Local Corporate Social Responsibility Research Articles

The Effect of Philanthropic Corporate Social Responsibility on Local CSR Awareness: Examining the Role of Corporate Transparency in Ghana

Corporate Social Responsibility (CSR) refers to a broad spectrum of an organization's societal responsibilities. Philanthropic CSR initiatives, which go beyond legal and ethical duties, are increasingly seen as critical to improving CSR outcomes. However, the extent to which such initiatives influence local CSR awareness, particularly in emerging economies such as Ghana, and the role of corporate transparency in mediating this relationship leaves a gap in literature. This study used a quantitative research approach to estimate the effect of philanthropic CSR on local CSR awareness among Chinese companies operating in Ghana, with a particular emphasis on the mediating role of corporate transparency. Data was collected using a standardized questionnaire. Confirmatory Factor Analysis (CFA) and Covariance-Based Structural Equation Modelling (CB-SEM) were used to investigate the hypothesized relationships and assess the proposed model's fit. There is a significant positive relationship (β = 0.202, p < 0.001) between philanthropic CSR and local CSR awareness. The relationship between philanthropic CSR and CSR awareness was also found to be mediated by corporate transparency, with a substantial indirect effect (= 0.268, p 0.001). The study concludes that philanthropic corporate social responsibility has a partial mediation effect on local CSR awareness via corporate transparency. The findings provide practical insights for corporations working in emerging economies, emphasizing the significance of improving their stance on corporate transparency in regards to undertaking philanthropic CSR initiatives with an expected outcome of raising local CSR awareness.

Does local government debt affect corporate social responsibility? Evidence from China

We examine the influence of local government debt on local firms' corporate social responsibility (CSR). Using a sample of Chinese public companies, we find that local government debt is negatively associated with local firms' CSR performance, indicating that government debt financing behaviour dampens firms' CSR engagement. Furthermore, the adverse influence of local government debt on CSR is particularly evident for non-state-owned enterprises and low-leverage firms. This article makes a contribution to CSR research by furnishing empirical evidence about the nexus between government debt and firms' CSR performance. Our study indicates that a company conditions social responsibility decisions on the availability of external financing resources, and local governments should be aware that excessive government debt generates an adverse impact on firms’ CSR fulfillment. This study is the first to explore the link between government debt and CSR, and the results help enrich our understanding of the determinants of CSR and the consequences of local government debt.

One Size Fits All? How CSR Communication Influences Donation and Revisit Intention Differently in Local Independent and Chain Restaurants

Considering that limited research has been conducted to explore corporate social responsibility (CSR) initiatives in the local brand context, compared to the global brand context, this study is to bridge the gap by comparing CSR initiatives in local independent restaurants with those of international chain restaurants. Two studies were performed to examine the impact of CSR type and construal level in CSR messages using experimental designs. In addition, the mediating effects of perceived warmth and competence were examined as potential psychological mechanisms explaining consumers’ reactions. Findings show that consumers are more likely to donate to CSR initiatives of chain restaurants and revisit them when the initiatives lean toward local community CSR rather than global environmental CSR. Also, consumers prefer local community CSR initiatives that are presented in detail in local independent restaurants. This study also reveals different mediating effects of perceived warmth and competence in relation to CSR type, restaurant type, and consumer behaviors.

Doing well and being responsible: The impact of corporate social responsibility legitimacy on responsible entrepreneurship

AbstractThis article examines the influence of corporate social responsibility (CSR) legitimacy on responsible entrepreneurship. It also analyses the contingent factors that influence the relationship between CSR legitimacy and responsible entrepreneurship. While studies on CSR legitimacy are burgeoning, studies analyzing contingent factors and boundary conditions surrounding CSR legitimacy theory are sparse. We extend legitimacy theory by estimating a contingent model that examines the effect of local embeddedness and CSR commitment on the relationship between CSR legitimacy and responsible entrepreneurship. Utilizing time‐lagged data collected from 282 entrepreneurs in Vietnam, we demonstrate that CSR legitimacy positively influences responsible entrepreneurship. Further, we find that local embeddedness exacerbates the potency of CSR legitimacy as a driver of responsible entrepreneurship. Additionally, our results show that this moderation is conditioned by CSR commitment. Specifically, the moderating effect of local embeddedness on the linkage between CSR legitimacy and responsible entrepreneurship is stronger when CSR commitment is high. These findings improve the conceptual scope and generalisability of CSR legitimacy as a driver of responsible entrepreneurship in non‐Western contexts.

Redefining the Concept of Local Wisdom-Based CSR and Its Practice

Local wisdom is very important for corporate social responsibility (CSR) activities which benefit local communities, especially in the case of companies in Indonesia; however, these companies have not yet understood the concept and examples of local wisdom-based CSR activities. This research aims to formulate the concept of such CSR and its practice in Indonesia. To fulfil its objective, the study makes a systematic review of 74 local wisdom-based, CSR articles with an Indonesian background based on the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) statement. Google Scholar, ScienceDirect, Scopus, and Emerald Insight were used as the main databases to find related articles. In accordance with the concept of local wisdom-based CSR, the research focuses on community empowerment activities and how local wisdom is a key part of these. Local wisdom-based CSR activities are categorised into three types: CSR based on local wisdom, CSR that considers local wisdom, and CSR that uses local wisdom. The findings will aid companies in planning and implementing such activities. Through the research gaps identified, the study will also facilitate future researchers in conducting local wisdom-based CSR research.

Can Corporate Social Responsibility Lead to Social License? A Sentiment and Emotion Analysis

AbstractThe termsocial license(SL) refers to the acceptance or approval by a community of a company's presence. It is generally assumed in the literature that effective corporate social responsibility (CSR) actions will lead to an SL. In this study we examine the CSR‐SL relationship at the local community level and establish boundary conditions on the effectiveness of local CSR in creating an SL. Using consent‐based micro‐social contract theory, we theorize that commitment to local CSR improves the level to which a local community grants an SL to a multinational corporation (MNC), but the impact is moderated by the global legitimacy of the parent company, the nature of institutions in the host country, and the degree of polarization within the focal community. Based on 3696 articles regarding 43 global mining MNCs operating in 523 local communities between 2008 and 2020, we use natural language processing and sentiment analysis to evaluate the degree to which a local community grants an SL. Our empirical evidence indicates that local CSR does positively influence the granting of an SL, but the effect is reduced when there is strong rule of law or high community polarization and increased when the focal firm has strong global legitimacy.

The Impact of Sister-City Relationship on Foreign Subsidiary CSR

This article extends social identity theory to research on corporate social responsibility (CSR) of foreign subsidiaries. We complement prior research on CSR by emphasizing the significance of city-identity in stakeholders’ identification and exploring factors that influence this process. Our empirical analysis of 90 foreign subsidiaries in China from 2009 to 2018 shows that the sister-city relationship promotes local CSR of foreign subsidiaries. The positive relationship is weakened when foreign subsidiaries are older or two countries have high political affinity, while it is strengthened when foreign subsidiaries are large. Our findings suggest that inter-city relationships influence CSR of foreign subsidiaries and host cities can benefit themselves by signing treaties of sister-city relationship.

Local peer effects of corporate social responsibility

This paper investigates the local peer effects of corporate social responsibility (CSR). We find that a firm's CSR engagement comoves with that of other firms headquartered nearby. The results are robust when considering the nonlocal dominant industry CSR portfolio and different cross-region sensitivities to macro shocks. Moreover, the CSR of firms that change their headquarters location experiences an increase (decrease) in comovement with the CSR of firms in the new (old) location. We further explore several channels through which the local CSR comovement is motivated. We show that local CSR comovement is mainly driven by a firm's incentives to access financing. Besides, we find weak evidence that firms comove in CSR in order to set a positive image to the public and our findings do not support the agency channel of the local peer effects of CSR.

Corporate social responsibility, financial globalization and bank soundness in Europe – Novel evidence from a GMM panel VAR approach

Based on macro and micro perspectives, this paper is a pioneering effort to study the causal relationship between corporate social responsibility (CSR), bank soundness (profitability, stability) and financial globalization in the European banking sector. The results show that CSR performance enhances bank stability, while the financial costs of CSR can reduce bank profitability. We also reveal a virtuous circle between financial globalization and bank soundness, as well as a positive effect of financial globalization on CSR. However, the divergence between local and foreign CSR practices in the banking sector can hinder the financial integration process.

Global and local corporate social responsibility: a study of foreign entry mode choice in Spanish quoted firms

PropósitoSe examina las relaciones entre el modo de entrada en el exterior (MEE) de una empresa, su responsabilidad social corporativa (RSC) global y el entorno de RSC local del país de destino en empresas cotizadas en España. Además, analiza el papel moderador de la RSC del país de destino en la relación entre la RSC global de la empresa y el MEE.Diseño/metodología/enfoqueSe utiliza la regresión logística binaria con una muestra de 418 operaciones de inversión directa exterior (IED) entre 2002–2008. Este período se elige para conocer qué sucedió durante el auge de las inversiones españolas en el exterior a principios de 2000.HallazgosLos resultados revelan patrones de comportamiento en relación al MEE de las empresas y los dos tipos de RSC según las hipótesis propuestas. Además, se encuentra que la RSC local del país de destino puede también moderar la relación entre la RSC global de la empresa y el MEE.Originalidad/valorEste es uno de los primeros estudios en proponer como variables explicativas del MEE, dos tipos de RSC (RSC global de la empresa y RSC local del país de destino), gracias a la creación de una base de datos ad-hoc con datos de diferentes fuentes de información de IED (ICEX) y RSC (Eikon ™ y AccountAbility NCRI).

Corporate Social Responsibility (CSR)’s Pattern of Multinational Enterprises in context of Global Reporting Initiative-GRI-G4: Evidence from Pakistan

The study aims to explore the CSR's structure over some time (2016-2019) and draw a distinct pattern about the MNEs operating in Pakistan. Content analysis was used to extract the contextual meaning from the available data to set up the foundation for further research questions and draw a basic CSR prototype through an inductive method to develop a theory. CSR's structure is scattered and irregular in Pakistan. The exact pattern and involvement in specific dimensions are not defined, and the tendency is not identical even in the same industry. All enterprises operating in Pakistan need to exercise the updated corporate governance styles, practice both local and international CSR standards to achieve maximum corporate benefits. CSR concept is a 'time & space' sensitive phenomenon and receptive to domestic culture and institution, especially in developing countries. This research study has tried to sketch a fundamental and general but exact pattern of CSR activities observed within MNEs working in Pakistan.

Global and Local CSR Strategies in Foreign-Owned Subsidiaries: The Role of Networks and Competencies


 The purpose of this research is to investigate the role of networks and competency dimensions in determining the corporate social responsibility (CSR) strategy of foreign-owned subsidiaries. Survey data has been collected from subsidiary managing directors and analysed using structured equation modelling and fuzzy set qualitative comparative analysis techniques. We show that networks and competencies can have competing as well as complementary effects on the global and local CSR strategies. For instance, inter-organisational network strength and competencies in high primary value chain activities seem to drive global as well as local CSR activities. However, the case is more complex for intra-organisational network relationships and subsidiaries with competencies in supporting value chain activities. The originality of this paper lies in the detailed investigation of how network relationships and competencies affect global and local CSR strategy development. We also provide novelty in applying a combination of symmetric (SEM-PLS) and non-symmetric (fsQCA) analytical techniques.

The influence of corporate social responsibility activities on customer value co-creation: the mediating role of relationship marketing orientation

PurposeThis paper aims to investigate the impact of external stakeholders-related corporate social responsibility (CSR) activities (local community and suppliers) on customer value co-creation behavior. This study also aims to examine the mediating role of relationship marketing orientation (RMO) on the relationship of CSR activities and customer value co-creation behavior.Design/methodology/approachThe main problem of dichotomy between customers and the management was existing in banking sector so that’s why through purposive sampling, banking customers were selected for data collection through a self-administered questionnaire. Structural equation modeling was used to test the proposed hypotheses.FindingsThe present study found that both local community-related and supplier-related CSR activities have a positive impact on customer value co-creation behavior. Relationship marketing orientation mediates between the link of CSR activities and customer value co-creation behavior. The strength of RMO in CSR supplier and customer value co-creation behavior is found to be more dominant.Research limitations/implicationsThis study is restricted to one country under-investigation; therefore, it can be replicated with a larger and more geographically diverse sample.Practical implicationsThis study offers insights to the banking sector that local community-related CSR activities contribute to the value co-creation behavior and minimize the social problems of Pakistan.Originality/valueThe findings of this study highlight that top management of banks can enhance the customer’s participation in services by using valuable CSR activities. The results imply the importance of interactions between the recipient of services and service providers. Stakeholder theory has previously been applied to examine stakeholders’ value maximization; this study uses stakeholder theory to examine shareholders’ value co-creation.

Geographic proximity, long-term institutional ownership, and corporate social responsibility

Building on the premises that institutional ownerships vary in their impact on corporate social responsibility (CSR) decisions and that geographic proximity facilitates the valuation of benefits from CSR, we hypothesize that local long-term institutional ownership is a driver for corporate social performance, in particular positive CSR (CSR strengths). Using a panel data of S&P 500 firms over a 15-year window, we show that long-term institutional ownership that varies in geographic proximity to the focal firm does have a heterogeneous impact on CSR. Whereas both local and non-local long-term institutional ownership has a similar negative effect on CSR concerns, only local long-term institutional ownership has a positive effect on CSR strengths. The positive relation between local long-term institutional ownership and CSR is stronger in firms that are more involved in dealing with soft information which is difficult to quantify from a distance, such as those with high levels of research and development and intangible assets.

Local corruption and corporate social responsibility

This paper introduces a new impact of corruption on corporate policies by examining the effect of local corruption on corporate social responsibility (CSR). We propose a novel mechanism governing the local public corruption and CSR relation based on conditional corruption and signal extraction uncertainty. We show that firms located in areas with high corruption rates have lower levels of CSR scores. Furthermore, this result is not captured by corporate governance differences across firms. The negative relationship between local corruption and CSR remains significant after addressing potential endogeneity and using alternative corruption measures. Our findings remain robust after a series of robustness checks. This paper introduces a novel role of local corruption in the firms’ CSR outcomes.

Corporate Social Responsibility, Casino Capitalism, and the Constitution of Macau

Author(s): Buhi, Jason | Abstract: Macau’s competitive foreign investment environment places it at the crossroads of global conceptions and articulations of corporate social responsibility (CSR). With tremendous financial resources at its disposal, including revenues six times those of Las Vegas, the Macau Government has a rare opportunity to position itself as a global leader in CSR practice. Nonetheless, systemic challenges such as low levels of public education and political development, the influence of mafia gangs, and high levels of human trafficking, problem gambling, and drug use persist. Although Macau’s situs as a Special Administrative Region of the People’s Republic of China ensures that CSR here will take its own form, these issues could be better addressed with open acknowledgement of the problems and improved channeling of local resources. Utilizing Matten and Moon’s methodology, this Article provides an overview of Macau’s CSR repertoires at this important point in local history: on the eve of the expiration of the first concessions granted to foreign operators as well as twenty years into Macau’s practice of semi-autonomous government under Chinese administration. This snapshot records how local CSR norms have developed historically, observes a cultural divide in the local conceptualization of CSR objectives between local and foreign operators, and makes a case for the normative basis for enhancement contained within the Macau Basic Law that should underlie directions for the future.

Power, CSR strategy, and performance in foreign‐owned subsidiaries

AbstractWe investigate how a subsidiary's power base influences its strategic corporate social responsibility (CSR) focus on international and local issues, and performance. We develop a theoretical framework and test symmetric hypotheses as well as non‐symmetric research queries based on insights from resource dependency theory and institutional theory. We use survey data collected from foreign‐owned subsidiaries located in the mid‐range emerging economy of Taiwan. We find that a large power base positively influences an international CSR strategic focus in subsidiaries. Furthermore, our symmetric results indicated that only international CSR strategies are conducive to performance. However, our complementing non‐symmetric results show that the distinct power‐base dimensions in combination with a local CSR strategic focus can also lead to high performance outcomes.

Chinese CSR standards and industrial policy in GPNs

PurposePublic policy to promote corporate social responsibility (CSR) can be a tool used by the state to promote the creation of social value by multinational enterprises (MNEs) and their global suppliers. Yet, this aspect has been little explored in the literature on social value creation in international business. While there is a substantial literature on the interactions of public and private regulation of firm behaviour in the global economy, little is known about the emergence of local institutional environments aimed at creating social value from MNE activities. This paper aims to address this gap in the literature.Design/methodology/approachConceptually, the paper draws on the literatures on global production networks (GPNs) and on institutional approaches to CSR to grasp the local institutional environment for social value creation in MNEs and their suppliers. Empirically, the case of China is examined based on a review of literature, policy documents and interviews. The key questions the paper seeks to address is as follows: How can the emergence of local Chinese CSR standards be explained? How does the emergence of such CSR standards fit into wider policy objectives in the context of Chinese export-oriented growth?FindingsThe paper argues that the emergence of CSR standards in China needs to be seen in the context of changing industrial policy objectives to enhance both the social and economic value of participation in GPNs. Specifically, the evolution of Chinese CSR standards corresponds to a shift from structural towards functional coupling in GPNs, associated with increased policy attention on enhancing local skills and technology. Taking the case of the textile and apparel sector as an example, the paper illustrates how the adoption of China’s first CSR management system has taken place in a context of shifting strategic coupling objectives.Research limitations/implicationsA lack of data does not allow any conclusions on the impact of the Chinese institutional environment on social value creation and economic upgrading at firm level. This question could be addressed in further research. In addition, the findings open new questions around possible synergies between local policies and MNE efforts on sustainability. Increasing cooperation between Chinese and international standard setters around CSR opens the question of whether this leads to a convergence of horizontal and vertical governance on sustainability in the apparel GPN.Practical implicationsFindings show that there may be a window of opportunity for international practitioners to seek further dialogue with Chinese actors around promoting socially and environmentally sustainable business in a global economy.Originality/valueThe paper contributes to a better understanding of changes in the institutional environment for social value creation for MNEs and their suppliers in a key emerging economy. It illustrates how institutional approaches to CSR and the GPN framework can be combined to grasp the institutional environment for social value creation in an international business context.

Political settlements, the mining industry and corporate social responsibility in developing countries

In this paper I take a ‘political settlements’ approach to examining the political effects of corporate social responsibility (CSR) in developing countries. The political settlements approach uses an integrated understanding of politics, power and institutional forms to explain how, given different political processes and incentives, the same institutional forms can produce different economic and developmental outcomes. I apply this lens to the CSR practices of large mining companies in developing countries, examining their impacts on local and national political settlements using the Zambian metals mining sector as a case study. Directly, CSR features little in the national debate on natural resource governance in Zambia but local CSR activity is considerable. I find that the CSR practices of large metals mining companies influence the governance of extraction and the possibility of inclusive development with notable consequences for institutions of traditional leadership. The resulting pattern of inclusion and development is argued to result from the interaction of two processes - elite bargaining and coalitions within exclusionary political settlements on the one hand, and CSR practices shaped by risk management on the other. I conclude by arguing that political settlements literature offers a rich seam for future research in the extractive sector if its limitations are addressed.

Local Religiosity and Corporate Social Responsibility

Corporate focus on corporate social responsibility (CSR) has received a significant attention in the literature of strategic business management. Yet the religious level of the area where the firm exhibits CSR activities has remained unexamined. This paper examines whether local religiosity has an influence on corporate attitude towards CSR activities using multivariate regression models conditioned with the firm-level controls and industry-fixed effects. Employing a large and extensive U.S. sample for local religiosity and CSR, we find that firms headquartered in higher religious areas practice greater level of CSR activities. The analysis includes evaluation of the impacts of the county and state level religiosity on each component of CSR activities. Furthermore, the analysis extends to several robustness tests: propensity score matching and instrumental variable analysis, to address endogeneity issues. The results hold true and findings are consistent at both the county and state level. This study enriches the emerging management literature for the influence of local cultural factors into corporate behavior and encourages future research analyzing various aspects of influencing mechanism of religiosity on corporate behavior.