Social Responsibility Index Research Articles

Reviews of Interaction between and Rankings the Aspects of Social Responsibility in Explaining their Overall Index

Abstract In this research the status of social responsibility of Iran's “Mehr Eghtesad” bank and the factors that affect it have been reviewed. The population of this study includes all of the employees of branches of Iran's Mehr Eghtesad bank of Chaharmahal and Bakhtiari and since the population which is being studied in this research is small, thus the whole population has been evaluated. To analyze the data from the questionnaire, lisrel software and confirmatory factor analysis were used. The results show that the status of social responsibility of Chaharmahal and Bakhtiari province's Mehr Eghtesad bank is proper and the dimension of humanitarian is weak among the dimensions. The index of social responsibility is associated with its dimensions. Also Results show that there is a constructive interaction between all aspects of social responsibility in Mehr Eqtesad Bank.

Revisiting the national corporate social responsibility index

This paper relies on Gjølberg’s national corporate social responsibility (CSR) index while its purpose is twofold. First, it seeks to extend the methodological instrument for assessing national CSR and, second, it applies the new approach to a much larger pool of countries (n = 86) in an attempt to provide a global CSR outlook. The emergent picture from the study is one of deficient CSR penetration and wide variation among countries where most of the assessed countries are still lagging in the endorsement of international CSR initiatives and schemes. Findings offer fertile ground to theorists and researchers for a deeper investigation of the national specificity of CSR and to further identify institutional determinants that shape the social responsiveness and self-regulation of business entities. The study has also implications for managers and top executives to consider as it infers that the national background can be influential in the development of a CSR agenda and can condition the level of CSR penetration.

The association between corporate social responsibility index and performance of firms in industrial products and resources industries: empirical evidence from Thailand

Purpose– This study aims to focus on the industrial products and resources industries due to the environmental impacts caused by both industries. To convince both industries to increase investment in corporate social responsibility (CSR) activities, the authors have presented the results on the relationships between investment in CSR programs and the financial-based and market-based performances.Design/methodology/approach– The study focuses on the data during 2010-2011 of the listed Thai firms in industrial products and resources industries due to the environmental impacts caused by both industries. The findings show that firms receiving a higher CSR index score also have a higher return on assets (ROA), indicating efficient use of the assets. In addition, investment in CSR programs produces a positive outcome within two years, on average, after the investment. As the study period is two years (2010-2011), no relationships are found between the CSR index and return on equity (ROE) and between the index and Tobin’Q.Findings– The findings show that firms with a higher CSR index have higher ROA, thereby indicating a more efficient use of the assets. In addition, the positive outcome of investment in CSR programs can be realized within a relatively short-time period, i.e. two years on average after investment. As the study data cover only two years (2010-2011), no relations are detected between the CSR index and ROE and Tobin’Q.Research limitations/implications– Not many research papers have been studied by using emerging market evidence. The interest in CSR in Thailand is just in its early stage. The study examines the association between multicollinearity by using variance inflation factors (VIF), and it shows no defect on the matter. In addition, the data have been checked for the defects in the outliner, which is very variable. It could be affected to the regression coefficient analysis. The table of casewise diagnostics shows that the outliner containing standard residual diversifies regression equation, and it could also misconceive the variable of Y; therefore, the researcher would exclude the mentioned area before analyzing the data. Durbin–Watson statistic is used to do the error check of ROA, ROE and Tobin’s Q, which were found to be 1.938, 1.817 and 1.931, respectively. The mean varies between 1.5 and 2.5, which means covariance. Additionally, association of independent variable could be checked to ensure that the independent variable has no relationship. It could be noticed from Tolerance and VIF, if Tolerance is close to zero or VIF is over 10.0, it means that one of independent variables has associated with other variables. It implies that there is no multicollinearity problem in this study.Originality/value– This is the first study in Thailand that looks into the effects of CSR activities of industrial products and resources sectors of the industry due to the pollution-prone nature of both industries.

An Empirical Research on the Relationship Between Corporate Social Responsibility Ratings and U.S. Listed Companies’ Value

This paper examines the relationship between corporate social responsibility (CSR) ratings and firm value, by using a sample of U.S. companies listed on the New York Stock Exchange and NASDAQ Stock Market, over 2008-2011. The Corporate Social Responsibility Index (CSRI) developed by Boston College Center for Corporate Citizenship and Reputation Institute was used as a proxy for corporate social responsibility. A certain company is perceived in three dimensions: citizenship (the community and the environment), governance (ethics and transparency), and workplace practices, that quantified through numerical variables are reflected into the CSRI ranking score. The Tobin’s Q ratio adjusted according to activity sector was employed in order to quantify firm value. After the estimation of panel data regression models, unbalanced, both without cross-sectional effects and with fixed effects, our results show that corporate social responsibility positively influences firm value. The empirical evidence is consistent with the instrumental stakeholder theory view, since the companies involved in corporate social responsibility undertakings use in a more effective way their resources in order to better satisfy stakeholders’ needs. CSR activities can add value to the firm if they are wisely managed and implemented, as well as sufficiently disclosed and reported.

The mediating effect of financial performance on the relationship between social responsibility and ownership structure

Existing literature is inconclusive about the relationship between social responsibility and institutional investors as it assumes, implicitly, that this relationship is direct. An alternative perspective, that has received less attention in the literature, is that this relationship can be mediated by other contextual variables such as financial performance. Thus, this study is aiming to provide some empirical evidence on this issue that may help in explaining divergence in prior work. Panel data regression was performed on a sample that includes all firms that are listed in the Egyptian social responsibility index during the period from 2007 to 2010. The results demonstrate that better (or worse) financial performance, and rather social responsibility, is the lead for institutional investors when they make their investment decisions.

Pengaruh Corporate Social Responsibility Terhadap Agresivitas Pajak dengan Insentif Pajak Sebagai Pemoderasi. (Studi pada perusahaan pertambangan di Indonesia)

This study aims toexamine the effectofcorporatesocialresponsibility(CSR) to taxaggresiveness with the tax incentive as a moderator. The study population used is the mining companies listed in Indonesia Stock Exchange. Sampling method using purposive samplingobtained by 34 companies of reach with 2011-2015. This study used Corporate Social Responsibility (as independend variable) and Tax Aggressiveness(as dependend variable) and Tax Incentive (as moderating vatriable). Tocontrol the effect of CSR to tax aggresiveness,primarily as a result of the use of moderating variable,this study used variable controls :Leverage, Size, Return on Assets (ROA), Capital Intensity and Inventory Intensity. The dependent variable in this study is tax aggressiveness. It was measured by usingproxy :effective tax rate(ETR).CSR has been carried out by using Corporate Social Responsibility Index (CSRI).Data analysis technique has been done by using Moderated Regression Analysis (MRA). The data was processed using SPSS 22. The result shows that CSR has negative influence to tax agressiveness. The higherthelevelof CSR disclosure of acorporation, thelower isthelevelof tax aggressiveness.Tax incentives is proven and capable to strenghthen the relations between CSR and Tax Aggressivenes. CSR stimultantly tested with the control variables showed similar result that it has negative influence the higherthe levelof CSR disclosure of acorporation, thelower isthelevelof tax aggressiveness.
 Keywords: Corporate Social Responsibility, Tax Aggressiveness, Efective Tax Rate

The determinants of CSR disclosure of firms listed on the JSE: A focus on firms meeting the SRI index criteria

This paper tests the relationship between the firms’ corporate social responsibility (CSR) disclosures, the extent of media exposure it enjoys and its size, profitability and leverage. The study is confined to firms who meet the Johannesburg Stock Exchange (JSE) criteria for inclusion in its Social Responsibility Index (SRI) and as such the focus is on those firms who are perceived to display best practice with regard to social responsibility. The objective of the study is to determine which factors act as drivers for CSR disclosure. The study uncovered statistically significant positive relationships between CSR disclosures and industry environmental impact as well as media exposure. Legitimacy theory was found to best explain the drivers of CSR disclosure among listed companies in South Africa

Corporate Social Responsibility Index for Ukrainian Banks: The Essentials for Implementation

The aim of this paper is to solve the problem of CSR performance measurement for Ukrainian banking institutions by developing a CSR index. It is done by measuring a corporate social responsibility (CSR) through 25 different indicators for 40 Ukrainian banks, which represent 80% of total banking system assets. This paper is a first attempt in Ukrainian practice to put CSR indicators into a standard metrics and develop specific methodology that would allow comparing CSR for different banks. To check the adequacy of our preliminary findings we compare CSR results for Ukrainian banks with CSR results for Swedish banks, where the level of CSR is definitely higher, since it is a socially directed developed economy. After that the weights of CSR index for Swedish banks counted by our methodology was compared to different professionally made indexes.

Corporate sustainability reporting index and baseline data for the cruise industry

Sustainability policies and corporate reports demonstrate the impacts cruise companies acknowledge as their responsibility, and the actions put in place to address them. This paper develops a corporate social responsibility index based on the Global Reporting Initiative, with industry specific additions including labor and human rights, health and safety, and environmental and economic aspects. Companies disclose more management than performance data, which is typical of early stages of development. Companies disclosing less information focus on soft indicators which are easy to mimic and demonstrate posturing. Items disclosed tend to be marginal to the core of the business, have a positive economic impact or pre-empt sector regulation. Reports echo the voice of the corporations and not the demands of stakeholders. Institutional isomorphism has not influenced a homogenization in reporting, with only the largest firms reporting at this stage.

Gravidez na adolescência: estudo ecológico nas microrregiões de saúde do Estado do Mato Grosso do Sul, Brasil - 2008

OBJECTIVE:to describe the proportion of live births and the fertility rate of mothers aged 15-19 years and correlation with socio-economic indicators in the health micro-regions of Mato Grosso do Sul State.METHODS:an ecological study using indicators aggregated by micro-region, calculated based on 2008 data from the Live Birth Information System and regional indicators of social and economic development.RESULTS:teenage mothers accounted for 22% of the total of 40,867 live births. Specific fertility rates (15-19 age group) ranged from 73 to 116 per thousand inhabitants in the health micro-regions studied. There was significant correlation between specific fertility rates and Social Responsibility Index (r = 0.646p = 0.032) and functional illiteracy (r = 0.7180p = 0.013)CONCLUSION:female adolescent fertility tends to be higher in micro-regions with the worst education and socio-economic development indicators.

Study on Environment Protection and Construction of Corporate Social Responsibility Index System

In recent years, most area PM2.5 of our country is high, water pollution incidents occur frequently, as the main body of the market economy, enterprises about environment protection and economic symbiosis development can not shirk its responsibility. In the qualitative and quantitative analysis, the combination of theory and practice, systematic, scientific, operational principle, constructing the index system of corporate social responsibility has important practical significance for environment protection.

Corporate social responsibility disclosures by South African mining companies: The Marikana massacre

Following the strike at Lonmin Plc. which led to the death of 34 miners and the wounding of 78 others on 16 August 2012, we evaluate whether the extent of corporate social responsibility (CSR) disclosures by South African mining companies, in total and per disclosure category, was affected by this event. Content analysis is used to measure the extent of CSR disclosures before and after the Marikana massacre in the integrated annual and stand-alone CSR reports of companies. CSR disclosure was not affected by the Marikana massacre. Our results suggest that the extent of CSR disclosure may be influenced by other factors than only the need by companies to gain or repair legitimacy in response to a legitimacy-threatening event. The only variable in our analysis that had a positive and significant association with CSR disclosure, in total and for each of the different CSR disclosure categories, is whether a company is a member of the Social Responsibility Index (SRI) or not. We use the Marikana massacre, which, following many prior research using legitimacy theory, should have an effect on disclosure, to consider whether legitimacy theory in isolation can be used to evaluate why companies make certain choices regarding the extent of their CSR disclosures.

Strategic corporate social responsibility and economic performance

This article proposes a novel Corporate Social Responsibility (CSR) index based on a Data Envelopment Analysis (DEA) model. Acknowledging the argument that companies might favour those CSR dimensions that provide strategic competitive advantages, we argue that the index can capture companies’ strategic approach to CSR. Furthermore, our findings reveal a neutral relationship between this strategic CSR index and economic performance as measured by Return on Assets (ROA) and Tobin's Q, when controlling for firm unobserved heterogeneity and past economic performance. By contrast, an equally-weighted index of the same CSR indicators is found to be negatively related with ROA, which reinforces our claim that this specific DEA-based index is a measure of strategic CSR.

Independent assurance compliance of sustainable development disclosures in the Johannesburg stock exchange firms

This paper examines the extent to which the sustainable development disclosures of companies listed on the Johannesburg stock exchange (JSE) comply with independent external assurance. This is necessary to provide information to responsible investors and to assess the sustainable development commitment of firms in the JSE. A sample of firms within the JSE was taken from the Socially Responsible Index (SRI) group and the non-SRI group. Analysis indicates an increase in the number of firms vying for recognition as socially responsible firms in the JSE’s SRI. Furthermore, a chi-square analysis shows that the SRI and non-SRI group of companies have a comparable rate of compliance with the independent external assurance of sustainable development disclosures. Overall findings indicate that the JSE’s SRI initiative has been functional in driving the sustainable development initiatives of firms in the JSE. There is practical evidence of firms’ commitment to carbon reduction, energy efficiency, waste management, black economic empowerment, water efficiency and other sustainable development initiatives. The paper concludes that stock exchanges may be a catalyst for driving sustainable development behaviour in firms located in emerging and developing countries, hence the paper recommends that stock exchanges in these countries may replicate the sustainable development initiative of the Johannesburg Stock Exchange as this may contribute to the sustainable economic development of emerging and developing countries. The paper offers opportunities for future research on the role of global stock exchanges in fostering sustainable development.

Corporate social responsibility index for Ukrainian banks: The essentials for implementation

The aim of this paper is to solve the problem of CSR performance measurement for Ukrainian banking institutions by developing a CSR index. It is done by measuring a corporate social responsibility (CSR) through 25 different indicators for 40 Ukrainian banks, which represent 80% of total banking system assets. This paper is a first attempt in Ukrainian practice to put CSR indicators into a standard metrics and develop specific methodology that would allow comparing CSR for different banks. To check the adequacy of our preliminary findings we compare CSR results for Ukrainian banks with CSR results for Swedish banks, where the level of CSR is definitely higher, since it is a socially directed developed economy. After that the weights of CSR index for Swedish banks counted by our methodology was compared to different professionally made indexes.

Análise do impacto econômico do crédito rural na microrregião de Pirapora

O crédito é um instrumento que fornece aos empreendedores os meios para desempenhar um papel ativo na economia. O presente trabalho tem o objetivo de analisar os impactos econômicos do crédito rural na microrregião de Pirapora, sendo esta uma das sete microrregiões do norte de Minas Gerais. Os impactos das operações de crédito rural em relação ao PIB Total per capita e aos PIBs setoriais per capita foram identificados e analisados, além do seu possível efeito sobre o índice Mineiro de Responsabilidade Social (IMRS). Para tanto, foi utilizada a metodologia de dados em painel, considerando-se o período de 2000 a 2004. Foi possível perceber os impactos positivos do crédito rural sobre as atividades econômicas do setor agropecuário, principal beneficiado pelo crédito rural. Dado que o crédito rural proporciona liquidez na economia local, foi possível observar, ainda, os efeitos do crédito rural sobre outros setores. Os resultados indicam possível restrição no acesso ao crédito, ao serem verificados os efeitos diretos do crédito rural sobre o IMRS.

KLD 400 Index Inclusion and Corporate Bonds

This study examines the relationship between the cost of public bonds and corporate social responsibility. We use firms added to the KLD 400 Index, a stock index of corporate social responsibility, and find that these firms have a significantly higher yield spread following inclusion to the index. This relationship remains constant even after controlling for the joint determination of yield spread, covenant structure, and debt maturity. We conclude that after firms are recognized as leaders in corporate social responsibility, they pay a higher yield to issue public debt.

A proposed scholarly framework for measuring business responsibility to climate change in South Africa

Businesses are engaging with climate change at various levels. Many have started integrating climate change into their strategies with a view to addressing risks associated with global warming and climate change. With this in mind, this article focuses on how a scholarly framework could be used to inform the measurement of business response to climate change<br />in South Africa. Business response to climate change in South Africa has been evaluated mainly using voluntary benchmarks such as the Johannesburg Stock Exchange Socially Responsible Index (JSE SRI) and the Carbon Disclosure Project (CDP). It is argued in this article that such <br />benchmarks set the bare minimum requirements on climate change criteria. To assess business thinking around the subject under discussion, a<br />proposed scholarly framework was circulated to key climate change experts<br />within corporate South Africa and comments invited. The preliminary responses have shown that corporate South Africa is highly sensitive to detailed and scholarly reporting on business response to climate issues as part of corporate social responsibility. In addition, bodies responsible for the reporting frameworks expressed concern over the proliferation of reporting requirements in South Africa and globally. The same views were also expressed by some key respondents from industry.

La Responsabilidad Social Empresarial y las finanzas

El objetivo de este artículo consiste en mostrar como la responsabilidad social empresarial (RSE) ha ido cobrando importancia en el mundo de las finanzas. Se realizó a través una revisión documental que permitió desarrollar los temas: El rendimiento económico y la Responsabilidad Social Empresarial, Historia y Evolución de la inversión socialmente responsable, la normatividad acerca de Responsabilidad Social Empresarial en el ámbito financiero y los informes financieros integrados; así como la inclusión del análisis de los casos de Enron de Estados Unidos y Comercial Mexicana de México. Se concluye que la RSE ha ido cada vez cobrando mayor importancia en el ámbito de las finanzas, quedando demostrado esto en que se han creado índices de responsabilidad social, con el fin de que los inversionistas sean capaces de identificar las inversiones socialmente responsables, las cuales se encuentran respaldadas por empresas que han invertido en este rubro. Así también, las empresas han ido adoptando de manera voluntaria la generación y presentación de informes de responsabilidad social empresarial, como complemento de la información financiera.

‘Doing-good’ and ‘doing-well’ in Chinese publicly listed firms

Recently, the presumed benefits of corporate social responsibility have become an important issue, especially for China where institutional settings are quite different from other parts of the world. Using an internationally accepted benchmark (OECD's Principles of Corporate Governance, OECD, 2004), this study constructs a corporate social responsibility (CSR) index to measure the quality of the corporate social responsibility practices of the 100 major Chinese listed firms during 2004–2007. This enables us to evaluate the progress of the corporate social responsibility practices of Chinese firms. The results show that Chinese companies have been making progress in their corporate social responsibility practices. The findings also show that market rewards Chinese firms for improving their corporate governance practices which implies ‘doing-good’ leads to ‘doing-well’ in the equity market in China. We also find that overseas-listed and more profitable Chinese firms have better improvement in CSR practice. This study has policy implications in pushing for further CSR initiatives in other emerging markets.