Financial Social Responsibility Research Articles

S haria P rinciple C ompliance M odel Between Islamic Financial Performance and Social Performance Evidence from Indonesia

This study aims to explain the effect of compliance with sharia principles on sharia financial performance and its implications for Islamic social responsibility. This type of research is descriptive verification. The data used is the annual report of Islamic commercial banks in Indonesia. Data analysis using SEM PLS. The results of the study indicate that compliance with sharia principles has an effect on sharia financial performance and Islamic social responsibility. Through sharia financial performance, compliance with sharia principles has an effect on Islamic social responsibility. Islamic financial performance has an effect on Islamic social responsibility. The results of the study prove that Islamic commercial banks in carrying out their operational activities absolutely must be based on sharia because Islamic commercial banks are not only responsible to the owner but to Allah SWT. The compliance of sharia commercial banks with sharia principles fosters public trust in sharia commercial banks.

Combining Financial Information and Corporate Social Responsibility Related Information for Characterizing Corporate Disclosure: Some Insights From Moroccan Context

This paper deals with the corporate disclosure and therefore the option to predict the corporate disclosure through combining financial and non-financial information. In this paper, we study the corporate disclosure characteristics by investigating the predictability strength of specific financial performance indicators and corporate social responsiblity (CSR) related information. The sample of this research contains 58 organizations that had been awarded the label of the CSR in Morocco. A content analysis of corporate websites, financial statements and annual reports are used for each organization. Based on corporate disclosure content, two groups are constructed. We use four financial indicators for measuring the performance (financial information) and particular CSR related information (non-financial information) for these two groups. The discriminant analysis highlights to what extend specific information could predict the nature corporate disclosure content. As results, these indicators and information show different levels of ability to predict corporate disclosure content. Our findings, when confronted to the literature, explicit convergences about the predictability of corporate disclosure content.

Типология социальной ответственности крупного российского бизнеса в контексте ориентации на внутреннюю и внешнюю среду

Relevance. The development of corporate social responsibility in Russia is largely hindered due to the lack of pronounced market and financial advantages of companies implementing social and environmental projects and programs. The identification of a stable relationship between the social responsibility of companies and the financial performance of their activities is limited not only by the complexity of measurement and differences in the tools for assessing corporate social responsibility. The composition of the companies under study is of great im-portance, as well as the great variability of their influence on the internal and external environment, depending on the scale and type of economic activity. The purpose is to develop an empirical typology of large Russian companies based on the assessment of the dynamics of financial performance and orientation of corporate social responsibility to the internal or external environment. Objectives: to justify the choice and analyze the indicators characterizing the financial and economic performance of large Russian companies and their social responsibility in the context of orientation to the internal and external environment; to compare the dynamics of the financial and economic indicators of companies and their orientation to the internal and external sphere of corporate social responsibility; to identify ordered groups of companies and describe their characteristics, allowing to identify the type of company. Methodology. The research uses general scientific methods and techniques: analysis, synthesis, analogy, generalization, comparison, and methods of economic science: graphic, statistical. The empirical basis of the study was the annual and non-financial reports of large Russian companies in the oil and gas, energy, mining and metallurgical and telecommunications sectors for the period 2015-2018. Results. As a result of comparison of financial indicators and orientation of corporate social responsibility to the internal or external environment, groups of companies similar in a number of features are analyzed. Four types of large Russian business companies have been identified, characterized by the predominance of external, internal or balanced orientation of corporate social responsibility with a high or moderate growth rate of financial performance. Conclusions. The existence of a stable relationship between financial performance and corporate social responsibility remains a debatable issue. The analysis and comparison of a number of indicators of the financial, economic and socio-environmental spheres showed that fast-growing companies are more oriented to the external environment, whereas moderately growing companies are characterized by the internal orientation of social programs and projects or the equivalence of the internal and external environment. A significant factor in orientation to the internal and external environment is the company's belonging to a certain sector.

Financial Performance and Corporate Social Responsibility on Return of Shares

The purpose of this study is to test the hypothesis of the influence of independent variables namely ROI, ROE, EPS, DER, CSR while the dependent variable is Stock Return. This research approach is a fixed effect approach, general effects, and random effects approach. The sample used in this study was 19 Manufacturing Companies listed on the Indonesia Stock Exchange for the 2015-2018 period. The results showed that ROI, ROE, EPS, and DER partially did not affect Stock Return, while CSR partially affected stock returns on Manufacturing Companies listed on the Indonesia Stock Exchange for the 2015-2018 period. This means that the companies sampled in this study stated that CSR is a form of commitment in improving welfare through social and environmental responsibility, CSR also provides long-term benefits by increasing the company's reputation and branding, efficiency, internal party appreciation, and strong profitability.

Financial Sustainability Conscientiousness

Financial sustainability conscientiousness is discussed in the focal point of law, economics and governance. The implementation of sustainability accounts for the most challenging contemporary global governance predicaments that seems to pit today’s against future generations in the trade-off of economic growth versus sustainability. As a novel angle towards sustainability, the Sustainable Development Goals are set out to implement sustainability around the globe on a large scale. In the bottom-up implementation of sustainability, tax ethics, public-private-partnerships (PPPs) and Corporate Social Responsibility (CSR) are discussed. Behavioral insight nudges to steer bottom-up sustainability action include social status manipulations and joint decision making presentation advantages, which account for easily implementable bottom-up democracy in action tools to ensure natural sustainability choices. As for the climate injustice of diverse gains and losses from a warming globe around the world, a tax-and-bonds strategy is proposed to alleviate the losses of climate change on the macroeconomic gains of a warmer climate. Strengthening financial social responsibility, social welfare and environmental protection through future-oriented and socially responsible economic market approaches of capitalism in the 21st century is aimed at alleviating predictable economic, social and environmental crises to ensure a future sustainable humankind for this generation and the following.

Pengaruh Mekanisme Tata Kelola Perusahaan Terhadap Pengungkapan Islamic Financial Social Reporting (Ifsr) Pada Bank Syariah Di Indonesia

This study was conducted to determine the effect of independent commissioners and directors on the disclosure of Islamic Financial Reporting (IFSR). Research on Islamic Financial Social Reporting (IFSR) can be said is a fairly recent research finding from a copy of research on ISR, GCG, and financial disclosure. For research in Indonesia, no research has been found that addresses the disclosure of IFSR in Islamic Banks. The IFSR is an index that covers all aspects of financial disclosure, governance, and Islamic social responsibility. The population of this study is Islamic banking in Indonesia, amounting to 12 banks which published annual reports from 2014-2018. Data collection method in this research is documentation study. Analysis of the data used is descriptive statistics, classic assumption tests, and for hypotheses using multiple linear regression analysis. The results of this study indicate that the number of independent commissioners and the number of directors has a positive effect on the disclosure of Islamic Financial Social Reporting (IFSR)

Financial Performance and Corporate Social Responsibility (CSR): Empirical Evidence from Banks in India

In the era of changing business dynamics and evolving socio economic systems the concept of Corporate Social Responsibility (CSR) has become widespread. In the recent decades this ideology is gaining momentum in both academic and business life, i.e., the company exists for and has responsibilities towards a wider group of stakeholders and it must have some objectives other than profitability. The Friedman’s formulation that “The Business of Business is Business” has outlived its utility, and corporate social responsibility and being a good corporate citizen are the buzzwords today. It is believed that organizations which do not consider any social responsibility towards society will ultimately tend to lose in the long run. It is questioned whether any relationship exists between financial performance and social performance. The present study aims to examine the impact of financial performance on CSR investments of selected banks in India. The research based on 20 banks (listed in BSE) investigates the impact of financial indicators viz a viz Profit After Taxes (PAT) and Earning Per Share (EPS) on CSR investments in some selected banks in India. Correlation and multiple regressions have been used to analyze the relationship among these financial profitability indicators and CSR investments. Results indicated a high significant positive correlation between PAT and CSR investments indicating that with an increase in profits, banks are increasingly spending on their CSR initiatives and vice versa. On the contrary though a significant positive correlation exits between PAT and EPS, the association between EPS and CSR investments though positive was found to be insignificant.

The History of Ethical, Environmental, Social, and Governance-Oriented Investments as a Key to Sustainable Prosperity in the Finance World

In recent decades Socially Responsible Investment (SRI) emerged into an en vogue investment strategy. Socially Responsible Investment (SRI) is an investment philosophy that combines profit maximization with social endeavors. By integrating social, environmental, and financial aspects in investments, socially conscientious investors pursue economic and social value maximization alike. Financial goals can be coupled with catalyzing sociopolitical change in various forms. Socially responsible screenings are “double bottom line analyses” of corporate economic performance and social responsibility, in which socially conscientious investors incorporate Corporate Social Responsibility (CSR) in financial decision making and allocate financial resources based on the societal impacts of the funded entities. Originating from religious and moral considerations, SRI evolved in the wake of sociopolitical deficiencies and corporate social conduct. In the global rise of financial social conscientiousness, differing national legislations and regulatory traditions have led to various SRI practices, which are harmonized by the United Nations (UN). Building on the historic advancement of Financial Social Responsibility in the wake of socioethical deficiencies, this article highlights the potential of SRI in the aftermath of the 2008/09 World Financial Crisis as a means to avert economic market downfalls. During the current financial market reform, additional micro- and macro-research on financial social conduct could foster the idea of Financial Social Responsibility and aid a successful implementation of SRI.

Applying the Corporate Social Responsibility to the Shipping Industry

Corporate financial distress and cashflow liquidity constraints are seen to intensify during prolonged recessionary business cycle phases. On the other hand, companies that consistently pursue corporate social responsible strategies pay attention to smoothly cater towards their stakeholders even at harsh market times. This study investigates dynamic perspectives of corporate financial distress and social responsibility interactions, in a company life-cycle setting. The shipping industry is taken as an empirical case to study these issues at hand, based on a selected sample of 84 publicly-listed shipping companies, over 2010–2016. The empirical findings indicate that positive corporate social responsibility approaches minimize financial distress probabilities for shipping companies. Furthermore, this inverse interaction between positive corporate social responsibility and financial distress is found to be more robust for shipping companies in their mature stage of their life-cycle path.

Corporate social responsibility performance under various economic conditions

This paper examines how economic conditions impact a firm's corporate social responsibility performance and influence the relationship between financial performance and corporate social responsibility. One theory suggests that in a good economy, firms engage in more corporate social responsibility to reap the marginal benefits of increased consumer purchasing power. Another theory suggests that during a bad economy, firms engage in more corporate social responsibility to chase reduced market share and manage reputation. The expected impact of the economy on corporate social responsibility performance, therefore, depends on which theory dominates. Using data from 2005–2010, we found that firms' corporate social responsibility performance changed significantly during the financial crisis, relative to both the pre- and post-crisis periods. Further, the relationship between financial performance and corporate social responsibility varied based on economic conditions. These results indicate that the motivations for conducting corporate social responsibility hinge on both economic conditions and firms' profitability.

PENGARUH KINERJA KEUANGAN DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP NILAI PERUSAHAAN (STUDI EMPIRIS PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2012-2014

Abstract- Factors known value of the company as follows. Factor financial performance and Corporate Social Responsibility one that affects the value of the company. This study aimed to test whether the effect of Financial Performance and Corporate Social Responsibility (CSR) to Corporate Value on banking company listed on the Indonesia Stock Exchange (BEI). This research uses descriptive quantitative approach, which is measured using multiple linear regression based SPSS 21.0. the population of this study is the banking companies listed in Indonesia Stock Exchange (BEI) in 2012 through 2014. The sample was determined by purposive sampling method, with a sample of 17 banking companies, bringing the total observation in this study were 51 observations. The data used in this research is secondary data. The data collection technique using the method of documentation via the official website IDX: www.idx.co.id. Hypothesis testing using t test. The research proves that (1) Financial Performance affect the Company's value in the banking companies listed on the Stock Exchange 2012-2014, (2) Corporate Social Responsibility positive effect is not significant to the Company's value in banking companies listed on the Stock Exchange 2012-2014, (3) financial performance and Corporate Social Responsibility collectively together have an influence on the value of companies in bannking companies listed on the stock exchange 2012-2014.

REI: Sustainability Strategy and Innovation in the Outdoor Gear and Apparel Industry

Many companies view financial variables independently from ecological and social variables. Is it possible to hold one's organization equally accountable for financial performance and social responsibility? This field-based case is suitable for MBA and undergraduate courses or modules in sustainability and innovation, ethics, and corporate social responsibility. For REI, an outdoor gear and apparel manufacturer, the challenge lies in how to expand sustainability awareness through consensus building across the organization and with outside collaborators. As it designs a new strategic framework for the operations footprint, the company seeks to adopt a corporate strategy on product stewardship and adapt its philanthropy strategy around sustainability objectives.

The History of Ethical, Environmental, Social and Governance-Oriented Investments As a Key to Sustainable Prosperity in the Finance World

In recent decades Socially Responsible Investment (SRI) emerged into an en vogue investment philosophy. Originating from religious and moral considerations, SRI evolved in the wake of socio-political deficiencies and corporate social conduct. In the global rise of financial social conscientiousness, differing national legislations and regulatory traditions have led to various SRI practices, which are harmonized by the United Nations (UN). Building on the historic advancement of Financial Social Responsibility in the wake of socio-ethical deficiencies, this chapter highlights the future potential of SRI in the aftermath of the 2008/09 World Financial Crisis as a means to avert economic market downfalls. During the current financial market reform, additional micro- and macro-research on financial social conduct could foster the idea of Financial Social Responsibility and aid a successful implementation of SRI.

We – today’s and tomorrow’s – people of the united world: rethinking capitalism for intergenerational justice in the fin-de-millénaire

Globalization leveraged pressure on contemporary society. Today’s most pressing social dilemmas regarding climate change, overindebtedness and aging Western world populations demand rethinking capitalism. Understanding the bounds of capitalism to avoid ethical downfalls beyond the control of singular nation states infringing on intergenerational equity – the fairness to provide an at least as favorable standard of living to future generations as enjoyed today – has become a blatant demand. This article captures the human natural drive towards intergenerational fairness in order to retrieve information on how to implement intergenerational justice. Based on the idea of intergenerational equity as a natural behavioral law, the following paper theoretically outlines the current societal demand for eternal equity and proposes intergenerational justice theories. Intertemporal connectedness and interaction of overlapping generations enables intergenerational benefits transfers and burden sharing. Social mobility within networks comprised of different generations is enhanced through social upward movement opportunities. In addition, meritocracy helps alleviate intergenerational inequality. Describing intergenerational care as something natural that has been practiced ever since helps spearhead interdisciplinary endeavours to solve contemporary predicaments between overlapping generations. Exploring intergenerational opportunities is targeted at innovatively guiding the implementation of justice over time and between generations. Strengthening financial social responsibility, social welfare and environmental protection through future-oriented and socially responsible economic market approaches of capitalism in the 21st century is aimed at alleviating predictable economic, social and environmental crises to ensure a future sustainable humankind for this generation and the following.

On the Emergence, Current State, and Future Perspectives of Socially Responsible Investment (SRI)

In recent decades Socially Responsible Investment (SRI) emerged into an en vogue investment philosophy. Originating from religious and moral considerations, SRI evolved in the wake of socio-political deficiencies and corporate social conduct. In the global rise of financial social conscientiousness, differing national legislations and regulatory traditions have led to various SRI practices, which are harmonized by the United Nations (UN). Building on the historic advancement of Financial Social Responsibility in the wake of socio-ethical deficiencies, this paper highlights the future potential of SRI in the aftermath of the 2008/09 World Financial Crisis as a means to avert economic market downfalls. During the current financial market reform, additional micro- and macro-research on financial social conduct could foster the idea of Financial Social Responsibility and aid a successful implementation of SRI.

Socially Responsible Investment (SRI) as Emergent Risk Prevention and Means to Imbue Trust in the Post 2008/09 World Financial Crisis Economy

Globalization and socio-economic changes heralded attention to Financial Social Responsibility. Ever since socio-economic crises have steered social conscientiousness; yet in the aftermath of the 2008/09 World Financial downturn, the interest in understanding social responsibility in the interplay of financial markets and the real economy has reached unprecedented momentum. Financial Social Responsibility bridges the finance world and society through Socially Responsible Investing (SRI), in which securities are foremost selected for social, environmental, ethical and institutional aspects. Financial investment calculus is aligned with ethical, moral and social causes through socially responsible screenings, shareholder advocacy, community investing, and social venture capital. SRI perpetuated in the eye of the 2008/09 World Financial Crisis, given the world-wide attention to social conscientiousness and regulatory financial market reforms. Innovatively scrutinizing financial social responsibility as an en vogue topic of interest helps portraying SRI as a panacea to avoid emergent risks – risks that emerge in complex interactive systems by collective outcomes of individual decision making fallibility over time. When people decide, limitations in their capacity to foresee long-term impacts and the collective outcomes of their choices can contribute to institutional downfalls. Emergent risks can have crucial impacts in the finance domain as the 2008/09 World Financial Crisis outlined. Future research may capture SRI as a real-world relevant means to averting emergent risks within a globalized economy. A nested approach featuring qualitative and quantitative global measurements should aim at gaining information about the interaction of financial markets with the real-world economy. A qualitative analysis of Financial Social Responsibility could retrieve SRI as a means to lower emergent risks within institutionalized market systems in order to avert future economic failures. Capturing stakeholder-specific financial social responsibility practices aims at determining SRI success factors. Mapping globalization market tools and financial market databases could concurrently depict qualitative and quantitative SRI changes in the aftermath of the 2008/09 World Financial Crisis in order to delineate the potential of SRI to avert emergent risks in the aftermath of the 2008/09 financial market downturn. Depicting SRI during this unprecedented time of economic change and regulatory reform holds invaluable historic opportunities to outline a crisis’ potential to ingrain social responsibility and bestow market actors with trust in the global market economy. At the same time, spearheading financial social conscientiousness will aid a successful SRI implementation to avert future economic market downfalls and bestow market actors with trust in the global economy following the greater goal of economic market stability and a sustainable global economy.

The Role of Political Divestiture for Sustainable Development

<p>In the wake of historical and political events, stakeholder pressure can trigger shareholders to divest from politically incorrect markets with the goal of accomplishing socio-political change. While mainstream development research advocates for more private investor involvement in sustainable development to achieve the Sustainable Development Goals (SDG)s in funding infrastructure, health, education and climate change mitigation; the following paper introduces political divestiture as an alternative means to implement sustainable development. While foreign investment can create positive conditions for improving societal development, also politically incorrect usage of funds or regulatory lacunae can do harm in the developing world. Political divestiture is portrayed as an innovative investment allocation to maximize positive development impacts of investment whilst minimizing associated risks of politically insecure markets. In an attempt to balance risk and access to capital, political divestiture is proposed as a means to implement sustainable development by removing funds from politically incorrect regimes in order to be channeled towards socially responsible and sustainable finance solutions. Future research outlooks on political divestiture as sustainable development driver comprise the antecedents and success factors as well as institutional and international frameworks to foster Financial Social Responsibility in the long-term international development domain.</p>

The Role of Political Divestiture for Sustainable Development

Globalization and socio-economic changes heralded attention to Financial Social Responsibility. In the aftermath of the 2008/09 World Financial downturn, the interest in understanding social responsibility in the interplay of financial markets and the real economy reached unprecedented momentum. In the wake of historical and political events, stakeholder pressure can trigger shareholders to divest from politically incorrect markets with the goal of accomplishing socio-political change. While mainstream development research advocates for more private investor involvement in sustainable development to achieve the Sustainable Development Goals (SDG)s as investments fund infrastructure, health, education and climate change mitigation; the following chapter covers political divestiture as an alternative means to implement sustainable development. While foreign investment can create positive conditions for improving societal conditions, also politically incorrect usage of funds or regulatory lacunae can do harm in the developing world. Political divestiture is portrayed as an innovative investment allocation to maximize positive development impacts of investment whilst minimizing associated risks of politically insecure markets. In an attempt to balance risk and access to capital, political divestiture is proposed as a means to implement sustainable development by removing funds from politically incorrect regimes in order to be channeled to socially responsible and sustainable finance solutions. Future research outlooks on political divestiture as sustainable development driver comprise the antecedents and success factors as well as institutional and international frameworks to foster Financial Social Responsibility in the sustainable development domains.

Trust Ownership of the Tata Group

The Indian Tata Group is one of the largest and most admired business groups in the world. It has 28 listed subsidiaries and more than 80 operating businesses. It has shown strong financial performance and social responsibility for decades. Interestingly, it has a unique ownership structure: the main holding company Tata Sons Limited is majority-owned by charitable trusts. We examine the governance of this remarkable entity. The Trusts own 66% of Tata Sons, the main holding company of the Group, while members of the founding Tata family are very small minority shareholders. The governance structure is characterized by managerial distance between trusts and Group companies. The Trusts are almost exclusively concerned with philanthropy, and according to the Articles of Association of Tata Sons Limited, their governance role is limited to nominating two members to the Selection Committee which recommends the Chairman of the company’s Board of Directors. Group companies are independently managed, but there are significant cross shareholdings and a member of the founding family, Mr Ratan Tata, chairs the Trusts, holding companies and major subsidiaries. Mr. Cyrus P Mistry, Managing Director of the Shapoorji Pallonji Group, a minority shareholder in Tata Sons, is to succeed Mr. Ratan Tata as chairman of Tata Sons in 2012. Trustees in the major Trusts are paid nominal fees of as little as $10 and $20 a year.

We Today's and Tomorrow's People of the United World: Rethinking Capitalism for Intergenerational Justice in the Fin-De-Milllnaire

Globalization leveraged pressure on contemporary society. Today's most pressing social dilemmas regarding climate change, overindebtedness and aging Western world populations demand rethinking capitalism. Understanding the bounds of capitalism to avoid ethical downfalls beyond the control of singular nation states infringing on intergenerational equity – the fairness to provide an at least as favorable standard of living to future generations as enjoyed today – has become a blatant demand. In a history of turning to natural law as a human-imbued moral compass for solving societal downfalls on a global scale in times of crises; we may capture the human natural drive towards intergenerational fairness in order to retrieve information on how to implement intergenerational justice. Based on the idea of intergenerational equity as a natural behavioral law, the following paper theoretically outlines the current societal demand for eternal equity and proposes intergenerational justice implementation strategies. Intertemporal connectedness and interaction of overlapping generations enables intergenerational benefits transfers and burden sharing. Intergenerational mobility within intertemporal networks is enhanced through intertemporal opportunities as well as meritocracy alleviating intergenerational inequality. Overall, portraying intergenerational equity as a natural behavioral law strengthens the legal case for codifying intergenerational fairness on a global basis and contributes to interdisciplinary behavioral law and economic models on contemporary intertemporal predicaments. Exploring intergenerational constraints prepares to innovatively guide the implementation of eternal equity and intergenerational justice in overlapping generations’ intertemporal networks. Strengthening financial social responsibility, social welfare and environmental protection through future-oriented and socially responsible economic market approaches of capitalism in the 21st century is aimed at alleviating predictable economic, social and environmental crises to ensure a future sustainable mankind for this generation and the following.