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Article
Publication date: 14 March 2024

Mohsin Shabir, Jiang Ping, Özcan Işik and Kamran Razzaq

This study investigates the relationship between corporate social responsibility (CSR) and financial performance of the banking sector from the prospective of emerging countries.

Abstract

Purpose

This study investigates the relationship between corporate social responsibility (CSR) and financial performance of the banking sector from the prospective of emerging countries.

Design/methodology/approach

This study obtained balance sheet and income statement data for 173 banks in 20 emerging countries from the Bankscope database from 2005–2018. The CSR-related data were taken from the Thomson Reuters ASSET4 database. Moreover, macroeconomic controls such as GDP per capita, inflation, and financial development are attained from the GFDD. The series of institutional quality indices (Political Stability, Rule of Law, Control of Corruption, Government Effectiveness, and Regulatory Quality) is obtained from the WGI. At the same time, national culture and bank regulation are attained from Hofstede Insights and Barth et al. (2013). We used the panel fixed-effects model in our baseline estimations, while 2SLS and GMM were applied to control for endogeneity.

Findings

The finding shows that CSR activities significantly improve bank performance, but the effect varies across the bank. Only environmentally friendly activities have shown a significant positive relationship with banking performance for CSR dimensions. However, the social and government dimensions did not significantly affect bank performance. Moreover, a sound institutional and regulatory environment and national norms play an important role in the nexus of CSR activities and bank performance.

Originality/value

This study provides empirical evidence that sheds light on CSR and bank performance in an emerging market context.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 26 March 2024

Mehtap Aldogan Eklund and Pedro Pinheiro

This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and…

Abstract

Purpose

This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories.

Design/methodology/approach

Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used.

Findings

It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees.

Practical implications

This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide.

Social implications

COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues.

Originality/value

The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.

Details

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

Keywords

Article
Publication date: 18 December 2023

Saeed Rabea Baatwah, Mohammed Bajaher and Mohammed Asiri

This study aims to provide archival evidence on the impact of board characteristics on corporate social responsibility (CSR) monetary performance and how they interact with the…

Abstract

Purpose

This study aims to provide archival evidence on the impact of board characteristics on corporate social responsibility (CSR) monetary performance and how they interact with the COVID-19 pandemic in the context of CSR monetary performance.

Design/methodology/approach

This study analyzes listed companies in Oman’s capital market from 2016 to 2021, using pooled ordinary least squares and unique CSR performance measures such as budgeting and spending.

Findings

The study finds that companies with more expertise and frequent meetings are more likely to allocate a larger budget for CSR activities. However, this does not apply to larger boards or to independent directors. During the COVID-19 pandemic, the effect of independent directors on CSR budgeting and spending is more pronounced, and boards with more expertise and meetings show a negative interaction with the pandemic. The interaction of board characteristics with COVID-19 in terms of CSR monetary performance varies depending on company size. Board independence and expertise show a significant reaction to COVID-19 infection and death cases when setting CSR budgeting and spending.

Research limitations/implications

The findings of this study are stimulating, but stem from an emerging country with unique cultural and institutional characteristics. Methodological issues were also encountered during the analysis, so readers should exercise caution when applying the results to other settings.

Practical implications

This study highlights board involvement in deciding a company’s CSR investment, as it was believed that chief executive officers are considered responsible for CSR activities. Additionally, this research underscores the significance of incorporating the financial aspects of CSR into reporting.

Originality/value

This study examines the seldom explored relationship between corporate boards and CSR monetary aspects during regular and irregular times, offering theoretical and practical insights that benefit multiple stakeholders.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 15 December 2023

Cemil Kuzey, Ali Uyar, Nejla Ould Daoud Ellili and Abdullah S. Karaman

This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation.

Abstract

Purpose

This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation.

Design/methodology/approach

This study includes an international and cross-sector sample covering 41 countries, nine sectors and 45,395 firm-year observations. It applies a parabolic relationship, rather than linear regressions, between CSR engagement and social reputation via CSR awarding. This implies that CSR performance should increase until a certain point to gain a social reputation but then should decrease after reaching that threshold point considering limited financial resources.

Findings

The findings of country-industry-year fixed-effects logistic regressions confirm the threshold effect with an inverted U-shaped relationship between CSR and CSR awarding. More specifically, firms increase their environmental and social engagement until a certain point, and then they reduce it after reaching a social reputation. This finding is confirmed by three dimensions of the environmental pillar (i.e. resource use, emissions and eco-innovation) as well as four dimensions of the social pillar (i.e. workforce, human rights, community and product responsibility). The findings are robust to alternative samples, alternative methodology and endogeneity concerns.

Practical implications

The findings of this study have implications for firms about the better allocation of available funds between CSR and operations. The findings could be particularly useful for CSR teams/committees of the firms who formulate CSR policies and how to mobilize firm resources for better social enhancement via environmental and social reputation.

Originality/value

This study examines deeper the nature of the association between CSR engagement and social reputation and considers the possibility of an inverted U-shaped relationship between them. The determination of a threshold effect suggests that CSR engagement increases social reputation, but once it reaches a certain point, social reputation will decrease owing to financial resource constraints.

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

Article
Publication date: 11 October 2023

Ali Uyar, Ali Meftah Gerged, Cemil Kuzey and Abdullah S. Karaman

This study aims to guide firms in emerging markets on whether corporate social responsibility (CSR) engagement facilitates their access to debt with the moderation of asset…

Abstract

Purpose

This study aims to guide firms in emerging markets on whether corporate social responsibility (CSR) engagement facilitates their access to debt with the moderation of asset structure and firm performance. Considering the moderating effect analysis, this study explores the substitutive or complementary effect of these two contingencies on CSR-oriented firms in accessing debt financing.

Design/methodology/approach

Drawing on data collected for 16 emerging markets between 2008 and 2019, this study runs country–industry–year fixed-effects regression.

Findings

This study finds that CSR performance and reporting facilitate access to debt in emerging markets. However, CSR performance does not have an inverted U-shaped influence on firms’ access to debt financing. The moderation analysis of this study shows that asset tangibility has a negative moderating effect on the link between CSR engagements (i.e. both CSR performance and reporting) and access to debt, confirming a substitutive relationship between asset tangibility and CSR engagements in accessing debt. In contrast, firm performance is positively moderating the nexus between CSR engagement proxies and access to debt, which confirms a complementary type of relationship between firm performance and CSR engagements in accessing debt.

Practical implications

The empirical evidence of this study implies that creditors critically consider CSR engagements of firms in the loan-granting decision process. Similarly, the inverted U-shaped relationship between CSR and access to debt implies that there is an optimal level of CSR engagement creditors might consider in their decision. Likewise, the moderating effects analysis highlights that asset tangibility and firm performance are two conditions under which CSR performance and reporting are linked to access to debt.

Originality/value

Emerging countries are a different set of countries than developed ones; they have high growth rates and hence need financing, have a weaker institutional environment and have weaker stakeholder power. These particularities motivated the authors to conduct a separate study focusing on CSR and debt financing links drawing on a wide range of emerging countries. Thus, this study adds to the ongoing debate by examining the conditions under which CSR-oriented firms can access debt financing in emerging economies.

Details

Review of Accounting and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 5 April 2023

Qianqian Guo, Huawen Shen, Daisy X.F. Fan and Dimitrios Buhalis

This research paper aims to explore whether and how perceived corporate social responsibility (CSR) influences employee-associated outcomes in ways that are controllable by…

Abstract

Purpose

This research paper aims to explore whether and how perceived corporate social responsibility (CSR) influences employee-associated outcomes in ways that are controllable by managers. Drawing from the theories of self-determination and social identity, this study investigates the mediating effects of psychological needs fulfillment and organizational identification in exploring the mechanisms that link perceived CSR to employee job performances of Chinese state-owned tourism companies.

Design/methodology/approach

Survey was used to collect original data from ten Chinese state-owned tourism companies to examine the proposed model. Data was analyzed through structural equation modeling.

Findings

Employees’ perceptions of CSR are found to demonstrate significantly effective associations with their job performance. Moreover, results support that the influences of CSR on staff’s job performance are also conveyed through psychological needs fulfillment (competence) and organizational identification (i.e. cognitive identification and affective identification).

Practical implications

Findings not only provide strategic ideas and operational tactics for tourism managers to devise CSR strategies and allocate CSR resources but also offer inspirations to integrate CSR initiatives with human resource management strategies.

Originality/value

This study diverts the research of CSR from the organizational level to the individual level. This study also explores the mechanism of psychological needs fulfillment and organizational identification underlying processes in the employee perceptions of CSR–job performance linkages.

Details

International Journal of Contemporary Hospitality Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-6119

Keywords

Open Access
Article
Publication date: 3 March 2023

Muhammad Ishtiaq Ishaq, Huma Sarwar, Simona Franzoni and Ofelia Palermo

Considering the significance of the human resource management (HRM) and corporate social responsibility (CSR) relationship, the aim of this research is twofold: first is to…

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Abstract

Purpose

Considering the significance of the human resource management (HRM) and corporate social responsibility (CSR) relationship, the aim of this research is twofold: first is to measure the cultural differences between HRM, CSR and sustainable performance relationship (study 1) and second is to identify the how HRM instigates CSR and sustainable performance (study 2) in the hospitality industry of UK and Pakistan.

Design/methodology/approach

A mixed-method approach was used to collect the qualitative and quantitative data from upscale hotels. In Study 1, a multi-respondent and time-lagged strategy was employed to collect the data from 162 Pakistani and 290 UK upscale hotels. In Study 2, in-depth semi-structured interviews were conducted to understand the HRM–CSR–performance nexus.

Findings

The results of Study 1 highlight the significant cultural differences in the relationships of HRM–CSR–performance, while Study 2 explains that ethical culture, shared objectives, transparency, training and development, and economic incentives are the factors that push the employees to take part in CSR-related activities and attaining higher sustainable performance.

Originality/value

This study addresses the debate on the difference between cross-cultural studies related to implementing Western theories in shaping, developing and implementing business strategies, including CSR, HRM and sustainable performance in an Asian context.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 5 March 2024

Xiufeng Li and Zhen Zhang

This study aims to analyze and discuss the impact of corporate social responsibility (CSR) on firms’ performance, as well as to examine the interplay between CSR and the economy…

Abstract

Purpose

This study aims to analyze and discuss the impact of corporate social responsibility (CSR) on firms’ performance, as well as to examine the interplay between CSR and the economy, society and innovation.

Design/methodology/approach

This paper collects data from 420 manufacturing firms across various geographical regions in China. By using a structural equation model, the paper investigates the impact of CSR on enterprise innovation, customer management capability, market competitiveness (MC) and firm financial performance.

Findings

The findings demonstrate that CSR performance positively contributes to enhancing the level of enterprise innovation, as well as customer management capability and market competitiveness. Furthermore, it assists enterprises in improving market competitiveness and elevating customer management capabilities. Thus, CSR can have a positive effect on the firm financial performance.

Originality/value

The outcomes presented in this paper offer valuable evidence regarding the influence of implementing CSR on different aspects of enterprise performance and innovation. Moreover, it provides practical recommendations for enterprises seeking to transition towards low-carbon practices and upgrade their manufacturing industry.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 2 February 2024

Chenxiao Wang, Qingpu Zhang, Lu Lu and Fangcheng Tang

This study was aimed at obtaining a micro understanding of corporate social responsibility (CSR) by investigating the effect of perceived CSR on job performance. Especially, an…

Abstract

Purpose

This study was aimed at obtaining a micro understanding of corporate social responsibility (CSR) by investigating the effect of perceived CSR on job performance. Especially, an attempt is made to explore the mediating role of perceived organizational support and the moderating role of collectivism on the relationship between perceived CSR and job performance.

Design/methodology/approach

This study collected questionnaire data from 219 employees of Chinese manufacturing firms, then used hierarchical multiple regression analysis to test our theoretical model.

Findings

Our empirical results demonstrate that perceived internal and perceived external CSR are positively associated with job performance. In addition, perceived organizational support mediates the relationship between perceived CSR and job performance, and collectivism positively moderates the relationship between perceived external CSR and perceived organizational support.

Practical implications

This study highlights the importance of adopting various strategies to conduct CSR practices, enhancing perceived organizational support and leveraging employee collectivism, which would be beneficial to improve job performance.

Originality/value

This study reveals employees’ underlying attitudes and behaviors responses to perceived CSR, thereby deepening the micro understanding of CSR. In addition, it extends the literature on social exchange theory by dividing perceived CSR into perceived internal and perceived external CSR and exploring their separate effects on job performance. Moreover, the study reveals the mediating role of perceived organizational support and the moderating role of collectivism, enriching the knowledge based on social exchange theory.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 31 January 2023

Meng Du and Yang Li

The purpose of this study is to analyse the recently highly debated topics of the Tax avoidance–Corporate social responsibility (CSR) performance nexus and to further investigate…

Abstract

Purpose

The purpose of this study is to analyse the recently highly debated topics of the Tax avoidance–Corporate social responsibility (CSR) performance nexus and to further investigate the impacts of engaging in socially responsible activities on financial performance and bank debt financing constraints, at a disaggregate level (firm level).

Design/methodology/approach

The sample for this study includes all publicly listed companies headquartered in BRICS countries from 2014 to 2020. The study employs detailed financial accounting information and the Environmental, Social and Governance scores released by Thomas Reuters EIKON database, which is regarded as the most authoritative indicator of CSR performance. Both pooled and panel data regression models are employed, and robustness tests that use a wide range of model specifications, measures and estimators are performed.

Findings

The study finds robust evidence that corporate tax avoidance is negatively associated with CSR performance. The authors also find that firms with better CSR performance have healthier financial performance and lower costs of bank debt. Overall, the research findings are supportive of the corporate culture theory, which suggests that firms behave ethically consistent in both CSR practices and tax payment.

Originality/value

CSR performance and the engagement of tax avoidance activities have been documented in the literature to be vital elements investors care about. This study focuses specifically on the association between them and further elaborates their impacts in the financial markets. To the best of the authors' knowledge, this is the first study which investigates the nexus in a sample that includes the most powerful emerging markets in the world. The results of this study are generalisable in terms of the implications of CSR management to many other emerging markets.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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