Corporate Social Responsibility Value Research Articles

The strategic value of corporate social responsibility CSR: the present and future of its management

Corporate social responsibility (CSR) has become the central theme of many debates on the role of organizations in society in recent years. The voluntary incorporation of strategies that influence economic profitability and in turn social and environmental issues is already a reality in companies. This article has several aims: (1) to analyse whether CSR is strategic and cross-cutting for companies and whether there exists a true dialogue between companies and stakeholders; (2) to identify the functions, relationships and quality of CSR or sustainability directors; (3) to determine the main challenges for the future; (4) to reflect on the impact that Covid-19 has had on the development of CSR in businesses. The study was based on the Delphi method and employed a sample of 20 experts: 10 academics (lecturers and researchers) and 10 professionals (communication and CSR directors, and CSR and reputation consultants). The results reveal that: (1) with the exception of SMEs, CSR management in companies is strategic and cross-cutting; (2) there is no reciprocal dialogue between companies and stakeholders; (3) the functions carried out by CSR directors can be classified as analytical, strategic, tactical and communicative; (4) the most outstanding qualities of the CSR director are communication skills, deep knowledge of the company and a willingness to work as part of a team; (5) the main challenge for senior management for the future is to be more strategic; (6) Covid-19 has changed the focus in CSR areas of action and in the prioritization of stakeholders. In short, we conclude that CSR management is well rooted in companies and represents a true transformation for businesses as social entities.

Threshold effect of government subsidy, corporate social responsibility and brand value using the data of China's top 500 most valuable brands.

An increasing number of firms have begun to attach importance to corporate social responsibility (CSR) to obtain sustainable strategic advantages in the competitive market. On the basis of nonlinear perspective, panel data of A-share listed companies in the ranking list of China’s Top 500 Most Valuable Brands in 2012–2018 and Hansen panel threshold regression technology were adopted. With government subsidy and CSR being threshold variables, the internal mechanism about the influence of government subsidy and CSR on brand value was explored. Results show that the following. (1) CSR has a significantly inverted U-type threshold effect on brand value. (2) Government subsidy facilitates CSR with diminishing marginal utility. (3) When a difference exists in the strength of government subsidy, the influence of CSR on brand value presents a significant N-type law. Furthermore, threshold regression method was used to innovatively explore the complex nonlinear relationship among government subsidy, CSR, and brand value. This relationship has a significantly practical significance for listed firms for weighing the business decisions regarding the input of CSR and brand value, as well as subsidy policies for enterprises by the government.

Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market

PurposeThis paper aims to examine the relationship between corporate social responsibility (CSR) and shareholder wealth arising from announcement returns of security issuance from a frontier market. It also explores the role of business group affiliation (BGA) on this relationship.Design/methodology/approachThe study uses short-term scenarios to examine the link between CSR and shareholder wealth using the event study methodology which helps us mitigate the reverse causality problems related to studies of the relationship between CSR and firm value. Abnormal returns surrounding the security issue announcements were generated using the market model.FindingsThis paper finds that security issuers with high CSR scores are associated with higher shareholder value. However, this paper finds that CSR activities of security issuers with BGA are value-destroying which is consistent with the agency perspective of CSR.Research limitations/implicationsThis study is limited to only one nascent market, namely the Colombo Stock Exchange.Originality/valueThis study documents that CSR and BGA are important determinants, among others, of stock price reactions to security offerings in emerging markets.

Pengaruh CSR, EVA, Dan Traditional Performance Measurement Terhadap Stock Price

The purpose of this study is to empirically examine the impact of Corporate Social Responsibility, Economic Value Added, and Traditional Performance Measurement to stock price in manufacturing companies listed on Indonesia Stock Exchange for 2016-2018 period. Samples were selected using purposive sampling method, with the amount of 73 companies resulted. Data used were financial information from financial statements and annual reports, which were processed using Eviews Ver. 11.0 program. The result of this study shows that Corporate Social Responsibility and Economic Value Added partially has positive and significant impact on stock price, while Traditional Performance Measurement have no significant impact on stock price.

The Value of CSR in Acquisitions: Evidence from China

In this paper, we aim to test whether and how corporate social responsibility (CSR) is valued in merger and acquisition (M&A) transactions. Employing multiple regression and logistic regression methods to examine the CSR in China’s domestic M&A market from 2007 to 2018, we reveal the following: (i) acquisition targets with higher social performance can attain higher acquisition valuation, especially when the acquirers are also socially responsible; (ii) high-CSR acquirers are inclined to choose equity payments, while high-CSR acquisition targets prefer to be paid in cash; (iii) high CSR performance boosts M&A success rate. The findings are robust, due to adopting two-stage least squares method to tackle endogeneity, substituting variable measures and data sources, and winsorizing variables at high levels to eliminate outliers. The value of CSR in M&As possibly results from the role of CSR in reducing information frictions, agency concerns, and corporate risks and is primarily associated with activities which are friendly to suppliers, customers, shareholders, public welfare, and natural environment, as well as being higher in developed regions and irrelevant to corporate ownership and nature. The study is of vital significance to the valuation and decision making in M&A deals.

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic.

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.

Corporate social responsibility, firm value and life cycle: evidence from Southeast Asian countries

PurposeThis study extends related research on corporate social responsibility (CSR) into the less-researched realm of Southeast Asia setting by investigating the role of life cycle stages on the relationship between CSR and firm value.Design/methodology/approachThis study uses a sample of 1,247 firm-year observations of firms listed in Southeast Asia from 2012 to 2018. Descriptive, multiple regression and sensitivity analyses are presented in the study.FindingsThe results provide evidence that although CSR and firm value, in general, have a positive relationship, the relationship is contingent on the stages of firm's life cycle. The effect of each CSR dimension on firm value differs across life cycle stages. The social dimension of CSR predicts higher firm value at the introduction and mature stages. The governance dimension affects firm value at the growth and shake-out/decline stages. Moreover, the environmental dimension affects firm value only at the later stage of the life cycle.Research limitations/implicationsThis study is limited to five countries in Southeast Asia, namely Indonesia, Malaysia, Philippines, Singapore and Thailand from 2012 to 2018. Future studies may explore other countries and investigate the impact of country classification on the relationship between CSR and firm value.Practical implicationsPolicymakers, managers and other decision-makers may have a better understanding of firm's behavior in different life cycle stages. With such understanding, CSR will be successfully adopted in decision making, formulation and implementation of policies.Originality/valueCSR-related research in Southeast Asia remains an under-studied domain, and little attention has been dedicated to different dimensions of CSR and life cycle in the area of CSR-related preference for decision making.

Corporate Social Responsibility, Firm Value and Corporate Governance Code Revisions: The Asian Evidence*

The present study examines the relationship between corporate social responsibility (CSR) and firm value, and the effects of corporate governance code revisions on the relationship. We examine this relationship for: (i) a high‐income country, Japan; (ii) middle‐income countries China, Malaysia and Thailand; and (iii) low‐income countries India and Indonesia. We use the Heckman two‐stage sample selection bias approach for the empirical analysis. We find that Japanese stakeholder CSR and environmental CSR have a smaller positive effect on firm value compared to the middle‐income countries, but we do not find any statistically significant association for the low‐income countries. In addition, we find that only Japanese corporate governance code revisions significantly contribute to the positive relationship between CSR and firm value, which concurs with the new recommendations documented in the revised codes of corporate governance. The present study reveals that foreign major shareholders matter to the value creation of CSR in Japan and the middle‐income countries of China, Malaysia and Thailand.

The impact of CSR best practices on job performance: the mediating roles of affective commitment and work engagement

PurposeOne of the main challenges of human resource management (HRM) functions is how to leverage an organization's corporate social responsibility (CSR) practices for the improvement of employees' job performance. The rationale is that employees identify with and learn from CSR best practices and try to replicate them in their own capacities on the job, thus elevating levels of performance. This study aims at investigating the impact of organizational CSR practices on employee job performance, in the presence of important job attitudes, namely, affective commitment and work engagement.Design/methodology/approachThe study employed structural equation modeling to analyze data that were collected through a survey of previously validated scales. The survey was distributed using the convenience sampling technique among respondents in the Lebanese banking sector, and 302 useable surveys were collected.FindingsThe structural model confirmed the significant influence of CSR best practices on job performance, in the presence of significant mediation effects of affective commitment and work engagement.Practical implicationsThe effects of organizational CSR could be underscored through a variety of HR initiatives that aim at promoting employees' identification with the organization and its CSR goals, thereby enhancing affective organizational commitment and work engagement. Levels of affective commitment and work engagement could be periodically assessed and enhanced through HR-led programs to facilitate and augment their mediatory effects on job performance.Originality/valueThis study fills a gap in the literature by shedding light on the impact of CSR practices on employees' affective commitment and work engagement within the framework of the social cognitive theory. It highlights the importance of employees' identification with their organization's CSR values and practices, leading to improved job performance, a dynamic that has not been studied in previous research. This study also serves as a point of reference to future studies that will be conducted after the Lebanese banking sector undergoes restructuring, following accusations of corruption and mismanagement.

Conformity or differentiation? A U-shaped relationship between peers’ CSR and focal firms’ CSR

PurposeThe purpose of this paper is to investigate the influence of peers’ corporate social responsibility (CSR) on focal firms’ CSR from an integrated perspective. The current study aims to explore whether as peers’ CSR increases focal firms’ CSR would first decrease and then increase.Design/methodology/approachThis study is based on a sample consisting of Chinese listed manufacturing firms from 2010 to 2016. Hypotheses are tested by generalized least squares method to minimum heterogeneity and autocorrelation concern.FindingsThe results show that focal firms’ CSR would first decrease and then increase with the increase in peers’ CSR. Furthermore, this paper found that corporate visibility would stress more value on CSR differentiation strategy and environmental uncertainty would stress more value on CSR conformity strategy, such that the U-shaped relationship would be more pronounced in high corporate visibility or low environmental uncertainty situation.Practical implicationsThe findings may be of interest to the academic researchers and managers. For researchers, it is important to understand how focal firms would practice CSR in response to peers’ CSR, especially through an integrated perspective. For managers, the results show that the best way to invest in CSR activities in response to peers’ CSR follows a U-shaped curve, and corporate visibility and environmental uncertainty are important factors to be considered to make CSR decisions.Originality/valueThis study contributes to the literature by proposing and examining a U-shaped relationship between peers’ CSR and focal firms’ CSR, which stresses the conformity and differentiation value of CSR simultaneously. Besides, to fully map the effects of peers’ CSR and focal firms’ CSR, this paper considers the moderating roles of internal and external contingencies on this non-linear relationship between the peers’ CSR and focal firms’ CSR.

Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity

In response to consumer demands for brands to be more socially responsible, luxury brands have been engaging and promoting their corporate social responsibility (CSR) initiatives to build brand equity. However, the past literature suggests that lack of compatibility between values related to luxury and CSR could lead to negative reactions from consumers. This research investigates how luxury brands can overcome the challenge of communicating their CSR initiatives by leveraging celebrity endorsers. Specifically, a celebrity endorser who is perceived to care about social causes can transfer meaning associated with self-transcendence and self-enhancement to the messaging, thus increasing the perception of fit between the brand and the social cause, which consequently impacts brand equity. The findings of this study offer research implications for academics, and practical considerations for luxury brand managers interested in finding ways to effectively communicate their CSR initiatives to consumers.

Construction Of Financial Funding Models Of Batik MSMEs In Central Java Oriented To Cost And Benefit Of CSR (Corporate Social Responsibility)

Research on the construction of the financial financing model for batik MSMEs in Central Java which is oriented towards the value of the cost and benefit of CSR (Corporate Social Responsibility) aims to see the extent to which the implementation of the cost and benefit value of CSR on batik MSMEs in Central Java, especially on three research objects. Among others: Laweyan batik, Lasem batik and Pekalongan batik. This is based on, maybe if we look at industry or large-scale companies, of course the cost and benefits they usually appear in every financial report at the end of each year. Meanwhile, for MSMEs to determine the implementation of the cost and benefit value, it has a tremendous impact on the survival of MSMEs. This research was conducted to determine that this research was conducted on a financial financing model for batik MSMEs which is oriented to the value of the cost and benefit of CSR. Data were collected using purposive sampling according to the criteria for determining the sample in 3 research objects. Whether it's in the batik area of ​​Laweyan, Lasem, and Pekalongan MSMEs. The analysis technique used is Partial Least Square (PLS) analysis to test the hypothesis with a quantitative approach. The results of the study show that efforts to increase the construction of financial funding at the UMKM Kampung Batik Laweyan Solo, Kampoeng Batik LasemRembang and Kampoeng Batik KaumanPekalongan by implementing cost and benefits CSR are carried out by implementing social activities such as processing waste products , reducing harmful chemicals in the process. batik production, participate in environmental protection activities

Labor unions and corporate social responsibility

Abstract Using corporate social responsibility (CSR) scores, we examine the effect of unionization on non-shareholding stakeholders and the value of CSR for unionized firms. Our findings suggest that unionization leads to lower CSR. This negative relation between unionization and CSR is stronger for financially constrained firms. We address endogeneity issues by controlling for firm characteristics including firm fixed effects, examining a quasi-natural experiment, and using regression discontinuity design examining union certification elections. Unionized firms with lower CSR have better alignment of CEO and shareholder interests and higher market values than other unionized firms.

Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions

The research objectives are to study the implementation of Islamic Corporate Social Responsibility (i-CSR) values in BMT UGT Sidogiri, an Islamic microfinance institution in Indonesia based on Islamic boarding school or pesantren. This research employed a post-positivist paradigm. Data observation was performed by conducting an in-depth interview with several informants. The data analysis utilized an interactive model technique. The research results showed that i-CSR was successfully implemented in the Islamic microfinance institution based on Islamic boarding school due to the mutual passion (convergence) with conventional CSR typologies. The convergence is in two ways, firstly managerial behavior that focuses on protecting company stakeholders, second, creating sustainable corporate values through effective and efficient business activities. The orientation is the creation of a social role based on justice and sustainable development. The convergence is mainly in the dimensions of economic, legal, ethical and philanthropic responsibilities. The Islamic values have enriched the implementation of i-CSR as the form of practicing the teachings of Islam and evidence of human servitude to God so that the behaviors become worthy of worship. The implementation of i-CSR focused on the Islamic teachings. Compliance to Islamic jurisprudence and apply it in business activities became a divergent element of conventional CSR concept.

Under pressure: exploring pressures for corporate social responsibility in mutual funds

PurposeThis empirical study seeks to understand how mutual fund firms interpret conflicting pressures to conform or differentiate in the context of corporate social responsibility (CSR). Research suggests that organizations engage in practices that conform to industry standards in order to be seen as legitimate members of their industry. Other studies suggest that organizations differentiate themselves in order to compete and outperform their rivals. Pressures for organizational conformity and differentiation are explored in two types of organizations in the mutual fund industry: socially responsible investment (SRI) and non-SRI firms.Design/methodology/approachThe research is based on qualitative in-depth interviews with twenty-six mutual funds.FindingsThe analysis revealed that pressures for conformity and differentiation were salient among mutual fund executives but emphasized differently for the two types of mutual funds.Originality/valueThe study concluded by suggesting SRI firms use both strategies of conformity and differentiation to amplify the message that they adhere to the values of CSR.

How do investors value corporate social responsibility? Market valuation and the firm specific contexts

In this paper, we offer a new explanation regarding the specific contexts when CSR will have a positive impact on a firm’s market value. We argue that investors will value CSR positively if the firm-specific context implies that CSR is expected to create a market premium through the mechanisms of downside risk reduction or upside efficiency enhancement. Specifically, firms that have high financial risk or environmental risk are able to benefit from CSR as a risk mitigation strategy, and firms that have high earnings stability are able to benefit from CSR as an efficiency enhancement strategy. Using panel data for U.S. firms from 2002 to 2011, we show that CSR is beneficial to firm value when a firm faces high financial and/or environmental risk or has high earnings stability, whereas when a firm operates in a low-risk environment or has low earning stability, CSR is detrimental to firm value.

Does value added of intellectual capital influence voluntary disclosure? The moderating effect of CSR practices

Research Question: Does the effect of corporate social responsibility (CSR) practices and value added of intellectual capital (VAIC), is contingent on the intellectual capital (IC) information disclosure policy adoption in the Environmental, Social and Governance (ESG) companies? Does CSR have a moderating effect on the relationship between VAIC and IC disclosure? Motivation: The majority of the literature has examined the effect of value added and social responsibility on the overall transparency of the business while neglecting their effect on the voluntary intellectual capital disclosure. Our study seeks to fill this gap by testing the moderating effect of socially responsible practices on the relationship between VAIC and voluntary IC disclosure. This paper is the first comprehensive attempt to analyses the interaction between CSR practices and VAIC with voluntary IC disclosure. Idea: This study examines how CSR practices moderate the relationship between the added value of intellectual capital (VAIC) and voluntary disclosure of IC in the world's most committed ESG companies in business ethics. Data: The data were collected from Thomson Reuters ASSET4 database from four countries to analyze data of 153 listed companies selected from the Environmental, Social and Governance (ESG) index between 2015 and 2019. Tools: To test study’s hypotheses, we applied linear regression with a panel data using the Thomson Reuters ASSET4 database. Findings: Two main results can be derived: First, the integration of CSR into company strategy is positively associated with voluntary IC disclosure. Second, the interaction between CSR practices and VAIC is a determinant of this type of disclosure to reduce the asymmetry of information and the conflict of interest. Contribution: The majority of the literature has examined the effect of value added and social responsibility on the overall transparency of the business while neglecting their effect on the voluntary intellectual capital disclosure. Our study seeks to fill this gap by testing the moderating effect of socially responsible practices on the relationship between VAIC and voluntary IC disclosure. This paper is the first comprehensive attempt to analyses the interaction between CSR practices and VAIC with voluntary IC disclosure.

기업의 사회적 책임과 사회적 가치 실현에 관한 탐색적 연구

UN은 2016-2030년까지의 국제사회의 공동목표로 경제 · 사회 · 환경적 요인을 포괄하는 사회적 가치들을 반영한 ‘지속가능발전목표’를 선포하였고, 기업의 사회적 책임에 관한 지침인 ISO 26000이 제정되었으며, 포용국가를 새로운 국가 체제로 제시한 우리 정부도 ‘사회적 가치 실현’을 정부혁신 종합 계획으로 추진하고 있다. 성장 위주의 신자유주의 및 신공공관리론의 패러다임이 한계에 부딪히고 저성장 및 양극화, 기술혁신으로 인한 일자리 부족 등의 새로운 사회적 위험에 직면하여 사회적 가치 실현을 통해 사회통합과 삶의 질 향상, 지속가능한 발전 등을 도모하려는 움직임이 시작된 것이다. 그러나 사회적 가치의 개념과 범주는 아직까지 명확하게 확립되지 않았고, 기업의 사회적 가치 실현을 측정할 수 있는 구체적인 기준도 미흡한 상황이다. 이에 본 연구는 선행연구와 선행지표들에 대한 문헌고찰을 통해 사회적 가치의 개념과 구성항목들을 고찰, 분석하여 사회적 가치의 범주를 인권, 삶의 질, 일자리, 사회자본, 지역사회공헌, 교육과 성장, 환경, 공정운영의 8개 범주로 재구성하고 그 세부항목들을 제시하였다.

Trust and the value of CSR during the global financial crisis

AbstractLins, Servaes and Tamayo (2017) (LST) show that during the Global Financial Crisis (GFC) US firms with high corporate social responsibility (CSR) ratings increased in value relative to firms with low CSR ratings. Our study raises questions about the internal and external validity of the inferences in LST. For a similar sample of US stocks, we find no evidence that high CSR firms outperformed low CSR firms during the GFC when we use a calendar‐time portfolio analysis that controls for industry, or uses value‐weighted portfolios. For a sample of Japanese stocks, we also fail to confirm the results reported in LST.

The effect of managerial ability on corporate social responsibility and firm value in the energy industry

AbstractWe investigate the role of managerial ability in the relationship between corporate social responsibility (CSR) and firm performance in the energy industry, where sustainability issues are of special interest. We first identify a positive association between CSR and firm value, which, however, disappears when considering managerial ability. Only the MA‐associated components of CSR increases energy firms' value. Finally, managers with superior ability can still efficiently implement CSR activities to foster firm value during the financial crisis. Taken together, these results suggest that higher managerial ability is a crucial certification of the benefit of CSR investment, which in turn improves firm value, particularly during unstable periods.