employer which leads towards better organizational performance. OBJECTIVE: This study investigates the impact of internal corporate social responsibility (CSR) on public sector employees’ engagement through Organizational Pride (OP). Further, the study considers moderating role of empathy between internal CSR and employee engagement (EE) METHODS: Quantitative research design was developed and theoretical framework was investigated through a survey of 430 employees of public sector in Pakistan. SmartPLS was used and partial least square structural equation modeling (PLS-SEM) was used for hypothesis testing RESULTS: The results showed that the internal CSR directly influences EE. Secondly, the mediation of OP between internal CSR and EE is also supported. However, the results do not significantly support moderation of empathy between internal CSR and EE. CONCLUSIONS: Public sector organizations should actively contribute in employees well- being through internal CSR activities especially on skills development, work-life balance and employment stability. Public sector organizations lack in emotional and cognitive attachment with employees, and should pay attention to pride over organization through employee focused CSR activities

Doing well by doing right: heterogeneous effects of tourism firms’ social responsibility on service productivity and profitability

ABSTRACT This paper seeks to explore the heterogeneous effects of corporate social responsibility (CSR) practices on the service productivity and profitability of tourism firms, applying the perspectives of stakeholder theory and the resource-based view. We employ data envelopment analysis to gauge service productivity and to conduct an analysis of inefficiencies and benchmarks for underperforming firms. Additionally, we employ a two-way fixed-effects regression model using unbalanced panel data to discern the heterogeneous effects of CSR practices on firm performance. Our findings indicate that internal CSR practices (involving managers and employees) are positively correlated with both service productivity and profitability. Conversely, external CSR practices (involving suppliers, customers, environmental and societal factors) exhibit a negative impact on profitability but do not significantly affect service productivity. Further analysis reveals that service productivity and profitability are less likely to be the primary drivers of CSR practices, mitigating concerns regarding a potential bidirectional relationship.

Perceived External CSR from Employees’ Perspective in Nepalese Banking Industry

In order to better understand how external corporate social responsibility (CSR) efforts in the Nepalese banking industry affect different employee-related outcomes, this paper examines how employees perceive these activities. In this study, staff of Nepalese commercial banks were given questionnaires as part of a descriptive research design in order to gather primary data. The sample size is 120 individuals from an actual sample. This finding suggests that workers have a strong understanding of external CSR activities taking place outside of the organization. It is also clear that employees are conscious of the effects of the CSR efforts and give them a favorable evaluation. The study also investigates the link between work happiness, organizational engagement, and overall views of CSR and employee perceptions of external CSR actions outside the firm. This finding suggests that workers in Nepal's banking industry may see external CSR efforts as positively affecting their loyalty to the firm and job happiness. The relevance of this poll emphasizes how crucial an external CSR strategy is to successfully raising employee happiness and fostering organizational engagement. The report's suggestions for commercial banks are meant to help them match their CSR initiatives with employee expectations and values to foster a productive workplace. Future study objectives include looking at ways to increase employee involvement in CSR initiatives, assessing the long-term effects of CSR efforts, and doing industry comparison studies. Overall, this study helps understand how Nepalese banking industry employees feel about external CSR initiatives.

Impact of Internal and External CSR on Job Satisfaction: Mediating Role of Emotional Labor

This research paper seeks to investigate the association between internal and external corporate social responsibility (CSR) initiatives and their influence on emotional labor and job satisfaction. Through the exploration of these factors, the study provides valuable insights into the potential advantages of CSR initiatives for both organizations and their employees. Specifically, this research underscores the significance of a holistic CSR strategy that takes into account both internal and external initiatives and their effects on emotional labor and job satisfaction. Ultimately, the aim of this research is to offer practical and actionable recommendations for organizations seeking to strengthen their CSR programs and promote employee satisfaction and retention. Smart PLS 3.0 was used to analyze data collected from 142 employees of a major bank in Pakistan, by using purposive sampling. The results revealed that both Internal and External CSR initiatives have a significant positive impact on job satisfaction. Emotional labor was found to mediate the relationship between CSR and job satisfaction, highlighting the importance of emotional labor management in organizations that prioritize CSR initiatives. The findings of this study have practical implications for organizations in terms of the potential benefits of CSR initiatives for employee well-being and job satisfaction. Theoretical implications based on Social Expectation Theory suggest that employee expectations and perceptions of socially responsible behavior are important factors in shaping employee attitudes and behaviors. The originality of this study lies in its focus on the banking sector in Pakistan and the exploration of the relationship between internal and external CSR initiatives, emotional labor, and job satisfaction. While previous studies have investigated the impact of CSR on employee well-being and job satisfaction, this study contributes to the literature by examining the mediating role of emotional labor in the relationship between CSR and job satisfaction. Additionally, this study uses Smart PLS 3.0, a relatively new method in the field of CSR research, to analyze the data. Overall, the combination of the unique context of the study, the mediating role of emotional labor, and the use of advanced statistical techniques adds to the originality and contribution of this study to the existing literature on CSR and employee well-being.

Business model innovation driven by corporate social responsibility in a digital innovation ecosystem: Evidence from Chinese manufacturers

AbstractThis study focuses on examining the relationship between corporate social responsibility (CSR) fulfillment and business model innovation (BMI) in the context of China's business environment. The research utilizes data from 1028 manufacturing firms in China and specifically explores the impact of CSR fulfillment on BMI within the digital innovation ecosystem. The findings indicate that both internal CSR (ICSR) and external CSR (ECSR) have a significant positive influence on BMI, with ECSR having a stronger effect. Additionally, the study reveals that value co‐creation (VCC) plays a mediating role in strengthening the relationship between CSR fulfillment and BMI. Furthermore, the study highlights that the positive association between CSR fulfillment and BMI is more prominent in firms with higher digital platform capability (DPC). Overall, this research provides valuable insights for manufacturers seeking to achieve BMI and sustainable development.