Search results
1 – 10 of over 1000Mohsin 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
Keywords
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
Keywords
Nongnapat Thosuwanchot and Min Suk Lee
This study aims to examine the impact of independent directors' ownership on corporate social responsibility (CSR) performance. In line with the stakeholder-agency paradigm's…
Abstract
Purpose
This study aims to examine the impact of independent directors' ownership on corporate social responsibility (CSR) performance. In line with the stakeholder-agency paradigm's prediction, the authors propose that higher independent directors' ownership is associated with higher CSR performance. By drawing on the attention-based view, the authors further examine firm-level conditions that impact the situated attention of independent directors holding high equity ownership as they are active agents.
Design/methodology/approach
The authors collected data covering the years 2009–2013 for firms listed in the S&P 500 index. The authors tested the hypotheses using firm fixed-effects models.
Findings
The results show that higher independent directors' ownership is associated with higher CSR performance. Prior firm performance and available slack resources are found to have diverse impacts on the association between independent directors holding high equity ownership and CSR performance.
Originality/value
This study highlights the importance of examining the performance-based incentives of independent directors on firms' CSR performance. This study also provides a better understanding of factors impacting independent directors' situated attention as boundary conditions.
Details
Keywords
Kamilah Ahmad and Shafie Mohamed Zabri
This study aims to explore corporate social responsibility (CSR) implementation in small and medium-sized enterprises (SMEs) and examines the role of management accounting…
Abstract
Purpose
This study aims to explore corporate social responsibility (CSR) implementation in small and medium-sized enterprises (SMEs) and examines the role of management accounting practices (MAPs) in the relationship between CSR and performance in SMEs.
Design/methodology/approach
A questionnaire survey was conducted among 1,000 SMEs in the southern region of Malaysia, and 203 valid replies were received.
Findings
The results indicate that most SMEs are informed about their social responsibilities across several CSR dimensions. There is evidence that supports the significant direct relationship between CSR and firm performance, and MAPs significantly and indirectly contribute to the effect of CSR on firm performance.
Originality/value
The findings contribute to an understanding of how the integration of CSR and MAPs can amplify the effect of CSR implementation on performance in SMEs. The finding may be useful for the relevant policymakers to increase socially responsible activities among SMEs to spur further growth for SMEs and society. SMEs may acknowledge MAPs as a significant intermediary in making CSR activities financially and operationally feasible.
Details
Keywords
This study aims to investigate how organizational culture (OC) and transformational leadership (TL) affect corporate social responsibility (CSR) performance (environmental…
Abstract
Purpose
This study aims to investigate how organizational culture (OC) and transformational leadership (TL) affect corporate social responsibility (CSR) performance (environmental performance and social performance) and financial performance (FP) in the context of the Italian manufacturing sector. Grounded in resource-based view theory, this study explores how these factors influence sustainable firm performance.
Design/methodology/approach
Data gathered from 260 employees were analyzed to examine the multidimensional aspects of CSR, encompassing social and environmental sustainability.
Findings
The findings highlight the pressing need for sustainable firm performance in the existing environment, supporting the hypothesis that firms achieve sustainable and FP through the recognition of TL and OC. Moreover, a positive and significant relationship between CSR performance and FP was established, underscoring the strategic importance of integrating CSR initiatives into core business practices. This study offers valuable insights for both academia and firms, providing theoretical and practical implications that underscore the importance of cultivating a robust OC to drive performance enhancements.
Originality/value
This study is novel because it is one of the first, to the best of the author’s knowledge, to analyze the relationships between TL, OC and performance components associated with CSR.
Details
Keywords
Elvis Kwame Agyapong, Louis David Junior Annor and Williams Ohemeng
This paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the…
Abstract
Purpose
This paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the surmised nexus.
Design/methodology/approach
Annual data for 122 Ghanaian rural banks from ARB Apex Bank, World Development Indicator (WDI) and World Governance Indicator (WGI) for the period 2014–2020 were compiled for analysis. A two-stage system generalized method of moments (GMM) estimator was used in examining the relationships under study.
Findings
The findings suggest that CSR has a significant negative effect on return on assets (ROA), return on equity (ROE) and stability (Z-score). On the other hand, further results showed that CSR positively influences net interest margin (NIM). Again, the results suggest that government effectiveness exerts a positive moderating influence on the effect of CSR on performance from all four measurement criteria (ROA, ROE, NIM and Z-score) in the Ghanaian rural banking sector.
Originality/value
The study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating influence of governance structures is also assessed on the relationships to guide policy on rural banking.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0116.
Details
Keywords
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
Keywords
Gopal Kumar, Felix T.S. Chan and Mohit Goswami
The coronavirus (COVID-19) is the worst pandemic in recent memory in terms of its economic and social impacts. Deadly second wave of COVID-19 in India shook the country and…
Abstract
Purpose
The coronavirus (COVID-19) is the worst pandemic in recent memory in terms of its economic and social impacts. Deadly second wave of COVID-19 in India shook the country and reshaped the ways organizations functions and societies behave. Medical infrastructure was unaffordable and unsupportive which created high distress in the Indian society, especially for poor. At this juncture, some pharmaceutical firms made a unique social investment when they reduced price of drugs used to treat COVID-19 patients. This study aims to examine how the market and the society respond to the price reduction announcement during the psychological distress of COVID-19.
Design/methodology/approach
Market reactions have been analyzed by conducting an event study on stock market data and visual analytics-based sentiment analysis on Twitter data.
Findings
Overall, this study finds positive abnormal returns on the day and around the day of event. Interestingly, this study finds that returns during the time of high distress are significantly higher. Sentiment analysis conveys that net sentiment is favorable to the pharmaceutical firms around the day of event and it sustains more during the time of high distress.
Originality/value
This study is unique in contributing to the business and industrial management literature by highlighting market reactions to social responsibility of business during the time of psychological distress in emerging economies.
Details
Keywords
Zhi Cao, Dong-Young Kim, Yinping Mu and Vinod Singhal
The growing focus on socially responsible supply chain management (SRSCM) has made it crucial to extend corporate social responsibility (CSR) to upstream suppliers. Drawing on…
Abstract
Purpose
The growing focus on socially responsible supply chain management (SRSCM) has made it crucial to extend corporate social responsibility (CSR) to upstream suppliers. Drawing on resource dependence theory, this study aims to examine how supplier dependence upon socially responsible buyers impacts suppliers' CSR performance and how this relationship is moderated by network prominence and demand uncertainty.
Design/methodology/approach
The proposed hypotheses are tested using regression analysis with Heckman's two-stage model and a dyadic supply chain dataset constructed based on publicly traded Chinese firms between 2008 and 2016. This time window is selected due to a one-year lag of the dependent variable and the change in evaluation methods of the database providing CSR performance in 2018.
Findings
The empirical results indicate that supplier dependence upon socially responsible buyers is positively associated with suppliers' CSR performance. However, this positive relationship is attenuated when suppliers occupy a prominent position in the network or when they face high demand uncertainty.
Originality/value
This study extends knowledge about the role of relationship dependence in implementing SRSCM by highlighting its positive impact on suppliers' CSR. Thus, this study contributes to the buyer–supplier relationship literature and the power and relationship dependence literature. This study further advances the understanding of the factors that influence suppliers' behavior by exploring the moderating roles of network prominence and demand uncertainty. The results have several practical implications for managers and policymakers.
Details
Keywords
Anjali Kaimal and Shigufta Hena Uzma
The paper aims to examine how Indian non-financial service sector companies’ financial performance is influenced by their corporate social responsibility (CSR) expenditures. The…
Abstract
Purpose
The paper aims to examine how Indian non-financial service sector companies’ financial performance is influenced by their corporate social responsibility (CSR) expenditures. The paper also analyses whether family ownership has a moderating role in the CSR expenditure–financial performance association.
Design/methodology/approach
The study includes 288 non-financial service sector companies listed in India with 3,456 firm-year observations. Panel data regression analysis using data for 12 years, starting from 2010 to 2021, is carried out.
Findings
The study reveals a positive influence of CSR spending on financial performance measures (Tobin’s Q and return on assets). Mandatory CSR policies also influence the company’s performance. Additionally, family ownership has a positive moderating effect on CSR expenditure–financial performance (Tobin’s Q).
Research limitations/implications
The study gives insights to the managers on how CSR expenditures can be used to maximise their benefits by supporting social causes, particularly in the case of firms with ownership structures where family involvement is there.
Originality/value
The prior studies analysing family ownership effect on the CSR–financial performance relationship are fewer, and in a country like India, where corporate philanthropy is a part of the family business culture, there is a need to understand how CSR spending influences firm performance.
Details