External Corporate Social Responsibility Research Articles

Internal and external corporate social responsibility activities and firm value: Evidence from the shared growth in the supply chain

Despite the long history of corporate social responsibility (CSR) research, few studies have focused on CSR activities related to business partners in supply chains. In this regard, we investigate whether internal (or backward) CSR enhances firm value. Using an index from the Korea Commission for Corporate Partnership, which indicates whether a firm shares its profits with business partner companies, we find that firm value increases as this backward CSR increases. Further, after controlling for internal CSR, firms engaged only in external CSR have lower firm value than non-CSR firms. Interestingly, we find that firms involved in both internal and external CSR have higher value. Overall, by showing that internal CSR is a core activity that enhances firm value, our study provides policy implications for the regulatory bodies of different countries.

The effects of internal, external and aggregated CSR practices on the firm's reputation and profitability

PurposeContemplating the concerns often expressed by skeptics about the value generated by corporate social responsibility (CSR) practices, this study aims to examine the effects of CSR practices on the firm's reputation and profitability in the distinct socio-economic context of Nepal.Design/methodology/approachThe study used a simple random sampling method in collecting data from 168 listed companies in Nepal. The data were collected using structured questionnaires. Then, hierarchical multiple regression analyses were used to test the stated hypotheses.FindingsResults showed that all types of CSR practices positively affect the firm's reputation and profitability. However, a firm's reputation was better explained by the external CSR practices, and profitability was better explained by the internal CSR practices. Moreover, CSR practices were more strongly linked with the firm's reputation than profitability.Research limitations/implicationsPerceptual data on profitability may be seen as a limitation although it can capture the current profitability situation as well as a future prospect within a single construct.Practical implicationsPracticing managers can consider CSR as an important strategic issue to stay ahead in competition rather than simply a response to regulatory requirements or stakeholder pressures.Originality/valuePerhaps this is the first study to examine the effects of internal CSR practices, external CSR practices, and aggregated CSR practices separately on the firm's reputation and profitability in the unique socio-economic context of Nepal.

Is Femvertising the New Greenwashing? Examining Corporate Commitment to Gender Equality

This study examined the potential for a new area of corporate social responsibility (CSR) washing: gender equality. Companies are increasingly recognized for advertisements promoting gender equality, termed “femvertisements.” However, it is unclear whether companies that win femvertising awards actually support women with an institutionalized approach to gender equality. A quantitative content analysis was performed assessing company leadership team listings, annual reports, CSR reports, and CSR websites of 61 US-based companies (31 award winners and 30 non-winning competitors) to compare the prevalence of internal and external gender-equality CSR activities of companies that have (versus have not) won femvertising awards. When controlling for number of employees and annual revenue, award-winning companies committed to more internal efforts that support women than non-award-winning companies. However, no significant differences were found in the number of external efforts or representation in female leadership between companies with and without award-winning femvertisements. Overall, a majority of award-winning companies (81%) engaged in less than ten of the possible 23 gender-equality CSR activities, suggesting these companies’ female empowerment commercials were often not in line with their broader CSR activities. While more research is needed in this area, we propose the term “fempower-washing” to describe CSR-washing in the context of gender equality.

When subsidiaries follow their parents’ CSR focus: the influence of organizational characteristics on CSR towards target groups

Corporate social responsibility (CSR) of MNE subsidiaries in emerging markets has mainly been studied through aggregated CSR activities. Instead, this study disaggregates CSR engagement towards target groups into two foci – External and Internal CSR – depending on whether such engagement is outside or within the organization. We explored whether the odds of a wholly owned subsidiary matching its parent’s choice of target groups – for both External and Internal CSR – varied by which organizational cohort it belonged to, based on organizational characteristics. Results of logistic regressions indicate that age of a subsidiary, relative size of the subsidiary and region-of-origin of its parent influence the odds of the subsidiary following its parent’s External CSR focus; while age of a subsidiary, global presence of its parent, and industry type influence the odds of the subsidiary following its parent’s Internal CSR focus. Findings indicate that both through External and Internal CSR, MNE subsidiaries simultaneously pursue legitimacy and competitive advantage, through different primary stakeholder groups, to address both host country and global institutional contexts.

The Impact of Corporate Social Responsibility on Firms' Exposure to Tail Risk: The Case of Insurers

We propose a novel corporate social responsibility (CSR) index that captures various aspects of an insurer's internal and external CSR activities. We first show that insurers worldwide have significantly increased their CSR activities with the average index value almost doubling between 2006 and 2015. CSR activities are particularly pronounced at large firms, composite insurers, and insurance companies in Europe. We find that insurers' exposure to market risk in previous times significantly drives future CSR engagement. Finally, we provide empirical evidence for a causal and decreasing effect of an insurer's CSR on its tail risk as well as its short- and medium-term exposure to systemic risk.

Responsabilidade social corporativa e o desempenho de mercado de empresas brasileiras

Purpose – This research aimed to analyze the relationship between Corporate Social Responsibility (CSR) and the market performance of Brazilian companies.Design/methodology/approach – A descriptive, documentary and quantitative research was carried out using panel data regression. The analysis period covered 2010 to 2018 and the sample comprised 41 companies.Findings – The results revealed that investments in external CSR and the fact that companies are listed on the ISE index increase their market value. The CSR information of Brazilian companies aimed at investments made for a society helps to increase market performance.Research limitations/implications – It should be noted that the results cannot be generalized for all Brazilian companies. This research contributes to the accounting and CSR literature, by analyzing the benefits of CSR on companies' market performance.Practical implications – The findings assist investors in the decision-making process, as companies that have CSR actions have positive impacts on their value, operational efficiency and the ability to generate financial performance.Social implications – The results have social implications, as they reinforce the importance of companies investing in CSR, which can improve their market value and benefit society with practices aimed at social well-being.Originality/value – CSR was analyzed in several aspects in the accounting literature. However, the focus of the relationship between CSR and specifically market performance has been little explored in Brazil, a fact that denotes research value.

Аспекти корпоративної соціальної відповідальності підприємства, що сприяють формуванню його іміджу

Annotation. Introduction. It was found out that modern enterprises have to work in conditions of tough competition. High quality in the world of developed technologies and techniques has become the norm for consumers. Today, companies have to look for new ways to attract and retain customers. One of the ways out of this situation is for the company to create its image. Purpose. The purpose of this study is to develop theoretical aspects of the study about the impact of corporate social responsibility on the formation of the image of the enterprise. Results. It has been revealed that each company, enterprise or organization has its own vision of social responsibility. For some it is a charity, for others, it is timely payment of taxes and providing jobs, for the third – PR. It has been substantiated that the company’s socially responsible policy is manifested in internal (labor safety, stability and social significance of wages, additional medical and social insurance of employees, development of human resources, assistance to employees in critical situations) and external (sponsorship and charity, interaction with local society and authorities, environmental protection, production of quality goods (services), readiness to participate in crisis situations). It was considered that a positive image and a good reputation create prerequisites for a more attractive perception of an enterprise by investors, increase its capitalization, increase its income and provide strong positions when entering new markets, as well as support the general public. It has been proved that the prognostic effects of implementing a socially responsible policy of an enterprise will be the formation of a positive image, improvement of its reputation, establishment of permanent ties with stakeholders in the long term, etc. It has been determined that the image of an enterprise is the degree of consumer confidence in the enterprise itself, in its products (services), a source of growth in sales and, accordingly, development, expansion of functioning (maximization of profitability for owners of capital, increase in wages of employees) or termination of the existence of an organization. Conclusions. Undoubtedly, in order to be effective, the enterprise should use both internal and external corporate social responsibility programs in a comprehensive manner. Of course, this creates and maintains a positive image, which contributes to the growth of consumer confidence in the enterprise, the formation of necessary emotional ties with customers and society as a whole. Keywords: image; enterprise; corporate social responsibility; stakeholders; society.

PENGARUH PENERAPAN SRHRM DENGAN DUKUNGAN KARYAWAN BAGI KEGIATAN CSR EKSTERNAL PERUSAHAAN DI JAKARTA DAN SEKITARNYA

<p class="Style4">This study aims to look at the relationship between Socially Responsible Human Resource Management (SRHRM) and employee support for the perception of Corporate Social Responsibility (CSR). The data collection method used for the research is through surveys, which are distributed to employees of several companies in various industries in Indonesia and the collected data are analyzed using the Structural Equation Modelling (SEM) method. The findings of this research suggest that SRHRM practices will affect employee support for external CSR through the creation of a socially responsible organizational climate. Therefore, it should be considered by companies in Indonesia throughout its operations particularly for the company’s human resource department. This research contributes to expanding the CSR and HR literature which is still uncommon particularly in Indonesia.</p><p><strong>Keywords:</strong> Corporate Social Responsibility, Organizational Climate, Socially Responsible Human Resource Management</p>

Internal vs. External Corporate Social Responsibility at U.S. Banks

This study analyzes the effect that banks’ investments in corporate social responsibility (CSR) have on bank performance. I find that banks’ investments in CSR have a positive impact on financial performance, measured in terms of both accounting performance and stock market value. However, not all CSR investments are the same. I distinguish between internal CSR and external CSR. This distinction is based on which constituents are most directly affected by the CSR initiatives. Separating bank CSR activities into internally focused and externally focused ones provides evidence on how different constituents value bank CSR activities. I find that CSR-related value creation is primarily a result of banks’ external investments and not a result of their internal investments. I also consider how internal and external CSR activities influence bank risk. I find that banks with higher CSR scores are less risky. This is driven by their external CSR investments and not by their internal CSR investments. Banks with a larger gap between internal and external CSR investments have worse performance, lower valuations, and greater risk than banks with a more balanced distribution between internal and external CSR investments. Banks which are committed to long-term structural CSR investments that benefit a broad community of stakeholders are rewarded by the financial markets. Moreover, from a regulatory policy perspective, these same banks are less risky and less likely to contribute to systemic macroeconomic risk.

Internal and external social responsibilities in new ventures: evidence from Chinese private firms

PurposeExtant studies on corporate social responsibility (CSR) have mainly focused on established corporations; the context of new ventures remains largely unexplored. This study aims to address this gap by exploring the patterns of socially responsible activities in new ventures.Design/methodology/approachThis study uses the perspective of stakeholders to differentiate external CSR activities (efforts directed toward external stakeholders) from internal CSR activities (efforts directed toward employees) and performs empirical tests using a sample of 3,650 Chinese private firms.FindingsThis study empirically shows that new ventures are more involved in external CSR activities and less involved in internal CSR activities than mature firms. New ventures prioritize their limited resources to fulfill the expectations of external stakeholders rather than those of internal stakeholders. External stakeholders are considered primary stakeholders because of their potential to satisfy critical organizational needs at the start-up stage. However, new ventures tend to cut the spending on employee benefits, ignoring the potential effect of this investment on their long-term growth. After testing the moderating effect of financial resource availability, we find that new ventures with high financial resource availability are inclined to implement external CSR strategy rather than internal CSR strategy.Research limitations/implicationsThis study focuses on new ventures and reveals the influence of organizational life cycle on CSR decisions. The findings may be limited to the context of China or emerging markets. Thus, further research is needed to compare the patterns of CSR activities in new ventures under different institutional environments.Practical implicationsThis study indicates that new ventures are inclined to implement external CSR strategy rather than internal CSR strategy. This choice may be rational in the short term, but insufficient investment in employee benefits may affect the long-term growth of these firms. Therefore, they must also focus on their internal CSR activities.Originality/valueThis study is one of the few studies to investigate the patterns of socially responsible activities in new ventures in a transition economy. The findings in this study can help reconcile the seemingly contradictory views on whether new ventures are socially responsible and contribute to our understanding about CSR strategy in these firms.

Impact of family involvement on internal and external corporate social responsibilities: Evidence from Chinese publicly listed firms

AbstractThis study differentiates between internal corporate social responsibility (CSR) and external CSR to investigate the impact of family involvement on different dimensions of CSR. Using a sample of 2,114 Chinese listed firms, we show that family involvement is positively related to the level of firms' participation in external CSR but negatively related to the level of firms' participation in internal CSR. We further explore the roles of internal ownership structure and external institutional environment in influencing the incentives of family firms to invest in internal and external CSR. Results show that high levels of ownership balance and regional institutional development attenuate the negative effect of family involvement on internal CSR while a high level of regional institutional development strengthens the positive effect of family involvement on external CSR. These findings contribute to our understanding on the internal and external CSR strategies in family firms in emerging markets.

Corporate social responsibility, Green supply chain management and firm performance: The moderating role of big-data analytics capability

Green supply chain management (GSCM) has attracted wide attention from academia and practitioners with the improvement of environmental awareness. Based on stakeholder theory, the purpose of this study is to explore the relationship between corporate social responsibility (CSR), green supply chain management and firm performance, and to consider the context of big-data analytics capability. Based on 260 samples of Chinese manufacturing industry in three measurement periods, hierarchical multiple regression method was used to analyze the data and test our hypotheses. The empirical results show that internal CSR (management practice towards employees) and external CSR (management practice towards external stakeholders) has a positive impact on green supply chain management. Green supply chain management has a positive impact on firm performance, and big-data analytics capability has a positive moderating effect on the relationship between external CSR and green supply chain management. The theoretical contributions and practical implications are also discussed.

Nomological validation of Villa Castaño’s socially responsible consumption scale

Considerable attention has been witnessed in the literature on socially responsible consumption behaviour. The purpose of the study was to validate Villa Castano’s socially responsible consumption (SRC) scale nomologically. The survey was conducted in Chennai city, the capital of Tamil Nadu state of India. A total of 130 responses were collected during the survey. The sample comprised of university teachers, research scholars, and non-teaching staff. The judgmental sampling technique was used for data collection. In order to assess the validity and reliability of the scale, exploratory and confirmatory factor analyses were performed. Factor analyses confirmed the multidimensional structure of the SRC construct with the following axes: (1) external-corporate social responsibility, (2) internal-corporate social responsibility, (3) consumption rationalization, and (4) healthcare. Nomological validity was assessed with collectivism, social values, and sense of connectedness constructs using correlation analysis. Results revealed that SRC is partially related to collectivism, social values, and sense of connectedness constructs.

The Influence of Corporate Social Responsibility on Incumbent Employees: A Meta-Analytic Investigation of the Mediating and Moderating Mechanisms

This article reviews 86 studies and uses meta-analytical methods to investigate how perceived corporate social responsibility (CSR) impacts employee attitudes and behaviors and to identify the mediating mechanisms and boundary conditions. An initial review of this body of research finds a multitude of mediators but a limited focus on CSR typology as a potential moderator. Drawing upon social exchange theory, we develop and test two multivariate mediation models to integrate and synthesize three most-studied mediating mechanisms: organizational justice, organizational trust, and organizational identification. Meta-analyses find that while all three mechanisms within the parallel mediation model are equally significant in mediating the effect of perceived CSR on organizational commitment and job satisfaction, organizational identification is superior to organizational justice and organizational trust in mediating the effect of CSR perceptions on organizational citizenship behavior (OCB) and turnover intention. It is also found that although both mediation models adequately represent the accumulated empirical data, the sequential model is statistically superior to the parallel model. Although meta–structural equation modeling analyses reveal minimal differences between the broadly defined internal and external CSR perceptions, significant heterogeneity exists between perceived CSR and the outcome variables. The additional analyses suggest that significant differences exist between more specific stakeholder CSR types. In summary, this article extends our understanding of how employees perceive and respond to CSR through multiple sociopsychological mechanisms in additive and sequential fashions and how such responses could differ depending on the specific stakeholder subgroups targeted by CSR. Theoretical contributions and future research directions are also discussed.

Flying Under the Radar: Internal and External Corporate Social Responsibility and Firm Visibility

In the current study we distinguish between CSR (corporate social responsibility) activities targeted at internal stakeholders and CSR activities targeted at external stakeholders, reexamining the relationship between CSR and firm market performance with data on 1289 firms from 2005-2013. We examine whether a gap between the firm’s internal and external CSR moderates the CSR-firm market performance relationship. We found that both internal CSR and external CSR were positively related to firm market performance, but that the relationship was stronger for firms with equal emphasis on external and internal CSR activities. Further, the negative moderating effect of the CSR gap was mediated by the firm visibility.

Exploring Corporate Social Responsibility under the Background of Sustainable Development Goals: A Proposal to Corporate Volunteering

The research into corporate volunteering (CV) has been prolific, although few studies have focused their approach on senior and retired workers under the framework of the corporate social responsibility (CSR). The social participation of retirees in CV activities contributes to the businesses’ socially responsible performance and can be intimately connected with the global commitment pursued by the Sustainable Development Goals (SDGs) by the year 2030. This article aims to explore the key issues that might have influence the effective implementation of CV programs to integrate retired and pre-retired workers, promoting a participatory and healthy aging. Based on the interface of internal and external corporate social responsibility, we discuss how CV can achieve social legitimacy, influencing the health and well-being of workers beyond the employment relationship. The main contribution of this article to the state of art is to extend the literature on CSR and CV by elaborating a theoretical model that integrates both perspectives with the focus on the SDGs. The results suggest that SDGs represent an opportunity and a frame of reference for CSR strategies. Companies engaged in senior CV activities could enhance their corporate and social images within the strategic action of social responsibility, indisputably improving people’s health and well-being.

Relevance of voluntary environmental and social reporting in the French context: Does CSR assurance matter?

Corporate social responsibility (CSR) reporting is of high importance for firms that wish to communicate their environmental and social actions to stakeholders and society at large. Of course, the credibility of CSR reporting affects considerably the market reaction to the information provided. Although research on environmental and social reporting is important, empirical evidence regarding the relevance of environmental and social disclosure to firms’ market values is scarce. This paper specifically analyzes the moderating role of external CSR assurance on the relationship between voluntary environmental and social reporting and firm market value. A content analysis index is then developed based on disclosure items specified in the Global Reporting Initiative guidelines. Using hand-collected data on a sample of French companies, the authors find that CSR assurance has a negative moderating effect on the relationship between high environmental and social reporting and firms’ market value, raising questions about the role of external assurance in assessing CSR reporting credibility. AcknowledgmentThe authors sincerely thank three anonymous reviewers of Environmental Economics for their insightful comments on a previous version of the paper.

The formation of the social sphere of large entrepreneurial structures in the energy sector of the Republic of Tatarstan

The integration of the conceptual foundations of corporate social responsibility (CSR) into the business development strategy and the improvement of its implementation tools is becoming a trend. The purpose of the study is a theoretical justification and description of the established practices in the formation of the social sphere of large business structures in the energy sector of the Republic of Tatarstan. Object of study - JSC «Tatenergo». Research methods: desk study (review of foreign and domestic experience in the implementation of CSR); analysis of the social sphere of JSC «Tatenergo» with a description of: positioning; principles; practices (directions) in assessing the forms of CSR implementation with identification of types of CSR. The empirical base of the study is the official website of OA Tatenergo, section “Social sphere”. Conclusions and recommendations: internal CSR prevails in the implementation of CSR of JSC «Tatenergo»; growth points are justified in the context of the concept of “sustainable development”: development of a mission, vision, CSR strategy; highlighting corporate development institutions - a responsible functional structural unit; development of external CSR.

Internal corporate social responsibility and organizational creativity: An empirical study of Vietnamese small and medium-sized enterprises

Purpose: The present study aims to investigate the relationship between internal corporate social responsibility (CSR), a type of CSR particularly for employees within organizations, and two types of innovation, that is, exploratory and exploitative innovation. The focus is on the mediating effects of affective commitment, knowledge sharing, and organizational creativity within the relationship.Design/methodology/approach: This study’s data were collected in Vietnam via questionnaire survey. Regarding survey administration, first, we chose the five biggest universities, which specialize in economics and business in Hanoi. Then, from those universities, we randomly selected graduate classes whose students are full-time employees in various companies around Hanoi. The questionnaire included multi-items designed to measure factors. Each item was measured by 5 point Likert scale: 1 (strongly disagree) to 5 (strongly agree). Among 750 distributed questionnaires, 252 were returned. After screening and deleting those questionnaires with missing information or those from large companies, 212 remained for further investigation, representing 28.3% of the valid response rate. There are 130 manufacturing companies and 82 non-manufacturing companies in this sample. For the statistical analysis of the data, we follow the three-step procedure of exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling.Findings: This study successfully tests the empirical relationship between internal CSR and innovation by introducing the mediating effects of knowledge sharing, affective commitment, and organizational creativity. In other words, the results support our hypotheses that predict positive mediating effects, except for the relationship between training and development as one aspect of internal CSR and affective commitment, although training and development have an indirect relationship with innovation through knowledge sharing and, in turn, organizational creativity.Originality/value: The study contributes to the literature on internal CSR, especially because it provides the new empirical evidence for the relationship between internal CSR and innovation, which has been vague in academic research up to now. In particular, by incorporating knowledge sharing, affective commitment, and organizational creativity, the relationship becomes clearer, more reliable, and comprehensive. We emphasize that the factors concerned are relevant to the case of small and medium-sized enterprises in developing countries, because they often face difficulties implementing external CSR due to resource constraints.

Impact of corporate social responsibility practices on employee commitment

PurposeThe purpose of this paper is to critically review the existing literature on corporate social responsibility (CSR) to develop a framework to analyse the impact of CSR on employee commitment to the organisation.Design/methodology/approachUsing the scoping review, this paper reviewed the published articles on CSR and employee commitment and how CSR and employee commitment were defined, theoretically supported and conceptualised for a comprehensive understanding of current and future research directions in the field.FindingsThis paper presents a framework developed through the analysis of existing literature on the impact of CSR) on employee commitment to the organisation. This framework aims to explore the impact of internal CSR and external CSR on employee commitment while using the contractual position of employees as an intervening variable.Originality/valueDuring a time where employee attraction and retention is widely discussed as a competitive advantage, this framework could be used by any industry, especially those with high staff turnover such as mining. The researchers propose to use this framework to explore how perception towards external CSR (directed towards external stakeholders) and perception towards internal CSR (directed towards the own employees) can influence organisational identification and commitment levels. To address several gaps in the literature, this model is based on the Maslow’s Hierarchy of Needs and Social-Identity Theory.