Future Corporate Social Responsibility Research Articles

Do sustainability committee characteristics affect CSR performance? Evidence from India

PurposeThis study aimed to investigate the effect of sustainability committee (SC) characteristics (size, independence, the number of meetings, and expertise) on corporate social responsibility (CSR) performance in the Indian context.Design/methodology/approachThis research measures the CSR performance of 60 Indian non-financial firms listed on the Bombay Stock Exchange (BSE) over the period 2014 to 2019 using the ASSET4 environmental, social, and governance database. The authors resorted to fixed-effect panel regressions to capture the individual effect present in the data.FindingsThe results show that CSR performance is positively and significantly influenced by SC independence, size, and expertise. However, the number of SC meetings does not affect CSR performance. The results also demonstrate that CSR performance is positively and significantly associated with board independence.Research limitations/implicationsThis paper adds to the existing literature by examining the effect of SC characteristics on the firms' CSR performance in India as one of the oldest stock markets in the world, which would help test the validity of the agency and stakeholder theories in an old and big emerging market context.Practical implicationsThe findings allow managers to understand the mechanisms affecting CSR performance and how the characteristics of the SC can participate in its growth and development. Moreover, this study has implications for researchers, suggesting that future CSR studies should take into account the SC characteristics as potential determinants that explain CSR, such as CSR activities and CSR practices and strategies.Originality/valueThe present research contributes to the literature by investigating the effect of SC characteristics on the firms' CSR performance, thereby providing additional evidence on the issue. Several previous studies have examined the link between corporate governance and CSR performance with a focus on external oversight mechanisms, namely institutional ownership or analyst coverage or internal oversight mechanisms, such as board gender composition, board independence, separation of board Chairperson and CEO roles, and the existence of SC on the board, but these studies did not examine the SC characteristics. The present research fills the gap.

Does Culture Matter? Measuring Cross-Country Perceptions of CSR Communication Campaigns about COVID-19

The COVID-19 pandemic has brought several challenges to businesses and societies. In response, many corporations have supported local communities and authorities in the management of the pandemic. Although these initiatives, which can be considered forms of corporate social responsibility (CSR), were highly coupled with explicit CSR communication campaigns, little is known about whether these campaigns were effective. Previous research indicates that culture can shape people’s perceptions of CSR initiatives and communications, suggesting that businesses pay attention to careful consideration of cultural norms for effective CSR communication. However, the COVID-19 pandemic as a new CSR setting may challenge earlier findings. This study empirically investigates whether three cultural factors (individualism/collectivism, uncertainty avoidance, and power distance) affect public perceptions measured as recall of and favorability towards corporate COVID-19 response initiatives across six countries. Findings from a representative survey of adults across these countries show that respondents in individualistic and collectivistic countries recall these CSR communication campaigns about these corporate COVID-19 response initiatives quite differently, and these are related to differences in power distance and uncertainty avoidance. However, no difference was found in overall corporate favorability, indicating that cultural factors did not affect levels of favorability towards such initiatives. This, we argue, can be explained by the global dimension of the COVID-19 pandemic, which is the context of these CSR initiatives. This study contributes to CSR communication literature with empirical findings from a global pandemic setting. It offers businesses and managers empirical grounds to understand the communicative impact of COVID-19 response initiatives, which can inform future CSR actions.

Past, Present, and Future of Corporate Social Responsibility and Earnings Management Research

For decades, corporate social responsibility (CSR) has been an area at the heart of business research. The aspects of CSR that researchers have been focusing on have grown exponentially. Most research efforts have dwelled on its positive effects, including good behavioural changes, promising financial performance, social investment and development, and environmental preservation and protection. On the other hand, several scholars have questioned the credibility of CSR and its link to unethical financial conduct, particularly earnings management. This review paper uses a systematic literature review to conduct bibliometric analysis, content analysis, and thematic analysis in order to identify trends and outcomes of CSR reporting and earnings management research. The literature review search is guided by PRISMA and analyses 152 Scopus-indexed articles between 2005 and 2021. As a result, this paper reveals the most influential authors and articles, leading journals and countries, and research cluster networks. This review also outlines the theoretical perspectives and future direction of CSR and earnings management research. In addition, this review paper provides critical and beneficial insights for stakeholders and researchers.

Investor Tastes, Corporate Behavior, and Stock Returns: An Analysis of Corporate Social Responsibility

We classify institutions into socially responsible investors (SRI) and not socially responsible investors using the value weighted corporate social responsibility (CSR) scores of their portfolio holdings. We find that firms that exhibit increases in SRI ownership tend to increase future CSR scores. Our analysis of stock price responses to the revelation of SRI ownership changes indicates that the revelation of higher SRI ownership is associated with negative stock returns. These effects are particularly strong when we focus on SRI-activists, who tend to target firms with low CSR scores and lobby to increase them over time. These observations are consistent with the hypothesis that anticipated increases in CSR activities reduce firm values. This paper was accepted by David Simchi-Levi, finance.

Performance, Risk, and Cost of Capital: Trends and Opportunities for Future CSR Research

The information within this study reviews the financial management literature focusing on proponents and opponents of corporate social responsibility (CSR). We review how CSR affects different areas of corporate finance. This study’s core objective is to explore the last 20 years (2000–2019) of CSR top-tier literature to develop and theoretically support CSR and environmental management. Twenty years of publications provide a considerable amount of evidence on CSR’s impacts on firm financial characteristics and some paradoxical findings. The majority of our insights support the argument that doing good is good for business. This study also highlights existing gaps in the literature. Based on our findings, we highlight three areas to further explore in the context of CSR and corporate finance: (1) Does CSR improve specific information contents in stock prices? (2) Does CSR mitigate financial distress risk? and (3) Is CSR good for firm trade credit?

IMPORTANCE OF SOCIAL RESPONSIBILITY IN BUSINESS SECTOR OF BOSNIA AND HERZEGOVINA

Because of the benefits for all stakeholders, corporate social responsibility (CSR) is a concept that is now becoming increasingly popular and is also an integral part of doing business in the modern world. Through applying CSR, the business sector contributes to sustainable development and companies use it as their competitive advantage because it represents not only a desirable but also a necessary form of behavior in all business activities. The aim of this paper was to investigate the level of CSR policies implementation in small, medium, and large companies that are operating in Bosnia and Herzegovina. The research instrument is adapted in order to analyze the application of particular CSR policies: workplace policies, environmental policies, marketplace policies, and community policies. The study also analyzed the possession standards related to the CSR implementation practice. For the purposes of the survey, data were collected from 90 companies operating in Bosnia and Herzegovina. The collection of primary data was conducted using the online survey technique. Based on the conducted research, it has been obtained that companies in Bosnia and Herzegovina, regardless of the size of the companies, apply certain forms of CSR policies in their operations. The analysis also found that companies in Bosnia and Herzegovina attach different importance to certain CSR policies. The results related to the selection of CSR areas, the directing of financial resources in CSR, as well as the method of decision-making, and the degree of application of norms and standards, indicate that companies in Bosnia and Herzegovina do not have a strategic approach to CSR. Economic responsibility is the primary responsibility of companies in Bosnia and Herzegovina, but following current global trends, it is necessary to work to improve other dimensions and areas of CSR. The lack of significant differences in practices of CSR companies in Bosnia and Herzegovina, with regard to their size and giving the most importance to economic aspects of CSR, indicates an insufficient understanding of the modern approach to CSR from the side of the management of the companies. Government as well as the non-profit sector should support companies in implementing CSR policies to become more environmentally and socially responsible. Nevertheless, although there is no strategic approach, it can be concluded that companies in Bosnia and Herzegovina implement certain CSR policies. Based on the research results, the paper provides an overview of CSR policies in Bosnia and Herzegovina and offers some implications guidelines for managers, as well as guidelines for future CSR research.

CORPORATE SOCIAL RESPONSIBILITY REPORTING: DOES WRITING STYLE MATTER?

This study offers an extension of Harjoto, Laksmana and Lee (2020) by presenting a descriptive comparison of gender differences in writing style, and how they impact the choice of words and the readability of corporate social responsibility (CSR) reports. We examine readability, solidarity, and certainty of CSR reports. We find that female CSR leaders use a writing style that conveys greater solidarity with their audience, thereby making a better connection with the stakeholders. These CSR reports are also more readable than those written by their male counterparts. The attributes of readability and solidarity, but not certainty, are in turn positively related to future CSR performance. In comparison, for CSR reports issued by male signers, we find a writing style that conveys greater certainty, which is in turn positively associated with the firms’ future financial performance. Overall, findings show that writing style of CSR reports is an important issue for both firms and investors to consider.
 JEL Classification Codes: M4, Q5, Z1.

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.

Looking through the African lenses: a critical exploration of the CSR activities of Chinese International Construction Companies (CICCs) in Africa

The importance of Chinese International Construction Companies (CICCs) within the construction sector in Africa can no longer be ignored, as these firms hold a considerable amount of market share within the African continent. The construction industry is of high importance to African economic renaissance, and Corporate Social Responsibility (CSR) is becoming a key issue in business processes on the developing continent. Narratives around the implementation of CSR within construction in African economies have been largely one-sided, viewed from foreign perspectives and outsider anecdotes, without engaging locals in evaluating these initiatives. As a result, this paper explores CSR as a critical component of the continued penetration and dominance of Chinese contractors in the highly competitive African construction markets. The paper adopts a quantitative survey to explore the areas of implementation of CSR by CICCs, how they line up against current local and international counterparts and the future of these firms in Africa using CSR as a metric. Residents of Africa’s largest economy, Nigeria, who have Chinese-led projects ongoing in their communities, were surveyed for the study, and the findings used to propose solutions for future CSR policy-making in local African communities where Chinese contractors carry out business. The study found that in terms of CSR strategy implementation, CICCs were ranked highly on quality of construction and respect for local laws and customs, but ranked low in perception of employee welfare and environmental protection. The study highlighted that African governments taking responsible leadership by formulating a CSR policy for all international contractors might stem the tide of increasing anti-Chinese rhetoric within the construction sector on the African continent.

COVID‐19 and the Future of CSR Research

COVID‐19 and the Future of CSR Research

Mapping corporate social responsibility research in communication: A network and bibliometric analysis

Corporate social responsibility (CSR) exhibits irrefutable practical and theoretical importance to the field of communication. However, limited efforts have been made by communication scholars to review the progression of knowledge construction and project prospects for theory development in this area. Informed by the social construction of knowledge and invisible college frameworks, this study conducts co-authorship and co-citation network analyses on CSR literature in communication. The sample included 290 peer-reviewed articles published between 1980 and 2018 across 61 communication journals. The 9,288 foundation publications and 4,596 unique publication sources referenced by these articles were also analyzed. Results of this study reveal limited collaborations among researchers with expertise in and outside the communication discipline or across different communication sub-disciplines. The results also show a substantial influence from management and marketing perspectives on the invisible college of CSR research in communication. Moreover, the results of three longitudinal network models display the patterns of structural evolution of the scholarly collaboration and foundation literature networks, showing a maturing process of CSR knowledge construction in communication. Taken together, this study stimulates future CSR research in that it helps locate the knowledge base that may inspire new research fronts and the areas of vacancies that serve as promising venues for the discovery of CSR knowledge.

Where Does CSR Come from and Where Does It Go? A Review of the State of the Art

It can be said that business ethics are integrated into companies through Corporate Social Responsibility (CSR), which cannot be defined in a single way, nor has its concept remained unchanged since its appearance in the business world. The contributions made in the field of research have been evolving towards models and theories that are more in line with principles that consider a plurality of stakeholders, from utilitarian or shareholder-centered approaches to others that are more integrative; the consideration of the demands and requirements of stakeholders, and the institutional drive through the establishment of regulatory frameworks aimed at providing conceptual frameworks of reference and indicators that make it possible to manage and make decisions taking into account the ethical dimension of problems or conflicts, are decisive. In this area, the objectives of sustainable development as part of Agenda 2030 are particularly relevant and are providing a boost to innovations aimed at improving the environment and the rational use of resources. This paper attempts to gather the main conceptual contributions on the situation and evolution of CSR, providing insights regarding future CSR studies, its objectives, and goals which, together with the interests and positions of the stakeholders from different perspectives, raises the possibility of analyzing CSR from different points of view, giving rise to different theories that try to serve as a framework for the study of CSR.

Application of theories in CSR research focusing study context and corporate attributes

PurposeThe purpose of this paper is to review the background of the theories, how they motivate corporations to engage in corporate social responsibility (CSR) activities and their application, focusing on the study context and corporate attributes.Design/methodology/approachThe study used Google Scholar as an online database and collected 170 published academic papers via a systematic search procedure; of these, 112 papers were selected as suitable for the study purpose. The selection followed the analysis of the abstract, the paper contents including the proposition of the theories, the literature review, the theoretical framework and the hypothesis development.FindingsThe study findings indicate that the cores of the proposed theories to explore CSR are not identical. The components of theories build a social value system, which intensely motivates corporations to engage in CSR activities and voluntary disclosure practices. A thorough analysis of the characteristics of the theories demonstrates that the choice of theories to explore both an endogenous variable like CSR and exogenous variables depends on the study context and the characteristics of the corporate attributes.Research limitations/implicationsThe study considers only the most prominent theories in CSR research, but many other theories are also explored in CSR research. In addition, the study takes only academic papers in the English language into consideration, and the generalization of study findings is only for CSR research.Practical implicationsThe study aims to provide guidance about the selection of theories based on the contexts and corporate attributes to explore both endogenous and exogenous variables. It draws policymakers’ attention toward the renovation and addition of motivational instruments in the context. The study also helps industry practitioners in realizing the principles and consequences of the theories and in taking strategic social and environmental obligations into consideration in their decision-making process.Originality/valueThis is the first attempt to conduct a literature review on the development of theories and corporate CSR engagement from 1975 to 2019, covering 112 published academic papers. A deeper understanding using theoretical conceptualization as guidance is beneficial, as it provides a strong basis for the enhancement of future CSR corporate activities.

Do Corporate Social Responsibility Reports Convey Value Relevant Information? Evidence from Report Readability and Tone

Corporate social responsibility (CSR) reporting is becoming mainstream, yet there is limited research on whether and how CSR reports communicate value relevant information. We examine the effects of CSR report readability and tone on future CSR performance and the market reaction around the release of CSR reports. Using a hand-collected dataset of Fortune 500 companies that published stand-alone CSR reports from 2002 to 2014, we find that 1-year-ahead CSR performance is positively associated with the changes in both CSR report readability and tone, suggesting that more readable text and more optimistic tone in a firm’s CSR report are indicative of better future CSR performance. Furthermore, consistent with the view that CSR reports communicate important value relevant information to the market, we document significant market reactions to report readability and tone around the release of CSR reports. Additional analyses suggest that CSR report readability enhances the association between the abnormal returns and the change in CSR report tone, and that the market reaction to CSR report readability is more pronounced for firms with lower analyst following and higher financial opacity. Taken together, our results substantiate the important roles of CSR report readability and tone in communicating future CSR performance and imparting value relevant information to the market.

Mapping the Link between Corporate Social Responsibility (CSR) and Human Resource Management (HRM): How Is This Relationship Measured?

Despite the relevance of human resources in the management of Corporate Social Responsibility (CSR), confusion and theoretical chaos are still evident in the area. This manuscript provides a systematic review of the link between CSR and Human Resource Management (HRM), stressing the main topics along with the evolution and tendencies founded in this field. SciMAT was used to conduct a conceptual science mapping analysis based on co-word bibliographic networks. From 2006 to 2019, 194 documents were retrieved from the Web of Science. Considering the last period (2017–2019), the motor themes (those which are well-developed and relevant for the structure of the research field) were environmental management (including green HRM), sustainable HRM and pro-environmental behaviour. Socially responsible HRM (SR-HRM) was a basic theme (important, although not developed). Perceived organisational support was a specialised theme (well-developed, although less important), and employee commitment was an emerging theme (both weakly developed and marginal). In addition, a review of the measurement tools used in the main topics extracted from the previous analysis was carried out. Our analysis will help inform researchers and practitioners on the future of CSR and HRM and the previous efforts in the creation of measurement instruments.

Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights

The volume of work published by accounting scholars on corporate social responsibility (CSR) reporting is impressive. As a community we have explored ongoing developments in the field, including the accuracy of the accounts and their economic impact for various actors. We have also asked broader questions about the effect of CSR reporting on corporate accountability and responsibility. However, as it currently stands, our interests are separated because of specific epistemological approaches, and these have divided our efforts. Drawing inspiration from Donaldson and Preston (1995), we identify three streams of CSR reporting research, that is, descriptive, instrumental, and normative. Descriptive research asks: what is CSR reporting? It explores the content of reports and the effect of various contexts on the practice and quality of reporting. Instrumental research asks whether CSR pays, and explores the commercial and economic benefits of CSR for firms and the information value of disclosures for investors. Normative research examines the significance of CSR reporting at a societal level, asking whether these practices have improved organizations’ accountability to their stakeholders. While the main purpose of our paper is to review the CSR reporting literature (245 articles), we also map some of the positive impacts that may result from greater epistemological engagement between streams. We identify specific aspects of each stream that might benefit a cross‐pollination of ideas, findings, and insights. We argue that future CSR reporting will be enriched by conversations that extend beyond epistemological divides, which are more likely to mirror the complex reality of CSR in practice.

The evolution, progress, and the future of corporate social responsibility: Comprehensive review of hospitality and tourism articles

ABSTRACT This study is a critical literature review of previous corporate social responsibility (CSR) papers in the hospitality and tourism industry. The purpose of this study is to identify the current gaps in the research and practical contexts and to introduce instructive recommendations for future research. We conducted a content analysis of 96 CSR studies in the hospitality and tourism industry, and in this paper we acknowledge and criticize the existing CSR. The finding of this study indicates that previous CSR studies were usually conducted in well-developed regions and used a quantitative methodology approach. Overreliance on third-party data, incongruent CSR measurements, and unclear mechanisms between CSR and its outcome are research problems. Meanwhile, a limited number of studies have explored the relationship between CSR and communities, and no study has investigated various stakeholders’ perceptions within one study. A corresponding recommendation for these knowledge gaps was suggested.

Institutional pressures on corporate social responsibility strategy in construction corporations: The role of internal motivations

AbstractThe aim of the research is to reveal the role of internal motivations in the mechanism driving corporate social responsibility (CSR) strategy in construction corporations. A framework was constructed based on neo‐institutional theory, and measurement scales were developed through interviews. Questionnaire surveys and hierarchical regression analysis were carried out to verify the framework in a sample of huge Chinese construction corporations. The results reveal the mediating and moderating roles of ethical leadership, managerial moral motivation, and managerial autonomy in driving CSR strategy, which will enrich the application of neo‐institutional theory in future CSR research. Furthermore, this study developed indicators, scales, and analytical frameworks with full consideration of the theoretical generality and the industrial particularity of Chinese construction corporations, which deepened the understanding of the driving mechanism of CSR strategy in the construction industry. The findings have practical implications for HCCCs in terms of developing CSR strategy and ultimately improving their CSR performance.

Factors influencing students’ corporate social responsibility orientation in higher education

Given that the future of corporate social responsibility depends on upcoming generations' attitudes, a better understanding of the relationship between corporate social responsibility orientation and its predictors has significant implications for various stakeholders. This study sought to examine the factors that influence students' corporate social responsibility orientation in higher education contexts. To this end, primary data were collected through questionnaires distributed to undergraduate and graduate students at the University of Trás-os-Montes and Alto Douro, a northern Portuguese public institution. Although personal values, gender, religion, political ideology, academic field of study, and volunteerism appear to influence some corporate social responsibility orientation dimensions, the results only show significant relationships with gender, religion, and volunteerism. The most important findings include that women, religious students, and those who volunteer have a stronger philanthropic orientation and that women appear to have a more intense ethical orientation. In addition, the research conducted facilitated the definition of student profiles for each corporate social responsibility orientation dimension. This study's results provide interesting evidence of orientation-determinant links, which expands the literature on corporate social responsibility, especially regarding higher education contexts. As university students are about to make important choices regarding their careers, these findings may help to broaden the field of corporate social responsibility research by identifying factors that contribute to shaping students' corporate social responsibility orientation. Theoretical and practical implications are discussed, highlighting what still needs to be done to encourage corporate social responsibility orientation in higher education programs.

The New Company Act and the Past and Future of Corporate Social Responsibility: The Legislative Structure and Court Practices of Taiwan's Corporate Social Responsibility Theory

有鑑於2018年7月公司法修正明文化企業社會責任理論的基本原則，本文以我國法下的公司負責人責任制度為觀察重點，分別由立法層面與法院實務層面回顧企業社會責任理論於我國法下的具體落實情形，首先在立法層面將企業社會責任理論再細分為裁量型企業社會責任與義務型企業社會責任，並且在法院實務層面回顧我國既已發展的案例，指出我國法院在處理裁量型企業社會責任案例時，未來應更加著重於個案中的程序合法性與公司負責人個人利益衝突，以及我國法院在處理義務型企業社會責任案例時，已參酌商業慣例與公司自願性的公開承諾以形塑公司負責人的義務範圍。本文最終指出，企業社會責任理論於本次修法以前，即已存在於我國法院實務，未來研究重點應置於相關案例之評析，以協助我國法院進一步細化企業社會責任理論。 The amendment of Taiwan's Company Act in July 2018 confirmed the basic principle of corporate social responsibility theory. In light of that, this article focuses on the liability of corporate responsible persons under Taiwan's laws and reviews the implementation of corporate social responsibility under Taiwan's laws from the perspectives of legislation and court practices. It firstly classifies the corporate social responsibility theory into discretionary corporate social responsibility and obligatory corporate social responsibility from the perspective of legislation and then reviews the developed case laws in Taiwan's court practices. It suggests that when handling cases involving discretionary corporate social responsibility in the future, Taiwan's courts should pay more attention to the procedural legality and the personal conflicted interests of the corporate responsible persons in the individual case. It also identifies that when handling cases involving obligatory corporate social responsibility, Taiwan's courts have considered commercial practices and the company's voluntary public commitment to shape the scope of obligation of corporate responsible persons. In sum, this article highlights that the corporate social responsible theory has existed in Taiwan's case laws before this amendment, and future studies should focus more on commenting these cases to assist Taiwan's courts in substantiating the corporate social responsibility theory.