Impact Of Corporate Social Responsibility Research Articles

Corporate social responsibility and labor investment efficiency: evidence from China

PurposeWe expect to provide a complete theoretical framework and large sample evidence on the impact of corporate social responsibility (CSR) on the efficiency of labor investment. We also hope to provide micro-evidence based on labor investment behavior for the two-sided impact of corporate CSR behavior.Design/methodology/approachThis paper measures labor investment efficiency by estimating the difference between actual and expected net hiring of enterprises. CSR is measured on the basis of the CSR score of Chinese listed companies published by Hexun.com. A regression model is constructed to analyze the relationship between CSR and labor investment efficiency. Possible endogeneity problems are controlled by lagging independent variables, propensity score matching method and difference-in-difference method.FindingsResults show that CSR can improve labor investment efficiency by reducing over-hiring and under-hiring in emerging markets. The existence of the mediating effect of agency cost, information disclosure quality and employment fluctuation confirms that CSR improves labor investment efficiency through two mechanisms of corporate governance and labor market friction. The improvement effect of CSR on labor investment efficiency is more significant in non-state-owned, high CEO shareholding ratio and high-average urban wage enterprises.Originality/valueIn conclusion, our study is an important supplement to the existing research on the factors affecting labor investment efficiency. Our research conclusions will be helpful for enterprises in developing countries or enterprises in labor-intensive industries to improve labor investment inefficiency. The conclusion of the mechanism analysis in this paper provides more complete and reliable microscopic evidence for accurately identifying the specific path of CSR's impact on labor investment efficiency. This paper verifies the positive impact of CSR from the perspective of labor investment efficiency in the context of a developing country, which provides evidence for the theoretical conflicts related to CSR based on the effectiveness of enterprise labor investment decisions.

Women on board and business performance

Purpose This study aims to examine the association between women on board and business performance. It also aims to investigate the impact of corporate social responsibility (CSR) and female directors on stock prices, including the function of female directors in moderating the CSR–market performance link that ultimately provides valuable insights into the impact of gender diversity on corporate boards. Design/methodology/approach Data from US publicly listed firms between 2000 and 2018 were collected and analysed using OLS regression, median regression, M-estimator regression and MM-estimator regression at 70% and 95% efficiency. In this study, firm market value was measured through Tobin’s Q, board diversity with ISS database and CSR strength and concern with the KLD database. Findings The results indicated that CSR positively impacts market performance by 3.1%, female board representation positively influences market performance by 4.8% and female board members strengthen the CSR–market performance relationship by 1.0% while playing a moderating role. Overall, these studies demonstrated the significance of female boards of directors for enhancing market performance. Research limitations/implications This study used the data of US-listed firms from 2000 to 2018. The results have contributed to the ongoing discussion about the importance of gender diversity in boards and its influence on firm success. Further research works are suggested to expand the analysis by including other countries or considering additional factors that may influence the association between CSR, board representation of women and market share. Practical implications This study is essential for investors, legislators and CSR institutions in developed countries. The favourable impact of female board presence on market performance and the enhancement of the CSR–market performance relationship highlight the necessity of encouraging gender diversity on boards of directors and CSR activities. Social implications This study emphasises the significance of gender balance on corporate boards in solving important social challenges including climate change, resource scarcity and gender equality. Companies can actively assist in addressing global issues and improving the well-being of stakeholders by promoting gender-diverse boards and encouraging CSR efforts. Originality/value To the best of the authors’ knowledge, this study is the first study demonstrating that gender diversity on corporate boards moderates the significant association between CSR performance and profitability in the USA. It has contributed to the expanding body of information regarding the moderating influence of female directors on firm value and stronger evidence for female directors in the governance of businesses.

Social Responsibility and Financial Performance in The Covid-19 era: Support for the Experience of Moroccan SMB

Objective: The objective seems to be to explore the importance of the concept of Corporate Social Responsibility (CSR) as a means of crisis management and performance lever allowing companies to withstand current financial and economic shocks. Theoretical Framework: The text mentions the intention to provide a historical overview of CSR, define CSR, financial performance, SMB, the role of SMB on economic growth, and cite organizational theories related to the importance of CSR in times of crisis. This section constitutes the theoretical framework by linking CSR to different economic concepts and organizational theories. Method: this article suggests a theoretical and descriptive approach, analyzing the economic impact of health measures and proposing recommendations, which involves documentary and theoretical analysis. Results and Discussion: The text focuses on presenting the topic and theoretical framework without providing specific results or data analyses. Research Implications: e research aims to highlight the importance of CSR for crisis management and financial performance of companies, particularly in the context of the COVID-19 crisis. The implications could concern strategies business, public policy, and managerial theory. Originality/Value: The originality of this research could lie in its analysis of the impact of CSR during the COVID-19 crisis, a relatively new and current topic. The combination of crisis management, financial performance and health measures from the perspective of CSR can constitute an original contribution to the existing literature on the subject.

Connecting the dots: A systematic review of corporate social responsibility, information asymmetry, and economic implications

AbstractThis paper conducts a comprehensive review of the theoretical and empirical connections between Corporate Social Responsibility (CSR), Information Asymmetry (IA), and their economic consequences. It employs a bibliometric analysis on 73 Web of Science manuscripts using VOSviewer1.6.18 software, combining this analysis with a literature review. The results reveal four thematic areas categorized into three clusters: CSR and IA, the impact of CSR and IA on internal risk control and corporate performance, and the broader effects of CSR and IA. The systematic literature review finds a prevailing consensus that CSR can alleviate IA issues, leading to positive economic outcomes like increased stock liquidity, enhanced investment efficiency, and reduced cost of capital. This study's uniqueness lies in its integration of bibliometric analysis and systematic literature review to provide a holistic summary of both theoretical frameworks and the economic implications of the CSR‐IA relationship. It offers valuable insights and recommendations for future research in this field.

Corporate Social Responsibility’s Hidden Power in context of Pakistan: Amplifying Firm Performance

This research explores the impact of Corporate Social Responsibility on the performance of firms listed on the Pakistan Stock Exchange in the cement and sugar industries. This link is examined using panel data derived from financial reports from 2013 to 2022. The study includes generally used performance indicators, such as Return on Assets, Return on Equity, and Earnings per Share, by previous literature. The corporate social responsibility data is generated from information released by firms about philanthropic activities, contributions, and R&D projects. The study also takes into account other financial and control variables such as firm size, firm age, and leverage. The random sampling approach is used to create a sample of 28 non-financial listed organizations. Several statistical tests are used in the study, including panel data technology, correlation, random effect, and fixed effect models. According to the findings of this study, corporate social responsibility has a favorable impact on company performance. These findings are consistent with previous research done in developing nations and are relevant for Pakistani businesses, which operate in different economic environments than their Western counterparts. This study provides significant insights for organizations and regulatory agencies. Furthermore, the paper makes suggestions for future research, such as the assessment of context variables such as ownership structure, the consideration of other periods, and the investigation of other industrial sectors.

How does innovation moderate the CSR impact on financial performance? An exploratory study and an empirical validation in the Tunisian context

Purpose This paper aims to examine the effect of corporate social responsibility (CSR) on firm performance (FP) of companies listed on the Tunis Stock Exchange. Design/methodology/approach This paper reports on two empirical studies. The first was an exploratory qualitative study carried out on a sample of 30 Tunisian companies operating in different sectors. The second empirical study used a panel data regression analysis, to examine data from 46 companies listed on the Tunis Stock Exchange during the 2017 to 2021 period. Findings The results of the exploratory qualitative study pointed out the specificities of the Tunisian context as to the importance of CSR. The results highlighted also the importance of the 2018 CSR law in Tunisia, yet it drew attention to the non-implementation of its applying texts, meaning that CSR is not always enforced in the Tunisian context. Moreover, in this qualitative study, most companies confirmed that CSR is a key factor behind good governance practices. By studying the impact of CSR on various FP proxies, the results highlight that CSR has a positive and significant impact on FP measured by ROA as an accounting variable and stock returns as a market-measure variable. In addition, the authors confirm the moderating effect of innovation on the CSR and FP relationship. Indeed, innovation affects corporate FP differently. It hinders accounting-based FP while fostering the market-based one. Practical implications The study provides insights for managers into how CSR approaches can be used to maximize profits, improve its FP and reputation, while considering the corporate innovative capacities. CSR is a real performance lever for companies, a means of improving their economic, environmental and social efficiency. It enables companies to anticipate constraints and prevent risks, reduce certain operational costs, optimize resources, communicate a good image and stand out from the competition, gain easier access to innovation, strengthen their competitive edge, gain easier access to financing and strengthen their territorial and social roots. Originality/value The main contribution of this paper is the adoption of two empirical approaches. These two methods are complementary. The first is an exploratory qualitative approach aimed at better understanding the current state of CSR implementation by Tunisian companies. The second one is quantitative, a panel data regression analysis. Furthermore, the authors test the moderating effect of innovation on the studied link. To the best of the authors’ knowledge, this is the first paper that investigates the moderating effect of innovation on CSR FP in the Tunisian context. Finally, robustness tests were conducted to test the reliability of this study’s results.

HOW DOES CSR STRATEGY IMPACT CORPORATE CASH POLICY IN EMERGING MARKETS? EVIDENCE FROM THE COVID-19 OUTBREAK

This study investigates the impact of corporate social responsibility (CSR) strategy on corporate cash policy in emerging markets, with a specific focus on the COVID-19 pandemic period. By analysing data from 7,731 firm-years across 30 developing countries during the period 2002-2021, the study finds that CSR has a negative effect on cash holdings. In other words, firms with lower CSR investment tend to hold more cash. However, an interesting finding is that the negative impact of CSR on cash holdings lost its significance during the COVID-19pandemic. This suggests that during this unprecedented period of economic uncertainty and disruption caused by the pandemic, firms with higher CSR were more inclined to hoard cash as a precautionary measure. In contrast, in normal times, the dominant motive for holding cash appears to be related to agency concerns. Furthermore, the study identifies countryspecific variations in the relationship between CSR and cash holdings. For instance, firms in Brazil and Saudi Arabia tend to use cash retention as a response to higher CSR, while firms in Argentina, Malaysia, Mexico, Poland, Taiwan, and Turkiye exhibit the opposite behaviour, using higher CSR as a signal for reduced cash holdings. Additionally, the study sheds light on industry-specific differences in the relationship between CSR and cash holdings. Beverage, construction and material, industrial material, oil, gas, and coal, technology hardware and equipment, telecommunications service provider, and travel and leisure firms are more likely to use cash holdings as a substitute for CSR, while alternative energy and media firms show the opposite pattern, using higher CSR as a signal for reduced cash holdings.

Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism

This study aims to investigate the influence of corporate social responsibility (CSR) on both financial and non-financial performance in the Pakistani banking sector by applying a quantitative research approach to the primary data from 405 branch managers in the Pakistani banking sector. Both financial and non-financial performance indicators are analyzed in relation to CSR practices. The CB-SEM findings of this study reveal a significant and positive correlation between CSR and both financial and non-financial performance. Our results demonstrate that CSR initiatives contribute to improved financial performance, reputation, and innovation within the sector. These findings confirm the importance of prioritizing social responsibility initiatives to enhance overall performance in the banking industry. This study provides valuable insights into the impact of CSR on performance in the context of the Pakistani banking sector. The research contributes to the existing literature by highlighting the positive relationship between CSR and financial/non-financial performance. The findings underscore the relevance of CSR practices for banks in Pakistan and emphasize the potential benefits of incorporating social responsibility initiatives into their operations. This study serves as a foundation for future research, encouraging further exploration of CSR's role in the banking industry and its implications for sustainable business practices.

Eco-engagement: Tracing CSR communication's ripple effect on consumer hospitality loyalty

This research investigates the impact of Corporate Social Responsibility (CSR) communication by hospitality organizations in a developing country on shaping customers' green loyalty. The study, drawing data from hospitality customers, emphasizes the mediating effects of customer-company identification and trust, while also highlighting the moderating role of customer environmental concern. Using the SMART-PLS software for analysis, findings show that CSR communication, especially via social media, significantly promotes green loyalty. The study also establishes the key roles of customer-company identification, trust, and environmental concern in this dynamic. The results underscore the potential of strategic CSR communication to not only enhance corporate reputation and customer loyalty but also promote environmental sustainability in the hospitality sector. These findings have pivotal implications for both academia, by providing insights into consumer behavior in the face of CSR communications, and for the industry, emphasizing the importance of genuine CSR initiatives and effective communication strategies.

Unveiling the nexus between corporate social responsibility (CSR) and employee satisfaction: a comprehensive bibliometric analysis

Purpose Researchers have tried analysing how the organizations’ practices of doing good can help improve their employees’ satisfaction over the past couple of decades. Employee satisfaction has a complicated relationship with a company’s corporate social responsibility (CSR) activities. Subsequently, the purpose of this paper is to conduct a bibliometric analysis and a literature review to trace the links between CSR and employee satisfaction, summarize and analyse the advances in this field, the knowledge gaps, publishing trends and further directions for future research. Design/methodology/approach The authors conducted a bibliometric analysis followed by a literature review of papers indexed in the Scopus database and published between 2000 and 2022. A total of 233 papers were identified, while 152 of them met the inclusion criteria for the analysis. Findings The subsequent analysis sheds light on the overlaps and connections between the two phenomena in human resource management (HRM). The authors outline potential avenues for future research and practical insight into how to leverage CSR activities for increasing work satisfaction. Originality/value By detailing the different ways CSR and employee satisfaction impact one another, analysing their relations and other supporting constructs, the authors contribute to the academic discourse by synthesizing prevailing literature and introducing practical guides for human resource (HR) professionals, managers and executives to manage turbulent surroundings more effectively, considering the major disruptions post-COVID-19 and the adoption of advanced technologies.

Trách nhiệm xã hội và hiệu quả tài chính của các ngân hàng thương mại niêm yết: Bằng chứng thực nghiệm tại Việt Nam

This article employs panel data regression model to investigate the impact of Corporate Social Responsibility (CSR) on the Corporate Financial Performance (CFP) of 29 listed commercial banks in Vietnam from 2016 to 2022. The research results reveal the positive influence of CSR on ROE and ROA, whereas the relationship between CSR and Tobin’s Q demonstrates a non-significant negative impact. Based on these findings, the study provides recommendations and policy implications to enhance awareness of CSR and establish encouraging policies and support for implementing CSR in the business operations of financial institutions.

Sustainable corporate performance through corporate social responsibility in the printing sector: The mediating role of green product innovation and green supply chain

The study investigates the impact of corporate social responsibility (CSR) on sustainable corporate performance (SCP). Specifically, the study examines the mediating role of green product innovation (GPI) and green supply chain (GSC) in this relationship. A quantitative method was employed and used Smart PLS SEM to analyse the data collected from 418 respondents from managers and senior managers in small and medium sized enterprises (SMEs) from the printing industry in Vietnam. This study shows that there is positive impact from CSR to SCP. More importantly, the study has investigated the existence of the mediating role of GPI and GSC in the mechanism of these relationships. Through the analysis, the study brings about valued implications to managers and senior managers in printing companies so as to achieve sustainable performance. This study has highlighted the contributions of CSR, GPI and GSC in sustainability in Vietnamese SMEs. The research will also help SMEs conduct their operational and strategic plans with a positive influence on the environment, society, and the economy.

Impact of Corporate Social Responsibility on Brand Image of MTN in Nigeria.

Impact of Corporate Social Responsibility on Brand Image of MTN in Nigeria.

Impact of Corporate Social Responsibility, Profitability, Leverage, and Capital Intensity on Tax Aggressiveness: The Moderating Role of Firm Size in Indonesian Manufacturing Sector

Impact of Corporate Social Responsibility, Profitability, Leverage, and Capital Intensity on Tax Aggressiveness: The Moderating Role of Firm Size in Indonesian Manufacturing Sector

The effects of heterogeneous CSR on corporate stock performance: evidence from COVID-19 pandemic in China

AbstractCorporate social responsibility (CSR) could be an effective risk-alleviating tool for companies. However, an important issue is whether CSR plays a risk-alleviating role in large negative shocks such as the COVID-19 pandemic. This study investigated the impact of corporate social responsibility on stock performance in China during the COVID-19 pandemic, focusing on the differing effects of strategic and responsive CSR. By analysing daily data on newly confirmed COVID-19 cases and the stock performance of A-share listed companies during the lockdown period in 2020, we find that CSR can significantly mitigate the negative effects of the pandemic on stock returns and recovery. Specifically, responsive CSR has a significant short-term moderating effect, whereas strategic CSR has a significant long-term moderating effect. The moderating effects of CSR are more pronounced among non-state-owned firms, firms with lower financial leverage, and large companies. These findings suggest that companies can reduce short- and long-term risks by strategically using responsive and strategic CSR in response to negative shocks in global economies.

The impact of corporate social responsibility on employee burnout: The crucial role of work overload

AbstractThe current study examines the intermediary procedures (mediators and moderators) which underlie the corporate social responsibility (CSR)‐employee burnout link. Burnout is a multifaceted psychological construct that has been widely explored in the academic literature and is related to important outcomes for individuals and organizations. Despite its significance, few studies have investigated the impact of CSR on burnout. The present research proposes that CSR diminishes employee burnout through the sequential mediation of psychological safety and job stress. Additionally, this paper proposes that work overload negatively moderates the influence of CSR on employee psychological safety. Survey data obtained from 413 South Korean workers over three‐waves were utilized, and structural equation modeling was used to test a moderated mediation model with related hypotheses. The findings demonstrated that CSR diminishes employee burnout via sequential mediation of psychological safety and job stress. Furthermore, work overload has a negative moderating influence on the association between CSR and psychological safety. The practical and theoretical implications of this research are described.

Corporate social responsibility supercharged: greening employee behavior through human resource management practices and green culture

PurposeThe primary objective of this study was to understand the impact of Corporate Social Responsibility on Employee Green Behavior, examining the mediating role played by Green Human Resource Management Practices and the moderating influence of Employee Green Culture.Design/methodology/approachTo accomplish this, a careful research approach was taken, using a thoughtfully designed random sampling method to encompass 300 banking employees, ensuring a robust representation of the diverse workforce in the banking sector.FindingsThe empirical findings identified green human resource management practices as a pivotal mediator and employee green culture as a significant moderator. It elucidated how the strategic implementation of green human resource management practices can act as an amplifier, strengthening the positive effects of corporate social responsibility on employee green behavior. This insight underscores the strategic importance of aligning human resource practices with sustainability goals to further enhance the environmental consciousness of employees. It was revealed that the presence of a nurturing organizational culture, one that encourages and supports environmentally responsible behaviors can significantly bolster the association between corporate social responsibility and green behavior among employees.Originality/valueThese findings underscore the essential role of organizational culture as a catalyst for the successful implementation of corporate social responsibility initiatives and the cultivation of a sustainable corporate ethos. This comprehensive research underscores the profound significance of corporate social responsibility, green human resource management practices and employee green culture in fostering and promoting environmentally responsible behaviors within the banking industry. These findings hold substantial implications not only for businesses but also for policymakers.

Too much of a good thing: the dual effect of executive equity incentives on corporate social responsibility performance

PurposeResearch on the effect of executive equity incentives is equivocal. Based on agency theory, some scholars take the convergence of interest logic to highlight the benefits of executive equity incentives. In contrast, others adopt the entrenchment logic to emphasize the increased agency costs. This study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil how executive equity incentives impact corporate social responsibility (CSR) performance.Design/methodology/approachUsing the panel dataset of Chinese A-share listed firms from 2006 to 2022, this study integrates the convergence of interest and entrenchment logic to examine how executive equity incentives affect CSR performance.FindingsWe find that the relationship between executive equity incentives and CSR performance follows an inverted U-shaped form. According to the convergence of interest logic, executive equity incentives reduce agency costs when allocating resources to engage in CSR activities and enable firms to increase their CSR investments, ultimately realizing increased CSR performance. After a threshold, however, the accumulation of extensive equity incentives causes the entrenchment effect, resulting in declined CSR performance. Our empirical results also shed new light on its contingent perspective – the inverted U-shaped relationship is attenuated when firms’ stock liquidity is high.Originality/valueThis study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil the inverted U-shaped relationship between executive equity incentives and CSR performance. Our study opens promising avenues for further research on corporate governance and CSR strategies.

Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance

In an era marked by increasing environmental concerns, this study investigates the impact of corporate social responsibility (CSR), transformational leadership (TL), and green organizational culture (GOC) on the environmental performance of the Malaysian manufacturing sector. Utilizing the resource-based view and ability-motivation-opportunity theory, this study explores GOC's mediating role between CSR, TL, and environmental outcomes, offering insights into enhancing sustainability in manufacturing. Through a survey of 375 Malaysian manufacturing professionals from October 2022 to January 2023 and using Structural Equation Modeling for analysis, the research confirms that CSR, TL, and GOC significantly enhance environmental performance. It highlights the critical role of transformational leadership in driving sustainability efforts and the positive influence of a green culture. This study contributes practical strategies for managers and policymakers to merge leadership, culture, and social responsibility in promoting environmental sustainability. Emphasizing the benefits for the Malaysian economy, it advocates for manufacturing firms to incorporate these findings into their CSR strategies, fostering a culture and leadership conducive to superior environmental results. This approach is vital for aligning with sustainable development goals, thereby boosting both ecological and economic growth.

The Bidirectional Relationship between Digital Transformation and Corporate Social Responsibility: A Legitimacy Perspective

The pursuit of efficiency or legitimacy is an important choice facing corporate sustainability, especially in uncertain environments. Digital transformation contributes to corporate efficiency, while fulfilling corporate social responsibility (CSR) is a non-market-based strategy for companies seeking legitimacy. However, sustainability research remains unclear about the link between digital transformation and CSR and the mechanisms behind it. To fill this research gap, we incorporate economic policy uncertainty (EPU) into our analytical framework and elucidate the theoretical mechanism of the simultaneous bidirectional relationship between digital transformation and CSR from the perspective of organizational legitimacy. We construct a simultaneous equation model and analyze a sample of 468 Chinese listed companies collected from 2011 to 2018 using the three-stage least squares method. Our findings reveal a mutually reinforcing bidirectional relationship between digital transformation and CSR. Furthermore, we discover that EPU weakens the facilitating influence of digital transformation on CSR but strengthens the positive impact of CSR on digital transformation. Our conclusions suggest that companies taking on more CSR in digital transformation contexts can help achieve the organic unity of efficiency and legitimacy for sustainable development, but uncertainty can undermine this positive interaction.