Good Corporate Social Responsibility Research Articles

Evaluation of Taiwan's IC industry production and market efficiencies under the consideration of corporate social responsibility

AbstractTaiwan has a complete semiconductor industry chain and is important in global semiconductor manufacturing. In addition to considering operational conditions, companies have also attached importance to corporate social responsibility (CSR) in recent years. This research thus takes 60 integrated circuit (IC) companies in Taiwan as a research sample and adopts the Meta Two‐stage dynamic RDM DDF (range directional model directional distance function) under an exogenous CSR model to explore their market stage efficiency and production stage efficiency. This study aimed to analyze whether incorporating a company's CSR performance into performance evaluations affects the production and profitability efficiency of Taiwanese IC companies. The findings are as follows: Most IC companies practice CSR and demonstrate good CSR performance. The market stage efficiency and production stage efficiency of the IC packaging and testing group are better than those of other groups.

Corporate social responsibility and bank liquidity creation during financial crises

AbstractUsing a sample of US banks, this paper investigates how corporate social responsibility (CSR) performance affects bank liquidity creation in financial crises. It shows that banks with better CSR performance reduce more liquidity creation in crises. This effect is stronger for banks with lower Z‐scores or higher earnings volatility. In addition, the results are driven by bank CSR performance related to community, employee relations and diversity. These results are consistent with the notion that banks with good CSR performance reduce liquidity creation to avoid financial distress, which would hurt their employees and the communities they serve.

Corporate governance, social responsibility and sustainability commitments by banks: Impacts on credit risk and performance

AbstractWith the increasing pressures to commit to social and environmental issues, banks align with stakeholders' expectations via corporate social responsibility (CSR), and sustainable development goals (SDGs) initiatives. Understanding how these initiatives affect credit risk and performance of banks is crucial for the economy. Relying on the dynamic generalized method of moments and data on Thai listed commercial banks from 2015 to 2020, we find commitments to good governance, CSR and SDGs largely have an opposite effect on bank credit risk and performance. Consistent with stewardship or resource dependency hypothesis, together with stakeholder and good management hypothesis, banks with more female directors, higher levels of anti‐corruption and SDGs commitments are associated with a reduction in credit risk. However, consistent with queen bee hypothesis and agency and trade‐off hypothesis, banks with larger board size, more female directors and higher levels of CSR and SDGs commitments underperform. This apparent contradiction between negative impacts on bank performance and positive impacts on credit risk can be reconciled by understanding the trade‐offs involved, the long‐term focus of sustainability initiatives, leading to a decline in short‐term performance but enhancing their resilience to adverse events, ultimately reducing credit risk. Our findings enable stakeholders to make informed decisions, improve sustainable business practices, and contribute to the long‐term success of banks and the broader society.

Social network centrality and the corporate environment: The case of sexual diversity policies

AbstractWe study the external influence of social capital, measured by Facebook's (now Meta) Social Connectedness Index, on a firm's decision to adopt policies that promote a more diverse corporate environment. Recent studies find corporate policies that embrace sexual diversity are beneficial to firms and their stakeholders, thereby contributing to their corporate social responsibility (CSR) and business sustainability. We find that firms with a high social network centrality are more likely to adopt policies and business strategies that support sexual diversity. Moreover, firms that adopt good CSR practices are more likely to implement more inclusive policies such as sexual diversity policies. This provides for a more comfortable work environment for the LGBT+ community. However, we also find that firms reduce their adoption of inclusive policies during times of economic uncertainty, supporting the pessimistic view that firms decrease window dressing activities during economic downturns when governance is tightened, and resources are scarce. We attribute this phenomenon to the exploitation of agency benefits by managers.

Pengaruh Good Corporate Governance (GCG) dan Corporate Social Responsibility (CSR) terhadap Nilai Perusahaan dengan Profitabilitas sebagai Variabel Moderasi

This research aims to evaluate the influence of Good Corporate Governance (GCG) and CSR on Company Value, with Profitability as a moderating variable. Quantitative methodology is used with data on shares of state-owned companies on the Indonesian Stock Exchange in the 2017-2021 period. Research participants involved shares of state-owned companies, and data was collected from the Indonesia Stock Exchange website, and analyzed using smart PLS4 software. The research results show that profitability has a moderating effect on managerial ownership, independent board of commissioners, and CSR on company value. The conclusion is that the management of BUMN subsidiary companies can take further steps to maximize the use of managerial ownership, strengthen the role of the independent board of commissioners, and develop corporate social responsibility (CSR). This becomes more important in facing rapid developments in science, information technology and increasingly fierce global business competition. This research is original with a focus on the correlation between GCG, CSR and company value, considering profitability as a moderating variable. Keywords: CSR, GCG, Company Value, SEM

Good and Bad Corporate Social Responsibility in Islamic Business Ethics Perspective

Abstract
 This research aims to analyze good and bad corporate social responsibility practices when viewed with Islamic business ethics. The method used is a qualitative method with a grounded theory approach using secondary data sources where the source comes from several examples of company cases in Indonesia which are then reviewed with literature on Islamic business ethics in particular and Islamic economics in general. The results of the study concluded that the application of business social responsibility that is less professional actually has a negative impact on the company itself. One example of violations that occur in the application of corporate social responsibility is the practice of corruption and policies that only provide benefits for certain groups. In Islamic business ethics, the implementation of good corporate social responsibility can refer to the maqasid sharia principle, namely with the aim of protecting religion, soul, mind, property, and lineage

The effect of corporate social responsibility on firm performance: Evidence from Vietnam

The vitality of corporate social responsibility (CSR) toward sustainability has been rising rapidly in business activities. Good CSR practices are one of the most critical instruments to satisfy stakeholders’ interests and improve business performance. This study explores the nexus between economic, social, and environmental dimensions of CSR and firm performance based on a balanced scorecard. The sample includes 336 Vietnamese enterprises, excluding financial firms. The survey was conducted from March to June 2021. The empirical results of the partial least squares structural equation modeling (PLS-SEM) demonstrate that CSR significantly affects company performance. The economic dimensions of CSR have the strongest impact on financial performance (p < 0.01; t > 2.57; sample mean is 0.362). However, the environmental dimensions of CSR have not been found to influence customer performance. This study also finds that the three dimensions of CSR positively impact learning and growth, which lead to higher internal business processes and then better customer performance, eventually positively influencing profitable results. Consequently, the firm’s leaders should have strategies for effective CSR implementation to increase financial performance and achieve sustainable development goals. Furthermore, the government and other organizations should actively improve legal policies and regulations related to CSR in order to ensure organizational and national sustainability. AcknowledgmentThis study is funded by Funds for Science and Technology Development of the University of Danang under project number B2020-DN07-08.

Does better CSR disclosure minimise the problem of asymmetric financial reporting? The role of market supervision

ABSTRACT Corporate social responsibility (CSR) is a crucial business practice that has attracted the attention of companies and market participants worldwide. This paper examines the impact of CSR on financial reporting comparability. Specifically, this study investigates two main topics: (1) whether CSR leads to a more comparable financial report and (2) whether market supervision (i.e. liquidity and investor concerns) components of CSR are the channels through which CSR affects financial report quality. The results reveal that good CSR practice effectively minimises the problem of asymmetric financial reporting, even when accounting for other factors that affect financial reporting quality. CSR has the potential to attract market supervision and encourage companies to maintain comparability in their financial reporting practice. This observation indicates that CSR participation is a tool to elicit market supervision and to improve the information reporting environment.

Impact of corporate social responsibility on cost of debt in Scandinavian public companies

Research background: In recent decades, companies have paid increasing attention to corporate social responsibility (CSR) and its related performance. Scandinavian countries lead the world in CSR and sustainability. The good CSR performance of Scandinavian companies has motivated studies on this phenomenon, particularly on the connection between a company's CSR and its performance. One of the most important performance indicators and value drivers is the cost of debt. Purpose of the article: This study assessed the impact of CSR on the cost of debt in Scandinavian public companies. Methods: The research was divided into two stages. In the first stage, Scandinavian public companies were divided into two groups (with and without ESG (environmental, social, governance) disclosure scores) to reveal differences in the cost of debt. In the second stage, a fixed-effects regression model for balanced panel data sets was applied from 2011 to 2020 to assess the impact of ESG and its pillars on the cost of debt. Findings & value added: The results revealed that the cost of debt of companies in Scandinavian countries with ESG disclosure scores was significantly lower. The ESG disclosure scores of these companies have increased significantly over the past 10 years. We found a positive impact of CSR on the cost of debt in Scandinavian public companies. The increase in ESG disclosure and pillar scores reduced the cost of debt. These findings are valuable from a scientific perspective. Scandinavian public companies with ESG scores have higher financial risk, but lower cost of debt. These results support the importance of investors' behavior, information asymmetry, and signaling. The findings have several implications for shareholders, managers and creditors. They suggest that creditors consider ESG disclosures when determining a borrower's creditworthiness. Additionally, it is a message to regulators that the debt market values ESG disclosures.

Environmental awareness of human resources in Moroccan PEEs, a good CSR practice

Social responsibility is now a concern shared by all economic agents. This article focuses on the environmental aspect, and more specifically on the awareness of employees of public establishments and companies in Morocco, in order to assess the situation of this “black box” in this context. We thus present the results of a small survey conducted among managers and employees of these organizations, with the aim of observing their level of awareness of environmental protection, the relationship of their Public Establishments and Enterprises (PEE) with this awareness-raising process, as well as their future prospects. Above all, this work aims to pave the way for research into Corporate Social Responsibility (CSR) practices in this sector, and to highlight the importance of these strategies for the sector itself and for its stakeholders. Employee awareness is a key element in effectively integrating responsible practices into the day-to-day operations of public organizations. By understanding the current level of awareness, managers can develop action plans to strengthen this environmental consciousness.

Assessing the barriers and positive impacts due to good corporate social responsibility implementation: an exploration of policymakers' perceptions of select public and private entities

Assessing the barriers and positive impacts due to good corporate social responsibility implementation: an exploration of policymakers' perceptions of select public and private entities

Assessing the barriers and positive impacts due to good corporate social responsibility implementation: an exploration of policymakers' perceptions of select public and private entities

Assessing the barriers and positive impacts due to good corporate social responsibility implementation: an exploration of policymakers' perceptions of select public and private entities

Employer Attractiveness of EMNEs: The Role of CSR in Overcoming Country-of-Origin Image Constraints in Developed Host Countries

Attracting a qualified workforce is a challenge for all companies but in particular for foreign subsidiaries of emerging market MNEs (EMNEs) in developed countries due to their double disadvantages of liability of foreignness plus liability of emergingness. Based on signaling theory, this study investigates whether corporate social responsibility (CSR) contributes to overcoming these liabilities. A web-based experiment with realistic recruitment webpages, involving 490 potential applicants from Germany, Switzerland and Austria, reveals that potential applicants in developed host countries have lower job-pursuit intention to EMNEs than to developed market MNEs, but that good CSR helps mitigate this negative effect. Nonetheless, we find that applicants are not intensively searching for CSR information on a recruitment webpage, constituting an impediment in EMNEs’ attempts to reap maximum benefits from their CSR engagement.

The impact of Corporate Social Responsibility on corporate financial performance: an empirical study on shipping

ABSTRACT Corporate social responsibility (CSR) attracts steaming attention in global maritime business, stimulated by critical priorities, such as the IMO 2020 regulations for environmental compliance and initiatives including the Poseidon Principles and ESG practices. The CSR implications for shipping corporate performance and value creation deserve updated empirical investigation. Based on international standards and ISO 26000 regulations, the paper proposes and sets up an innovative Corporate Social Responsibility (CSR) Index. This challenging metric tool is incorporated on a sample of 50 listed shipping companies in NYSE, NASDAQ, and Oslo markets, covering broadly all major shipping business sectors (bulks, tankers, containers, LNGs, cruises), over 2010–2019. The proposed CSR Index integrates 17 CSR components based on the ISO 26000 standard, as an alternative empirical index of the CSR impact on shipping company financial performance and value. The empirical results support the hypothesis of a significant positive correlation between CSR and shipping corporate performance and value and underline the preference of investors for shipping companies with established good CSR practices.

Corporate Social Responsibility and Strategic Management: A Bibliometric Analysis

An organisation should be concerned with more than just profit; it should also be concerned with the social interests and welfare of the surrounding community. In order to ensure that the welfare of society is always safeguarded, the government places a greater emphasis on corporate social responsibility within the business sector. Good corporate social responsibility is only possible in conjunction with strategic management. This study investigated the consistency of previous researchers’ literature reviews on corporate social responsibility and strategic management. A total of 132 Scopus articles were selected for this study, and the article information was analysed utilising the systematic literature review and bibliometric analysis methods.

Performance Analysis of CSR Implementation of PT. Golden Great Borneo Year 2021 in Lahat District

Corporate Social Responsibility (CSR) is an obligation that must be carried out by companies that manage natural resources. The Minister of Energy and Mineral Resources of the Republic of Indonesia number 1824 K/30/MEM/2018 requires every company to prepare a master plan for Community Development and Empowerment during the production and post-mining operations. PT. Golden Great Borneo is committed to implementing CSR according to these guidelines, with the aim of establishing good relations with the community around the mining area. This study aims to analyze the performance of the company's CSR implementation in 2021. Where that year was the first year the company carried out CSR with the guidance of the PPM master plan. This research was conducted using a transcript of interviews with the ring 1 community and the company. The analysis was conducted to see the performance of CSR implementation and its effect on the company's operations. The results of the analysis show that the company's CSR implementation performance will be good if it is supported by the competence of the company's CSR implementing team. Because this team will collect input suggestions, arrange activities, budget, activities, and carry out activities with beneficiaries. The CSR program run by the company referring to the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia number 1824 K/30/MEM/2018 is running effectively with the percentage of budget realization reaching 121.45%. This good CSR performance has an indirect positive influence on the company's operational performance, especially at the level of the company's coal sales.

Do Environmental Performance and Corporate Social Responsibility Disclosure Affect Financial Performance?

The Ministry of Environment determines the company's environmental management performance evaluation plan or PROPER in controlling environmental effects to improve the company's role in environmental protection plans. However, many companies still get a red or black PROPER rating. Therefore, this study aimed to test the effect of environmental performance and corporate social responsibility disclosure on the company's financial performance. The sample used in the mining sector companies listed on the Indonesia Stock Exchange for the 2015-2019 period, amounting to 49 companies. The sampling technique in this study used a purposive sampling technique. The purposive sampling technique is a sample selection technique using criteria. According to the sample's criteria, this research selected 55 financial statements from 11 companies. The data in this study were analyzed using multiple linear regression. The results of this study indicate that environmental performance and CSR disclosure have a positive effect on the company's financial performance. Then, financial performance and Corporate Social Responsibility Disclosure have a simultaneous and positive impact on the company's financial performance. Research can be considered for mining companies to always pay attention to environmental performance due to company activities. In addition, companies must consistently implement Corporate Social Responsibility in carrying out their business activities. The implementation of sound environmental performance must also be accompanied by the implementation of good corporate social responsibility. The company's financial performance is getting better because these two things can synergistically affect the company's economic performance.

Implementation of CSR Program for Clean Water Well Development by PT. Chevron Pacific Indonesia to The Sakai Tribe Community

PT. Chevron Pacific Indonesia is one of the largest oil companies in Indonesia. Social responsibility is essential so that the company can operate smoothly and get support from the surrounding community. It is necessary to implement a good Corporate Social Responsibility (CSR) program. This study aims to determine the implementation of the Corporate Social Responsibility (CSR) program to construct clean water wells in West Minas Village, PT. Chevron Pacific Indonesia. This research method uses descriptive qualitative research and data collection methods through interviews with the field Social Performance Specialist and Government specialist and three Sakai Tribe communities in West Minas Village. The data analysis technique used in this study uses the Ground technique by Miles and Huberman. The theory used in this research is a four-stage public relations strategy planning process by Cutlip Center & Broom. The results of this study indicate that PT. Chevron Pacific Indonesia has implemented the Corporate Social Responsibility (CSR) program to construct clean water wells and has carried out all public relations strategy planning stages.

Corporate governance, board connections and remuneration

AbstractGood corporate governance underpins good corporate social responsibility (CSR) through value‐creating stakeholder relationships. When properly composed and compensated, the board of directors, an important corporate governance mechanism, plays an efficient monitoring role, reducing agency cost. Exploring board connections and remuneration of the top 100 listed firms in the Stock Exchange of Thailand as a case study, we find evidence supporting agency cost of board connections such that politically connected board members are paid higher. However, politically connected board members play an effective monitoring role in setting top management pay, supporting stewardship and resource dependency theories. Our case study highlights the importance of balancing boards of directors' compositions and remunerations to achieve CSR outcomes and value creation among stakeholders.

Corporate social responsibility and non-GAAP reporting

ABSTRACT This study examines the relationship between a firm’s corporate social responsibility (CSR) performance and non-GAAP earnings disclosure. I find that firms with good CSR performance (i.e. CSR firms) are more likely to disclose non-GAAP earnings than firms with poor CSR performance (i.e. non-CSR firms). More importantly, I find that CSR firms provide more informative non-GAAP earnings than non-CSR firms. Furthermore, CSR firms’ decisions to disclose non-GAAP earnings are less affected by the incentives to meet earnings benchmarks or constraints on other earnings management tools. These findings are consistent with the notion that CSR firms communicate with stakeholders about their sustainable earnings through non-GAAP reporting.