Social Responsibility Index Research Articles

Corporate Social Responsibility, Reputation, and Financial Performance

Nowadays, many companies have implemented CSR programs as a business strategy, where they build community empowerment facilities in the areas of their operations. CSR can be defined as a commitment demonstrated by a company to provide contributions to the sustainable economic development process, prioritizing attention to environmental, economic, and social aspects. This research aims to investigate the relationship between corporate social responsibility (CSR), company reputation, and their influence on the financial performance. The research employs a quantitative approach and collects data from 2019 to 2021 from companies listed on the ESG Quality 45 IDX KEHATI index. CSR is measured through sustainability practice indicators using the Corporate Social Responsibility Index, while company reputation is evaluated through 5 dimensions of measurement. Financial performance is measured using financial ratios involving profitability, liquidity, and leverage. The analysis results indicate that, although there is no significant influence between CSR and company reputation, CSR practices have a significant impact on financial performance. This finding highlights the importance of CSR practices in enhancing the financial aspects of companies. While company reputation significantly affects financial performance, the research shows that reputation does not moderate the relationship between CSR and financial performance.

Pengaruh Tanggung Jawab Lingkungan pada Limbah Cair Perusahaan FMCG terhadap Tingkat Profitabilitas Perusahaan Melalui Return on Asset dan Earning Power

Abstract: The disposal of industrial waste is a major cause of river pollution. Industries often discharge their liquid waste into rivers without adequate treatment. The massive waste production in this country requires more space and the development of technology dedicated to solving industrial waste problems, thus creating business practices that support a circular economy. Therefore, the aim of this research is to determine the influence of environmental responsibility on the liquid waste of FMCG companies on the company's profitability level. This study uses secondary data obtained from the annual reports of 5 FMCG companies for the period 2020-2023 listed on the Indonesia Stock Exchange, and the Corporate Social Responsibility Index (CSRI) based on GRI. The objects of the research or variables in this study include corporate responsibility or CSR (Corporate Social Responsibility) towards liquid waste determined through environmental subcategories, namely water (CSRI1) and effluents & waste (CSRI2) as independent variables. Meanwhile, the dependent variables in this study include the company's profitability level projected through ROA (Return On Asset) and earning power. The collected data is then subjected to statistical testing with normality tests, and the probability values of the variables are found to be greater than 5% (Sig. > 0.05), indicating that the data is normally distributed. In addition, the multicollinearity test shows that the coefficient between independent variables is ≤ 0.80, so it can be concluded that multicollinearity does not occur. Hypothesis testing in this study uses the multivariate regression analysis method. The results of the research, following all procedures, show significance levels less than alpha 5%. This means that CSRI1 and CSRI2 together show a significant influence on ROA and earning power.Abstrak: Pembuangan limbah industri menjadi penyebab utama tercemarnya sungai. Industri seringkali membuang limbah cairnya ke sungai tanpa pengolahan yang memadai. Produksi limbah yang sangat besar di negara ini memerlukan lebih banyak lagi ruang dan pengembangan teknologi yang didedikasikan untuk menyelesaikan permasalahan limbah industri sehingga menciptakan praktek bisnis yang mendukung ekonomi sirkular. Sehingga, tujuan dari penelitian ini adalah untuk mengetahui pengaruh tanggung jawab lingkungan pada limbah cair perusahaan FMCG terhadap tingkat profitabilitas perusahaan. Penelitian ini menggunakan data sekunder yang diperoleh dari laporan tahunan 5 perusahaan FMCG periode 2020 – 2023 yang terdaftar di Bursa Efek Indonesia, dan Corporate Social Responsibility Index (CSRI) berdasarkan GRI. Objek penelitian atau variabel pada penelitian ini diantaranya tanggung jawab perusahaan atau CSR (Corporate Social Responsibility) terhadap limbah cair yang ditentukan lewat subkategori lingkungan yakni air (CSRI1) dan efluen & limbah (CSRI2) sebagai variabel independen. Sementara, variabel dependen pada penelitian ini diantaranya tingkat profitabilitas perusahaan yang diproyeksikan melalui ROA (Return On Asset) dan earning power. Data yang sudah terkumpul kemudian dilakukan pengujian statistic dengan uji normalitas dan diperoleh nilai probabilitas variabel memiliki nilai lebih dari 5% (Sig. > 0,05) ini berarti data terdistribusi normal. Selain itu, uji multikolenieritas menunjukan besaran koefisien antar variabel bebas bernilai ≤ 0,80 Sehingga dapat disimpulkan tidak terjadi multikolenieritas. Uji hipotesis dalam penelitian ini menggunakan metode analisis regresi multivariat. Hasil dari penelitian yang dilakukan semua prosedur menunjukkan angka signifikasi kurang dari alfa 5%. Hal ini berarti CSRI1 dan CSRI2 secara bersama – sama menunjukkan adanya pengaruh yang nyata terhadap ROA dan earning power.

Examining Cointegration and Market Dynamics Among the Global Sustainability and Social Responsibility Indices During Covid -19 Pandemic: An Empirical Analysis Across the ESG And SRI Indices of Emerging Markets

ABSTRACT The co-integration of global stock markets during crisis periods has gained increasing attention in recent years, carrying significant implications for market participants. This study examines the cointegration and causal relationship among the ESG and SRI indices of the emerging markets during the crisis time period. The daily closing price data of the sustainability indices from 10 Emerging countries between Jan 2020 to Jun 2024 was employed in the study. The Johansen’s Co-integration and Granger’s Causality tests were used to evaluate long-term co-integration and short-term causal interactions among the study variables, determining if they move together and influence each other over time. The empirical results revealed that there was one Co-integration relationship during the from the COVID-19 period till date. The trace test and the maximum eigenvalue test values were considered to establish the co-integration among the selected market indices based on their probability values. The co-integration of global stock markets during crisis periods has gained increasing attention in recent years, carrying significant implications for market participants. The study has key implications for investors, traders, regulators, policymakers, and analysts, potentially shaping investment strategies, risk management, regulatory frameworks, and offering insights into market stability and integration during crises.

Examining the Relationship Between Corporate Social Responsibility Performance and Stock Price Crash Risk

This paper selects the Corporate Social Responsibility (CSR) index from Hexun.com (2010–2020) and the stock price crash index of China’s Shanghai and Shenzhen A-share listed companies from the China Stock Market & Accounting Research Database (CSMAR) for empirical analysis. By examining the impact of CSR performance on stock price crash risk, this study identifies key relationships and further investigates the moderating role of media promotion and communication as an intermediary to explore the transmission mechanisms and influence between the two. The empirical results indicate that CSR performance is significantly negatively correlated with stock price crash risk, suggesting that strong CSR performance can effectively reduce the likelihood of a stock price crash. Furthermore, additional analysis reveals that media plays a moderating role in the relationship between CSR performance and stock price crash risk. This study aims to contribute to the understanding of the formation mechanisms and analytical paradigms of factors influencing stock price crash risk while providing theoretical support and reference value for risk prevention strategies.

Sustainable design of products: Balancing quality, life cycle impact, and social responsibility

The shift towards sustainable mobility has increased the demand for energy-efficient and environmentally friendly vehicles, such as Hybrid Electric Vehicles (HEVs). However, designing HEVs that simultaneously meet high product quality, minimize environmental impact, and adhere to social responsibility standards remains a complex challenge. This study presents a decision-making model aimed at integrating these key sustainability criteria into the design and improvement of HEVs. The model combines three indices: the Aggregated Quality Index (AQI), Environmental Impact Index (EII) based on Life Cycle Assessment (LCA), and Social Responsibility Index (SRI), to assess and compare different HEV prototypes. By processing customer expectations, environmental impacts, and social responsibility considerations, the model predicts the optimal prototype that balances quality, environmental sustainability, and social standards. The findings demonstrate that applying this model can significantly enhance decision-making in sustainable vehicle development and support the creation of HEVs that better align with global sustainability goals. This approach has practical implications for automotive manufacturers aiming to innovate responsibly in the green mobility sector.

Evaluating the Impacts of Sustainability Reporting on Financial Performance of Corporations

With the increasing emphasis on corporate sustainability and general global sustainability issues, more companies and firms began to prioritize their business sustainability measures, such as requiring third-party organizations risk assessment and keeping an outstanding ESG score. While some studies have shown that this positively impacts companies financial performance, various results still highlight disagreement. It is still unclear for firms the optimal cost-effective ratio of maintaining a high ESG score. Moreover, sometimes the subjunctive weights of specific indices included in calculation of ESG score by these organizations add uncertainties. This paper focuses on the environmental aspect of the ESG score collected from top ten US companies sustainability reports, analyzed their weights in ESG calculation and mapped significant relationships between environmental indices, social responsibility indices, governance indices, financial performance indices and ESG score through regression analysis. This would provide insights for business decisions to balance sustainability investment to improve firm profitability, as well as the development of ESG evaluation systems.

TIME-VARYING CONNECTEDNESS BETWEEN GREEN MARKETS AND CABLE NEWS-BASED ECONOMIC POLICY UNCERTAINTY: EVIDENCE FROM A TVP-VAR CONNECTEDNESS APPROACH

Purpose- Governments and businesses worldwide are actively driving the growth of green finance (GF) markets as part of their goals towards a natural, sustainable, zero-carbon economy. Along with the turbulent events and developments in global markets, economic policy uncertainty (EPU) levels are constantly increasing, leading to significant spillover shocks on various economic and financial factors. Accordingly, this research aims to identify the dynamic connectivity between cable news-based EPU (TVEPU) and green asset returns, considering the period between 01.10.2014 and 30.09.2024. Methodology- This research employs the TVP-VAR connectedness method to examine the nexus between TVEPU and the returns of green assets. This approach enables the estimation of a generalized connectedness procedure using variance-covariance matrices and time-varying coefficients. Additionally, by applying Wold's representation theorem, it calculates generalized impulse response functions (GIRF) and variance decompositions (GFEVD) to predict the connectedness indices between the variables. Findings- First, we observe that the Fossil Fuel Reserves Free index has the highest influence on other indices while the TVEPU index has the lowest impact on other indices. Second, we find that shocks from international events and news significantly increase the sensitivity of the spillover effects between green assets and TVEPU. Third, we demostrate that the Green Bond (GB) market is a net shock receiver; simultaneously, the Fossil Fuel Reserves Free, Sustainability World and Environmental and Social Responsibility indices are net shock transmitters. Moreover, the findings demonstrate that the net spillover of TVEPU, Global Clean Energy, Carbon Emission Allowances (CEAs) and Renewable Energy and Clean Technology indices changes over time. Fourth, we determine that TVEPU has a meagre impact on the returns of green stocks (GSs) and GBs. Conclusion- This research provides strong evidence that news from wired news networks also impacts uncertainty shocks, emphasising that green asset investors should determine their portfolio diversification and hedging strategies by considering this factor. Keywords: TVEPU, green financial markets, sustainable assets, dynamic connectedness, TVP-VAR based connectedness technique. JEL Codes: D53, E60, Q56

Įmonių socialinės atsakomybės atskleidimo vertinimas didžiausiuose Lietuvos bankuose

The article examines the importance and regulation of corporate social responsibility disclosure. Based on the GRI standards and the recommendations of the Bank of Lithuania, the paper develops a methodology for calculating the corporate social responsibility index and a model for assessing its quality. The paper presents the results of an empirical study conducted to assess the disclosure of corporate social responsibility in the financial statements of the largest Lithuanian banks in the period 2018-2022. The results show that Lithuanian banks tend to disclose more than 91% of the recommended socially responsible information, while the quality of the reports, according to the selected criteria, reaches 64-82%. Nevertheless, it was noted that some banks do not produce CSR reports and publish group reports in languages other than Lithuanian. Some reports show signs of poor quality: the objectives are not specific and measurable and the textual information is repetitive throughout the study period.

Trách nhiệm xã hội và cấu trúc quản trị ảnh hưởng đến rủi ro kiệt quệ tài chính của doanh nghiệp ngành tiêu dùng Việt Nam

Research on 34 Vietnamese consumer goods businesses from 2012 to 2022 has shown a positive relationship between the social responsibility index (CSR) and the Z-Score index, indicating that CSR activities help reduce risks. bankruptcy risk. The distinction between the positions of Chairman of the Board of Directors and CEO has a similar positive effect on Z-Score, emphasizing the role of corporate governance in influencing a company’s bankruptcy risk. Other factors such as large scale, high profitability and high cash ratio all have a positive impact on Z-Score. However, the financial leverage variable has the opposite effect, highlighting the importance of carefully managing financial leverage to prevent bankruptcy risk.

THE EFFECT OF GOOD CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE

This assessment aims to examine the influence of Good Corporate Government (GCG) and Corporate Social Responsibility (CSR) structures on the financial performance of the food and beverage subsector listed on the Indonesia Stock Exchange (IDX) in 2020-2022. Good Corporate Governance (GCG) uses measurements of Managerial Ownership, Institutional Ownership, Independent Commissioners, and Audit Committees. Measurement of Corporate Social Responsibility (CSR) using Corporate Social Responsibility Index (CSRDI). This assessment tested data in a purposive sampling method with IBM SPSS Estimations 23. This evaluation test contains 16 companies that meet the main guidelines for listing on the Indonesia Stock Exchange 2020-2022. The analysis method uses quantitative using classical assumptions, and multiple linear analysis. Showing that the results for legitimate ownership variables, review warnings gather have little effect on the company's financial presentation, while for the Good Corporate Governance (GCG) system, independent commissioners, institutional ownership has a significant impact on the company's financial performance which is reflected in the company's return on assets (ROA). The monetary presentation (ROA) of the company is influenced by the Corporate Social Responsibility section.

Green HRM for Enhanced Environmental Performance: A Circular Economy Perspective Aligned with SDGs

This empirical inquiry explores the use of Green HRM as a strategic tool to improve environmental performance within the context of a circular economy. We chose 200 employees from the Pakistan Stock Exchange (PSX) based on data from the Corporate Social Responsibility (CSR) index. The study employs Structural Equation Modeling-Partial Least Squares (SEM-PLS 4) to examine the relationship between organizational policies and the implementation of circular economy principles within the framework of Green HRM practices. This research is supported by the circular economy, which is defined as a fundamental change in thinking that promotes the reuse of resources, reduction of waste, and efficient use of resources. The SEM-PLS 4 approach is used to validate the theoretical framework that proposes that Green HRM practices provide a significant contribution to the promotion of circular economy initiatives, which in turn lead to considerable gains in environmental performance metrics. Moreover, this method is employed to evaluate the complex causal links in action. Policymakers and business leaders may facilitate the integration of Green HRM into sustainability programs by utilizing the study's findings. It is expected that human capital management will play a crucial role in achieving the circular economy paradigm. This research not only improves our understanding of how Green HRM affects sustainability, but also provides firms with a strategic roadmap for implementing circular economy models.

A Critical Analysis of Corporate Social Responsibility Index: A Systematic Literature Review

This research study gives a comprehensive literature analysis on the topic of corporate social responsibility (CSR), examining its evolution, utilisation, and impact across various nations. Due to the presence of competitive marketplaces, several businesses are compelled to portray themselves as highly socially responsible firms. The surge in scholarly and professional attention towards "Corporate Social Responsibility (CSR) has resulted in the formulation of various definitions pertaining to the concept and its implementation" (Jamali and Mirshak 2007). The phrase in question is not a novel notion, as evidenced by previous scholarly work (Taneja, Taneja, & Gupta, 2011). Its origins may be traced back to the 1950s. In contemporary times, several scholarly works provide compelling evidence that corporate social responsibility (CSR) initiatives may have a big impact on augmenting the value of a company (Mahfuja, 2013). In this particular context, the present study explores the overall advancement of the concepts underlying the notion via its historical roots and subsequent development, adopting a country-specific perspective. The investigation encompasses the practical execution of these ideas and the existing body of literature contributed by various writers during the course of time. In addition, we present a comprehensive framework consisting of fundamental components that several academics often identify with this concept. Moreover, we specifically emphasize the stakeholder’s approach, which has significant relevance among the various theories pertaining to this subject matter.

A Critical Analysis of Corporate Social Responsibility Index

This research study gives a comprehensive literature analysis on the topic of corporate social responsibility (CSR), examining its evolution, utilisation, and impact across various nations. Due to the presence of competitive marketplaces, several businesses are compelled to portray themselves as highly socially responsible firms. The surge in scholarly and professional attention towards "Corporate Social Responsibility (CSR) has resulted in the formulation of various definitions pertaining to the concept and its implementation" (Jamali and Mirshak 2007). The phrase in question is not a novel notion, as evidenced by previous scholarly work (Taneja, Taneja, & Gupta, 2011). Its origins may be traced back to the 1950s. In contemporary times, several scholarly works provide compelling evidence that corporate social responsibility (CSR) initiatives may have a big impact on augmenting the value of a company (Mahfuja, 2013). In this particular context, the present study explores the overall advancement of the concepts underlying the notion via its historical roots and subsequent development, adopting a country-specific perspective. The investigation encompasses the practical execution of these ideas and the existing body of literature contributed by various writers during the course of time. In addition, we present a comprehensive framework consisting of fundamental components that several academics often identify with this concept. Moreover, we specifically emphasise the stakeholders approach, which has significant relevance among the various theories pertaining to this subject matter.

Does corporate governance affect corporate social responsibility?

This research aimed to examine the impact of corporate governance on the corporate social responsibility of the Jordanian companies listed on the Amman stock exchange. Using a dynamic panel system, the current investigation of 65 Jordanians uses GMM estimation for the years 2018 to 2022. Corporate social responsibility has been measured using a corporate social responsibility index. It has 84 items divided into four groups: employee activity items, environmental items, objects related to society and the items related to customers are in the last group. The study concluded that Jordan demonstrated a substantial level of corporate social responsibility in keeping with Jordan's expanding understanding of and practice of corporate governance. Specifically, this study indicated that board meetings, foreign ownership, and block holder ownership significantly influenced corporate social responsibility. Our study’s findings should interest policymakers as well as regulators in nations with similar business ownership and regulatory regimes. This study contributes to addressing an oversight in the literature on social responsibility studies as well as corporate governance characteristics. As a result, this paper provides useful information and insights for businesses and regulators seeking to increase the impact of social responsibility on their businesses through a focus on corporate governance excellence.

Climate uncertainty and green index volatility: Empirical insights from Chinese financial markets

Climate uncertainty and green index volatility: Empirical insights from Chinese financial markets

Corporate Social Responsibility and Capital Structure

Objective: We analyze the effects of capital structure influence on corporate social responsibility (CSR) performance, represented by the ESG score. Prior studies have investigated distinct factors to settle CSR adoption. Nonetheless, corporate social responsibility literature has not yet achieved common consent. Method: This study uses a quantitative research approach. We used a sample of listed companies from the United States of America, China, Japan, Germany, India, the United Kingdom, France, Italy, Brazil, and Canada. Three estimators were applied in the regression model, OLS pooled, IV 2SLS, and GMM 2SLS. Results: Our findings indicate a positive and significant relationship between Capital Structure and CSR. Furthermore, we understand that the positive and statistically significant findings in the relationship between market value and corporate social responsibility index are because corporate social responsibility has an intangible asset in its constitution: the corporate reputation. Therefore, these results converge into accepting these practices, which generate a firm’s value, justifying the positive and significant association. Finally, it is essential to highlight that the variations found between countries, especially companies from nations with higher GDP, need a more substantial capital structure than smaller ones to obtain a positive CSR index. Contributions: The paper argues that the capital structure can be introduced related to adopting corporate social responsibility. It is worth noting that this research aims not to provide an optimal set of factors that affect corporate social responsibility practices but to highlight the intangible effect of corporate reputation generated by the capital structure that other studies can investigate.

Association between contextual factors and coverage of the Acwy meningococcal vaccine, after three years of its overdue, in the vaccination calendar of adolescents in the state of Minas Gerais, Brazil: global space regressions

The objective of the study was to analyze the spatial distribution of vaccination coverage of bacterial meningitis vaccine: A, C, W and Y (menacwy) and identify the association between socioeconomic and social environment factors with menacwy vaccine coverage among adolescents in the state of Minas Gerais (MG), Brazil. This is an ecological, mixed study, conducted with secondary data from the 853 municipalities of the State of MG, Brazil, from 2020 to 2022, provided by the information system of the National Immunization Program. For spatial statistical analysis, spatial dependence and the presence of spatial clusters formed by municipalities with high and low vaccination coverage of Menacwy were evaluated. In the year 2021, MG presented the largest vaccination coverage (60.58%) since the introduction of the Menacwy vaccine by the PNI. Regarding the analysis of global regressions, it is observed that for the year 2020, as the MG Index of Social Responsibility-Health increased and MG Index of Social Responsibility—Public Security increased, increased the vaccination coverage of the municipalities of the Menacwy vaccine. Finally, compared to 2021, similar association was observed in relation to the proportion of the population served by the Family Health Strategy of the municipalities of the state of MG and per capita spending on education activities: as this indicator increased, with increased coverage of the Vaccine of the Menacwy vaccine of the state municipalities. They reinforce the importance of assessing the quality-of-care management and health surveillance system, professional training, and damage reduction to populations, especially adolescents.

Time dynamics in the effect of carbon information disclosure on corporate value

Time dynamics in the effect of carbon information disclosure on corporate value

Development of a sustainable corporate social responsibility index for performance evaluation of the energy industry: A hybrid decision-making methodology

Development of a sustainable corporate social responsibility index for performance evaluation of the energy industry: A hybrid decision-making methodology

Intrinsic drivers of the reputation for CSR: a cognitive analysis of consumer expectations

PurposeThe appraisal of corporate reputation based on third-party corporate social responsibility (CSR) indices appears to have been institutionalized. The endorsement of such an approach by sustainability custodians and influencers undermines the uptake of the morality and legitimacy of CSR. This study takes a social realist perspective, which suggests that social phenomena such as CSR and corporate reputation are shaped by social structures and power relations. This study aims to contribute to a deeper understanding of the complex relationship between CSR and corporate reputation and understand ways in which the constructs are influenced by cognitive factors.Design/methodology/approachThis study surveyed 411 respondents across five shopping malls and analyzed the data using path analysis of the structural equation modeling (SEM) technique. The mall-intercept survey sought to critically assess expectations of CSR vis-à-vis evaluation of corporate reputation. Based on a case study of three Johannesburg Stock Exchange listed companies, CSR expectations were measured along the philanthropic, economic, ethical and legal dimensions, while evaluation of corporate reputation was based on product quality, financial performance and social responsibility. SEM path analysis was used to extrapolate the predictive outcomes of CSR on corporate reputation.FindingsReputation for product quality and social responsibility is underpinned by the fulfillment of ethical CSR expectations, while philanthropic gestures enhance the evaluation of financial performance. Legal CSR significantly influences the reputation for social responsibility and product quality. Fulfillment of economic CSR expectations influences the reputation for product quality. However, no relationship was established between economic performance and social responsibility. Involvement in economic, philanthropic and particularly, legal CSR, are not indicative of the reputation for financial performance. Conversely, companies’ involvement in economic CSR does not suggest a higher propensity for social responsibility.Research limitations/implicationsThe predictive outcomes of CSR expectations on corporate reputation can reveal situated understanding of actual perceptions of corporate behavior.Practical implicationsEthical business conduct is synonymously associated with social responsibility while espoused corporate philanthropy signals strong financial performance. The awareness of consumers’ cognitive evaluation of corporate reputation can offer a pathway to corporate communication professionals, policy makers and agencies to rethink and reposition CSR efforts.Social implicationsInsensitivity to taken-for-granted cultural prescriptions and reliance on market-based reputational rankings undermine mutually beneficial stakeholder relationships and the social license to operate.Originality/valueThis study brings to the fore, cognitively dominated indicators of consumers’ perceptions of the reputation for CSR, to foster nuanced and halo-removed approaches to social responsibility. The authors show for the first time how companies’ skewed focus on corporate philanthropic giving paradoxically signals a capitalistic notion of social responsibility and unethical business conduct. This study offers a halo-removed orientation to the appraisal of CSR and corporate reputation.