Promote Corporate Social Responsibility Research Articles

Chinese national civilized city and corporate social responsibility: will civilized city promote corporate social responsibility?

ABSTRACT The continuous improvement of China’s status in the world economy has also promoted China’s urban construction. The Chinese government proposes to build a more civilized and more sustainable city, and awards National Civilized City Award (NCCA) to cities that meet the standards. In order to obtain the title of NCCA, local governments use administrative power and formulate relevant laws to have a profound impact on local enterprises, such as assuming more corporate social responsibilities. Based on the data of listed enterprises in China from 2012 to 2018, the PSM-DID method is used to empirically test the impact of NCCA on corporate social responsibility (CSR). The result shows that the NCCA campaign has significantly improved the CSR of local enterprises; NCCA has a greater positive impact on CSR to customer and environmental. The research links the creation of a civilized city with CSR for the first time, reflecting the Chinese characteristics that policies have a significant impact on enterprises.

Are better-connected CEOs more socially responsible? Evidence from the U.S. restaurant industry

Extensive research has documented how corporate social responsibility (CSR) outcomes are determined by CEOs' intrinsic characteristics, while their social network status has been under-researched. Building on impression management theory and resource-based theory, the current study analyzes the association between CSR activities and top management's position in the social hierarchy, i.e., network centrality. The heterogeneous effects across different restaurant and CSR types are examined based on stakeholder theory. Using a panel dataset of publicly traded U.S. restaurant companies and a novel dataset of CEO network centrality, we find that firms with highly connected CEOs are involved in more socially responsible activities. In addition, the marginal effect of network centrality on CSR is stronger for fast-food than for full-service restaurants and more prominent for external than internal stakeholder subcategories. The results advance the determinant analysis of CSR and provide managerial implications for CEO selection and policy suggestions on CSR promotion.

Assessment of sustainable development through a multi-criteria approach: Application in brazilian municipalities

In the last decades, there has been an increase in impacts on the environment, driven by the industrialization process. As a result, society's social and environmental awareness increased, and business organizations began to promote corporate social responsibility initiatives to positively contribute to better working and environmental conditions, and other sustainability issues. This article aims to verify the performance of 217 Brazilian municipalities from 31 indicators segmented in the three dimensions of sustainability (economic, environmental, and social), selected from the literature review, to contribute to the sustainable investment strategy of organizations. To this end, we used the multi-criteria decision making method, Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), and proposed an analytical sustainability dashboard. The main results of this paper were the sustainable performance rankings of the municipalities and the dashboard with three analytical panels that contributed to identifying the points of improvement of each municipality, consequently contributing to the investment strategy in these locations. This research consists, therefore, of an important methodology, combining the multi-criteria method and the sustainability dashboard, to assess the sustainable development of the municipalities in the triple bottom line dimensions.

Corporate social responsibility, investor protection, and the cost of equity: Evidence from East Asia

We document that corporate social responsibility (CSR) activities increase the cost of equity in East Asia. Further, the effect is driven by economies with weak investor protection. Our findings are robust to alternative variable measurements, accounting for endogeneity of CSR, and various methodological specifications. The positive relation between CSR and the cost of equity is attributable to the high agency conflicts in East Asian economies. Our findings highlight that the effect of CSR is contingent on the research context, and emphasize the importance of enhancing investor protection and mitigating agency conflicts for the promotion of CSR.

Foreign Ownership and Corporate Social Responsibility: Evidence from China

This paper employs the data of corporate social responsibility rating score of A-share listed companies in China from 2009 to 2018 as a sample to verify the impacts of foreign ownership on corporate social responsibility. Furthermore, this paper explores the moderating role of legal institutional distance and economic institutional distance in the impact of foreign ownership on corporate social responsibility. The empirical results of panel data models show that: Firstly, foreign ownership has a significant positive impact on corporate social responsibility. Secondly, legal institutional distance and economic institutional distance have a positive moderating role in the impacts of foreign ownership on corporate social responsibility. The results of propensity score matching, two-stage least squares and alternative variables methods also give strong backing to the above conclusions. Finally, this paper puts forward that China’s listed companies are supposed to make full use of the supervision power of foreign ownership to promote corporate social responsibility.

Does Gender Diversity on Board Promote Corporate Social Responsibility? An Empirical Analysis of Sustainable Development Goals

Recent regulatory changes in India require the firms to improve the appointment of female directors on corporate boards, and it is believed that such a regulation would prove to be a boon in terms of strategic decision making. The Board Capital Theory advocates that the appointment of women directors on board shall enhance various dimensions of the board capital breadth and help in better decision making. With growing consciousness for sustainable practices throughout the globe, it is pertinent to see whether the gender diverse boards can promote corporate social responsibility and create a business case for their upsurge, as it would give room for policy implications. This study investigates the impact of gender diverse boards on promoting corporate social responsibility, using multivariate regression with a sample of NIFTY 50 Index for the period 2014-2019. The study found insignificant positive relation among gender-diverse boards and sustainability. To check for the robustness of the study, we have used two diversity indices, Blau & Shannon index, to supplement our results.

The perception of using social media – a comparison of entrepreneurs implementing CSR in managerial practice and other entrepreneurs in selected V4 countries

The article aims to identify the perception of issues related to the use of social media in the business environment of small and medium-sized enterprises in the Czech Republic, Hungary, and Poland. The authors chose the concept of comparing entrepreneurs who implement corporate social responsibility with other interviewed entrepreneurs. An interesting comparison was made from the collected data. The article is based on a questionnaire survey of 1217 respondents. The study was conducted from September 2019 to January 2020. The chi-quadrat test and z-score were used to evaluate statistical hypotheses. The results showed that Czech entrepreneurs implementing corporate social responsibility have more negative answers than the surveyed entrepreneurs in other countries. Thus, less than 28% of Czech corporate social responsibility entrepreneurs agree that social media helps increase corporate growth, while in Poland – up to 49%. As many as 53% of corporate social responsibility entrepreneurs in Hungary and Poland agreed that social media could respond more flexibly to market developments. Czech entrepreneurs were lagging behind 35% of them. The results showed no statistically significant differences in all research questions regarding entrepreneurs without the implemented CSR concept. The article results suggested that Czech CSR entrepreneurs did not see the potential benefits of social media use. Although the study focuses only on 3 central European countries, the results are not generalizable. However, they are useful for those who promote positive impacts on companies through the social networks and organizations that promote corporate social responsibility. One of the tools for transparent communication with customers/suppliers could be by communication via social media. The study's findings could further help other entrepreneurs consider the benefits of social media in doing socially responsible business.

Against Corporate Activism: Examining the Use of Corporate Speech to Promote Corporate Social Responsibility

Against Corporate Activism: Examining the Use of Corporate Speech to Promote Corporate Social Responsibility

Using Stakeholder Empathy to Promote Corporate Social Responsibility

The requirement of the Association to Advance Collegiate Schools of Business to include business ethics in the curriculum has prompted business programs to teach ethics either integrated across the curriculum or in standalone classes. The question addressed here is how to engage students in thinking deeply and empathetically about ethical issues impacting corporate social responsibility (CSR). This research focused on using a thought experiment developed by John Rawls in which students examined CSR issues from the perspective of six stakeholder groups. A pre-test/post-test design measured the effectiveness of an instruction module on CSR coupled with an active exercise using Rawls’ veil of ignorance and original position. Results indicate that students placed greater responsibility on the stockholders and board of directors after taking this module. The implication of the Rawlsian technique to use stakeholder empathy is discussed as a tool for engaging business ethics students.

Do venture capital firms promote corporate social responsibility?

We use venture capital firms, or VCs, in China from 2011 to 2017 to examine the treatment effect of their investments on corporate social responsibility (CSR) activities at the firms in which they invest (invested firms). Several results are noted. First, VCs, which are primarily profit making, promote research and development investments and firm value at the invested firm. Second, VCs provide advisory services to promote CSR activities at the invested firms, indicating significant VC treatment effect. Third, the impact of VCs on CSR activities at the invested firms is magnified when the VCs are reputatable or with foreign background. Finally, we also show that VCs improve the financial condition of the invested firms by reducing their financial constraints and facilitating greater access to bank loans, while CSR amplifies the VC’s effect on the firm’s financial condition.

Corporate social responsibility (CSR) and the environment: Does CSR increase emissions?

Abstract This paper develops a corporate social responsibility (CSR) model under a time-consistent emission tax in a monopoly market. This paper also analyzes the effects of CSR behavior on economic welfare and the environment. The results show that (i) the promotion of CSR invariably enhances social welfare, (ii) when environmental damage is serious and the cost efficiency of emission reduction is low, then a pure profit-maximizing monopolist has some incentives for behaving as a socially responsible firm to enhance its own net profit, and (iii) in stark contrast to common belief, CSR can yield an emission-increasing effect. Consequently, this paper reveals that CSR is not always beneficial for the environment.

Can multiple large shareholders promote corporate social responsibility?

PurposeThis study aims to examine the relationship between an ownership structure with multiple large shareholders and corporate social responsibility (CSR) with regard to Chinese-listed companies.Design/methodology/approachMultiple regression analysis was used on 4,940 samples of 884 listed companies in China for the period 2009–2017, to empirically test the influence of an ownership structure on enterprises’ fulfillment of social responsibility. Moreover, the propensity score matching–difference in differences and Heckman two-stage approaches were used for the robustness of the regression results.FindingsThe results show that ownership structures with multiple large shareholders can promote social responsibility. The check-and-balance ability of non-controlling large shareholders, corporate information transparency and corporate system environment moderate the relationship between multiple large shareholders and CSR engagement.Originality/valueThis paper complements prior studies on the ownership structure of multiple large shareholders. The findings enrich the literature on corporate governance and CSR. The results also reveal information about the situational factors, helping identify the mechanism through which the ownership structure of multiple large shareholders affects CSR.

O papel dos profissionais de relações públicas na responsabilidade social corporativa: algumas notas a partir da realidade portuguesa

Os profissionais de relações públicas (RP) são envolvidos nos processos de decisão sobre cidadania corporativa (CC) ou apenas são chamados a divulgar as práticas das organizações a este nível? As organizações estão comprometidas com a responsabilidade social corporativa (RSC) ou com a cidadania corporativa? No âmbito de um paradigma pragmatista, foi desenvolvida uma abordagem explicativa sequencial recorrendo a métodos mistos. Foi realizada uma investigação em duas fases, uma fase inicial quantitativa de recolha e análise de dados, e de seguida uma fase de recolha e análise de dados qualitativa. Em outubro de 2018, foram convidadas a responder a um inquérito online as 158 organizações que pertencem a uma associação portuguesa para a promoção da CC (Grace). Posteriormente, foram realizadas entrevistas presenciais com o responsável pela RSC/CC organizações que responderam ao questionário. O estudo aponta para que a área social (filantrópica) seja a mais relevante nas organizações entrevistadas e que esta área da RSC está sob fortes reformulações. No entanto, as organizações parecem não utilizar o conceito de cidadania corporativa. Ao contrário do esperado pelos investigadores, os profissionais de comunicação parecem não assumir responsabilidades a nível estratégico.

The influence of the sugar-sweetened beverage industry on public policies in Mexico.

The objective of this study was to map and describe the different corporate political activity (CPA) strategies used by the sugar-sweetened beverage (SSB) industry to influence public health policymaking geared toward decreasing the consumption of SSB in Mexico. We applied an existing approach to identify and monitor the CPA of the SSB industry. A documentary analysis was conducted for two main actors in the SSB industry, for the period 2017-2019, and was triangulated with eleven semi-structured interviews with key informants in public health nutrition and from the SSB industry. The information was analyzed using an existing framework for categorizing the CPA. Although data were found for six CPA strategies, the SSB industry mainly highlighted its economic importance and spoke openly against the 2014 SSB tax. We documented the industry's relationships with governmental bodies and civil society actors to promote corporate social responsibility and gain public support. The SSB industry in Mexico uses a variety of strategies, directly or through third parties, to influence public policies related to the prevention and control of obesity and non-communicable diseases.

Do the IFRS promote corporate social responsibility reporting? Evidence from IFRS convergence in India

This study contributes to the accounting and corporate social responsibility (CSR) literature by examining the effect of International Financial Reporting Standards (IFRS) convergence on the level of CSR reporting in the annual reports of listed companies. Previously, this area received limited attention in the literature. Data were collected from 366 companies listed on the Bombay Stock Exchange (BSE) in India. Of these, 263 are adopters of the new Indian Accounting Standards (Ind AS), which are converged substantially with the IFRS, and 103 are non-adopters of Ind AS. Drawing on stakeholder theory, this study found that the level of CSR reporting (disclosure) in the annual reports of the firms that adopted Ind AS was significantly greater relative to firms that did not adopt Ind AS. Moreover, the results indicated that this increase is visible in all four dimensions of CSR considered in this study: employee, environmental, human rights, and social and community. IFRS convergence provided an opportunity for corporate managers to respond to increasing regulatory and stakeholders pressure by disclosing more corporate social information. This study also supports the use of stakeholder theory in predicting CSR disclosure during major transformations in the corporate reporting environment.

CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks

PurposeThis study aims to explore the corporate social responsibility disclosure (CSRD) practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2010-2014 and examines the determinants of CSRD and its effects on firm value.Design/methodology/approachBased on the Accounting and Auditing Organization for Islamic Financial Institutions Governance Standard No. 7 guidelines and using content analysis, the paper develops a comprehensive CSRD index for GCC Islamic banks. The study applies ordinary least squares regression analysis for hypothesis testing and for finding determinants of respective dependent variables.FindingsThe results show a very low level of CSRD among the sample Islamic banks in GCC countries. When using corporate governance characteristics to examine the determinants of CSRD, this study provides evidence of a significant positive association between board size and CSRD practice in Islamic banks and a significant negative relationship of chief executive officer (CEO) duality with CSRD, as per expectation. For the economic consequences of CSRD, the study documents an inverse performance effect of CSRD while board size, board composition and CEO duality indicate significant positive effects on firm value.Research limitations/implicationsThe relatively small sample size of GCC Islamic banks may limit the application of the findings to other Islamic financial institutions such as Takaful and the Islamic unit trust company.Practical implicationsThe findings of this study initiate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSRD practices among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policymakers and Islamic banks in the GCC countries.Social implicationsThe results of the study do not support the idea that Islamic banks operating on Islamic principles can meet their social responsibilities through promoting corporate social responsibility (CSR) activities and by differentiating themselves from non-Islamic banks.Originality/valueThis is the first study to examine the determinants of CSRD in GCC Islamic banks using comprehensive CSRD and corporate governance variables and, therefore, adds value to the existing CSR literature in banking.

Perception of Corporate Hypocrisy in China: The Roles of Corporate Social Responsibility Implementation and Communication.

In the past two decades, corporate hypocrisy has become a phenomenon that cannot be ignored in Corporate Social Responsibility (CSR) practice (Wagner et al., 2009) and has thus become a concern for management scholars (Cho and Lee, 2019). Using smartPLS, based on attribution theory, this paper takes 28 Chinese listed enterprises as examples to explore the influence of CSR motivation on its communication and implementation, as well as the impact of CSR implementation and promotion on consumers’ perception of corporate hypocrisy. The research finds a negative correlation between value-driven motivation and corporate hypocrisy and a positive correlation of performance-driven motivation and stakeholder-driven motivation with corporate hypocrisy. The theoretical contribution of this paper is mainly reflected in the following four aspects. (1) It describes the scale of CSR implementation research and enriches the measurement tools of CSR implementation. (2) It enriches and expands research results in the field of CSR motivation perception. From the perspective of CSR and attribution theory, this study explores the influence of consumers’ perception of CSR motivation on CSR communication and CSR implementation. (3) It supplements research results in the field of corporate hypocrisy. The influence of CSR communication and CSR implementation on corporate hypocrisy is clarified. (4) It clarifies the impact of CSR communication on CSR implementation so as to help enterprises better match CSR communication strategy and CSR implementation in practice and reduce consumers’ perception of corporate hypocrisy. It is suggested that enterprises find their own positioning on CSR motivation, which provides a reference with which enterprises can make better decisions on CSR communication strategy after implementing CSR behavior and provides empirical evidence for the research on CSR motivation perception and corporate hypocrisy in China.

Executive compensation and corporate social responsibility: does a golden parachute matter?

PurposeThis study examines the efficacy of compensation in encouraging corporate executives to promote corporate social responsibility (CSR). In particular, it closely examines the effect of a golden parachute (GP) on an executive's behavior toward CSR.Design/methodology/approachThis study uses longitudinal data on 1,301 US firms for the period from 1993 to 2013. The data comes from Compustat, MSCI ESG STATS, RiskMetrics and ExecuComp.FindingsWe find an inverse association between current and long-term compensations and GP on firms' CSR. However, a test on the moderating effect discloses that a GP and long-term compensation jointly and positively increase the firms' CSR performance. This increase supports the idea that executives with a GP seek to maximize their long-term wealth by approving CSR projects that add value. The results also show that female executives are more likely to promote CSR than their male counterparts, and older executives are less willing to engage in CSR projects.Practical implicationsAdding a GP contractual clause to the executive compensation package could encourage greater engagement in CSR projects. The CEO with a GP will ensure that the firm engages in only value-enhancing CSR projects; this should align the interest of the society (greater firm engagement in CSR) with the interest of the firm (value maximization).Originality/valueThis study contributes to the literature by examining the moderating effect of a GP on the association between CSR and executive compensation.

Linking Corporate Social Responsibility to Customer Loyalty through Co-Creation and Customer Company Identification: Exploring Sequential Mediation Mechanism

Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture.

Chief executive officer narcissism and firm value: The mediating role of corporate social responsibility in the South Korean context

AbstractThis study analyzes whether narcissism in chief executive officers (CEOs) affects firm value through the promotion of corporate social responsibility (CSR) initiatives. Employing the upper‐echelons perspective, we present a research framework for the relationship between CEO narcissism and firm performance with CSR as the mediation variable. The results of the regression analysis of 265 firm‐year South Korean samples from 2010 to 2016 indicate that CEO narcissism promotes CSR initiatives and CSR enhances firm value in the capital market. However, the results do not provide evidence that CSR mediates the link between CEO narcissism and desirable organizational outcomes. The findings of this study build a better theoretical and practical understanding of the antecedents and consequences of CSR from the CEO's psychological personality perspective.