Corporate Social Responsibility Measures Research Articles

Corporate social responsibility in hospitality and tourism: a systematic review

ABSTRACT Scholars have increasingly focused on the importance of corporate social responsibility (CSR) in the hospitality and tourism (H&T) industry due to its rapid growth and expansion. This study examined 192 CSR-focused empirical studies that were published in H&T journals. The report provides a comprehensive analysis by categorizing the data into several parts, such as publishing trends of CSR, segmentation by journals, theoretical frameworks, techniques, and CSR measurement scales. This study also develops a complex nomological network of CSR, examining its connections with the precursor factors, mediating variables, moderating impacts, and outcome effects. Key themes were identified using advanced thematic analysis techniques, providing crucial insights into the current status and future directions of CSR using Leximancer software. The results provide significant information for sustainable practices and influence prospective studies in the crucial field of corporate responsibility.

Evaluating the Relationship between Corporate Social Responsibility Incentives and Financial Outcomes of Corporations Operating in the GCC Region

Corporate Social Responsibility (CSR) is a concept that has gained traction in strategic management over the years, and it is continuously being cited as important for both the business and the business shareholders. Although there is much research examining the general CSR-CFP relationship, there is very little, if any, research that investigates the firms operating in GCC countries, which is the main objective of this study. One of the new methods used to measure Corporate Social Responsibility engagement in any organisation is the ESG rating. The ESG rating measures the Environmental, Social and Governance (ESG) dimensions of Corporative Social Responsibility engagement. This research uses the stakeholder theory framework, together with the agency theory framework to find the impact that CSR has on the financial performance of organisations. In the research, we used annual data of ESG and financial ratios of 98 publicly listed firms operating in the Gulf Cooperation Council, from 2008 to 2018. Regression analysis was used to test the impact of ESG scores on the financial performance of organisations. According to the results, the Environmental, Social, and Governance dimensions have a significant impact on the financial performance of organisations operating in the Gulf Cooperation Council. This study contributes to the body of knowledge on the relationship between CSR performance and Financial Performance.

Corporate social responsibility and labor tax avoidance: Evidence from Spain

AbstractThis study expands on the scope of firms' social responsibility and analyzes the relationship between Environmental Social Governance (ESG) and a commonly neglected aspect of Corporate Social Responsibility (CSR), which is tax payment – specifically, the payment of labor taxes. To test the research hypothesis, this study utilizes ESG data from Refinitiv Eikon and consolidated accounting data collected from Sistemas de Análisis de Balances Ibéricos (SABI) and applies panel data estimation. The regression results indicate that CSR has a negative and significant relationship with Labor Tax Avoidance (LTAV). This negative relationship remains robust and significant across different estimation methods and measures of CSR and LTAV. Our research suggests that managerial and practical concerns regarding social responsibility awareness are related to firms' decisions, impacting both society and employees, particularly concerning the avoidance of labor taxes.

THE EFFECT OF CSR ON EARNINGS MANAGEMENT: MODERATING ROLE OF BOARD DIVERSITY IN PAKISTANI LISTED FIRMS

This study examines Corporate Social Responsibility (CSR) and Earnings Management (EM) relationship with moderating role of board diversity of two types, i.e., female and foreign directorships on board. Content analysis is used for measurement of CSR through a data sample of 274 firms from the non-financial sector listed on Pakistan stock exchange for years 2012, 2014, and 2015. However, EM is measured over three discretionary accruals models Jones, Modified Jones, and Kothari models. Based on the results of descriptive analysis, it has been found that the level of CSR reporting has been improved in the post-CSR guidelines period as compared to the pre-CSR guidelines period. While results of regression analysis report that the higher CSR level of an organization the lesser would be the EM activities. This study suggests managers to concentrate upon CSR and board diversity for better earning management. Impact of board diversity on relationship as a moderator makes this study more novel because, as far as our research and previous literature is concerned, there has been very limited literature on this topic.

The Effect of Corporate Social Responsibility and Sustainable Development Practices on Employer Branding—A Case Study of an International Corporation Operating in Poland

Corporate social responsibility (CSR) and sustainable development practices and employer branding (EB) significantly influence the effectiveness of recruitment processes, human resource management (HRM), and an employer’s image. The main aim of this study was to assess the effectiveness of internal and external CSR practices in an international corporation operating in Poland. The empirical study consisted of two stages. In the first stage, an in-depth interview was conducted with a group of managers in the examined company. In the second stage, the company’s employees and local residents (non-employees) were surveyed with the use of questionnaires. The study demonstrated that CSR activities addressing environmental issues were most effective. External CSR practices received greater recognition among white-collar (office) employees, whereas blue-collar (manual) employees were more appreciative of internal CSR measures—in particular, financial support schemes. The effectiveness of internal and external CSR practices has been rarely compared in the literature, and the present study was undertaken to fill in this knowledge gap.

Do firms walk the talk when economic uncertainty is high?

The growing influence of stakeholders and unprecedented emphasis on corporate social responsibility (CSR) have significantly changed the way firms operate. To seek legitimacy from stakeholders, firms might implement CSR measures in true essence while others might turn to CSR decoupling (i.e., higher CSR disclosure than performance), which is detrimental to the firm and stakeholders, specifically when facing high economic uncertainty. Using a large dataset of U.S. firms listed between 2002 and 2019, we examine how economic policy uncertainty (EPU) impacts CSR decoupling. Our findings show that EPU and CSR decoupling are positively and significantly associated, suggesting that firms do not walk the talk when economic uncertainty is high. These results expand legitimacy theory by suggesting that corporations use CSR disclosure as a façade to seek legitimacy from stakeholders when faced with high uncertainty. Interestingly, female directors, who are associated with higher ethicality, acquit themselves well when uncertainty is high: gender-diverse boards play a significant role in moderating policy uncertainty's adverse impacts on CSR decoupling. These findings are robust to different regression models, subsample analysis, and endogeneity issues.

Internal governance and corporate social responsibility performance

AbstractInternal governance is the process by which vice presidents (VPs) use their influence with the chief executive officer (CEO) to impact the firm's direction and policy. This study examines the effect of internal governance on corporate social responsibility (CSR) performance. Based on a large sample of US firms and after controlling for various CEO incentives, corporate governance and other determinants of CSR performance, we find that more effective internal governance is associated with a better CSR performance. These results are robust to alternative internal governance and CSR measures, alternative samples and various approaches that mitigate potential endogeneity problems. Further analysis shows that the effect of internal governance on CSR performance is more pronounced when (a) the CEO is subject to more intensive monitoring, (b) VPs are more powerful, (c) firms experience less short‐term financial performance pressure and (d) they face stronger product market competition. This study advances our understanding of corporate governance's effect on CSR by showing the importance of internal governance.

Board‐level governance and corporate social responsibility: A meta‐analytic review

AbstractBoard‐level corporate governance (CG) is an effective route to developing sustained ethical behavior, helping firms to meet emerging accountability challenges and international expectations of corporate performance. In recent times, researchers have extensively studied the relationships between various board‐level governance mechanisms and corporate social responsibility (CSR) outcomes; however, results vary substantially. This study addresses the existing heterogeneity in the literature by systematically synthesizing 89 empirical studies on the board governance‐CSR nexus using meta‐analyses using random effect models. Results indicate that most governance mechanisms are strongly associated with CSR disclosure. On the contrary, only a few governance mechanisms are found to be significantly associated with CSR performance, suggesting that not all governance mechanisms are equally effective for performance and disclosure. However, board size and the presence of CSR committee on board are the closest predictors of both CSR outcomes. Additionally, our analysis of the moderating effect of study characteristics shows that coverage period, geographical setting, and measurement of CSR generate variability in existing findings. Our synthesis of the extant literature identifies a theoretical gap, clarifies the board CG‐CSR relationship, and proposes future research directions and guidelines within the field.

Corporate social responsibility in the enterprise development management

Purpose. The purpose of the research is to determine the content and the implementation peculiarities of corporate social responsibility (CSR) as a direction of an enterprise development. Results. The article determines that the ensuring of the enterprise development is an important component of its activity management in view of the necessity to provide its stable functioning and competitiveness in modern conditions. It was determined that one of the key directions of enterprise development is the implementation of corporate social responsibility concept in the functioning of economic entity. CSR is proposed to be understood as the concept of the functioning and development of the enterprise, which provides an opportunity to balance economic, social, ecological, and ethical aspects, thus contributing to the sustainable development of the business entity. The types and key aspects of CSR were investigated as well as factors of impact on CSR implementation in the enterprise activity. A set of tools contributing to the implementation of CSR in the enterprise activities were analyzed, in particular: the formation of the enterprise internal regulatory framework, risk management, innovation and investment activities, fundraising, project approach, communication. The experience of implementing corporate social responsibility projects on the example of trade networks of Ukraine was studied. The key directions for improving CSR management in the enterprise activities were identified. Scientific novelty. The scientific novelty of the research lies in the further development of the theoretical and methodical principles of the enterprise corporate social responsibility management. In particular, the methodical principles of management in terms of tool support for the implementation of CSR measures have gained further development. Practical value. The practical value of the research is defined by the role of CSR in the activity of the enterprise. In particular, it was determined that the implementation of the CSR concept forms a positive impact on financial and reputational indicators of enterprise activity, which defines the feasibility of integrating CSR into the management system of the business entity. The directions of improvement defined in the article form the trajectory of development in the field of CSR implementation for modern enterprises.

Employees perception of corporate social responsibility practices in Namibia: Evidence from Namibia Breweries Limited Company

Corporate social responsibility (CSR) is one of the most prominent concepts in the literature and in short, indicates the positive impacts of business on their stakeholders. Despite the growing body of literature on this concept, the measure of CSR is still problematic. Although the literature provides several methods for measuring corporate social activities, almost all of them have some limitations. The study investigates the employees’ perception of CSR practices in Namibia the context of the Brewery industry in Namibia. Using survey information collected from 150 Namibian Brewery company employees’ professionals, this descriptive analysis study proposed that the employees are satisfied with the CSR practices in general. Further, the study observes a positive relationship between perceived CSR and its 4 domains in the study. The uniqueness of this study lies on its framework based on the perception of employees. The recommendations and future research are formulated.

Literature Review of Framework to Estimate the Success of Corporate Social Responsibility (CSR) Implementation

Corporate Social Responsibility (CSR) has received great attention from companies, academics, researchers, and policy makers over the past few years. Companies should maximize the implementation of CSR to create value for the company, society, government, and stakeholders. In its implementation, CSR does not only focus on community development and involvement, but also implementation that is aligned and relevant to company policies, so CSR measurement is important and measurable so that companies have guidelines in CSR program policies.
 The idea of CSR is an important element for both companies and society, and the literature shows that the concept is gaining popularity. However, the current understanding is still limited to planning and evaluation for successful CSR implementation. This paper systematically reviews 268 articles published between 2017 and 2022 to bridge the existing knowledge in the field of CSR. This is achieved by mapping CSR implementation in companies. Finding that many studies are not aligned with companies' CSR objectives, this paper suggests the need for developmental research related to frameworks to analyze CSR implementation in general.

The effect of corporate governance, corporate social responsibility and information asymmetry on the value of Indonesian-listed firms

Purpose This study aims to examine the influence of corporate governance (CG) and corporate social responsibility (CSR) on firm value while accounting for the impact of information asymmetry. Design/methodology/approach This empirical analysis is based on 1,079 observations from 83 listed Indonesian firms for the period 2007–2019. The authors applied simultaneous equation models with ordinary least squares and two-stage least squares. Findings The authors present empirical evidence of CG mechanisms that significantly contribute to low levels of CSR. Moreover, the authors identify a significant impact of information asymmetry on the relationship between CG, CSR and firm value. Research limitations/implications The results show that information asymmetry, CG and CSR do not necessarily result in improved firm value across boards. Moreover, the employment of a nonlinear Cobb–Douglas-type function indicated diminishing marginal returns. Practical implications The findings can help policymakers in developing countries in improving the monitoring and supervisory roles of CG mechanisms to provide more support to CSR, increasing regulatory pressures for improved CSR performance and reducing information asymmetry by adopting a standardized CSR reporting scheme. Social implications The suggested implications can contribute to more sustainable practices among Indonesian-listed firms as well as improving relationships with consumers and stakeholders toward the practice of CSR. Originality/value The adoption of a comprehensive CSR measurement tool to examine the value of CSR contributes to the extant literature, along with examining the impact of information asymmetry on the relationship between CG, CSR and firm value in a developing country context.

Measuring the impact of corporate social responsibility in the energy sector.

Energy companies are in the spotlight regarding the environmental pressure to address the current environmental issues by initiating the sets of social responsibilities. Energy sector companies are actively adopting Corporate Social Responsibility (CSR) practices to address the increased pressure and enablement to manage and prevent the risks of environmental impact at the same time concentrating on the economic growth. The current study provides a systematic literature review identifying CSR initiative measures towards sustainability and proposes a framework of CSR measurements in the energy sector. The framework combines the Search, Appraisal, Synthesis, and Analysis (SALSA) method together with Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) and PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report). Moreover, for setting the research scope, PICOC (Population, Intervention, Comparison, Outcome, and Context) is applied. As a result, eleven CSR measures for the energy sector were identified. The measurements were classified into 4 pillars: environmental pillar, stakeholder communication and external image, financial pillar, and organizational pillar. The environmental impact and GHG reduction align with the ecological modernization theories. Green energy innovations find theoretical resonance in the diffusion of innovation theories. Stakeholder engagement and branding link to the stakeholder theory, while financial performance, to the shareholder value theories. Occupational health and safety theory support the employee safety and corporate culture considerations. These measures, selected through theoretical lenses and systematic review, contribute to shaping a sustainable energy landscape. Furthermore, the research results were discussed, and the future research agenda together with policy recommendations were provided.

Demystifying the use of corporate social responsibility terminology in the investment context

Orientation: Interest in corporate social responsibility (CSR) is escalating in the 21st century. Globally, companies are increasingly attempting to enhance their reporting on sustainability concerns, given that terminology can noticeably affect the attitudes and behaviours of investors and other key stakeholders.Research purpose: A growing number of responsible investors incorporate sustainability considerations when making investment decisions. Therefore, it is important to determine the relevant CSR definitions and dimensions based on the breadth of existing research on CSR in the investment context.Motivation for the study: As investors incorporate companies’ reporting on a range of financial and sustainability performance metrics when making investment decisions, it is necessary to clarify sustainability-related terminology from an investor perspective.Research approach/design and method: A systematic literature review was performed to explore sustainability terminology in the investment context with a particular focus on CSR. Content and thematic analyses were conducted on 94 articles.Main findings: The findings confirm that although concepts such as sustainability and corporate citizenship have been used interchangeably with CSR by previous scholars, referral to CSR has remained relevant in the investment context. Eight key dimensions were identified to describe CSR in an investment context, namely, social concerns, stakeholders, economic factors, environment, action, voluntarism, ethics, and sustainability.Practical/managerial implications: The identification of context-specific CSR dimensions provides a foundation for developing CSR measurement tools for investors and corporate decision makers.Contribution/value-add: Eight core dimensions of CSR were identified and combined in a comprehensive, context-specific definition applicable to the investment context.

CSR initiatives and stakeholder engagement amidst COVID-19 pandemic: insights using content analysis and literature review

PurposeThe coronavirus disease (COVID-19) has impacted all economies, businesses and societies. The purpose of this paper is to analyze and present a case for corporate social responsibility (CSR) in terms of its relevance amidst the turmoil caused by the pandemic.Design/methodology/approachThe authors use a directed content analysis approach to retrieve relevant information from news articles using Thomson Reuters’ Eikon® and Bloomberg® databases. Based on stakeholder theory, the authors evaluate some of the CSR initiatives undertaken by organizations around the world. The authors then undertake a systematic literature review using the preferred reporting items for systematic reviews and meta-analyses standard to provide possible implications for organizations.FindingsThe findings suggest that in response to the pandemic, corporations from both developed and developing countries have been pursuing CSR measures for stakeholder engagement. The systematic literature review signals positive outcomes that companies might expect at the organizational level. The paper concludes by suggesting research propositions that indicate effective CSR at a time of crisis like COVID-19 encourages stakeholder partnerships and helps to gain a competitive advantage.Originality/valueThe authors present an overview of the CSR responses taken by firms globally in response to the pandemic by way of stakeholder engagement. The authors analyze the stakeholders targeted through such initiatives and report possible implications based on the extant literature. The findings of the study can be used to understand the various transitions that happen in an unprecedented situation like COVID-19 at all levels of business and society.

Corporate Social Responsibility and Firm Survival: Evidence from Chinese Listed Firms

AbstractThis study examines the effect of corporate social responsibility (CSR) on Chinese firms’ probability of survival using 2426 firm‐year observations over the period 2011–2019. We find evidence that CSR has a positive effect on firms’ survival prospects. This effect is stronger for state‐owned enterprises (SOEs). The result is robust to an instrumental variable approach and several quasi‐natural experiments. We further decompose CSR into its components, and we identify a more prominent positive effect of the CSR environmental component for SOEs. SOEs generally appear to have an easier path to survival when engaged in CSR activities. The results remain valid when accounting for a set of robustness checks related to alternative CSR measures, financial constraints, provincial diversity, exogenous shocks, and placebo tests. Overall, this study provides evidence that CSR activities improve firms’ probability of survival in a government intervention setting.

Are we paying attention to the right metric? The impact on firm value of consumers’ perceptions versus actual corporate social responsibility actions

Managers expect that firms' investments that increase the level of Corporate Social Responsibility (CSR) or reduce the level of Corporate Social Irresponsibility (CSiR) will improve relationships with key stakeholders, especially consumers. However, consumers' perceptions of CSR and CSiR may not match the actual firm activities. Our research addresses a current gap in knowledge how do consumers' perceptions of CSR and CSiR activities impact corporate financial performance relative to actual firm CSR and CSiR. To this end, we present a robust, longitudinal measure of consumers' CSR and CSiR perceptions of 51 business-to-consumer (B2C) firms consisting of more than 40,000 observations over three years. We find that consumers’ perceptions of CSR/iR shape their purchase intentions to a greater degree than do measures of actual CSR/iR actions. Moreover, willingness to purchase mediates the relationship between purchase intentions and firm financial outcomes.

Stakeholders' perception of mandatory CSR in the Indian hotel industry: scale development and validation

PurposeThis study aims to develop and validate a scale to measure stakeholders' perception of mandatory corporate social responsibility (CSR) activities in the hotel industry in India.Design/methodology/approachCSR items were generated based on a qualitative approach. The underlying factorial structure of the scale is determined using exploratory factor analysis. The measurement model is verified through confirmatory factor analysis with validity checks. Additionally, the nomological and predictive validity of the proposed scale is confirmed through correlation and regression analysis.FindingsThis study proposed a three-dimensional 17-item scale comprising the environment, social and cultural domains to measure stakeholders' perception of mandatory CSR in the Indian hotel industry.Research limitations/implicationsThis study adds to the literature by providing a comprehensive approach incorporating CSR activities specified by law on CSR measurement. Validated CSR scales are recommended for future studies to measure CSR in India. This study may also serve as a blueprint for other countries to develop context-specific CSR measurement approaches.Originality/valueTo the best of the authors’ knowledge, this is the first scale development study on mandatory CSR in India. The inclusion of CSR activities prescribed by law on the standardized CSR scale development is a novel outlook.

The Impact of Foreign Mergers and Acquisitions on ESG Performance of Chinese Listed Companies: Empirical Analysis Based on the PSM-DID Method

In recent years, green finance has led to increased focus on ESG performance, measuring corporate social responsibility. Meanwhile, mergers and acquisitions (M&A) play a crucial role in international capital flow, which have attracted widespread attention. Exploring the impact of foreign M&A on ESG performance of companies has become an important research topic. Based on the sample of foreign mergers and acquisitions of Chinese listed companies from 2017 to 2022, this paper innovatively examines the impact and mechanism of foreign M&A on Chinese listed companies' ESG performance using propensity score matching and multi-period difference-in-differences methods. Findings indicate: (1) Foreign M&A significantly improves corporate ESG performance; (2) The impact of foreign M&A varies across different types of enterprises. Regarding the acquiring companies, foreign companies have a greater impact on improving ESG performance compared to companies from Hong Kong, Macau, and Taiwan. On the target companies' side, large-scale companies are more effective in utilizing the opportunities provided by mergers and acquisitions (M&A) to leverage their advantages. (3) Foreign M&A is particularly effective in enhancing environmental indicators within the ESG framework; (4) The mechanism behind this improvement involves a significant green culture effect, which promotes the improvement of ESG performance by amplifying the influence of corporate green culture.

중국 상장기업의 재무비율이 기업가치에 미치는 영향

This study analyzed the effect of financial ratio and corporate social responsibility(CSR) on corporate value for listed companies in China, respectively, and further analyzed whether CSR have additional moderating effects in the relationship between financial ratio and corporate value. The financial ratios used in this study were profitability(net return on equity capital) and growth potential(sales growth rate), and corporate value was measured using the Tobin－Q value. Whether the CSR activities of the listed company are evaluated and disclosed in RKS was used as a CSR measurement variable, and additional analysis was conducted using the CSR evaluation score as a measurement variable because the CSR score could affect corporate value. The sample used in this study consisted of 14,566 company－year samples for companies listed on the China Shanghai Stock Exchange and Shenzhen Stock Exchange A stock market for six years from 2013 to 2018. The analysis results of this study are summarized as follows. First, both the sales growth rate and the net return on equity capital showed a statistically significant positive relationship with corporate value. Second, the social responsibility activity variable also showed a significant positive relationship with corporate value. Third, it was found that the financial ratio and CSR interaction variables had statistically significant positive values. Fourth, an additional analysis of only companies with CSR evaluation scores showed that both the financial ratio and CSR have a significant positive effect on corporate value, respectively. However, both financial ratio and CSR interaction variables were not statistically significant, indicating that the CSR evaluation score did not have a moderating effect on the relationship between financial ratio and corporate value.