External Corporate Social Responsibility Research Articles

Tend to one's own house: The effect of firm CSR on employee effort

AbstractWe examine whether a firm's corporate social responsibility (CSR) actions that benefit external parties can cause the firm's employees to reduce their effort. We expect employees will reduce their effort in response to their firm's external CSR actions when they perceive that they are treated poorly by the firm and that the firm's external CSR actions use resources that could have been readily transferred toward improving employee treatment. We expect that, when employees hold both of these perceptions, they will react negatively to the firm's CSR actions due to heightened feelings of unfairness. Results support our expectations and theory. We find that employees respond negatively to CSR only when they perceive that they are treated poorly by their firm and that CSR uses transferable resources. Further, we find these effects are driven by employees' perceptions of the fairness of their firm's actions toward employees. Our study suggests that firms should consider how employees perceive their treatment by the firm and the transferability of the resources used for CSR actions that benefit external parties.

CSR investments and innovation – aligning and creating shared value

This research aims to advance the field of Corporate Social Responsibility (CSR) and innovation by exploring how CSR investments can drive product and service innovations, creating value for both the firm and its broader stakeholders. Specifically, it examines the relationship between CSR initiatives and their influence on CSR investments, as well as the resulting impact on innovation in products or services that contribute to shared value creation. The proposed framework is tested across three firm sizes—small, medium, and large—using a sample of 410 businesses within the Australian economy. The analysis was conducted using AMOS version 28, which established appropriate measurement indicators and revealed significant direct and indirect effects for the full sample. Additionally, the multi-group analysis explored nuanced relationships based on firm size.By investigating a relatively unexplored Australian context, the paper makes significant contributions by addressing the limited research on internal (employee) CSR, external (environmental) CSR, and ethical (governance) responsibility, examining their impacts on CSR investments. Furthermore, it explores how CSR investments influence innovation to create shared value and highlights the moderating effects of different firm sizes on the relationships between the antecedents, CSR investments, and innovation. The paper concludes by discussing the theoretical and practical implications of the findings, as well as outlining directions for future research and acknowledging limitations.

The influence of CSR on cross-border mergers and acquisitions

This paper conducts a comprehensive analysis of Chinese enterprises' cross-border mergers and acquisitions (M&A) events from 2012 to 2022, investigating the influence of corporate social responsibility (CSR) levels on cross-border M&A within the Chinese context. The research reveals that enterprises with higher CSR scores tend to experience lower success rates in cross-border M&A. Both internal and external CSR dimensions exhibit negative impacts on cross-border M&A, with external CSR demonstrating a more pronounced adverse effect. Notably, a history of successful cross-border M&A outcomes significantly enhances the likelihood of smoothly completed future transactions..

Corporate social responsibility: A Driver for green organizational climate and workplace pro-environmental behavior

In line with the United Nation's sustainable development goals (SDGs), the unsustainable use of scarce natural resources and worldwide environmental degradation call for the immediate implementation of green behaviors across all organizations. As environmental issues originate from human activities, they necessitate the realization and execution of employees' workplace pro-environmental behaviors (WPEB) and their stimulators. Drawing on social exchange and social identity theories, this study first investigates the mediating role of green organizational climate in the relationship between various forms of perceived corporate social responsibility (CSR) and employees' WPEB. It further examines the mediated moderation via green shared vision. An adapted survey questionnaire was distributed to senior-level and middle-level managers of large and medium-sized manufacturing firms in Pakistan, and 349 responses were gathered. The partial least-squares technique was used for data analysis. The findings indicate that all forms of perceived CSR positively correlate with a green organizational climate, which further significantly leads to employees' WPEB. The results also show that a strong shared green vision among employees can improve the relationship between the green organizational climate and employees' WPEB and vice versa. Moreover, multi-group analysis shows that the relationship between customer-centric perceived CSR and green organizational climate was stronger for medium-sized firms than large ones. Thus, to ensure the implementation of SDGs such as decent work and climate action, firms' top management must recognize the importance of investing in both internal and external CSR initiatives to foster a green organizational climate leading to employees' WPEB. Companies should communicate their participation in CSR activities to all stakeholders through public platforms to increase inspiration. Policymakers should further introduce CSR excellence awards and non-compliance penalties to encourage firms' extensive participation.

Does CSR facilitate access to trade credit? The role of family ownership

AbstractBuilding on the socioemotional wealth theory, this study examines the influence of family ownership and corporate social responsibility (CSR) on trade credit. We argue that the intention to preserve family control, the preference for long-lasting relationships, and the desire to accumulate social capital lead family firms to opt for trade credit. Family firms’ peculiarities are also expected to condition the CSR-trade credit link. In addition, we account for the fact that some CSR practices are particularly aimed at external stakeholders. Our analyses rely on a sample of European listed firms from 2008 to 2020 and our empirical evidence confirms a positive effect of family ownership and CSR on trade credit. Going a step further, our results highlight the moderating role of family ownership in the relationship between CSR and firm’s access to trade credit. In fact, the positive effect of CSR on trade credit seems to be exclusively attributable to family firms. We also report that CSR policies oriented towards external stakeholders are linked to greater use of trade credit, with family firms explaining the positive impact of external CSR.

Impact of internal and external corporate social responsibility on internationalization speed: Evidence from Chinese multinational enterprises

Impact of internal and external corporate social responsibility on internationalization speed: Evidence from Chinese multinational enterprises

Probing the CSR-pro-environmental behavior linkage: Insights into green reputation and chief sustainability officer influence

This study aims to examine the impacts of internal and external corporate social responsibility (CSR) on managers’ pro-environmental behaviors with the mediating role of green reputation and moderating of chief sustainability officer (CSO). We acquired information from 609 managers working in various Chinese manufacturing firms using a standardized survey tool. Structural equation modelling (SEM) was performed to analyze data. Our major findings are as follows. First, both internal and external CSR influence the pro-environmental behaviors of managers through the mediation role of corporate green reputation. Second, the CSO significantly moderates the relationship between CSR actions and corporate green reputation. Our study contributes to the body of current knowledge by giving empirical evidence for the theoretical framework linking CSR, reputation, and pro-environmental behavior. The findings from this study offer managerial insights for businesses that deliberately want to promote environmentally friendly activities.

Теоретичні засади формування корпоративної соціальної відповідальності в агробізнесі

The research paper aims to substantiate the theoretical foundations of corporate social responsibility, determine its place and role in modern economic science, and analyze the features of corporate social responsibility in agribusiness. In the article, we used the abstract-logical method to identify the theoretical foundations of the development of corporate social responsibility in agribusiness. Additionally, we researched the evolution of management practice and various approaches to interpreting the concept of “corporate social responsibility” using a monographic approach. We also used the method of analysis and synthesis to identify the key characteristics of corporate social responsibility and to distinguish the levels of corporate social responsibility in agribusiness. The article explores the development of “corporate social responsibility”. It defines a system of critical concepts, introductory provisions, and approaches that form the framework of corporate social responsibility. The concept of “corporate social responsibility” is theoretically interpreted and is commonly viewed as one of the elements of sustainable development. The article also discusses the specificities of using different approaches to interpret the concept of “corporate social responsibility” in management practice — elements of scientific novelty. A thorough analysis of the main characteristic features of corporate social responsibility was carried out, and the levels of corporate social responsibility in agribusiness were determined. The essential elements of internal and external corporate social responsibility in agrarian business were identified. Research has established that the most acceptable approach is that corporate social responsibility in agribusiness is considered the responsibility of an enterprise in the agrarian sector to its employees and other stakeholders (society, consumers, state authorities, public organizations, etc.), with which the organization interacts in the process own activity. The author has developed a mechanism for implementing the concept of corporate social responsibility in agribusiness. Practical relevance. Implementation of a mechanism for the implementation of social responsibility in agribusiness developed by the author in the activities of enterprises of the agrarian sector of the economy of Ukraine (based on the systematization of internal and external CSR with a division into reactive and strategic), which will contribute to the mitigation of already existing problems and negative consequences of the company’s activities and the successful implementation of the strategy CSR regarding the formation of a positive image of agrarian formations. Keywords: social responsibility, corporate social responsibility, corporation, the concept of implementation of state policy in the sphere of promoting the development of socially responsible business in Ukraine, agribusiness, and the mechanism of implementation of the concept of CSR in agribusiness.

Enhancing sustainable fit between corporate social responsibility and innovation: Implications for firm performance

AbstractDespite several studies on corporate social responsibility (CSR) and innovation on firm performance, the extent to which different CSR practices interacts with distinct innovation types in enhancing firm performance remains underexplored. We draw on contingency theory to examine how internal and external CSR interacts with exploitative and explorative innovation to improve firm performance. We discuss the interaction effects using a panel dataset of 1156 publicly listed Chinese firms that disclosed CSR and innovation information from 2008 to 2019. The results indicate that firms with high‐internal CSR benefit to a greater extent from explorative innovation than from exploitative innovation as a means of enhancing performance. In contrast, firms with high‐external CSR benefit to a greater extent from exploitative innovation than from explorative innovation to improve performance. We contribute to strategy and CSR literature by revealing how firms match specific CSR practices with distinct innovation types to enhance firm performance.

How do corporate social responsibility perceptions facilitate advocacy behavior? The roles of organizational pride and responsible leadership

As a voluntary behavior, employees’ advocacy can enhance organizations’ competitive advantage and reputation. Drawing on social identity theory, this study explores the mechanism of by which corporate social responsibility (CSR) perceptions influence employee advocacy behavior using a sample of 333 two-stage data. The results show that internal and external CSR perceptions have positive effects on employee advocacy behavior, organizational pride mediating the relationships between internal and external CSR perceptions and employee advocacy behavior. Responsible leadership strengthens the effects of internal and external CSR perceptions on organizational pride, as well as the indirect effects of organizational pride on the relationships between internal and external CSR perceptions and advocacy behavior. This study investigates how micro CSR affects advocacy behavior by introducing organizational pride and responsible leadership, thus advancing the micro CSR literature and providing directions for micro-level CSR research. The findings of this research provide guidance to managers by focusing on employee perceptions of CSR activities and organizational pride and by cultivating responsible leadership.

Early-life epidemic experience and CSR

This study examines the link between the chairperson’s early-life epidemic experience and corporate social responsibility (CSR). Using Chinese A-share listed firms over the time period of 2010–2020, our findings indicate that (1) the chairperson’s early-life epidemic experience contributes significantly and positively to CSR, as evidenced by elevated levels of both internal CSR and external CSR. In a difference-in-differences setting using firms that undergo chairperson changes, we find that there are significant increases in overall CSR, internal CSR, and external CSR after the firm was taken over by chairpersons with higher level of early-life epidemic experience. The relationship between the chairperson’s early-life epidemic experience and CSR remains robust after a series of robustness checks. (2) the downside risk positively moderates the relationship between the chairperson’s early-life epidemic experience and CSR. (3) The results of the heterogeneity analysis indicate that the promotional effect of the chairperson’s early-life epidemic experience on CSR is notably significant for chairperson with longer tenure, and there is no significant difference in the impact of the medical resource level of the chairperson’s birthplace on the aforementioned relationship. These findings shed light on the crucial role of chairpersons’ past experiences, such as early-life epidemic exposure, in shaping CSR practices.

The mediating effect of financial reporting quality on the relationship between corporate social responsibility and corporate green innovation

Purpose This study aimed to examine the mediating role of corporate financial reporting quality in the impact of corporate social responsibility (CSR) on corporate green innovation, based on the integration of stakeholder theory, opportunity cost theory, innovation diffusion theory and signaling theory. Design/methodology/approach A deductive quantitative approach was used as the research methodology. Following a survey design, questionnaire responses were collected from a purposively chosen sample of 308 employees in China. The data was analyzed using partial least squares structural equation modeling, performed with SmartPLS4.0 software. Findings The findings show that CSR promotes green innovation, and that financial reporting quality mediates this relationship. It was further revealed that compared to employees’ CSR perception, consumers’ perception of firms’ CSR performance has a stronger positive effect on firms’ corporate financial reporting quality and green innovation. These findings provide insights into the impact of both internal and external CSR performance on corporate green innovation. Research limitations/implications This study only sampled Chinese employees, meaning that the findings may not be representative of other regions. Also, as this study employed only the questionnaire instrument, future research may collect data through multiple sources, including financial reports, surveys and interviews, to better understand and estimate variations in the positive impact of CSR on green innovation. Originality/value This study establishes the mediating role of corporate financial reporting quality in linking CSR to corporate green innovation. It further examines green innovation in multiple dimensions (i.e. product, process, organizational), while also measuring CSR in dual perspectives, namely internal (employee awareness) and external (consumer awareness). The results of this study offer guidance to firms in improving their green innovation in various aspects, thus promoting sustainability and environmental friendliness in corporate development.

Corporate social responsibility and job pursuit intention: the role of job seekers’ perception on employer prosocial orientation, value congruence and employer attractiveness

PurposeThis study aims to examine the relationship between corporate social responsibility (CSR) and job pursuit intention (JPI), and the role of job seekers’ perception on employer prosocial orientation, value congruence and employer attractiveness in this relationship. CSR is measured based on internal and external CSR.Design/methodology/approachBy adopting quantitative approach, data was obtained through survey questionnaire from 420 bachelor’s degree university fresh graduates from five universities in Malaysia who are actively seeking for jobs. Data was analysed using structural equation modelling technique.FindingsResearch findings show that internal and external CSR positively impact job seekers’ perception of employer prosocial orientation. Job seekers’ perception towards employer prosocial orientation has a significant positive impact on value congruence. Value congruence has a significant positive influence on employer attractiveness. Finally, employer attractiveness has a significant positive impact on JPI.Practical implicationsThe findings are useful for human resources management. Organisations (employers) should focus on effective internal and external CSR practices through a prosocial orientation approach to attract the best talents and create a strong position in the job market.Originality/valueThis study extends the Signalling Theory and P-O Fit theory by applying them to an entirely different context of CSR and JPI, by incorporated the holistic job seekers’ psychological processes of the recruitment signals (internal and external CSR), signalling process and person-organisation fit (perception on employer prosocial orientation, value congruence and employer attractiveness) thoroughly.

The influence of synchronization of HR and PR practices in developing a strong CSR culture

Cultivating a CSR culture in an organization requires coordinated efforts spanning various functions in that organization. While former research has investigated the independent effects of HR and PR practices on Corporate Social Responsibility (CSR) culture, a critical gap exists regarding their combined influence, and their role in promoting individual social responsibility. This study investigates the novel concept of synergistic HR-PR practices, elucidating how positioning these functions strengthens employees’ individual social responsibility, ultimately fostering a robust and enduring CSR culture. Employing a mixed-methods approach, the research begins with a qualitative single-case study to gain insights into the process. Subsequently, a quantitative survey (N = 160) is conducted, with data analyzed using Structural Equation Modeling (SEM) with SmartPLS. The results confirmed the significant relationship between the synchronization of HR-PR practices and a strong CSR culture through the mediating effects of individual responsibility. This finding unveiled the fundamental role of consistent and synchronized external and internal CSR messaging in promoting employees’ individual social responsibility, which in turn helps them embrace their role in upholding a strong CSR culture within the organization. This finding significantly advances the HR-PR-CSR discourse and offers valuable guidance for policymakers aiming to achieve desired CSR results.

Exploring the impact of social responsibility on staff engagement in Ghanaian Universities:

Ghanaian universities have embraced a corporate identity and are actively participating in Corporate Social Responsibility (CSR), which is referred to as University Social Responsibility (USR). The purpose of this is to enhance the perception of identification (organisational identity) and promote employee involvement. This research examines the effect of University Social Responsibility (USR) on the level of involvement and commitment of staff members in Ghanaian institutions. It also proposes that the sense of identity plays a role in mediating the relationship between USR and staff engagement. This study utilised a cross-sectional survey methodology. The poll utilised a two-stage multi-stage sampling procedure to choose 412 participants. The survey utilised a validated questionnaire using a 5-point Likert scale. The questionnaire had a Cronbach's alpha coefficient (?) greater than 0.70. The data acquired from this questionnaire was customised for the survey. The data collected were configured and subjected to Structural Equation Modelling for analysis at a significance level of p<.05 using the SMART pls software. The findings indicate that identification perception does not significantly and directly predict the mediation effect of internal CSR on employee engagement (beta=0.008; t<1.96; p=0.439: p>0.05), and external CSR on employee engagement (beta=0.002; t<1.96; p=0.443: p>0.05) in the surveyed Ghanaian universities. The study concluded that the impression of identification did not operate as a mediator in the predicted association between the internal and external corporate social responsibility activities of the universities and employee engagement. According to the findings and conclusion, Ghanaian universities should take into account several elements and adopt a comprehensive approach when aiming to enhance employee job engagement. It is important not to exclusively concentrate on employee identification with the institution. It is advisable for the administration of Ghanaian institutions to develop efficient employee-focused engagement strategies and activities, both internally and externally, to boost the welfare of their workers, promote a sense of belonging, and improve overall performance.

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.

Internal corporate social responsibility as 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

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

PurposeThis 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/approachThe 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.FindingsWhile 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/valueFor 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.