Corporate Social Responsibility Relationship Research Articles

CEO duality and corporate social responsibility: A moderation effect of founder CEO

With a panel of 6613 firm-year observations of NSE-listed firms during 2015–2020, we construct a corporate social responsibility (CSR) engagement score based on entropy measures to analyse the impact of chief executive officer (CEO) duality on CSR practices in India. This study shows that CEO duality negatively influences the CSR practices of the firm. We also examine the moderation impact of the founder status of CEO on the relationship between CEO duality and CSR practices and find a positive moderation effect. We have also checked the validity of CEO duality and CSR relationship under high and low external and internal monitoring. The results are in line with agency theory and the Uday Kotak committee and suggest the non-duality structure for strong corporate governance. We also extend the study by analysing the relationship between CEO duality and CSR practices across different business life cycles. The result shows that the duality structure of mature and declining firms negatively influences the CSR practices of the firm compared to introduction, growth, and shakeout firms. This result suggests that CEO duality of mature and declining firms utilize their power to maximise available resources for their personal benefits at the cost of other stakeholders. Further, the findings are robust to applying propensity score matching, two stage least squares, and three stage least squares.

The Introduction of Mandatory Corporate Sustainability Reporting in the EU and the Question of Enforcement

The Introduction of Mandatory Corporate Sustainability Reporting in the EU and the Question of Enforcement

How does innovation moderate the CSR impact on financial performance? An exploratory study and an empirical validation in the Tunisian context

Purpose This paper aims to examine the effect of corporate social responsibility (CSR) on firm performance (FP) of companies listed on the Tunis Stock Exchange. Design/methodology/approach This paper reports on two empirical studies. The first was an exploratory qualitative study carried out on a sample of 30 Tunisian companies operating in different sectors. The second empirical study used a panel data regression analysis, to examine data from 46 companies listed on the Tunis Stock Exchange during the 2017 to 2021 period. Findings The results of the exploratory qualitative study pointed out the specificities of the Tunisian context as to the importance of CSR. The results highlighted also the importance of the 2018 CSR law in Tunisia, yet it drew attention to the non-implementation of its applying texts, meaning that CSR is not always enforced in the Tunisian context. Moreover, in this qualitative study, most companies confirmed that CSR is a key factor behind good governance practices. By studying the impact of CSR on various FP proxies, the results highlight that CSR has a positive and significant impact on FP measured by ROA as an accounting variable and stock returns as a market-measure variable. In addition, the authors confirm the moderating effect of innovation on the CSR and FP relationship. Indeed, innovation affects corporate FP differently. It hinders accounting-based FP while fostering the market-based one. Practical implications The study provides insights for managers into how CSR approaches can be used to maximize profits, improve its FP and reputation, while considering the corporate innovative capacities. CSR is a real performance lever for companies, a means of improving their economic, environmental and social efficiency. It enables companies to anticipate constraints and prevent risks, reduce certain operational costs, optimize resources, communicate a good image and stand out from the competition, gain easier access to innovation, strengthen their competitive edge, gain easier access to financing and strengthen their territorial and social roots. Originality/value The main contribution of this paper is the adoption of two empirical approaches. These two methods are complementary. The first is an exploratory qualitative approach aimed at better understanding the current state of CSR implementation by Tunisian companies. The second one is quantitative, a panel data regression analysis. Furthermore, the authors test the moderating effect of innovation on the studied link. To the best of the authors’ knowledge, this is the first paper that investigates the moderating effect of innovation on CSR FP in the Tunisian context. Finally, robustness tests were conducted to test the reliability of this study’s results.

A Meta-Analysis of the Relationship Between Corporate Social Responsibility and Consumer Response in the Chinese Context

Consumers’ attitudes toward corporate social responsibility (CSR) and their response levels can significantly affect a firm’s behaviors. Based on 61 research papers addressing CSR responses to consumers in China, this study conducted a meta-analysis on three variables: CSR type, CSR characteristics, and CSR publicity behavior, which impact the CSR relationship. The following conclusions are drawn: Corporate social responsibility (encompassing private and public moral dimensions) elicits a positive consumer response, with private moral behavior having a greater positive effect compared to public moral behavior. The four dimensions of CSR characteristics (CSR commitment, CSR level, CSR correlation, and CSR timing) all lead to positive consumer responses. Positive consumer responses also arise from CSR publicity behavior, including publicity initiative and publicity intensity. Additionally, product type, sample time, and sample source have significant moderating effects on these relationships.

The Relationship of Corporate Social Responsibility with Business Performance—A Bibliometric Literature Review

The significant role of corporate social responsibility (CSR) in achieving sustainability and in meeting the expectations of stakeholders has been well documented. Using a collection of 2173 publications on CSR and its connections with business performance, this study conducted a bibliometric investigation using the Systematic Literature Network Analysis (SLNA) technique combined with network visualizations to demonstrate the current research trends, most topical themes and the developing areas of interest in the growing field of CSR and its linkages with business performance for an approximate period from 2004 to 2023 as published in the Scopus database of two decades. The goal was to explore the research gaps by analyzing the most cited authors and most impactful publications by year, location, subject area and document type. The study also outlined the trends by topic prevalence, commonly used keywords and citation networks based on co-occurrence and co-authorship to identify the current thematic gaps. The results reveal a mild rate of growth in scholarly interest around the field of CSR and business performance until 2022, where a manifold increase in publications was recorded. An expanding focus on human, social and organizational behavior, economic systems, financial and social performance, leadership, stakeholder management and management science was identified, although there is a scarcity of studies around issues regarding developing countries, climate change, CSR disclosure and small businesses. These findings demonstrate the current state of the research and offer interesting insights and timely research directions as a roadmap for future studies.

A Study on Corporate Social Responsibility Relationship with Organisational Culture and Business Ethics : - On MCL

Corporate Social Responsibility (CSR) in India has gone past just philanthropy and gifts, and is drawn closer in a more sorted out mold. It has turned into a basic part of the corporate system. Companies have CSR groups that detail particular approaches, methodologies and objectives for their CSR projects and put aside spending plans to bolster them. The essential target of CSR in nowadays is to expand the company's general effect on the general public and partners. CSR has experienced many stages in India. In this paper we examine the basic changes in model of corporate social obligation and the new imaginative works on being connected for its execution in the most recent decade in India. It minimizes the cost and additionally hazards, subsequently, expanding the brand esteem and notoriety of the company. "CSR alludes to the commitments of specialists to seek after those approaches to settle on those choices or to take after those lines of relations which are attractive as far as the goals and estimations of our general public."

Impact of dividend policy on corporate social responsibility: the role of board governance mechanism

Purpose This study aims to investigate the impact of dividend policy on a firm’s participation in corporate social responsibility (CSR)-related activities in the context of Pakistani firms. Furthermore, the role of the board governance mechanism in dividend policy-CSR is investigated. Design/methodology/approach The study’s sample consists of 115 nonfinancial Pakistan Stock Exchange-listed firms from 2010 to 2021. A multidimensional financial method is used to assess the firm’s CSR engagement, and dividend policy is assessed using the dividend payout ratio and dividend yield. The authors used the fixed effect model and the random effect model to fulfill the study’s objectives. Furthermore, the system-generalized method of moment estimation technique is used to test the robustness of the result. In addition, the authors perform reverse causality analysis and investigate the effect of financial constraints on the dividend policy–CSR relationship. Findings The authors find that dividend policy has a significant positive impact on CSR. The authors also find that dividend policy is significantly positively associated with components of CSR, i.e. donation, employee welfare and research and development. Furthermore, the authors find that the board governance mechanism strengthens this positive relationship between dividend policy and CSR. Practical implications The government and authorities must mandate or at least encourage enterprises to pay dividends as doing so not only keeps shareholders happy but also encourages firms to make CSR initiatives to balance stakeholders. Furthermore, the regulator should take steps to strengthen the board governance structure as it strengthens the positive dividend policy–CSR relationship. Originality/value Although little previous research has focused on the CSR-dividend policy link, the authors believe that this is the first study to look at the influence of dividend policy on CSR and the moderating impact of board governance mechanisms in an emerging country, namely, Pakistan.

Does Supplier Instability Affect Corporate Social Responsibility? A Theoretical and Empirical Study

Prior literature typically focuses on how corporate social responsibility (CSR) is affected by the external environment and firms’ characteristics but ignores features in the supply chain. To fill this gap, we provide theoretical and empirical analyses of the role of supplier instability in CSR engagement. Specifically, our game-theoretical model considers a two-echelon supply chain where an upstream supplier is unstable and a downstream retailer makes the CSR investment. The model generates several testable hypotheses as follows: 1) the effect of supplier instability on CSR engagement is negative; 2) supplier instability mainly affects internal CSR engagement; 3) the negative instability–CSR relationship decays with the increase of supplier instability; and 4) the instability–CSR effect is more pronounced under supplier-led Stackelberg structure than retailer-led Stackelberg structure. Using a sample of Chinese firms from 2010 to 2019, we verify the above hypotheses by providing concrete empirical evidence. Our empirical estimations are robust after using the Heckman selection model to solve the endogenous selection bias.

Corporate Social Responsibility and Employee Satisfaction: The Mediating Effects of Work-Life Balance Support and Work Stress

Businesses embrace the concept of corporate social responsibility (CSR). This study investigates the individual effect of perceived internal CSR and external CSR on employees’ job satisfaction. Moreover, this investigation explores the mediating roles of perceived work-life balance support (WLBS) and work stress (WS). The researchers use partial least square structural equation modeling to test the data from employees in Taiwan. The results prove that perceived internal CSR and external CSR positively and significantly affect job satisfaction. Perceived WLBS partially mediates the perceived internal CSR–job satisfaction and perceived external CSR–job relationships, whereas WS partially mediates only the perceived internal CSR and job satisfaction relationship. Moreover, perceived WLBS and WS sequentially mediate the CSR and job satisfaction relationship. The study’s findings suggest that it is vital for firms to strengthen internal and external CSR engagements to promote WLBS, thereby reducing WS and ultimately increasing employees’ job satisfaction.

Corporate social responsibility in relation to the economic dimension of socio-economic policy

ObjectivesCorporate social responsibility is a concept that allows organizing economic life both at the level of the organization and at the level of the state taking into account the broader interests of the social environment of a contemporary enterprise and stimulating inclusive growth in the quality of economic relations. Entrepreneurs are aware that they are expected not only to generate profits, but also to fairly shape relations with the entire socio-economic environment. CSR can be defined as a concept through which companies voluntarily take into account social and environmental interests at the stage of strategy building, as well as relations with various stakeholder groups. Being responsible does not just mean meeting all formal and legal requirements, but in addition to increased investment in human resources, environmental protection and stakeholder relations.Material and methodsThe purpose of the article is to theoretically analyze the role and importance of corporate social responsibility in the process of creating an inclusive and integrative role for economics and business in the economy. The article shows that neo-liberal concepts focusing on profit maximization at all costs and the "invisible" hand of the market have significantly devalued.ResultsIt is therefore possible to identify specific benefits of implementing corporate social responsibility principles. In the area of economic benefits, social environment and environmental.ConclusionsSocial responsibility benefits not only the company itself and its direct beneficiaries, but also the economy and the environment. Responsible selling allows to build loyalty and trust of employees, and consequently supports sustainable economic development based on social participation and equitable distribution of national income.

A win-win situation: uncovering the relationship between CSR reporting and financial performance in Indian companies

PurposeThis study aims to evaluate the relationship of corporate social responsibility (CSR) reporting with the financial performance of firms using various market and accounting-based parameters in a developing economy, India.Design/methodology/approachThe study uses content analysis to develop a CSR reporting index for the Indian firms listed on the Bombay Stock Exchange. The two-step system generalized methods of moments has been used for the estimation of the panel data.FindingsThe results from the study suggest that the CSR reporting-based activities of the firms may impact the financial performance of the firms, but at the same time, the need of the hour is to create awareness among the investors and market players so that they realize the relevance of CSR reporting, which can further improve other dimensions of financial performance as well.Research limitations/implicationsThe study relies on Tobin’s Q and return on assets while measuring financial performance, though there are various other parameters that can be used to gauge the performance. The outcomes of this study have practical implications for the practitioners as well as policymakers, incentivizing them to integrate CSR aspects into their decision-making frameworks.Originality/valueTo the best of the authors’ knowledge, this is the first Indian study to develop a unique index for CSR reporting and linking it with financial performance. This study shall assist the researchers in broadening the scope of CSR studies in India and can be used to draw a systematic comparison with developed nations.

Corporate social responsibility in Indian banking sector: A moderated‐mediation approach linking corporate social responsibility to purchase intention

AbstractThis paper aims to empirically examine the effect of corporate social responsibility (CSR) practices on the purchase intention of Indian banking customers. It also investigates the conditional indirect effect on purchase intention via customer trust. The data were collected using a questionnaire from 324 customers having bank accounts either in state bank of India or housing development finance corporation Bank. Conformity factor analysis was used to assure the reliability and validity of all constructs; structural equation modeling was used to testify the proposed hypotheses. This study reveals important findings first, CSR practices have a significant effect on purchase intention and customer trust; second, CSR awareness significantly moderates CSR and purchase intention relationship; and finally, the relationship between CSR and purchase intention (PI) via customer trust (CT) is significant using moderated mediation model. This study has been carried out using a sample of customers from the service industry, that is, state bank of India and housing development finance corporation banks. Similar analyses can also be conducted in other sectors of the economy. This study adds to the scarce literature on moderating role of corporate social responsibility awareness and the conditional indirect effect of CSR on purchase intention through customer trust.

The Effect of Corporate Social Responsibility, Free Cash Flow and Leverage on Earnings Management with Managerial Ownership as Moderating

This study aims to determine the effect of corporate social responsibility, free cash flow and leverage on earnings management with managerial ownership as a moderator in consumer goods industrial companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. This study uses quantitative research methods, which are measured by using multiple linear regression method with Eviews 12 software. The population in this study are consumer goods industrial companies listed on the Indonesia Stock Exchange from 2018 to 2021. Sampling using purposive sampling method with a total sample of as much as 23 companies with a research period of 4 years so that the total observations in this study were 92 observations. The data collection techn ique uses the documentation method through the IDX official website www.idx.co.id. The results of this study prove that (1) corporate social responsibility, free cash flow has a negative effect on earnings management, (2) leverage has no effect on earnings management, (3) managerial ownership is able to moderate the relationship of corporate social responsibility to earnings management, (4) ownership managerial is not able to moderate the relationship of free cash flow and leverage on earnings management.

Does Relationship of Corporate Social Responsibility, Absorptive Capacity and Innovation Performance Exist in Manufacturing Micro Companies?

This research is designed to check the Impact of kinds of Corporate Social Responsibility (CSR) on kinds of Absorptive Capacity( AC) and impact of kinds of Absorptive Capacity( AC) on Innovation performance (IP). Data was collecting from 375 employees of manufacturing micro-companies of Pakistan with the help of purposive sampling. Results indicates that there are positive impact of kinds of Corporate Social Responsibility (CSR) on kinds of Absorptive Capacity( AC). Reserch also describes that there are positive impact of kinds of Absorptive Capacity( AC) on Innovation performance (IP). The study also has managerial implications by revealing the contribution of intangible resources to innovation performance. The research also offers different configurations that production managers might choose to use to achieve innovative by using the concept of absorptive capabilities.

Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

Purpose: The purpose of this study is to determine how the practices of corporate social responsibility (CSR) influence the wealth of shareholders of industrial goods producing companies listed on the Exchange Group Plc of Nigeria and other developing countries. Theoretical Framework: The role played by CSR practices in enhancing shareholders’ wealth has attracted the interests of companies’ executives and policy makers all over the world. The theoretical foundations of this research work are provided by the Shareholder Value Theory, the stakeholder theory, the Business Ethics theory and the Agency theory. However, this work is anchored on the shareholder value theory propounded by Milton Friedman in 1970 and this is used to evaluate the influence of corporate social responsibility on shareholders’ wealth. Design/methodology/approach: The study uses the ex-post facto research design and judgemental sampling technique to select a sample of 10 industrial goods producing firms listed on the Nigerian Exchange Group Plc as at 31st December, 2021. Social responsibility relationships with the society, employees, suppliers, customers, tax authorities and lenders provide the basis for sample selection. Information from the financial statements of the sampled companies was used to compute weighted average cost of capital (WACC), rate of stock turnover, actual corporate tax rate, invested capital, leverage, return on equity (ROE), value of debts and value of equity. This approach facilitates the computation of economic value added (EVA) which is used as proxy for shareholders’ wealth. Firm-year observations of 1,840, ordinary least squares panel data regression, fixed and random effects models, stationarity test, cross-section dependence test and the Hausman test are used for data diagnosis and analysis. Findings: The research has disclosed that CSR to society positively and significantly influences shareholders’ wealth while CSR to suppliers and lenders have non-significant positive effect on shareholders’ wealth. Contrastingly, it is further revealed that CSR to employees and tax authorities have significant negative effects on shareholders’ wealth while CSR to customers negatively and non-significantly influences shareholders’ wealth. Research, Practical & Social implications: The implication for managers is that CSR relationship with society is value enhancing in Nigeria’s industrial goods sector while CSR relationships with employees and tax authorities are value destroying. Value enhancing results of the dealings with suppliers and lenders and the value destroying result of the dealings with customers lack sufficient evidence. This research has helped in filling the gap in the existing literature and in serving as the basis for the economic and social development of Nigeria and other developing and developed countries of the world. Originality/value: This is the first time in the industrial goods sector that we are associating four new corporate social responsibility variables namely, CSR to suppliers, CSR to customers, CSR to tax authorities and CSR to lenders with shareholders’ wealth. This study encourages the revival of CSR to employees and CSR to tax authorities which are currently value destroying in the industrial goods sector of Nigeria.

Impact of corporate social responsibility on sustainable competitive advantages: The mediating role of corporate reputation.

This study investigates the relationship between corporate social responsibility (CSR) and sustainable competitive advantage (SCA). Moreover, building on the stakeholder theory, this study investigates the mediating effects of corporate reputation (CR) between the relationship of corporate social responsibility and sustainable competitive advantage. We used a questionnaire survey to collect data from the employees working in the construction industry of Pakistan. Using the sample of 239 respondents, a structural equation modeling technique was used to verify the hypothesis relationship. The findings indicated that CSR directly and positively influences sustainable competitive advantages. Moreover, corporate reputation positively mediates the connection between corporate social responsibility and sustainable competitive advantage. This research fills knowledge gaps and highlights the significance of CSR in fostering sustainable competitive advantages within the construction industry.

CSR Communication Matters! An Examination of CSR, Organisational Pride, and Task-Related Pro-Environmental Behaviour Nexus

Corporate Social Responsibility (CSR) has many positive outcomes, yet how and when its impacts employees’ green behaviour is still to be examined. This research tested the effect of CSR initiatives on the Task Pro-environmental behaviour (TPB) of employees via the mediating role of organisational pride. Moreover, the role of CSR communication was considered as a moderator in CSR and pride relationships. The study was based on two theories: Social Identity Theory and Signalling Theory. The investigation was quantitative and based on the data collected at three points of time, i.e., T1 = CSR and internal CSR communication, T2 = organisational pride, and T3 = TPB with a one-week time lag from banking sector employees. 500 questionnaires were distributed, of which 361 responded, forming a response rate of 72.2%. The analysis was done using PROCESS mediation and moderation models. The results affirmed a positive relationship between CSR and organisational pride and also its subsequent impact on TBP. The moderating role of internal CSR communication between CSR and organisational pride was also supported. In addition, the indirect moderating role of internal CSR communication was also established between CSR and TPB via organisational pride.

Corporate social responsibility's relationship with marketing and financial performance of agricultural companies: a case study in East Java, Indonesia


 
 
 
 
 
 
 
 
 
 Agricultural companies that produce utilitarian products must prioritize corporate social responsibility (CSR) efforts to uphold their reputation (Rep) and ensure long-term sustainability through superior performance. This study aims to examine the relationship between corporate responsibility and corporate financial and marketing performance, with differentiation strategy (Diff), firm size (FS), internationalization (Int), perceived external pressure (PEP), and altruism (Alt) acting as drivers of CSR initiatives. Employing a quantitative research approach, this study utilized the fuzzy inference system (FIS) to identify the predictive relationships between variables. Purposive sampling was employed to select five legally incorporated agricultural companies in East Java. The findings indicated that, at specific value thresholds, Diff, FS, Int, PEP, or Alt could serve as drivers of CSR efforts and were associated with corporate financial performance (CFP) and corporate marketing performance (CMP) from the perspectives of CSR, Rep, and PEP. The FIS output models, aligned with the proposed hypotheses, demonstrated that certain values of these input variables positively influence the direction of the output variables. Therefore, company policymakers should carefully consider the value levels of these variables and strive to maintain them to enhance CSR efforts and improve financial and marketing performance effectively. These factors were vital for the sustainability of agricultural companies in East Java.
 
 
 
 
 
 
 
 
 

Board attributes, ownership structure, and corporate social responsibility: evidence from A-share listed technological companies in China

PurposeThe purpose of this study is threefold. The first is to conduct a comprehensive examination of the various board attributes to corporate social responsibility (CSR) reporting in the Chinese technology industry. The second is to investigate the impact of ownership and board attributes on CSR. The third is to examine the moderating effect of media reporting on the relationship between CSR and company financial performance.Design/methodology/approachAll A-share listed Chinese companies during the years 2011–2019 with 1,573 firm-year observations have been investigated for this study. The data are analysed by CSR metrics in the form of environmental, social and governance (ESG) scores using an ordinary least squares regression analysis and fixed effect regression models.FindingsThe results of this longitudinal study reveal that; no matter whether the companies are state-own or non-state-own, there is a significant positive effect of board independence, monetary incentives, director’s age and board size on the CSR disclosure of the Chinese technology industry. Also, the results support the importance of CSR performance in promoting the corporate financial performance (CFP) of the technology sector. Specifically, media reporting has a positive impact on the CSR reporting of both state-own and non-state-own technological companies in China.Originality/valueTo the best of the authors’ knowledge, this is the first study based on the ESG metrics for analysing the CSR and firm performance relationship conducted in the unique setting of the state-own and non-state-own technological companies in China. The study is an attempt to fill the gap in the extant literature, which has a scarce number of studies focused on the influence of media reporting on the relationship between CSR performance and CFP. This paper not only updates the existing understanding of CSR performance by board attributes and company ownership but also explains the significance of media reporting in enhancing the CSR performance of the Chinese technology industry.

Impact of Corporate Social Responsibility on the Effectiveness of Companies' Business Activities

Background: Corporate social responsibility (CSR) has a great influence on the sustainability of company development, so it can be considered a business model for business effectiveness. Objective: The objective of the research is to determine the mutual influence of real-estate companies’ activities and CSR effectiveness in different countries. This study examines indicators for assessing companies’ financial stability, CSR, and working capital management's influence on the activity effectiveness of real-estate companies. Methods/Analysis: Questionnaires, the principal component method, the Sobel test, and linear regression analysis are used to evaluate the relationship between CSR and the business performance of autocratic management-style companies. The authors’ algorithm for assessing a company’s financial stability, CSR, and capital management, which affect the efficiency of companies, is proposed. Findings: Empirical analysis has shown that management has no mediating effect on CSR and enterprise performance relationships for companies with high financial stability and working capital, though it has a stimulating effect for low financial stability companies. CSR and business performance have positive relationships in companies, but despite financial stability growing, the autocratic leadership style reduces interest in CSR development. This paper conceptualizes the impacts of CSR on the effectiveness of companies. Novelty: The novelty of this study is to create theoretical and practical provisions aimed at laws and regulations. Doi: 10.28991/ESJ-2023-07-03-08 Full Text: PDF