Higher Level Of Corporate Social Responsibility Research Articles

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.

The Effect of Institutional Share Ownership, Ownership Structure, and Corporate Social Responsibility on Environmental Sustainability in Energy Companies in Indonesia

This research investigates the complex interplay between institutional share ownership, ownership structure, corporate social responsibility (CSR), and environmental sustainability in the context of Indonesian energy companies. A quantitative analysis utilizing structural equation modeling was employed to analyze data from a sample of 150 energy firms. The results reveal significant positive relationships: higher levels of CSR, increased institutional share ownership, and a more concentrated ownership structure are associated with improved environmental sustainability practices. These findings contribute to the understanding of the factors shaping environmental responsibility in the Indonesian energy sector, offering practical insights for companies and policymakers.

Merger incentive and strategic corporate social responsibility by a multiproduct corporation

This study investigates a multiproduct corporation's strategic corporate social responsibility (CSR) and the merger decisions by single-plant rival firms. We examine two different timings of choosing strategic CSR games, “merge-then-CSR” and “CSR-then-merge.” In the former case where the merger decision is made first, the subsequently adopted level of CSR increases in product substitutability while its level with a merger is lower than that without a merger. In the latter case where a multiproduct corporation establishes a higher CSR level before merging with rival firms, the committed CSR level decreases in product substitutability while it can increase consumer surplus unless the products are close substitutes. Our findings highlight that mergers can be profitable and benefit society when multiproduct corporation has higher level of CSR.

Local Boy Does Good: CEO Birthplace Bias and Corporate Social Responsibility

We examine how CEO birthplace identity affects firm corporate social responsibility (CSR) activities. CEOs heading firms located in their home birth counties are associated with higher levels of CSR. The relation is more pronounced for CEOs with deeper home connections. Importantly, CSR activities by home CEOs are associated with significant increases in firm value relative to non-home CEOs. Additionally, home CEOs do not appear to extract private benefits, either directly or indirectly, from these activities. Overall, our results suggest that engaging in CSR will not necessarily increase levels of social trust and firm value. The place identity of the CEO also matters

Elite status talks, but how loudly and why? Exploring elite CSR micro-politics

Purpose The purpose of this paper is to investigate the proactive role elite organizations play within-network corporate social responsibility (CSR) performance by determining whether organizations can be identified that serve as aspirational CSR role models. The assumption is that elite CSR performance inspires and challenges other in-network actors to raise their standards in order to be legitimate, and resource rewardable. Design/methodology/approach Three cases are discussed to exemplify elite CSR: historical: recognizing the value of embracing a trend in improved standards of meatpacking, Armour Meatpacking campaigned for sanitary meatpacking and implemented strategic change; global energy: Chevron Corporation conducts “business in a socially and environmentally responsible manner, respecting the law and universal human rights to benefit the communities where we work”; and non-profit: “Elite” universities’ CSR standards attract bright faculty and students and build beneficial relationships with industry, government and peers. Findings Elite institutions raise CSR standards by using issue trends to guide strategic change that can performatively demonstrate the societal value of proactive leadership that elevates standards and increases the reward value to communities and organizations that is achieved by adopting higher standards. Research limitations/implications Through micro-politics that increase CSR social productivity, elite CSR standards earn rewards for exemplary organizations and subsequently raise standards for in-network organizations to, in turn, achieve the license to operate. Practical implications Discussions of CSR should consider the influences that establish CSR standards. To that end, this paper offers the explanatory power of a micro-political, societal productivity approach to CSR based on the pragmatic/moral resource dependency paradigm. Social implications The paper reasons that higher CSR standards result when NGO stakeholder critics and/or government agencies exert micro-political pressure. In response to such pressure, elite organizations, those that are or can meet those higher CSR standards, proactively demonstrate how higher CSR standards can accrue resources that benefit them and society. Elite CSR performance challenges other in-network actors to raise standards in order to be legitimate, that is resource rewardable. Originality/value Because elite organizations understand the reward advantage of higher levels of CSR, they proactively elevate the discuss of standards and advantages for achieving them, and penalties for falling short.

The Nexus Between CSR, Corporate Image, Company Identification, Emotional Attachment and Small Equity Investors Behavior

Marketing literature provides empirical evidence on the relationship among corporate social responsibility (CSR), company identification, emotional attachment, corporate image and consumer behavior. However, there is sparse research that examines the impact of CSR, image, identity and emotional attachment in shaping investors' behavior. The current study fills this gap by proposing and testing a conceptual model that examines the nexus between CSR, company identification, emotional attachment and corporate image and investor behavior. Data has been collected from small equity investors trading at Lahore Stock Exchange in Pakistan using self-administered survey questionnaire technique. The study used structural equation modeling (SEM) technique to test the proposed model. The study found positive association between CSR, and corporate image, corporate identity and development of emotional attachment with company. The higher level of CSR, corporate image, corporate identity and emotional attachment leads to development of investors' behavioral loyalty with company.

Do Institutional Investors Influence Firm Social Performance?

This study examines whether passive institutional investors influence Corporate Social Responsibility (CSR). The literature shows conflicting evidence about the effect of institutional investors on CSR, which might indicate problems associated with endogeneity. We analyze the causal effect of passive institutional investors on CSR by exploiting a source of exogenous variation in passive institutional ownership due to the inclusion in the Russell 2000. Our findings indicate that a 1% increase in passive institutional ownership reduces in 7.6% the probability of improving CSR. This effect is economically stronger for those firms that have a higher level of CSR compared to industry peers. The results are robust to the inclusion of additional determinants of CSR such as profitability or firm size.

Competitive Corporate Social Responsibility

Fifty years after publication of Milton Friedman's seminal article in the NY Times Magazine, the question of corporate social responsibility (CSR) remains an important topical issue. We provide a role for CSR in a fully rational framework even when shareholders care only about profit maximization. CSR is a strategic commitment to emphasize either consumer or employee interests in a multi-stage product market game against rival firms. We find that low cost firms in concentrated industries engage in higher levels of CSR and have higher profits. Empirical tests of the main hypotheses are confirmatory: low cost firms use more CSR; market to book increases in CSR and a dynamic test of firms migrating to less concentrated industries exhibit reductions in CSR.

La relación entre el beneficio empresarial y la RSC. ¿Ganan más las compañías más responsables?

Persistent financial crisis and the cases of corruption afflicting Spain have broken the trust of society that forcefully demands an ethical, responsible and sustainable management of organizations, which are not immune to environmental problems. The effects of globalization, the introduction of tecnoestructura as a management model, technological and socio-economic changes have reshaped the cultural, management and ownership system of the current company, the company nowadays is transferred the responsibility to combine growth and competitiveness with social development and environmental improvement. This reconfiguration of business management model is implemented with the introduction of Corporate Social Responsibility (CSR) in the strategic plans of the companies with the purpose of achieving a competitive advantage. The question is: can the most responsible companies be more profitable? The introduction of CSR in the organizational culture of the companies involved as a vector, accelerates the profitability of the companies that apply it: the higher level of CSR used, the more profitable the companies are. These conclusions are determined from a linear regression analysis comparing the ROA –return on assets– to CSR levels in a hundred companies with higher levels of sustainability that operate in Spain, according to a survey published in 2014 by the Monitor business Corporate Reputation (Merco)

To make us truly human: humanities education and corporate social responsibility

PurposeThis paper aims to determine whether CEOs with a humanities education (e.g. English/literature, philosophy, history, languages, religion, visual arts, or performing arts) exhibit higher levels of corporate social responsibility (CSR) within their firms than those who have studied other disciplines.Design/methodology/approachThis paper is an empirical examination of S&P 500 CEOs’ undergraduate education and their firms’ level of CSR as measured by Kinder, Lydenberg & Domini (KLD).FindingsCEO undergraduate humanities education is associated with higher levels of CSR even after accounting for several firm- and individual level controls. In addition, the CSR dimensions of community and diversity were found to be key drivers of the association.Research limitations/implicationsThis research is limited in understanding the micro-processes of the CEOs affected by a humanities education, as it relates to CSR. However, the results imply a values-based connection that is supported by the upper echelons theory.Practical implicationsCSR-minded firms may seek out humanities-educated executives. In addition, the results would suggest a need for humanities education despite the recent waning interest.Originality/valueFirst, the findings of Manner (2010) will be confirmed using a different sample. Second, the humanities education and CSR relationship will be explored using a composite measure of CSR as opposed to analyzing its strengths and weaknesses separately (Manner, 2010), thus representing a holistic evaluation of the relationship. Third, previous research will be extended by examining the specific CSR dimensions (e.g. customers, employees) that are affected by a humanities education.

Who Writes the Biggest Check for Charitable Care: A Comparison of For-Profit, Not-for-Profit, and Government Hospitals

The current environment in the United States surrounding health care issues such as spending, costs, access, and affordability points toward a societal obligation to help provide for those who cannot pay the costs of their own care. Hospitals are often one of the largest employers in communities, and like many other organizations, view providing charitable care as an aspect of their corporate social responsibility (CSR). This study compares the recent levels of charitable care of for-profit, not-for-profit, and government hospitals. The authors attempt to determine which type of hospital is the most charitable, what the relationship between CSR and profitability may be, and the differences in the relationship between CSR and profitability for various hospital types. Data from a sample of 167 short-term, general hospitals were examined and results indicated that there were significant differences in CSR for government, not-for-profit and for-profit. Higher levels of CSR did not affect firm profitability, although significant interactions were found between control and CSR for varying levels of profitability.

Corporate social responsibility and career decisions

Person–organisation fit looks at the compatible fit between applicants’ values, goal, traits and that of an organisation. The purpose of this research was to further understand the role of corporate social responsibility (CSR) as it relates to person–organisation fit and job selection choices of postgraduates. A self-report survey was completed by 247 students at three US universities offering fashion programs. Students were asked to respond to four separate scenarios each with two distinct positions from which to choose. Students overwhelming (77%) choose positions paying lower salaries with better working conditions and higher levels of CSR over positions that treated potential employees in a less desirable manner and did not place a high value on CSR. The students reacted adversely to accepting a position where a potential employer valued physical appearance over forward thinkers, profits over CSR and long hours over community service. This study supports the need for firms to establish sound CSR policies that can be evaluated in the public, thereby attracting new college graduates to seek employment.