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Article
Publication date: 9 November 2012

Li Sun

The purpose of this paper is to examine the association between corporate social responsibility (CSR) and financial performance.

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Abstract

Purpose

The purpose of this paper is to examine the association between corporate social responsibility (CSR) and financial performance.

Design/methodology/approach

This paper performs an empirical test on the association between CSR and financial performance of a firm.

Findings

The regression analysis reveals a significant and positive association between CSR and financial performance. In addition, it finds that the age of long‐term assets is highly correlated with CSR.

Originality/value

This paper extends Cochran and Wood by using a larger and more recent sample to examine the association between CSR and financial performance of a firm. It contributes to the CSR literature.

Details

International Journal of Law and Management, vol. 54 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 10 October 2022

Esti Dwi Rinawiyanti, Huang Xueli and Sharif N. As-Saber

This study aims to investigate the integration of corporate social responsibility (CSR) at a functional level and examine its impact on company performance.

Abstract

Purpose

This study aims to investigate the integration of corporate social responsibility (CSR) at a functional level and examine its impact on company performance.

Design/methodology/approach

Using data from 435 Indonesian manufacturing companies, 11 hypotheses were tested on direct, indirect and total effects of the relationship between functional CSR integration and its impact on company performance. The stakeholder and contingency theories were applied.

Findings

The findings of this study reveal that functional CSR integration has a significant impact on customer, employee, operational and financial performances. The findings show that the relationship between functional CSR integration and financial performance can be mediated by customer, employee and operational performances. The results of this study also highlight that functional CSR integration has a stronger total effect on both customer and financial performances in environmentally non-sensitive industries than in environmentally sensitive ones.

Research limitations/implications

This study expands the prior studies by providing a theoretical framework for the relationship between CSR integration and company performance, as well as testing the framework using quantitative research.

Practical implications

The findings can encourage managers to effectively integrate CSR into business functions to achieve superior social and financial performance, particularly in a developing country context.

Originality/value

To the best of the authors’ knowledge, this study is one of the first to empirically investigate the performance implications of integrating CSR into business functions and reveals new findings on how such integration can substantially improve company performance.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 25 October 2022

Ali Uyar, Moataz Elmassri, Cemil Kuzey and Abdullah S. Karaman

Drawing on legitimacy theory, this study aims to investigate whether the benefits of the external assurance process pass beyond the current period and help firms improve…

Abstract

Purpose

Drawing on legitimacy theory, this study aims to investigate whether the benefits of the external assurance process pass beyond the current period and help firms improve corporate social responsibility (CSR) performance in the subsequent periods. Furthermore, the authors examine whether corporate governance (CG) and firm visibility moderate the relationship between assurance and CSR performance.

Design/methodology/approach

The authors retrieved data from Thomson Reuters from 2002 to 2019 and executed a fixed-effects (FE) panel regression analysis. The country-level sample distribution includes 63 countries with 4,625 unique firms and 29,054 data points within these countries. The authors run several robustness tests using an alternative subsample, instrumental variable regression analysis, country-industry-year FE regression analysis, excluding the financial sector and including additional control variables and regression analysis based on propensity score matching.

Findings

The findings indicate that external assurance helps firms achieve greater CSR performance in the current period and the subsequent two periods following external assurance. However, external assurance exerts its strongest positive impact on CSR performance in the current period, and its influence extends, albeit at a weaker level, to the following two periods. Furthermore, the first moderation analysis reveals that governance structure helps firms translate the assurance process into the greater social performance but does not help to achieve higher environmental performance. The second moderation analysis reveals that firm visibility/size positively moderates between the assurance process and governance and social performance but not between the assurance process and environmental performance.

Originality/value

Despite the concurrent association between CSR performance and assurance being examined before, the lag-lead relationship is the novelty of the study to highlight the long-term effect of assurance on CSR performance. Besides, although the direct effect of both CG practices and firm visibility on CSR performance and the external assurance process has been investigated before, the authors extend the literature by examining the moderating effect of CG practices and firm visibility on the external assurance and CSR performance relationship. This provides a better explanation of the extent to which the effect of external assurance on CSR performance is constructed and conditioned by CG practices and firm visibility, thereby drawing attention to contingencies’ role in firms’ practices.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Book part
Publication date: 10 September 2021

Lois S. Mahoney, Daniel R. Brickner and William LaGore

This research is one of the first studies to examine the effects of CSR disclosures on a firm’s decision to purchase back their own shares of stocks. Additionally, the…

Abstract

This research is one of the first studies to examine the effects of CSR disclosures on a firm’s decision to purchase back their own shares of stocks. Additionally, the authors examine whether the effect of CSR disclosures is stronger than the effect of CSR performance on the decision to repurchase shares. Examining firms in the United States, the authors find that total CSR disclosures and the CSR disclosures related to the dimensions of social, environmental, and governance are significantly and positively related to the number of shares that a firm buys back. Additionally, the authors find that the effects of CSR disclosures are stronger for total and the CSR dimensions of social and governance than for CSR performance. For the environmental dimension of CSR, both disclosure and performance scores are significant. This research expands our understanding of the impact of CSR disclosure by showing the importance it plays in the decision to buy back stock and implies that firms that repurchase their stock are more socially responsive than firms that do not. Finally, it contributes to the growing literature on how CSR disclosure has a different impact than CSR performance on firm decisions and outcomes.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-80071-758-9

Keywords

Article
Publication date: 15 August 2022

Ya-ru Yang, Xiao-lin Han, Xin Wang and Jing-yi Yu

Based on the principal–agent and stakeholder theories, this study aims to put forward an intermediary model to verify the intermediary role of corporate social…

Abstract

Purpose

Based on the principal–agent and stakeholder theories, this study aims to put forward an intermediary model to verify the intermediary role of corporate social responsibility (CSR) in executive equity incentives and corporate innovation performance to improve corporate innovation performance.

Design/methodology/approach

The 2012–2018 A-share listed companies’ disclosure of executive equity incentives data was used as the research sample. This study used CSR as an intermediary to explore the relationship between executive equity incentives and corporate innovation performance. A verification analysis was carried out.

Findings

The research results show that: a positive correlation exists between executive equity incentives and corporate innovation performance, and executives’ reasonable equity incentives can promote the growth of corporate innovation performance. A positive correlation exists between executive equity incentives and CSR. Implementing equity incentives for executives can stimulate their motivation to assume CSR. A positive correlation exists between CSR and corporate innovation performance. The more a company fulfills its social responsibility, the more it can promote the improvement of corporate innovation performance. CSR plays a mediating role between executive equity incentives and corporate innovation performance. CSR promotes executive equity incentives’ impact on corporate innovation performance and exerts a “complete mediating effect” between the two.

Research limitations/implications

The number of samples and the time span of samples can be expanded in the future. This research has tested the mediating effect of CSR, but other mediating variables may play a role in the process of executive equity incentives in promoting corporate innovation performance. Further research should be conducted to explore the mediating effect of financing constraints and media attention on corporate innovation performance. This study only verifies the influence of equity incentives on CSR and innovation performance of senior executives. In the future, other incentive methods should be explored, such as salary incentives.

Practical implications

Foreign research on equity incentives has matured, but the experience of foreign countries cannot necessarily produce the expected effect in China. More than ten years have passed since the China A-share market began implementing equity incentives on December 31, 2005. As of December 31, 2017, about one-third of enterprises in the high-tech industry that had introduced equity incentives had stopped implementing the policy. Data from 2012 to 2018 were selected to analyze the relationship between executive equity incentives, CSR and corporate innovation performance to explore the influence mechanism of equity incentives. This study provides a comprehensive theoretical framework to examine the interaction among executive equity incentives, CSR and corporate innovation performance. Because most previous studies have focused on the relationship between executive equity incentives, CSR and corporate innovation performance, they are rarely been used as an intermediary variable to explore the impact of executive equity incentives on corporate innovation performance. This study explores the impact of executive equity incentives on corporate innovation performance under the influence of CSR. Moreover, this study explores the mediating role of CSR in corporate governance, which provides a new perspective for CSR research and verifies relevant literature on the mediating effect model.

Social implications

Research countermeasures and suggestions: the research results are significant for enterprises implementing executive equity incentives, fulfilling CSR, enhancing corporate reputation, improving corporate innovation performance and ultimately obtaining market competitiveness. Therefore, the following suggestions are proposed: establish and improve the executive equity incentive mechanism and strengthen the promotion effect of executive equity incentives in CSR and corporate innovation performance. Strengthen the awareness of enterprises to actively fulfill CSR and give full play to the role of CSR in promoting corporate innovation performance. Improve the profitability of enterprises and focus on the promotion effect of enterprise profitability on corporate innovation performance.

Originality/value

This study focuses on executive equity incentives and introduces CSR as an intermediary variable to explore the influence path of executive equity incentives on corporate innovation performance. Based on the research results, this study takes targeted measures to improve corporate innovation performance and maintain its healthy growth of corporate innovation performance. This is significant in enhancing enterprises’ core competitiveness and promoting the enterprise economy’s sustainable development. Meanwhile, the enterprise has significant reference value in actively fulfilling its CSR and realizing its stable and healthy development.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Book part
Publication date: 16 October 2014

Robert W. Rutledge, Khondkar E. Karim, Mark Aleksanyan and Chenlong Wu

Research in the field of corporate social responsibility (CSR) has grown exponentially in the last few decades. Nevertheless, significant debate remains about the…

Abstract

Research in the field of corporate social responsibility (CSR) has grown exponentially in the last few decades. Nevertheless, significant debate remains about the relationship between CSR performance and corporate financial performance (CFP). This is particularly true for the case of Chinese state-owned enterprises (SOEs). The purpose of the current study is to empirically test the relationship between CSR and CFP. We use data for 66 Chinese SOEs listed on the Shanghai and Shenzhen stock exchanges. The results are interesting in that they are not consistent with similar studies using US and other Western market data. We find a significant negative relationship between CSR performance and CFP. The results are discussed in light of the preferential government treatment afforded to Chinese SOEs, and social welfare requirements imposed on such entities. Implications for Chinese policy-makers are discussed.

Details

Accounting for the Environment: More Talk and Little Progress
Type: Book
ISBN: 978-1-78190-303-2

Keywords

Book part
Publication date: 3 May 2018

Charles P. Cullinan, Lois S. Mahoney and Pamela B. Roush

We examine the perceived influence of externally generated firm ratings of corporate social responsibility (CSR) on voting for shareholder-sponsored CSR proposals. Using…

Abstract

We examine the perceived influence of externally generated firm ratings of corporate social responsibility (CSR) on voting for shareholder-sponsored CSR proposals. Using stakeholder and legitimacy theories, we introduce two rationales that relate shareholder voting decisions to the firm’s CSR performance: the complementary perspective where investors rely on management’s branding or image of the firm for CSR performance, and the sufficiency perspective where shareholders consider legitimacy effects of firm CSR performance. Our examination of 473 CSR shareholder-sponsored proposals during the 2013 to 2015 proxy seasons reveals a negative relationship between support for shareholder-sponsored CSR proposals and CSR strengths, particularly for social and environmental CSR strengths. We also find a positive relationship between support for shareholder-sponsored CSR proposals and CSR concerns, particular in the area of environmental CSR concerns. These results partially support the sufficiency perspective that incorporates shareholder legitimacy concerns. When companies have poor CSR performance, shareholders may view further CSR initiatives as beneficial to the firm.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-78754-973-9

Keywords

Article
Publication date: 12 July 2022

Saliha Theiri and Bahaaeddin Ahmed Alareeni

The concept of corporate social responsibility (CSR) covers a wide range of actions toward sustainable development. While there are growing bodies of research examining…

Abstract

Purpose

The concept of corporate social responsibility (CSR) covers a wide range of actions toward sustainable development. While there are growing bodies of research examining the drivers of CSR, little has been done to examine the effect of the characteristics of the managerial team on CSR. This paper aims to investigate the interplay between managerial characteristics and CSR practices to discover how such a fit affects financial performance.

Design/methodology/approach

A partial least squares-path modeling approach was applied to a sample of 60 French companies in the tourism sector (hotels, restaurants, leisure and leisure equipment) from 2014 to 2019. This choice was triggered by the importance of this sector in job creation, which has been strongly impacted by the pandemic crisis.

Findings

The findings suggest the positive impact of the managerial characteristics on the practices of CSR activities under certain financial constraints related to the size and indebtedness level. Then, the authors clarify that the variable characteristics component of the managerial team is mainly the educational level, the managerial experience and the ethical behavior. However, no age effect is mentioned. Third, the authors show that the managerial team characteristics and the practices of CSR activities restore the financial tourism sector performance.

Research limitations/implications

This study has obviously certain limitations: first, the selected European sample can mark a big difference in the founding results because of the difference in civil rights. Second, the sample is more marked in the CSR activities. Third, this study did not take into consideration variables operationalizing ownership structure and board nature.

Originality/value

This study develops a model based on “managerial team” mechanisms in a sensitive area. This is a breakthrough in understanding the determinants of CSR strategies and their impact on performance while taking into account the management team’s personal characteristics.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 13 May 2022

Mahfuja Malik and Eunsup Daniel Shim

The purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation…

Abstract

Purpose

The purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation. This study further investigates the moderating role of CSR in the association between executive compensation and firms’ stock market and accounting performances.

Design/methodology/approach

This study collects CEO compensation information from the Execucomp database and CSR performance information from the MSCI ESG database. The final sample consists of 4,193 firm-year observations for 1,318 US public firms for the period 2009–2013. This study uses lagged regression analysis to test the direct and moderating roles of CSR in executive compensation.

Findings

Regarding the direct role of CSR, this study finds that CEO compensation is positively related to CSR performance but not to firms’ issuance of CSR reports. This study also finds a positive moderating role of CSR in the relationship between CEO compensation and firms’ stock performance. However, the authors do not identify any role for CSR in the relationship between CEO compensation and accounting performance. The results also show a negative association of CSR in the relationship between CEO compensation and firm size.

Originality/value

This study fills a gap in the literature by providing empirical evidence on the direct association between CSR and CEO compensation and how the association between CEO compensation and firm performance is moderated by CSR scores. The novel findings of this study will benefit managers, boards of directors, shareholders and other stakeholders, including regulators and policymakers.

Article
Publication date: 5 May 2022

Maqsood Ahmad, Qiang Wu and Muhammad Sualeh Khattak

This study aims to explore the mechanism by which intellectual capital and corporate social responsibility (CSR) influence the sustainable competitive performance of small…

Abstract

Purpose

This study aims to explore the mechanism by which intellectual capital and corporate social responsibility (CSR) influence the sustainable competitive performance of small and medium-sized enterprises (SMEs), with the mediating role of organizational innovation in an emerging economy.

Design/methodology/approach

The data collection was conducted through a survey completed by 208 owners and top managers operating in the service, trading and manufacturing sector SMEs, positioned within twin cities of Pakistan. Structural equation modeling (SEM) was utilized for data analysis.

Findings

The results of the study suggest that intellectual capital and CSR have a markedly positive influence on the sustainable competitive performance of SMEs. The organizational innovation appears to mediate these relationships.

Originality/value

This study pioneers research on the links between intellectual capital, CSR organizational innovation and sustainable competitive performance of SMEs. The current research contributes to the literature by defining intellectual capital and CSR as an antecedent and organizational innovation as an intervening variable for the sustainable competitive performance of SMEs. In addition, this study underlines the significance of intellectual capital and CSR activities as valuable intangible assets for the achievement of sustainable competitive performance of SMEs.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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