Implications Of Corporate Social Responsibility Research Articles

The Influence of Socially Responsible Practices on Corporate Hedging

This study examines the nexus between firm hedging strategies and corporate social responsibility (CSR). Utilizing textual analysis of 10-K filings to measure corporate hedging, we find that firms with higher levels of CSR are more inclined to engage in hedging practices and with greater intensity. This tendency is further amplified in the presence of strong corporate governance frameworks. We posit that this is primarily driven by the mitigation of cash flow volatility, the cost of equity, and the cost of debt. Our analysis encompasses various endogeneity tests, including entropy balancing and an instrumental variables approach that considers political and geographic factors. The robustness of the results is further validated through alternative CSR and hedging metrics. This study contributes to the growing body of literature on the strategic financial implications of CSR, highlighting the complementary role of CSR in corporate risk management.

Internal CSR and the decline of organised labour: a possible elective affinity?

Purpose This paper aims to explore the potential relationship between internal corporate social responsibility (CSR) and the decline of organised labour in countries of the global North. Given the opposing trends since the late 20th century and the widespread adherence of internationally recognised labour standards in CSR codes, standards, and reporting frameworks, questions arise about the disparity between CSR rhetoric and practice regarding the collective rights of in-house employees. The paper further explores the tendency in CSR scholarship to overlook violations of collective rights for in-house employees in the global North. Design/methodology/approach To examine whether there is an elective affinity between the rise of CSR and the decline of organised labour, the paper uses a discursive institutionalism approach, providing a meta-theoretical analysis of academic literature on internal CSR. A scoping review methodology was used to identify relevant literature and compile it into an empirical corpus for a metatheoretical analysis. The empirical corpus, consisting of 38 articles, was generated through a Google Scholar (GS) search guided by the following questions: (1) What are the dominant conceptual framings of internal CSR? (2) What are the dominant roles and practical aspects of internal CSR? Findings The paper identifies two key disparities in the literature: (1) between rhetoric and practice regarding the collective rights of in-house employees in the global North and (2) between the extensive CSR research on violations of collective rights of value chain workers and the limited attention to in-house employees’ collective rights. The analysis highlights two factors contributing to these disparities: the integration of internal CSR into the corporate managerial toolbox and the distinction in CSR discourse between core labour standards and workplace issues. The analysis shows that internal CSR has an elective affinity with the decline of organised labour. Research limitations/implications While scoping reviews are often standalone studies, this paper used the methodology for its stated purpose. Limitations include the broad span of internal CSR across various academic fields and reliance solely on GS. Measures taken to enhance inclusivity were unlimited review period, refined inclusion criteria and keywords during the selection process and cross-checks of cited articles. Social implications Considering the implications of the decline of organised labour on workers’ collective voice, poverty and the distribution gap in wealth and income, this paper suggests that for CSR to play a significant role in advancing sustainable social justice, scholars and practitioners should look at ways to reduce the disparity between rhetoric and practice regarding employees’ voice and collective rights. Originality/value The paper lays the foundation for a better understanding of the potential links between internal CSR and the decline of organised labour. It addresses a gap in the literature on the interrelations between CSR and organised labour in the global North and proposes root causes of this gap. This contribution enriches the scarce literature exploring the potential elective affinity between CSR and transformations in the global economy and labour markets since the late 1980s. Finally, the paper deepens the understanding of the implications of CSR for employees’ collective rights and voice as well as for organised labour.

Infrastructure collaboration along China’s Belt and Road Initiative: Implications for corporate social responsibility and political activity

Chinese multinational enterprises (MNEs) have increasingly engaged in outward foreign direct investment in recent years, and particularly into the infrastructure sector of developing economies. This has been prompted by the infrastructure-led economic integration plan of China’s Belt and Road Initiative. However, such collaboration faces many challenges. Infrastructure projects are often undertaken in industries, countries, and regions posing particular and difficult challenges, and with divergent, often conflicting interests, with the ensuing conclusion that the MNE is simply exploiting the project and not delivering value to the host country. Overall, not only does the infrastructure project have to be well-functioning with expected returns (or savings) realized, but these projects face close scrutiny from local communities, labor, opposition parties, neighboring countries, and various international bodies and nonprofits, requiring delicate handling of the principals involved. The unfolding of these issues and their management by the multinational are examined through an in-depth longitudinal case study. The data are drawn from major participants and stakeholders around a leading Chinese MNE and the mega project of the construction of a major hydropower plant in Pakistan.

How to Align Purpose in Practice? Implications for Corporate Social Responsibility Within MNEs

How to Align Purpose in Practice? Implications for Corporate Social Responsibility Within MNEs

Correlation Between CSR and Stock Market Performance: Analyzing 32 PSX Companies

This study examines the impact of Corporate Social Responsibility (CSR) on the financial performance and stock prices of 32 companies listed on the Pakistan Stock Exchange (PSX). Analysisysis focuses on the correlation between CSR activities and Return on Equity (ROE), investigating how different CSR strategies, such as donations, employee welfare, and cause-related marketing, influence stock market performance. The research employs both qualitative and quantitative methods, including interviews with senior executives and analysis of company financial statements. The findings reveal varying degrees of correlation between CSR initiatives and financial performance, with some companies showing significant positive correlations, while others exhibit negative or no correlation. The study also highlights challenges in obtaining CSR-related data and discusses the implications of CSR on the long-term financial stability of firms.

CSR practices and earnings management: the mediating effect of accounting conservatism and the moderating effect of corporate governance: evidence from Finnish companies

Purpose This study aims to examine the impact of corporate social responsibility (CSR) on earnings management (EM). Furthermore, the authors assessed the mediating effect of accounting conservatism (AC) on the CSR-EM relationship over the long term. The authors also tested the moderating effect of corporate governance (CG) on the AC-EM relationship in the Finnish context. Design/methodology/approach Linear regressions were applied to panel data using Thomson Reuters’ ASSET4 database. Data were collected from 140 Finnish firms between 2005 and 2022. Findings The results confirm that negative CSR has an impact on EM. Moreover, AC mediates the relationship between CSR and EM. Likewise, CG moderates the relationship between AC and EM. Practical implications This paper may interest academic researchers and potential and current investors. This paper will help investors make relevant investment decisions. Managers should pay special attention to their EM. These firms must take social responsibility vis-a-vis all their stakeholders. Originality/value To the best of the authors’ knowledge, this study is the first to use AC as a mediator and CG as a moderating variable in the Finnish context. This research will enrich the literature by providing a comprehensive picture of the relationships between CSR and EM through AC and CG in developed markets. Therefore, it is crucial to understand the implications of CSR in Finnish companies.

Can corporate social responsibility reduce customer mistreatment? A contingent dual‐process model

AbstractAlthough corporate social responsibility (CSR) has been widely studied, little is known about whether it has implications for customer mistreatment. In this study, we aim to understand how and when CSR is related to customer incivility, a typical type of mistreatment in service contexts. Integrating the perspectives of social exchange theory and social identity theory, we theorize that CSR influences customer incivility via customer trust and customer identification, which are contingent on front‐line employees' emotional labor (i.e., surface acting and deep acting) during service interactions. In our two‐source field study involving 332 employee–customer dyads, CSR promoted both customer trust and customer identification, which in turn reduced customer incivility. Moreover, the indirect relationship between CSR and customer incivility via customer trust (but not customer identification) was weakened by employee surface acting but strengthened by employee deep acting. Taken together, this study uncovers the relationship between CSR and customer mistreatment by exploring how and when CSR influences customer incivility, which advances the understanding of the customer‐related implications of CSR.

Exploring stakeholder engagement network behavior: Strategic and managerial implications for corporate social responsibility

Exploring stakeholder engagement network behavior: Strategic and managerial implications for corporate social responsibility

A Conceptual Framework on Enhancing Corporate Immunity Under The Influence of Corporate Social Responsibility And Financing Strategies

Existing research mainly focused on the financial implications of corporate social responsibility (CSR) on firms, overlooking the firm’s intrinsic intention to invest in CSR as to whether the investment is taken to build immunity against shocks or to strategize for future corporate exercises. As such, this paper provides a framework to investigate whether there is any association between CSR investments, firm performance and financing strategies. This paper hypothesized that there is a joint impact of CSR investments and financing strategy as a means to build stronger sustainable corporate immunity. The findings of this framework will assist managers in discerning whether there is a key CSR-ESG orientation that assists firms in future corporate funding exercises and to structure its CSR investments jointly with financing strategy to build stronger immunity.

Analisis Bibliometrik tentang Dampak Corporate Social Responsibility (CSR) terhadap Kinerja Keuangan Perusahaan

This study employs bibliometric analysis to map the research landscape of Corporate Social Responsibility (CSR) over several decades. By synthesizing data from extensive academic databases, this research identifies thematic clusters, trends over time, collaboration networks, and potential future research directions within the field of CSR. The thematic analysis highlights the evolution from foundational CSR concepts to more nuanced discussions on the economic and strategic implications of CSR. Temporal trends suggest a shift towards integrating CSR into core business strategies, with an increasing focus on economic outcomes and shareholder interests. The author collaboration network reveals both dense and emergent clusters of researchers, indicating robust areas of established inquiry alongside emerging research fronts. Additionally, this study identifies underexplored areas such as the cost implications of CSR, its integration with marketing strategies, and the influence of regulatory frameworks, proposing these as vital for future research. This comprehensive overview not only maps the current state of CSR research but also directs future scholarly efforts towards areas with the potential for significant impact.

Corporate Social Responsibility and Financial Information Quality

Corporate social responsibility has gained increasing popularity among managers and investors. Many firms commit significant resources and consider CSR as a part of their long-term strategic plan. Whether corporate social responsibility affects corporate financial information quality has been an important question. Using a big sample of corporations in the U.S., I study the relationship between corporate social responsibility (CSR) and corporate financial information quality. I find a significant and positive relationship between CSR and financial information quality. This relationship is robust to potential endogeneity concerns. These findings have important implications for financial disclosure, CSR, and corporate strategy.

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.

Bioethics-CSR Divide

Bioethics-CSR Divide

Interaction of Corporate Social Responsibility Reporting at the Crossroads of Green Innovation Performance and Firm Performance: The Moderating Role of the Enterprise Life Stage

This research delves into the intricate interplay between green innovation performance (GIP), firm performance (FP), and corporate social responsibility (CSR) reporting, leveraging enterprise life stage performance as a pivotal moderator. Analyzing a robust sample of 5450 firm-year observations spanning from 2015 to 2021, this study employs OLS regressions with panel data sourced from the CSMAR and HEXUN databases to validate prevailing research hypotheses. The findings underscore the pivotal role of CSR reporting in augmenting corporate value while concurrently mitigating inadequacies within the system. Moreover, this study uncovers a nuanced relationship between CSR reporting, GIP, and FP in the context of China, revealing a significant moderation effect attributed to the enterprise life cycle. These revelations carry profound implications for CSR reporting stakeholders, including academics, practitioners, and regulators. Notably, they provide valuable insights to authorities and boards of directors concerning the growth potential of enterprises and states. A distinctive facet of this study lies in its exploration of the moderating influence of an enterprise’s life stage on the relationship between CSR reporting and GIP or FP.

Exploring How Consumers’ Perceptions of Corporate Social Responsibility Impact Dining Intentions in Times of Crisis: An Application of the Social Identity Theory and Theory of Perceived Risk

During the pandemic, the restaurant industry placed greater emphasis on corporate social responsibility (CSR) initiatives. However, there seems to be a dearth of comprehension regarding how customers’ perceived risks impacted their dining intentions. This challenges the industry to devise an effective crisis response strategy. Thus, this study investigates the relationship between perceived CSR, restaurant image, and dining intentions during the crisis. In addition, this study examines how perceived CSR influences three types of perceived risks associated with restaurants (quality, health, and environment) and how these types of risks influence restaurant image and dining intentions during this period. The results demonstrate that perceived CSR positively impacted a restaurant’s image and concurrently reduced perceived risks among consumers during the coronavirus disease 2019 (COVID-19) pandemic. Furthermore, perceived health risks had a negative influence on customers’ dining intentions. This study offers valuable insight into the theoretical foundations and managerial implications of CSR’s effects and risk management, particularly in the context of future pandemics within the restaurant industry.

Exploring ethical and strategic implications of corporate social responsibility in modern business

Exploring ethical and strategic implications of corporate social responsibility in modern business

CSR: Issues, Developments, and Strategies of Intervention

This article delves into Corporate Social Responsibility (CSR) and its significance, drawing upon existing theoretical and empirical literature. It explores the contextual and highly debated relationship between profitability and morality, focusing on India's cultural diversity and its social development challenges. CSR and Sustainable Development Goals (SDGs) have been localised to address these challenges. The article analyses the potential implications of mandated CSR under India's recently enacted Companies Act of 2022 on firm incentives, likely responses of corporations within the ambit of the law, and the implications of resource availability and delivery of social good. The success of addressing these implementation challenges will determine how far the objective of the new regulation is met. Ultimately, this paper studies the interface between CSR and social development, emphasising the importance of both in promoting sustainable growth.

The Mental Health Implications of Corporate Social Responsibility: The Significance of the Sense-Making Process and Prosocial Motivation.

As corporate social responsibility (CSR) has progressively ascended to prominence among academics and industry professionals, numerous studies have embarked on examining its impact on employees' perceptions, attitudes, and behaviors. Notwithstanding, the current body of research has predominantly overlooked the influence of CSR on employees' mental health, encompassing depression, anxiety, and burnout. In order to acknowledge the critical role of employee mental health within an organization, our exploration is focused on discerning the effect of CSR on depressive states. Furthermore, our paper undertakes a thorough analysis of the link between CSR and depression, probing its underlying processes and potential contingent factors. We posit that CSR can alleviate the incidence of employee depression by amplifying the sense of meaningfulness that work provides. Moreover, the element of prosocial motivation among employees may act as a positive moderating variable that intensifies the beneficial effect of CSR on the sense of meaningfulness derived from work. By relying on data obtained through a tripartite online survey involving 214 South Korean workers, this paper scrutinized the proposed hypotheses via the application of moderated mediation analysis with structural equation modeling. We contend that the insights yielded by this study bear significant theoretical and practical implications.

The Effects of a Short-Term Corporate Social Impact Activity on Employee Turnover: Field Experimental Evidence

Short-term corporate social impact activities, wherein employees participate in firm-sponsored prosocial initiatives, are becoming increasingly common. However, it remains unclear whether short-term social impact activities affect employee behavior in a manner of relevance to the firm. Theoretically, arguments could be made in favor of or against the likelihood that such short-term activities would increase firm-benefitting employee behavior. We utilized data from a randomized field experiment implemented at a large Latin American bank to examine whether a short-term social impact activity can be beneficial for firms, focusing on one important outcome: turnover. Newly hired employees were randomly assigned to a short-term social impact activity as part of the new employee onboarding process or not. Notably, we find causal evidence that a day-long, short-term engagement reduced employee turnover almost a year later. We explore potential mechanisms behind this effect and find that employees’ perceptions of organizational justice help to explain the effects of the intervention on turnover. We also explore heterogeneous treatment effects and find more substantial effects for male, rather than female, employees. This paper advances the literature on the implications of corporate social responsibility (CSR) practices by shedding light on the causal mechanisms through which a theoretically underexplored and practically relevant type of CSR activity can benefit organizations and their employees. This paper was accepted by Lamar Pierce, organizations. Funding: The authors acknowledge funding from NSF through the Learning the Earth with Artificial intelligence and Physics (LEAP) Science and Technology Center (STC) (Award #2019625). Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.01517 .

Employee Performance Implications of CSR for Organizational Resilience in the Banking Industry: The Mediation Role of Psychological Empowerment

Corporate social responsibility (CSR) has been found to be important in boosting organizations’ sustainability and resilience against crisis. Although employees constitute key internal stakeholders for CSR, limited attention has been paid to them. The purpose of this research is to examine how employee perceptions of CSR activities affect employee performance through their sense of psychological empowerment. Drawing upon a sample of 203 employees in the Cypriot banking sector, a structured questionnaire was administered to measure employee performance, psychological empowerment, and CSR activities as perceived by employees. The analysis of data, based on path modeling using the partial least squares (PLS) approach, confirms the mediating role of psychological empowerment between CSR activities (philanthropic, ethical, and environmental) and job performance. This study contributes to the theoretical evolvement of the CSR literature, as it established the mediating role that psychological empowerment plays between perceived CSR and job performance. The findings suggest that CSR should be treated not just as a pressing obligation but as a dynamic investment in organizational effectiveness, sustainability, and resilience because positive employee perceptions of CSR can contribute to staff empowerment and indirectly to job performance.