Idea Of Corporate Social Responsibility Research Articles

Do pressure-sensitive institutional investors moderate CSR decisions towards value creation of Indian firms?

Purpose Research on the significance of corporate social responsibility (CSR) and value creation is nascent as compared to CSR and financial performance. The concept of value is also evolving because of changing business environments, globalization and the expanded idea of CSR. Nowadays, managers expect a more quick, pragmatic approach to satisfy valid stakeholder claims while simultaneously creating competitive advantage through reputation and investor value. The paper aims to examine the impact of CSR on the market and sustainable value creation through CSR expenditure in India and the moderating role of pressure-sensitive institutional investors (PSII). Design/methodology/approach The study used panel data regression methodology on a sample of 1,845 non-financial Indian firms from 2015 to 2021. Findings CSR creates market and sustainable value for non-financial Indian firms in line with stakeholder theory. The authors find a positive moderating role of governance represented by PSII on CSR and market value creation but not on sustainable value. Research limitations/implications The study is based on secondary data. CSR, despite being a regulatory obligation, provided long-term benefits that increased their sustainable growth rate. The results highlight the importance given by financial markets to CSR activities. Other types of institutional investors can also be examined in future research. CSR can be embedded in the core operations of the firm, which can help in fostering a culture of sustainability and responsible business practices that benefit firms and society as a whole. Tax incentives can be provided to firms investing in CSR. Practical implications CSR provides long-term benefits to the firm, which enhances the goodwill and integrity of the firm in the market. The results reveal that besides capital market investors, firms are subject to the scrutiny of consumers, communities and the government as expectations rise and information spreads faster, which can have repercussions. CSR helps in meeting such expectations and the perceived value of the firms. Managers and chief executive officers (CEOs) can pay attention to the type of institutional investors like PSII, which can be formed as a part of the firm’s CSR strategy. Social implications The positive impact of CSR on sustainable value expresses a long-term management orientation based on the improvement of stakeholder relations and the associated environmental impacts referring to cohesion and consensus, market opportunities and strengthened reputation and image. A sustainable company involves a conscious and continuing effort in the equilibrium between contrasting stakeholders’ expectations in an attempt to optimize value creation. Tax exemption can be provided for CSR activities. Originality/value The authors contribute to the scant literature on CSR and value creation, especially sustainable value, as most of the prior studies are not empirical on sustainable value in the Indian context. Managers and CEOs can pay attention to the types of institutional investors like PSII, which can be formed as a part of the firm’s strategy.

Literature Review of Framework to Estimate the Success of Corporate Social Responsibility (CSR) Implementation

Corporate Social Responsibility (CSR) has received great attention from companies, academics, researchers, and policy makers over the past few years. Companies should maximize the implementation of CSR to create value for the company, society, government, and stakeholders. In its implementation, CSR does not only focus on community development and involvement, but also implementation that is aligned and relevant to company policies, so CSR measurement is important and measurable so that companies have guidelines in CSR program policies.
 The idea of CSR is an important element for both companies and society, and the literature shows that the concept is gaining popularity. However, the current understanding is still limited to planning and evaluation for successful CSR implementation. This paper systematically reviews 268 articles published between 2017 and 2022 to bridge the existing knowledge in the field of CSR. This is achieved by mapping CSR implementation in companies. Finding that many studies are not aligned with companies' CSR objectives, this paper suggests the need for developmental research related to frameworks to analyze CSR implementation in general.

Financial and Marketing Performance of P&G and Unilever

As the idea of environmental protection and CSR (Corporate Social Responsibility) is gaining more attention, sustainability is now one of the determinants in assessing whether a company is ethical and has further development potential. Therefore, sustainability analysis is becoming critical for a business nowadays. This research aims to shed light on the financial and marketing performances of two leading companies in the personal care industry – P&G and Unilever, who put much effort into conducting environmentally friendly production and establishing sustainable development plans. This research uses financial statements to analyze the companies’ financial status and comes up with a marketing strategy analysis of the two companies. It also uses SWOT analysis as a tool to reveal their performances generally. Through analysis of their financial and marketing performance, this research concludes that P&G and Unilever are in good financial condition and doing well with their sustainable plans. This paper also provides general and separate suggestions for these two companies in the end.

Corporate Governance, Corporate Social Responsibility and the Corporation's Purpose

Purpose: To rethink the idea that corporate governance is about the alignment of interests of all stakeholders. To indicate this idea’s main problems, in making the manager’s job significantly more difficult, and in creating numerous avenues for managers seeking merely to advance their own interests. To look into corporate social responsibility in the light of value rationality, and to understand that taking into account stakeholders’ interests may be extraneous to purpose rationality and to the corporation’s purpose. To indicate this main difference between a corporation as a juristic person of limited purpose on the one hand, and a state government on the other. To relate these ideas to Freeman’s “new story of business” and to the declaration that profits are an outcome of successful business rather than its purpose. Design/methodology/approach: The approach is conceptual/ philosophical. Findings: The stakeholder theory of corporate governance is misguided, insofar as it is taken to assume that the purpose of the corporation is to serve the various interests of all stakeholders. Considerations of corporate social responsibility may (and should) be understood as value rational, having little bearing on the corporation’s purpose, i.e. shareholders’ profit, but placing essential constraints on the means of its achievement. This however should not be seen as being at odds with Freeman’s “new story of business”. Research limitations/implications: The “stakeholder theory of corporate governance” may be construed (in light of the above) as placing the interests of stakeholders other than the shareholders, outside the corporation’s purpose. History may result in corporations taking over parts of government, thus integrating common good in the corporations’ purpose from a normative point of view. Originality/value: The application of the distinction between value rationality and purpose rationality, to what CSR means for the purpose of the corporation and for stakeholder theory, is totally original, and so is the main conclusion of the argument. Summary: The original core problem of corporate governance is the agency problem and the alignment of interests between managers and shareholders, under the principle that the purpose of the corporation that managers ought to serve is shareholders’ profit. The idea of corporate social responsibility has brought about stakeholder theory, that is the idea that corporate governance is about serving all stakeholders’ interests. This multiplies the conflicts of interests to be aligned and creates in effect many more avenues for managers seeking to advance their own interests. We present an example of a board of directors seeking to allocate a substantial part of the corporation’s wealth to the alleviation of social poverty, and we revisit the question of the purpose of the corporation as a legal boundary to the possibilities of the juristic person that is the corporation. We advance the idea that corporate social responsibility and taking stakeholders other than shareholders into account is about value rationality, not purpose rationality, and should not be understood as necessarily depending on long term profit or any win/win situations. It mostly places constraints on the purpose rational means to achieve the corporation’s purpose, which remains shareholders’ profit. It must not be understood to alter this purpose, nor to make the corporation assume a social role paralleling state government. Freeman’s advocacy of the “new story of business”, and his concomitant ideas that business is about the business idea rather than profit, that people are not primarily driven by greed, that stakeholder relationships are crucial for business, and that creative imagination in balancing all values and interests is at the root of greater value creation, are in fact perfectly reconcilable with the above.

Struggles for Regulatory Hardening: Exploring Swedish Politics on Corporate Social Responsibility

Abstract In recent years, the idea of Corporate Social Responsibility (CSR) has undergone a shift towards hardening, illustrated by a wave of new mandatory and state-based regulation. This article aims to understand the dynamic behind this shift, by studying struggles for regulatory hardening in the Swedish Parliament. Drawing on a critical theory of contradictions, it proposes an understanding of CSR as a contradictory social formation, which structures the parliamentary struggles. Moreover, it suggests that although the hardening trend could amount to a crisis of the traditional understanding of CSR, politicians remain embedded in a neoliberal logic of regulation. The article ends with a call for research to continue to explore alternative roads towards minimizing corporate harm in the future.

An Exploration of Organizational Development and Change in Technical Organizations to Support Sustainability

Commonly referenced as corporate citizenship or sustainability, the initial idea of corporate social responsibility (CSR) matured from the 1987 seminal Brundtland Report, which the United Nations is credited for spearheading. The steady progression of CSR highlights the need for organizations to coordinate the fulfillment of legal, philanthropic, moral, and financial obligations to ensure appropriate strategies toward sustainability initiatives and positive behaviors toward environments, the population, and monetary gain. The purpose of this paper is to analyze the causation by which organizations adapt green organizational cultures. Some findings suggest organizational cultures are forced to adopt new philosophies in a changing environment governed by corporate sustainability efforts. These green conceptual models transform human resources (HR) role in changing and creating organizational cultures that influence organizational strategies in ways that support sustainability and influence the organizational impact concerning climate change.

Legal and Regulatory Framework of Corporate Social Responsibility in Pakistan

This research paper explores whether any remedies are existing to the stakeholders in case if companies do not observe the implementation of CSR regulations. All the citizens of a state have some obligations as well as legal and moral rights. The world “citizens” include not only natural persons that is human beings but also the Legal entities like corporations etc.it is obligation of companies to perform functions effectively as responsible corporate citizens. In recent era, corporations cannot escape from their legal duties because their business activities having extra tri-dimensional effect on the society at large. The CSR (Corporate Social Responsibility)is the assurance by the corporations to act justly and contributes to economic growth while refining, improving and humanizing the quality of life of workers and as well as their dependents/ legal heirs and also the society. This research aims to disclose the level of CSR in the Pakistan. The idea of CSR is not compulsory activity has been highlighted. When we talk about Pakistan, enormous companies have basically been supporting CSR practices by choice in different forms such as charities and such like practices. According to the supporters, compulsory form of CSR can be properly carried out by legislation. In this research we shall try to analyze relevant provisions of statutes, laws, SOPs, rules, regulations and guidelines both at domestic as well as international level. Further the research will explore and highlight the significance of CSR, its proper implementation and reformation of laws.

RELEVANCE OF CORPORATE SOCIAL RESPONSIBILITY WITH TRI HITA KARANA

Tri Hita Karana is a Balinese culture that has been famous to the world. This article hopes to provide a view and open the insight that the concept of Tri Hita Karana, which turned out to have carried the idea of ​​Corporate Social Responsibility, was only heard when entering the millennium era. The method used is a literature study method that uses secondary data in peeling and pulling the common thread of both existing concepts. There is a relevant relationship between the two images, where the idea of ​​Balinese culture, which is a concept that pays attention to the relationship with God Almighty, the relationship with fellow humans, and the surrounding environment, is strongly related to napa described in Corporate Social Responsibility.

Non-financial reporting as a determinant of financial efficiency of insurance companies

The growing ecological, social and environmental awareness of the society leads to the situation where the necessary determinants of success of a company are no longer good financial results only, but also image-related aspects, which affect the way of corporate reporting. Non-financial reporting is a response to the needs of stakeholders of insurance companies for new information on environmental and social issues which are related to the implementation of the idea of corporate social responsibility (CSR). It is treated as one of the dependent variables that affect financial efficiency measured with the rate of return on equity (ROE). The aim of the study presented in this paper is to assess the impact of non-financial reporting on the financial efficiency of insurance companies on the Polish insurance market. A representative group of 43 insurance companies operating on the Polish market in the years 2004–2019 was examined in the framework of the research. The statistical data came from the database of the Polish Chamber of Insurance (Pol. Polska Izba Ubezpieczeń – PIU). The assumption that non-financial reporting has a statistically significant effect on ROE was adopted as the research hypothesis, and it was verified by a panel model constructed for this purpose. The study confirmed the research hypothesis, which will contribute to the development of a theory which assumes that CSR activity affects financial results of companies.

Islamic approach to corporate social responsibility: an international model for Islamic banks

PurposeThis study aims to present a corporate social responsibility (CSR) model that would apply to Islamic banks, considering the international aspect of social responsibility because CSR is not applicable in the same way in all types of societies.Design/methodology/approachBased on the extensive review of the existing literature, the authors aim to present an Islamic CSR model applicable to Islamic banks. This study is based on the international approach to CSR developed by Masoud (2017). Each responsibility has an equal share but with specific changes regarding the order of priorities between them and the type of responsibility.FindingsThe findings show that the existing literature provides several Islamic CSR models. Most of these models are general and offer guidelines to Islamic financial institutions, but no model applies exclusively to Islamic banks. Using these models for Islamic banks is challenging because of their specific business activities, especially in non-Muslim countries. This study proposes a model that could act as the main guideline for Islamic banks with enough flexibility to meet different market and stakeholders’ requirements.Practical implicationsThe model was not tested on a sample, and not all Islamic principles were considered. However, it is applicable for Islamic banks, especially considering internationalization in their businesses and the further development of Islamic banking. At the same time, this model puts ethical norms in the spotlight. This is particularly emphasized in the case of non-Muslim countries or in societies where a particular law does not regulate Islamic bank activities.Originality/valueAlthough there is a growing literature on this topic, existing studies primarily discuss the Islamic approach to CSR from the overall perspective, not in a specific industry. While some authors developed their own Islamic CSR models relying on the primary Shariah sources, others base their proposals on other classical CSR ideas. To the best of the authors’ knowledge, this is the first study based on the CSR model developed by Masoud (2017), considering the relationship between economics and religion and the implications of the Islamic moral economy.

Understanding the declared knowledge and readiness to apply Corporate Social Responsibility of Polish and Spanish business students

The purpose of this paper is to compare two groups of business students from Poland and Spain regarding their declared knowledge and readiness to apply the principles of corporate social responsibility (CSR). The research was conducted in 2018 among students of two selected universities: the Faculty of Management at the University of Lodz in Poland (UL) and the Faculty of Economics at the University of Valencia (UV). A literature review was performed to compare the CSR education programs at both faculties and to investigate students’ opinions about CSR. The Chi2 independence test was used to find any statistical differences between the two researched groups. In total, 607 students took part in the study. The findings revealed that UV students declare themselves to be better prepared than UL students to make sufficient CSR-based employment decisions. It was also found that UV students more frequently declared a readiness to take CSR measures such as encouraging the company's management to take an interest in CSR, or to personally promote CSR activities in the company. UV students also declared a willingness to work in a company guided by CSR values and activities even for lower remuneration. The findings may be affected by social as well as economic contextual factors and they make it possible to formulate concrete recommendations on how to improve students' awareness of CSR ideas.

Social License for Closure—A Participatory Approach to the Management of the Mine Closure Process

The European Union’s climate policy and the assumptions of the European Green Deal require Poland to take decisive transition efforts. The achievement of climate neutrality is a challenge due to the special role of coal in the Polish economy. Closing mines and abandoning coal is the greatest challenge for local communities in mining regions. This article presents the example of Wałbrzych, a Polish post-mining town, which has been experiencing the accumulation of negative consequences of inadequately planned liquidation since the 1990s. The current activities of mining companies in the face of abandoning coal were also analyzed. The gaps identified in the literature indicate the need to define a new method of managing the liquidation processes, based on the consideration of key risks resulting from decommissioning, to minimize the social costs in the first place. In this regard, it is helpful to diagnose the social concerns of the stakeholders. The social aspects of mine closures remain a challenge and finding effective ways to deal with them has become crucial for the industry. This prompted us to propose an approach based on community involvement in the decommissioning processes and the introduction of the social license for closure (SLC). By engaging the community, the SLC gives it a voice, allowing it to accommodate the individual needs of mining regions and ensure a successful and just transition. This article recognizes the key stakeholders and their fears related to the liquidation of mining. The organizational framework for stakeholder approval of the SLC is presented. The analysis was based on the example of Poland, a country facing the challenge of closing hard coal mines. Conclusions formulated on the basis of the case study complement the existing research in the field of social licensing and involving stakeholders in the mine closure planning process in accordance with the idea of corporate social responsibility.

Role and impact of the US higher education and scientific staff formation on the global cooperation strategies as part of sustainable development

In modern conditions of global cooperation and development of sustainable growth effective models, the influence of tertiary education and science systems on the social and economic spheres is increasing. In complex interaction and mutual integration, this ensures high efficiency of progress both in individual countries and in a global dimension. For example, the American model of tertiary education and science reflects the specifics of worldviews, social orientations, and social demands - Americans regard education with their inherent pragmatism. From the American point of view, training programs and courses are products that differ in quality and price. The US principle of educational specialization, but not universalization is a conscious desire to achieve economic goals. This approach is also based on the Protestant idea of corporate social responsibility; and the education system, as one of the forms of this responsibility manifestation, was formed on the basis of these values (neobehavioral philosophy of education and Protestant socio-entrepreneurial ethics). Supporters of this trend reject self-expression as the main goal of education. They favor the principle that a man is a learning being, and in the process of learning all the behavioral norms are developed. The learning effectiveness is achieved by introducing the achievements of science, technology, and experiment into the system of education. According to these prevailing principles of management, pedagogy, and philosophy of education, all life, educational aspirations, and requests, both personal and professional, must be clearly algorithmically and purposefully modified in conjunction with the goals, values, and direction of the state and society.

Scope of CSR in Islamic Economics and Finance

The purpose of this paper is to explain the scope of Corporate Social Responsibility (CSR) and the Islamic understanding of what responsibility means. The paper aims to reflect on the originality of the idea in the Islamic economic tradition and analyze CSR factors special to Islamic economic institutions. An extensive analysis of existing literature is undertaken to present findings that support the idea of CSR being original in Islamic economics. Within this wide scholarly debate and research on CSR, the views of essential scholars are presented. Finally, an analysis of different drivers for a corporation's engagement in CSR is presented alongside some drivers unique to Islamic financial institutions. Findings: CSR as a research idea is an ongoing debate, especially concerning the definition and operation margins. However, this is a healthy sign showcasing flexibility facing changing community and social needs and the corporation's capabilities and interests. Furthermore, indirect CSR, such as fighting corruption and sensitivity to sharia-compliant operations, needs to be addressed more in light of CSR. The paper finds that the lack of anti-corruption measures and sharia compliance is socially irresponsible and may cost more than corporations might spend directly under CSR. The value of this research is that it shows a need for more CSR engagement from corporations as well as better understanding from the engaged public on the goals and limits of different corporations; one that stands out is Islamic banks and what people expect.

CSR in Management Sciences: Is It “a Road to Nowhere”?

Over the years, the idea of corporate social responsibility has attracted the interest both of practitioners and researchers. While a discourse has occurred in the context of the meaning of Corporate Social Responsibility (CSR), there is no extensive analysis of the latest contributions. To address this gap, three objectives have been formulated for the purpose of this paper: to analyse development trends in CSR definitions, to assess the applicability of scientific efforts in the above-mentioned area and to demonstrate future research opportunities and threats based on the state-of-the-art in CSR. An organized literature review and bibliometric methods have been proposed based on 55 articles published in the “Corporate Social Responsibility and Environmental Management Journal”, the top ranked periodical with the highest Impact Factor, from its beginnings to January 2021. This research provides a clear overview of the recent CSR trends that are present in the literature, by pinpointing those works that refer to significant characteristics and indicate future trajectories of CSR in a managerial practical context, particularly important for the effectiveness of future CSR-oriented organizational activities. This paper summarises the existing CSR-related knowledge and constitutes the first attempt to investigate the process of the creation and development of the corporate social responsibility concept from its origins to its contemporary multidimensionality.

Do social and environmental capabilities improve bank stability? Evidence from transition countries

ABSTRACT Financial institutions have embraced the idea of corporate social responsibility (CSR) over the past decade, particularly in the banking sector, even as they have faced challenges in their core business model and an uncertain economic environment. Has the addition of CSR helped banks in their effort to become more stable via diversification, or has it squandered resources which could be utilised elsewhere? Using a sample of 319 commercial banks from 21 transition countries in Central and Eastern Europe and the former Soviet Union from 2002 to 2014, we find that there is a heterogeneous effect of CSR on bank stability, with total commitment to CSR contributing to the stability the most. Environmental capabilities, on the other hand, appear to influence stability only for those firms which are already the highest performing. We conjecture that, for financial sector firms in a transition environment, CSR is a further commitment for firms which have attained a certain level of stability but can be destabilising for weaker banks.

What is the optimal tax treatment that motivates donor corporations to make more monetary and in-kind donations to their communities?

This aim of this study is to find out the optimal tax treatment that motivates donor corporations to make more monetary and in-kind donations to their communities with minimal damage to the interests of all the parties involved and the corporate social responsibility (CSR) idea. Economic impact, legal imbalances and the extent of closeness to or distance from the content of the idea of CSR are tax treatment methods used for corporate monetary and in-kind donations and to determine their advantages and disadvantages according to certain criteria to choose the optimal tax treatment method. According to the findings, the study adopts the method of government’s rights and corporation’s rights ‘donations as if they are loans’ by legislative bodies in all countries of the world due to the abundance of its advantages. This study has drawn up a draft law for this method, which could be used as a guide by the legislative bodies, if a decision is made to adopt this method. Keywords: Tax treatment, tax incentives, advantages, disadvantages, legal imbalances, economic impacts.

The use of Corporate Social Responsibility (CSR) as a political tool: A case study of tobacco industry in Swabi Pakistan

Corporate Social Responsibility (CSR) is perceived as a major component of contemporary business policies. It is considered as a significant tool for business promotion and survival in the 21st century. The ideas of CSR (Welfare) and the business model, tobacco companies create a contradictory concept as it kills one-half of its chain users. Tobacco companies are strictly prohibited by international and local laws from the promotion of their products. In order to cope up with such strict laws, they start social initiatives. Hence, they take help from the idea of CSR. Through CSR they earned a soft image and entered in politics to influence public policy in their favour. This paper is an effort to discuss the real situation behind CSR initiatives of tobacco industry in Pakistan. Annual reports of Philip Morris Pakistan and Pakistan tobacco Company are analysed. Interviews of local companies’ owners or officials, research papers, newspaper articles and related sites have been investigated to get the conclusion. Resultantly, this paper emphasizes on the CSR regulations and centralization. The findings also indicate that tobacco money is directly and indirectly used in politics in the form of CSR.

The Idea of Corporate Social Responsibility in the Opinion of Future Managers—Comparative Research between Poland and Georgia

The article deals with the issue of corporate social responsibility (CSR) in the awareness of economics students as future managers responsible for the implementation of this idea in enterprises. Due to the fact that CSR is a source of many innovations today, the aim of the research was to learn about the awareness and opinions of students about CSR on such issues as: reasons for implementation, main activities, impact on profitability, and the need to explore and assess the usefulness of this knowledge. The research was conducted in 2019 among students from Poland and Georgia (as countries at various stages of advancement in the market economy). The results of the research were statistically analyzed in terms of obtaining answers to the hypotheses and research questions, checking the significance of differences in the answers due to nationality, and additionally, gender (chi-square test and test for two proportions). The primary contribution of this study is an exploration of the views of students on various issues of CSR and sustainability. The results showed that—according to students—ethical values, increased consumer awareness, and the desire to gain a competitive advantage are the most common reasons for the implementation of the CSR concept by companies. The vast majority of respondents indicated the need to enrich the knowledge of business ethics as an important aspect shaping the attitudes of employers and employees. The positive attitude of students regarding the impact of CSR on the company’s profitability was confirmed, although the authors expected more unambiguous results. Differences were also distinguished between the responses of students from both countries on some issues, such as: opinions on the developing ethical sensitivity, the need for the credibility of the EU economic policy, ecology and relations with the local community, as well as relations with the closest stakeholders of companies. The results of the conducted research suggest the need for intense activity in the field of public awareness and the requirement of personnel training for the skilful implementation of CSR principles in enterprises.

The Corporate Social Responsibility (CSR) as the Modern Trend in Management and Sustainable Economy

Purpose: The topic of corporate social responsibility is already present in many areas and spheres of economic life. In many cases, it determines the strategies of companies. Therefore, the article aims to examine the development and role of corporate social responsibility (CSR) in management and sustainable economy. Emphasis will be placed on an overview of the most important international promotion initiatives. Finally, CSR and its development in Poland were discussed. Design/Methodology/Approach: The article uses the descriptive method. It consisted in the separation and identification of a specific phenomenon, which is the development of corporate social responsibility initiatives. Findings: Our findings suggest that the common element in all definitions is a broad category of stakeholders and the CRS definition determined by the standard quality, the ISO 26000. The important place in CSR idea is currently caring for the natural environment. Practical Implications: Efforts to encourage enterprises to the implementation of CSR principles which it is possible to build a positive image of the company and the trust and loyalty of its stakeholders. Therefore, such initiatives should be supported by government funding schemes and heavily promoted. Originality/Value: To the authors’ best knowledge, the present study is one of the few critical analyzes of the literature on the subject.