Good Corporate Citizenship Research Articles

Local Income Inequality and the Value of Corporate Tax Responsibility

ABSTRACT Corporate tax responsibility, or the obligation of companies to pay their “fair share” of taxes, is increasingly perceived as a component of firms’ social responsibility. Considering tax payments through the redistributive function, we examine how the association between corporate tax responsibility and firm value varies based on the presence of a salient social issue—local income inequality. Firms headquartered in areas of average income inequality have a negative relation between effective tax rate (ETR) and firm value, consistent with traditional economic theory and prior research. However, as local income inequality rises above average, the relation between ETR and firm value becomes more favorable (i.e., less negative). We interpret these findings as evidence that the relation depends on the salience of tax payments as a social issue. Further, the results are substantiated by firms whose socially responsible tax payments are consistent with their reputation as good corporate citizens. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: D22; H23; H25; H32.

Strategi Komunikasi CSR Samsung untuk Meningkatkan Pendidikan di Indonesia melalui Program Samsung Innovation Campus (SIC)

In Indonesia, one of the challenges experienced by the government here is that there are still many unemployed people. According to data from BPS in August 2022, the unemployment rate in Indonesia was mostly from vocational school graduates, namely 9.42%, 8.57% from high school graduates, 4.59% from Diploma I/II/III graduates and graduates from university is 4.8%. This shows that existing job offers can’t be absorbed by the existing group of educational graduates. To be part of a good corporate citizen in Indonesia, Samsung through its CSR program focuses on education program. Samsung Innovation Campus (SIC), a program through technology skills training to prepare Indonesia's young generation for the digital era with coding and programming and IoT training for senior high school, and vocational high school students. The program is aiming to equip youth with digital literacy including critical technical skills, and bridging educational divides to give underserved students.

Do Generative Artificial Intelligence Company Strategies of ‘Moving Fast and Breaking Things’ in Civil Society Cancel Their Social Licence to Operate? A Nurse’s Evaluation of Chatbot Impacts

A rapid expansion of the computer technology industry, particularly in the field of artificial intelligence, has ignited a global concern that warrants our immediate action. As nurses, our professional values frameworks compel us to protect public health and address national and global health issues. When industry activities adversely affect the social wellbeing of civil society and social institutions, it is important to evaluate them against their industry’s ‘social license to operate, which is a measure of public trust, credibility, and the legitimacy of their industrial and corporate citizenship status. The central question is, do computer technology companies continue to have a social license to operate in civil society? Nurses are encouraged to evaluate the computer technology industry’s recent ‘generative artificial intelligence’ chatbot activities against its tacit undertaking to be good corporate citizens in return for social acceptance of their operations and behaviour. An evidence-based overview of chatbot impacts on societies, environmental sustainability and human rights provide a basis for evaluation. Basic computer technology terminology and relevant concepts are explained. This article is a direct call to action for clinical nurses and those involved in research, education, management, and policy. We have a duty to critically assess the claims made by chatbot technology vendors in both practice and social contexts. If these vendors integrate chatbot technologies with existing machine learning used in nursing and healthcare technologies it could result in detrimental effects beyond user control. By influencing decisions on technology adoption, we can ensure the implementation of safeguards, protect patient safety and social well-being, and uphold the integrity of nursing values. A closing discussion of impacts of computer industry trust deficits on healthcare and research reflects the author’s concerns and conclusions about the central question. Readers may draw other conclusions and perhaps use the issues and evidence presented here to stimulate further investigations.

Shifting sands: the use of marketing communication strategies in corporate social responsibility disclosure in the United Arab Emirates

Purpose This study aims to investigate the evolution of sustainability reporting in the United Arab Emirates (UAE) against a backdrop of changing legislation. It uses qualitative content analysis within the corporate social responsibility (CSR) communication framework proposed by Kotler and Lee (2005) to investigate how corporations in the UAE disclosed information on their CSR activities in 2018 and 2023. Design/methodology/approach The authors refer to the CSR communication framework proposed by Kotler and Lee (2005), which puts forward a set of marketing communication strategies that can be used to promote a corporation. The authors identify the strategies used by the top 14 companies operating in the UAE in their CSR disclosure in the fall of 2018 and the spring of 2023, respectively. The authors note any changes that have occurred over time and differences between the distinct business sectors. Findings The findings indicate a continuing reliance on the marketing communication strategies associated with corporate philanthropy, cause promotion and being a good corporate citizen. All of the corporations in the study showed evidence of engaging in an increasing diversity of CSR initiatives and a corresponding diversity in the marketing communication strategies they used to promote them. Practical implications Corporations wishing to promote themselves through their CSR activities and build a positive reputation would do well to select a diverse set of CSR activities communicated in a variety of ways. Originality/value To the best of the authors’ knowledge, this study is the first longitudinal, comparative study examining the CSR marketing strategies of the top corporations in the UAE. As such, it contributes to the ongoing debate on CSR in the Middle East in general and to understanding more about the approach as well as the changes in approach to CSR in a Muslim-majority Middle-eastern and secular developing economy, the impact of CSR legislation and government regulation on CSR disclosures in different business sectors and the promotional opportunities afforded by effective CSR disclosure within the UAE in particular.

How language power, white subalternity and compressed modernity frame highly-skilled non-Western migrants in an East-German company: insights from multi-sited ethnography

PurposeThis paper shows the benefits of multi-sited ethnography for global migration studies in management, in particular when cosmopolitan self-initiated expatriates meet a local setting.Design/methodology/approachThe author conducted a multi-sited ethnography to trace how a local East German research organization’s well-intended approach to integration becomes condescending.FindingsHighly skilled non-Western migrant employees who represent English-language cosmopolitanism are framed as negatively “foreign” by corporate discourses and practices. This phenomenon can only be understood if one follows the interconnections of language power, White subalternity and compressed modernity and if one considers the immediate surroundings, the historical context of East German identity and wider migration frames in Germany.Research limitations/implicationsMulti-sited ethnography, if power-sensitive and historically-aware, is suitable for understanding the multi-level phenomenon of global migration and identifying limiting framing-effects on management and organizations. Researcher standpoint is both its strength and its limitation.Practical implicationsManagers and companies can “imagine otherwise” and move beyond the unquestioned dominant frames limiting their problem analyses and, consequently, their strategies and actions.Social implicationsManagers and companies are enabled to move beyond individual- and corporate-level approaches to managing migration at work and can thus take up full social responsibility in the sense of good corporate citizenship on a global level. Global mobility researchers can work towards an inclusive migration theory.Originality/valueMulti-sited ethnography, in particular, one that is power-sensitive and historically aware, is an approach not yet applied to migration in the context of management and organization. By means of an example, this paper illustrates the value of this approach and enables researchers to understand its main principles. Compressed modernity and White subalternity are introduced as novel concepts structuring migration, and language power emerges as relevant far beyond the scope of the multinational corporation.

Corporate Borrowings: A Conceptual Perspective

In the dynamic landscape of global business and finance, corporate borrowings play a crucial role in addressing firms' capital needs, promoting economic growth, and facilitate expansion (Levine, 2003) amidst ever-changing global business and financial scene. Corporate borrowings are essential in forming the financial frameworks of companies in all sectors of the economy. The borrowings, as a source of capital, are considered by the corporate due to limitation of equity capital such as higher risk association from the investors’ perspective and high cost of capital from the company perspective. Borrowings include debt securities, loans, and other credit instruments. Corporations strategically decide whether to leverage borrowed capital in order to maximise their capital structure (Rocca et al., 2011), manage risk (Eunju & Jang SooCheong, 2005), and take advantage of growth prospects (Zhang & Wu, 2017). It is because of the fact that borrowings hold an ambivalent status of acceptance among the corporate. In one hand, borrowings bring benefits to a firm in the form of tax shield effect and less costly capital thereby enhancing shareholders value. On the contrary, it brings many costs to a firm like bankruptcy cost, financial distress etc. So, when making financial decisions, managers carefully examine the option of corporate borrowings as a critical source of funding.
 The recent emphasis on environmental sustainability by the Govt. and corporate, has led emphasis on the raising capital through green bond by the corporate that contribute positively to the climate or environment. Further, the concept of ESG (Environmental, Social and Governance) performance of the corporate has now dragged the attention of the investor as a measure of good corporate citizenship and thereby enabling the corporate to raise less costly capital through borrowings.
 In a time of economic uncertainties, technological advancements, and evolving paradigms in financial markets, it is critical to comprehend the corporate borrowings. Hence, this paper aims to give a thorough overview of corporate borrowings by exploring the various facets that characterise this important component of contemporary financial ecosystems.
 Further, this paper navigates across the potential benefits and theories which affect corporate financing decisions. On this investigation of corporate borrowings, we aim to provide valuable insights for scholars, policy makers, and industries. The remainder of this paper deals with importance, theories, cost, benefits, and determinants of corporate borrowings and last section provides the conclusion.

The Influence of Ethical Leadership on Organisational Culture and Employee Behaviour; The Adopted Rore, a Posiitive Impact

In today’s complex and dynamic business world, the significance of ethical leadership in shaping employee behavior and company culture has received a lot of attention. The study employed a quantitative design using questionnaires to gather data, and the statistical software (SPSS) version 16 was utilized for data analysis to examine the impact of ethical leadership on employee behavior. Purposive sampling was employed in a deliberate and random selection process to identify 50 people from various industries in Accra for the research population. Ethical leaders set an example for their employees by acting morally and upholding the company’s values. Employees who follow moral role models are more likely to do prosocial actions, such as helping colleagues, becoming good corporate citizens, and demonstrating loyalty to the organization. The study came to the conclusion that moral leadership has an effect on both business culture and employee behavior. Ethical leadership, defined by its dedication to moral principles, honesty, and principled judgment, has been demonstrated to be essential to the establishment and maintenance of a strong workplace culture. Leaders who uphold moral standards act as role models, affecting the attitudes and actions of those under them. Organizations were advised to keep emphasizing the need of holding staff members accountable for unethical actions. Organizations should strategically place and empower leaders to function as ethical role models in light of the projected effect that ethical leadership has on employee behavior. Programs for developing leaders should include a strong emphasis on the value of moral leadership conduct and how it influences workers’ behavior. By recognizing the significance of ethical leadership, organizations may actively cultivate a culture that is consistent with ethical standards. In the long run, this will improve worker conduct and help the company succeed as a whole. The structure for further study is given by this abstract.

Family Firms and Employee Pension Underfunding: Good Corporate Citizens or Unethical Opportunists?

This study draws upon the behavioral agency model and the concept of socioemotional wealth to investigate how family firms’ employee pension underfunding decisions differ from those of non-family firms. We explore how these differences are influenced by financial distress, generational stage, and whether the firm is eponymous. We test our hypotheses using data from 452 US firms over an eleven-year period. Our results suggest that family firms are less likely to underfund pensions, but this effect is attenuated in later generational ownership stages and in non-eponymous firms.

Does mandatory corporate social responsibility expenditure by businesses help their stakeholders?

AbstractThis study examines the role of financial performance and board characteristics on corporate social responsibility expenditure (CSR expenditure hereafter). The study is based on a natural experimental design where the Government of India made it legally mandatory for companies meeting certain criteria to spend at least 2% of their average profits in the preceding three financial years towards corporate social responsibility in the companies Act 2013. It examines the propensity of companies to spend towards corporate social responsibility over and above the legal mandate. This study analyze two different schools of thought in the field of corporate social responsibility varying in their assertions. The first school of thought asserts that firms engaged aggressively in CSR expenditure would be viewed positively by the customers/prospective customers. The second school of thought asserts that CSR expenditure reduces the profit of the firm that could have been used productively for asset acquisition, and business expansion. The first school of thought focuses on the good corporate citizenship hypothesis whereas the second school of thought focuses on the efficient utilization of scarce resources hypothesis. Using a dataset of companies listed on NSE 500 index, we found a positive and statistically significant relationship between CSR expenditure and accounting‐based firm performance but a negative relationship with market based firm performance. Size of the firm has a positive relationship with firm performance, alluding to the presence of “size” effect. Board size, board independence and cumulative attendance in board meetings exhibit mixed results with firm performance. Note: A slightly different version of this paper was presented in the 15th ICBF‐2022 conference held at IBS Hyderabad in the online mode. We would like to extend our heartfelt gratitude to all the reviewers and participants whose suggestions helped improve this article.

Measuring the impact of CSR practices on customer satisfaction during pandemic: a quantitative study in the Philippines

PurposeThis study aims to analyze how consumers perceive the corporate social responsibility (CSR) practices carried out by a local water district in Angeles City, Philippines. The main objective of the study is to investigate how CSR practices influence customer satisfaction. To achieve this, several pieces of literature were mentioned to prove that CSR has an important role to its stakeholders.Design/methodology/approachThe study used a descriptive and quantitative approach to test the hypotheses. The participants of the study were the residents of the top three barangays in Angeles City, Philippines, in terms of the most consumed water supply, namely: Cut-cut, Pampang and Anunas. Using the Raosoft sample size calculator, the computed sample size was 382 respondents and distributed using stratified sampling. Methodologically, the study used statistical treatment to test all the variables and validated the instrument.FindingsThe result of the study shows that CSR practices significantly impact customer satisfaction. In the test of the degree of relationship between the dimensions of CSR and customer satisfaction, it was found that there is a significant relationship between the two variables.Research limitations/implicationsThe future study may explore the relationship between CSR and the resource-based view theory of the firm. The resource-based perspectives are useful to understand why firms engage in CSR activities and disclosure. From a resource-based perspective, CSR is seen as providing internal or external benefits, or both.Practical implicationsThe water district must promote social welfare and behave as good corporate citizens; they must spend the resources allocated to CSR initiatives in ways that yield optimum benefits to society as well as to the stakeholders of the company.Social implicationsThe paper points out that the water supply industry is one of the most regulated sectors, as the operation requirements are tighter than any other activity. The authors emphasize that water companies must assume special responsibility because their activities are directly related to the use of natural resources, environmental pollution, and public health.Originality/valueThis study used a descriptive-explanatory strategy to determine the significant variables using PLS-SEM. This paper addressed how consumers perceive the CSR practices carried out by the local water district in Angeles City, Philippines.

Sustainability reporting as strategic crisis response mechanism: An innovative approach

Most companies have been severely affected by various business risks due to the COVID-19 outbreak. Their limited resources during this adverse period have forced them to be more concerned with their companies’ survival than making sustainability initiatives that incur extra costs. Consequently, companies have faced a challenge in reporting imposed-sustainability statements. According to Wenzel et al. (2020) and Zharfpeykan and Ng (2021), companies can innovatively improvise the regular sustainability reporting to become a strategic tool to portray to stakeholders how companies respond to and address sustainable matters during a crisis period. Thus, this paper presents the concept of sustainability reporting as a strategic crisis response mechanism and proposes a model and matrix that maps the stakeholder engagement disclosure strategy with quality disclosure. Moreover, the paper discusses how this reporting can be influenced by internal governance mechanisms. The paper further suggests the moderating role of enterprise risk management (ERM) in this relationship. This concept can potentially guide managerial decisions on ideal sustainability practices that may not impair companies’ capacity to survive during future crises. It may act as an effective instrument in meeting stakeholders’ expectations of companies to perform their roles as good corporate citizens during a crisis

IMPLEMENTASI STRATEGI CORPORATE SOCIAL RESPONSIBILITY (CSR) DAN DAMPAK TERHADAP KEHIDUPAN MASYARAKAT

Corporate Social Responsibility is a form of accountability performed by companies. Along with the advancement of civilization, in order to bring good corporate governance, good corporate citizen, and good business ethic, companies are more encouraged to engage in sustainable development. The objective of this study is to identify the implementation and the impact of CSR conducted by PT. Pupuk Kaltim. The data was harvested through interviews, observations, and library researches. The analyses were performed using data collection, data reduction, data display, and conclusion. This study finds that CSR implementation by PT. Pupuk Kaltim has run well. The impact is improvement in public welfare. Partnership programs, territorial improvement, and environmental protection are the manifestation of sustainable development run by the company.

THE ENLIGHTENED-SHAREHOLDER-VALUE APPROACH VERSUS PLURISM IN THE MANAGEMENT OF COMPANIES

Social, safety, health and environmental factors have recently been reconsidered in the managing of a company. The so-called triple bottom line is the buzzphrase, embracing not only financial performance but also social and environmental responsibility of companies (Crook “The Good Company” January 2005 The Economist 1-18; and Freemantle and Rockey The Good Corporate Citizen (2004) 7).Executive and non-executive directors are the people responsible for monitoring and controlling companies. The issue is, however, in whose interests this should be done? (Havenga Fiduciary Duties of Company Directors with Specific Regard to Corporate Opportunities (1998) 1; Mongalo “The Emergence of Corporate Governance as a Fundamental Research Topic in South Africa” 2003 SALJ 176-177, and generally Du Plessis “Direkteure se Pligte Teenoor Partye Anders as die Maatskappy” 1992 De Jure 378-392). The generally accepted viewpoint is that the paramount fiduciary duty of directors, individually and collectively, is to exercise their powers in good faith and in the best interest of the company as a whole (see generally Du Plessis 1992 De Jure 378-392; Havenga “The Company, the Constitution, and the Stakeholders” 1997 Juta Business Law Journal 134, 136; and Sealy “Directors‟ „Wider‟ Responsibilities – Problems Conceptual, Practical and Procedural” 1989 Monash University Law Review 164-188).This note focuses on arguments for and against exclusive shareholder protection. The current company law reform process in South Africa and the recent reform process in the United Kingdom are discussed and evaluated. The consideration of matters affecting stakeholders and whether they are subordinate to that of the directors' primary goal to promote the success of the company in the best interest of the shareholders is discussed.

U.S. Fortune 500’s stakeholders engagement during the COVID-19 pandemic: Evidence for proactive approaches

In times of a national crisis such as COVID-19, it is important for organizations to show that they are good corporate citizens. At the same time, organizations should carefully select the type of messages that resonate with stakeholders so as to reduce stakeholder skepticism. This study examines how U.S. Fortune 500 companies discussed their COVID-19 pandemic CSR actions on Facebook over 15 months and how the public responded to such messages. We identified three CSR themes: internal stakeholder proactive CSR, external stakeholder proactive CSR, and external stakeholder accommodative CSR. When publics engaged, external stakeholder proactive CSR was significantly associated with better behavioral engagement outcomes, more positive emotional engagement outcomes, and less negative emotions. However, such effects are moderated by industry type. Our findings inform public relations theory and practice and suggest that in times of major crises, organizations should prioritize proactive approaches to engage external stakeholders while being mindful of specific institutional contexts.

Corporate social investment practices as ‘soft technology’: A case of selected Botswana firms

The study on which this article is based sought to examine the motives and patterns of corporate social investment practices using the experiences of eight Botswana Stock Exchange listed firms. It followed an exploratory sequential mixed-methods design utilizing a triangulation of documentary and archival records, and cross-sectional survey techniques. The study found out that although the motives for the practices were varied they were largely reactive and fragmented, and mostly driven by economic rather than business ethics imperatives. The article supports extant literature indicating the existence of growing publics' disillusionment with the apparent dissonance between corporates' historical institutional rhetoric and practice. Although the firms publicly portrayed themselves as good corporate citizens addressing wider societal challenges, in practice they engaged in the traditional ‘giving back to community’ donations. The article concludes that overall the practices served as ‘soft technologies’ for the (re)-figuration of corporate identities.

STATUS OF NOMINATION AND REMUNERATION COMMITTEE IN THE LIGHT OF SEBI’S LODR 2015 REGULATIONS (WITH SPECIAL REFERENCE TO BHARAT PETROLEUM CORPORATION LTD, INDIAN OIL CORPORATION LTD & HINDUSTAN PETROLEUM CORPORATION LTD)

Sound Corporate Governance makes corporation a good corporate citizen who enjoys the position of respect and goodwill as well as the status of an icon. Now in India, all listed companies are regulated by the Companies Act 2013 aim of and SEBI’s LODR 2015. The main of this study is to exhibit the status of Nomination and Remuneration Committee of Petroleum Sector Companies included in BSE Sensex. This paper includes BPCL, IOCL and HPCL for the financial years 2016-17, 2017-18 and 2018-19. The study reveals all companies have appointed ID chairman as well as ID members. Chairmen of All companies have attended AGM. It is suggested that chairman as well as members should attend the meetings to play an active role in the working of this committee

Who are the Drivers of Change? On the Growing Role of Retailers in Ongoing Attempts to Reorient Markets for Animal Welfare

ABSTRACT Through their assortment and merchandising decision-making retailers influence consumers choice by adjusting the choices available to them. Anchored in a market practice view, this article studies the role retailers play in shaping markets through their assortment building efforts. It demonstrates that retailers are not just reacting to changes in consumer demand but are becoming more proactive and actively try to change consumer demand in certain ways as retailers strive to be good corporate citizens. We show that trying to change how markets function is fraught with difficulties, as actors in the value chain must coordinate their expectations about what the market will look like in future.

When do consumers perceive supermarket chains as good corporate citizens? Evidence from the Dominican Republic during Covid-19

When do consumers perceive supermarket chains as good corporate citizens? Evidence from the Dominican Republic during Covid-19

Sustainable Project Management under the Light of ESG Criteria: A Theoretical Approach

The recent pandemic of the SARS-CoV-2 virus highlighted the urgent need for social cohesion among Governments, companies, and organizations. The pandemic also raised the demand for companies to act as good corporate citizens. However, frequently applying ESG considerations may be proven challenging in practice. The objective of this study is to provide a theoretical framework that will allow companies and organizations to incorporate sustainability criteria into the project management process following a conceptual approach, using the guidelines of the Project Management Institute and qualitative methods such as “text analysis” and “content analysis”. Particular attention was placed on the benefits that businesses receive from implementing sustainability methods in their decision-making in order to act responsibly and have a beneficial impact on the environment in which they operate as well as on the people who are affected directly or indirectly.

One Way or Another

As one of the prominent brands in the global automotive market, Toyota needs to provide satisfaction to stakeholders to maintain its reputation. The purpose of this article is to explain how Toyota ensures these satisfactions by implementing Corporate Social Performance (CSP). Toyota aims to grow into a company that will be good corporate citizenship that is trusted by all their stakeholders and support the society affluent over all the business activities. This is important as the result of the CSP is shaping consumer's perception toward brand in terms of brand personality and playing a central role in sustaining Toyota's long-term objectives. This paper employs research methods by systematically reviewing the relevant literature. Inclusion criteria will be that (a) sources contain the key terms of "Toyota" and/or "Corporate Social Performance", (b) sources are published in English, (c) sources are more recent than 2009. This paper will review the social performance of the Toyota Motor Corporation as corporate citizenship and the impacts of all stakeholders both on negative and positive aspects. This paper will also discuss the current, past and future actions of Toyota social performance. It is discovered that Toyota is dedicated to showing the world that a sustainable society is a greater good for all stakeholders. This will help to create a greater reputation for Toyota and fulfil the needs of stakeholders. By these social performances, investors and top talents will be attracted to work with Toyota.