Incorporating Corporate Social Responsibility Research Articles

Optimising corporate social responsibility communication in Asia: A comparative case study of Uniqlo and Shein

PurposeFast fashion brands in Asia are increasingly incorporating corporate social responsibility (CSR) into their business strategies in response to the mounting environmental and social concerns. The study aims to provide insights into the current landscape of CSR practices and communication within the Asian context through focusing on two prominent Asian brands to understand how these fashion brands articulate and convey their CSR activities on their respective websites.Design/methodology/approachThis study used a qualitative content analysis to critically evaluate the CSR communication used by Uniqlo and Shein, with the incorporation of signalling theory as a theoretical framework to discuss the observed elements on their websites.FindingsThe results indicate that the two Asian fast fashion brands actively engage in CSR’s environmental and social dimensions. Notably, the social dimension is more prominently expressed on both brands’ websites than on other dimensions. Through a nuanced interplay of colour, imagery and keywords, these Asian fast fashion brands strategically signify their commitment to environmental stewardship and stakeholder well-being.Originality/valueThis study fills a gap in the literature by examining CSR programs on Asian-owned fast fashion brands’ websites through the application of signalling theory. The research contributes to the theoretical foundation of CSR communication outcome research, offering actionable insights for marketers entering the Asian fashion market to enhance brand reputation and legitimacy.

Ethically transformative experiences in hotels

Given the significance of transformation and the conceptualization of experiences that incorporate corporate social responsibility in their design to satisfy customers, this paper develops the concept of ethically transformative experiences and their consequences in commercial hotels. We define such experiences as occurrences that trigger outward-directed, lasting changes in a customer, manifested as future responsible consumption choices. We propose a design framework for such experiences and argue that hospitality and tourism organizations, with the micro-environment of a hotel as an example, are well positioned to design ethically transformative experiences. The outcome, a responsible consumer, amounts to a public good, providing a potential path for businesses to attain societal purpose and demonstrating connections between micro and macro-levels of transformation.

The role of knowledge assets and corporate social responsibility in creating firm value

The purpose of this paper is to investigate how knowledge assets and corporate social responsibility jointly influence the market value of a firm. In the contemporary knowledge-driven economy, where competitive advantage is based on intangible and intellectual capital, this paper emphasizes the strategic significance of knowledge assets, open innovation, and sustainable development practices in creating and maximizing market value. By employing multiple regression analysis on panel data for ten financial years, the study examines the optimal composition of knowledge assets and the impact of CSR initiatives on firm value. Key findings highlight a crucial threshold leading to the peak of market value, approximately when knowledge assets account for about 36% of a firm’s total non-current assets. Further, this study demonstrates that maintaining a balance between internally developed knowledge assets and external acquisitions significantly enhances value, correlating with the cultivation of a capitalization ability. Finally, this paper shows that corporate social responsibility emerges as a substantial driver of generating firm value, suggesting that integrating these practices into corporate strategic decisions not only aligns with ethical goals but also enhances market valuation. The insights from this study offer valuable perspectives for both academic researchers and industry professionals, advocating for a well-balanced approach to corporate asset management and underscoring the strategic importance of incorporating corporate social responsibility.

Effect of demographic characteristics of enterprises on the implementation of corporate social responsibility in SMEs context

Research background: Corporate social responsibility (CSR) is a rapidly developing field within business management, the effects of which manifest themselves in the practical management of organisations. At present, research within academia is focusing on the analysis and evaluation of the demographic characteristics of enterprises on entrepreneurs’ attitudes towards the implementation of socially responsible business management practices. Purpose of the article: The purpose of the article is to quantify the influence of the demographic characteristics of an enterprise on the implementation of corporate social responsibility. Demographic characteristics, such as the country of business, company size, business sector, gender of the entrepreneur, their age and educational attainment level, are all thought to play important roles in this. Methods: The research was conducted in three European countries on a selected sample set. The research hypotheses were verified by non-parametric testing using the parametric One-way ANOVA test and the Scheffe method. Findings & value added: The results confirm that the country in which a company conducts its business activities and company size are significant factors affecting perceptions concerning the implementation of CSR. Entrepreneurs in the Czech Republic are significantly less likely to agree with the importance and implementation of CSR than entrepreneurs in Poland. Similar results were attained when comparing micro-enterprises and medium-sized enterprises, with micro-enterprises significantly less likely to agree with statements on CSR. Between men and women, no significant differences were found in their attitudes towards the incorporation of CSR into business management practices. The result was likewise with regards to the entrepreneur’s age. However, the business sector in which a company operates and the entrepreneur’s educational attainment level do have an influence on selected CSR indicators, with the impact on financial performance most positively perceived by those companies operating in retail. Those companies operating in the services sector attached the least importance to the implementation of CSR for acquiring new customers and improving financial performance than other sectors. Of interest is also the finding that enterprises run by owners or managers with lower levels of educational attainment neither perceive the concept of CSR nor the implementation thereof as a significant element of future business management.

Employing Machine Learning to Deduce a Causal Link Between Corporate Social Responsibility and Financial Performance

Incorporating Corporate Social Responsibility (CSR) into business strategy has become noteworthy, as that pertains to the discretionary initiatives a business entity undertakes to enhance its operational sphere’s societal and ecological circumstances. The evaluation of a company’s success is closely tied to its financial performance, which pertains to its capacity to produce earnings and enhance shareholder worth. The correlation between CSR and financial performance has been a topic of significant discourse, with numerous studies examining this subject from diverse perspectives. Nevertheless, establishing a causal association between the concepts above poses a formidable challenge, owing to the intricate nature of the association and the likelihood of extraneous variables exerting an effect. This study suggests a model for CSR based on Machine Learning (ML), referred to as the Machine Learning-based Corporate Social Responsibility Model (ML-CSRM). This model aims to establish a causal relationship between CSR and financial performance. The paper commences with a comprehensive exposition of CSR and its correlation with financial performance. The discourse delves into the intricacies of ascertaining the causal relationship between the two. The method under consideration utilizes Latent Dirichlet Allocation (LDA) and text clustering techniques to examine extant legal documents about CSR. The study presents the proposed method’s simulation results [Pearson’s Correlation Coefficient, precision, recall, Root-Mean-Squared Error (RMSE), and R-squared] and discusses the proposed approach’s outcomes. The outcomes of this research carry significant ramifications for both commercial enterprises and the broader community, given that they offer discernment into the correlation between CSR and economic outcomes.

A Structural Equation Model of Factors Influencing Sustainability of Chemical Industry in Thailand

Objective: The purpose of the study is to study a structural equation model of factors influencing the sustainability of the chemical industry in Thailand and to study the direct, indirect, and combined influence of factors on the sustainability of the chemical industry in Thailand. Method: A total of 317 responses were collected from the chemical industry in Thailand using a multi-stage sampling technique. In the relationship analysis among the variables, AMOS is the main program to use, and another is Pearson’s correlation coefficient. The factors of the structural equation model as basic data. Results: We found that the factors influencing sustainability the most were Transformational Leadership, followed by organizational culture, and corporate social responsibility. The factors that had the most influence on corporate social responsibility were transformational leadership, followed by organizational culture. Transformational leadership must dedicate and foster the organizational culture and corporate social responsibility to address obstacles. Conclusion: It is important for the organization to define long-term vision and strategies, clear missions, and objectives related to corporate social responsibility, and to provide goals and direction to employees. Therefore, the chemical industry needs a leader who uses the transformational leadership style by shifting the organizational culture to a solid culture to differentiate itself when incorporating corporate social responsibility. Different from previous research on sustainability, this research aims to create a model showing the linkage of three independent latent variables influencing the sustainability of the chemical industry in Thailand.

Does Regulatory Reform of Internal Controls in China Improve Internal Control Effectiveness? Role of Corporate Social Responsibility Engagement

ABSTRACT The regulatory reform of internal controls (ICs) in China mandates that certain firms incorporate corporate social responsibility (CSR) engagement into ICs and issue IC reports. Using a staggered difference-in-differences research design, we find that IC effectiveness has worsened following this reform, but this deterioration is partially mitigated when mandated firms report their CSR engagement. Additional analyses demonstrate that this deterioration is further lessened when CSR reports are prepared in accordance with Global Reporting Initiative reporting guidelines or assured by external auditors and when firms spend more on CSR activities. Finally, cross-sectional analyses suggest that CSR engagement mitigates the deterioration in IC effectiveness more in non–state-owned enterprises and in firms that have better financial performance, lack political connections, or are located in regions with higher market development or social trust. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M4; M48.

The Role of Corporate Social Responsibility in Business Strategy and Sustainability: A Quantitative Study

Corporate Social Responsibility (CSR) has surfaced as a vital facet of commercial strategy and sustenance in recent times. It is a notion that pertains to the obligation of an enterprise to function in a principled and socially responsible approach, beyond merely seeking pecuniary gains. The purpose of CSR in commercial strategy and sustenance is to guarantee that enterprises function in a manner that is beneficial to society and the ecosystem, in addition to their shareholders. Incorporating Corporate Social Responsibility (CSR) into a business's modus operandi is not just a mere supplement to its operations, but an indispensable component of its long-term triumph. The integration of CSR into a company's strategy has the potential to engender augmented brand reputation, intensified customer loyalty, and heightened employee gratification. Additionally, it can serve to alleviate risks connected with adversative social or environmental impacts, as well as regulatory and legal adherence. Presently, consumers and stakeholders are progressively cognizant of the influence of enterprises on society and the environment. Thus, businesses that prioritize CSR in their operations are more likely to prosper in the long haul, while simultaneously contributing to a more sustainable future for all.

Corporate Social Responsibility under the Maqasid Syariah Concept in Malaysia: Why Does it Matter?

Corporate Social Responsibility (CSR) is an essential component of the shariah corporation framework. In the current corporate model, CSR is still an option rather than a company objective. The need for CSR is still being debated among companies, with some believing that it is in the long-term self-interest of a business to be socially responsible, while others view CSR as weakening a business's primary purpose. Islamic law requires Muslims to not only be governed by the al-Quran and as-Sunnah but also to be subject to the objective of Syariah, namely Maqasid Syariah. The research aims to provide analysis and recommendations to improve the practice of CSR according to the concept of Maqasid Syariah. This qualitative research used doctrinal legal method with employing secondary data. The outcome of this research is significant as a basis for law reform to develop a Shariah Compliant Corporation. It is crucial to incorporate CSR into the Shariah-compliant business model to ensure that businesses are responsible not only for maximizing profits but also for contributing positively to society. The incorporation of CSR into the Syariah-compliant business model is crucial in achieving the objectives of Syariah, namely, the promotion of human welfare, justice, and sustainability

The Role of Corporate Social Responsibility in Hospitals: A Study of Afghanistan's Public and Private Hospitals

Corporate social responsibility has become a necessary part of each company in the 21st century. Almost all businesses either observe or attempt to incorporate corporate social responsibility (CSR) activities into their operations (Lubis, 2018). Since hospitals are also a type of economic institution and the only place that works to preserve human life, it is imperative to comply with the elements of CSR in order to improve performance and maintain the well-being of society and the environment. The role of Corporate Social Responsibility (CSR) has not been clear so far in Afghanistan's companies and organizations' context. In addition to that, research under this title has not been conducted yet. The present study aims to evaluate the role of corporate social responsibility (CSR) in Afghanistan's states and private hospitals. From the total of 667 state and private hospitals, a sample of 146 hospitals has been selected for analyzing and testing the research hypothesis. The primary and secondary data have been used to show the role of CSR in Afghanistan hospitals. Furthermore, the multiple regression and correlation tests helped us estimate the role of CSR in Afghan hospitals. The result of the study shows that the level of CSR in Afghanistan hospitals, both public and private, is appropriate in all economic, legal, humanitarian, and ethical aspects, and the level of difference in central hospitals in ethical and humanitarian dimensions is higher than in non-central hospitals, while the level of difference in non-central hospitals in economic and legal dimensions is higher than in central hospitals.

A consumer perception study on CSR reputation shaping brand image in India

The purpose of this study is to reveal that a brand incorporating corporate social responsibility (CSR) initiatives helps strategically shape its brand image and enables it to stand apart in a competitive market. Data for this research was gathered from a primary data collection exercise done across a sample of respondents in India. The paper succeeds in establishing the hypothesis (H1) of 'Whether CSR reputation (CSRR) and brand image (BI) are statistically related? ' through canonical correlation. The study established that there exists a positive correlation between CSRR and BI; consumers are willing to praise CSR performing brands publicly and easily distinguish such brands from other competing brands. Consumers' respect for such brands grows every time they learn of their CSR efforts. This study extends the dynamic relationship between the consumer and the brand. It concludes by suggesting that strengthening CSR makes business sense.

Corporate social responsibility report readability, credit ratings and cost of borrowing

PurposeThis study aims to investigate how credit rating agencies and banks, important credit market participants, incorporate corporate social responsibility (CSR)-related information in their assessment of firm’s creditworthiness.Design/methodology/approachThe authors collect stand-alone CSR reports published by Fortune 500 companies from 2002 to 2014 and use file size as a readability measure to investigate the impact of stand-alone CSR reports’ readability on firms’ credit ratings and cost of borrowing.FindingsThe authors find that firms with higher CSR report readability enjoy higher credit ratings and lower costs of bank loans, suggesting that rating agencies and banks perceive lower default risk for firms with more readable CSR reports. Further analysis indicates that the positive association between CSR report readability and credit ratings is more pronounced for firms with high CSR performance. Conversely, the negative association between CSR report readability and bank loan spreads is more pronounced for firms with low CSR performance and credit quality, suggesting complementary roles of rating agencies and banks in their use of CSR reports.Originality/valueOverall, the results highlight the importance of improving the textual characteristics of CSR reports, especially readability, in reducing information risk in the credit market.

Incorporating corporate social responsibility into graduate employability

AbstractTo remain sustainably viable in today's business environment, employers require appropriate skills to support their commitment to social responsibility. When recruiting skills, employers recognize that graduate attributes are essential indicators of the capability to render constructive workplace outcomes. Graduates need to develop these attributes to demonstrate their employability potential to prospective employers. However, existing employability capital frameworks do not include the graduate attributes needed to measure capability in corporate social responsibility (CSR) skills. The objective of this study was to determine which graduate attributes would support employability capability in CSR skills. Following a theoretical investigation, a mixed‐method exploratory study was undertaken in South Africa's state‐owned electricity provider to determine the employability attributes required by the organization in CSR management. The first phase involved a data collection survey, 302 managers and supervisors in South Africa's primary electricity provider rated a proposed 44 personal attributes linked to nine theoretical determined CSR skills and their importance in CSR management. In the second phase, the survey results were validated through a separate Delphi technique with three Human Resource Development experts. Confirmatory factor analysis found significant relationships between the tested attributes and the nine CSR skills. The findings could assist graduates in understanding the attributes they need to develop to be deemed employable for CSR performance. Furthermore, higher education institutions can include the results in curriculums to contribute to the development of CSR skills. Finally, the attributes and skills could be used to conceptualize a focused CSR employability capital, which employers can use to test employability potential.

A critical content-analysis of sustainable supplier development literature and future research directions

Sustainable supplier development (SSD) deals with how partner firms help their suppliers improve sustainable performance. Recently, SSD has received increased attention in academia and practice. In line with the emergence of supply chain sustainability , SSD evolved from being a primarily environmental perspective to a perspective incorporating corporate social responsibility and business ethics, and eventually a holistic sustainability perspective. This evolution led to a gap in theory as to the lack of a clear boundary between SSD and other sustainable supplier management practices, and a gap in practice on understanding how such practices help buying firms improve their supplier sustainability capabilities. A content-analysis based literature review is used to develop a framework for understanding the foundations of past research to address the above two important concerns and to come up with promising avenues for future research. For this purpose, a total of 47 SSD articles published in recognized academic journals during the decade 2010–2021 (August) are selected, categorized, analyzed and identified to highlight the current research status and opportunities. This article introduces a structural framework to critically examine past articles within four categories – concepts, practices, problems and solutions. The framework provides a general roadmap for future research opportunities. The review presented offers academicians and practitioners a better understanding of SSD towards a more coherent evolution of future research and practice in this area.

Is There a Role for HRM in Corporations’ CSR Strategies? An Analysis of the Sustainability Reports

A significant degree of confusion regarding the relationship between human resources management (HRM) and corporate social responsibility (CSR) persists in research and practice. Drawing on sustainability reports of large European companies, we examine how HRM’s role is presented in connection to CSR. The links between sustainable HRM and CSR are scarce but exist. Our analysis makes three contributions. First, HRM fulfills its CSR role toward employees as internal stakeholders through implementing standard human resources (HR) practices that ensure employee employability, safety, health, and wellbeing without playing a strategic role in CSR. Second, employees are seen as objects of CSR activities rather than active subjects. Third, the CSR–HRM relation is ad hoc and unsystematic; the system-level integration of CSR and HRM remains obscure; and the incorporation of CSR and sustainable HRM does not take place. We suggest that sustainable HRM characteristics would allow HRM to play a more active role in the development and implementation of CSR strategies. Sustainable HRM characteristics could elevate the role of HRM and different HR activities toward a more substantial and strategic role in CSR that is more externally orientated. We call for more empirical research on CSR strategy–sustainable HRM linkage.

The impact of digital trust on firm value and governance: an empirical investigation of US firms

PurposeThis study aims to investigate the effects of firm- and governance-specific characteristics on digital trust (DT) and firm value. Firm-specific factors include return on assets (ROA), market-to-book ratio (M/B ratio), size and leverage, whilst governance-related factors comprise board size, percentage of female board members, board independence and institutional ownership. All listed US firms over the period of 2011–2016 were analysed in this study.Design/methodology/approachThis study provides a novel method to empirically measure DT by combining multiple variables to create a combined DT score. The variables include security and privacy scores, security rankings and data breaches, amongst others. Subsequently, a linear regression was performed to evaluate the effect of firm- and governance-specific characteristics on DT, as well as the effect of DT on firm value.FindingsBy using signalling theory, this study finds significant evidence that a firm’s profitability (ROA) decreases whilst its size increases DT. This could be due to the fact that firms with lower DT monetise data more actively, decrease DT and increase short-term profitability. Significant evidence also shows that increasing DT leads to an increase in firm value.Originality/valueAlthough numerous studies have been conducted on developing customers’ trust by incorporating corporate social responsibility to improve firm value, the literature remains still on its digital analogue. Therefore, this study extends the knowledge of corporate digital responsibility (CDR) by providing a novel method for calculating DT across industries as an antecedent of CDR. Specifically, it sheds light on how firms can enhance DT by utilising firm- and governance-level factors. This enhanced DT can subsequently increase firm value. The study provides important managerial implications by providing empirical evidence that cybersecurity investments increase firm value. This value increase is related to the rise in shareholder value amongst investors and the increase in the organisation’s consumer perceptions as the latter’s interests are better managed.

CSR as an Elixir for Enhanced Corporate Image: Experiences from the University for Development Studies, Tamale and C.K. Tedam University of Technology and Applied Sciences, Navrongo, Ghana

This paper is centered on the ramifications of Corporate Social Responsibility (CSR) initiatives on the corporate image of public universities in Ghana. It focuses on CSR activities of the C. K. Tedam University of Technology and Applied Sciences (CKT-UTAS) and the University for Development Studies (UDS), taking cognizance of the likely consequences of socially irresponsible behaviour. The proponents relied heavily on relevant previous studies, Acts of Parliament establishing the selected universities, information provided in technical reports, web pages of selected universities, and in-house journals of same. It recognizes CSR as a strategic tool for enhancing the corporate image of a given organization and thus set out to investigate benchmarks within the higher education sub-sector and the sustainability or otherwise of CSR initiatives undertaken by the Management of UDS and CKT-UTAS. The findings revealed that per their respective mandates as enshrined in the Acts/Legislation establishing them, the UDS and the CKT-UTAS have a community development and/or poverty reduction focus. Invariably, they have been involved in several forms of community engagement or CSR activities especially within the universities’ catchment areas. However, the two universities like most public universities in Ghana do not have a deliberate Policy Document on Corporate Social Responsibility. Consequently, the study recommends the formulation of a CSR Policy to provide the framework for university-wide CSR programmes and activities as well as the incorporation of CSR as a course of study within the universities’ mainstream curricular.

How to Incorporate Corporate Social Responsibility into DNA of the Companies?

Abstract In my presentation I would like to treat corporate social responsibility (CSR) from a legal perspective and especially discuss how to achieve an effective application of the CSR codes and principles. In this respect I would like to discuss solution proposals such as emphasizing compliance programs or certification systems and especially the question how CSR principles could be regulated by legislations with binding character, as hard law instruments. This is also mentioned as the ultimate goal of the CSR in the summary of European Commission’s Multi-Stakeholder Forum “The ultimate goal of CSR should be to embed social responsibility into DNA of companies, rendering it absolete through normative compliance”. Corporate Social Responsibility, is an approach that companies should conduct their business in a responsible and fair way and that they should take responsibility of their impact on society. CSR, has different pillars such as sustainability, environment, human rights, investment, public procurement etc… Among all these different subsectors, I will treat the applicability of the CSR principles mostly from the sustainability perspective. Since CSR has so many different facets and propose a general policy of good conduct rather than concrete specific rules and legal provisions, stays as a vague concept and need to be defined and concretized. CSR has no description and is not regulated in the national codes and legal systems. However, there are a lot of regulations, guidelines and standards prepared by international authorities and organizations and the European Commission.

Corporate social responsibility and financial performance: A study of the tourism industry in Sri Lanka

Sri Lanka is under a myth that the fall of tourism is due to the Easter Sunday attack in 2019 followed by the COVID-19 pandemic in 2020. In contrast, this study argues the fall started even before those shocks incorporating corporate social responsibility (CSR) and financial performance (FP) in the tourism industry. A stratified random sample of 10 hotels was selected, and their annual reports were utilized in gathering data. An abductive approach was employed where content analysis was carried out to find out the CSR words, then thematic analysis was conducted to grasp the important themes of CSR, and then the Nila unit method was adopted in converting the themes to measurable CSR. After converting CSR measurable, the study continued with descriptive and correlation analysis. The study found a slight but incremental behaviour in CSR disclosure yet a significant slump in FP of hotels. The study is significant since it argues that the present economic crisis is not due to the Easter Sunday attack and COVID-19 pandemic, but it emerged even before the said shocks.

A Review of Corporate Social Responsibility and Reputational Costs in the Tax Avoidance Literature*

ABSTRACTIn recent years, academic researchers, policymakers, and the public have increasingly focused on the tax avoidance behavior of corporations. At the same time, firms are increasingly pressured to incorporate corporate social responsibility (CSR) into their decision making, leading to heightened academic interest in CSR. Given that opponents of corporate tax avoidance often argue that avoiding tax is socially irresponsible, we review the growing literature surrounding this issue. We begin with a theoretical review of how corporate tax avoidance fits into the CSR framework. We then review the empirical evidence on the interrelationship between CSR and firm reputation in the tax avoidance literature. We frame our review around three questions: (i) Do firms view tax avoidance as a CSR issue? (ii) Do stakeholders view tax avoidance as socially irresponsible, leading to reputational costs of tax avoidance? And (iii) Do firms change their tax avoidance behavior due to fear of these reputational consequences? Throughout our review, we provide discussions on the state of the current literature and offer suggestions for future research opportunities.