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1 – 10 of over 2000
Article
Publication date: 23 August 2021

Anissa Dakhli

The purpose of this paper is to investigate the relationship between ownership structure and corporate social responsibility (CSR). Specifically, this paper examines the impact of…

1747

Abstract

Purpose

The purpose of this paper is to investigate the relationship between ownership structure and corporate social responsibility (CSR). Specifically, this paper examines the impact of financial performance on the relationship between ownership structure and CSR.

Design/methodology/approach

This study uses panel data set of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique.

Findings

The results indicate that investors have different attitudes toward CSR engagement. While institutional ownership affects positively CSR engagement, managerial ownership shows a negative effect. Findings also show that financial performance accentuates these effects.

Research limitations/implications

The findings have practical implications that may be useful to regulators and managers interested in enhancing CSR. For regulators, the results advise policymakers to restrict managerial ownership and promote institutional investments to improve CSR. For managers, the results suggest developing more sophisticated intervention mechanisms to deal with conflicting voices that could result from different owners’ attitudes toward CSR. As an extension to this research, further study can examine the impact of audit quality on CSR.

Originality/value

This study proposes the establishment of dynamic links between ownership structure and CSR around firm financial performance. In addition, it investigates not only the overall CSR ratings but also each of CSR pillars, namely, environmental, social and governance.

Book part
Publication date: 31 October 2022

Susanne Rank

Employees as citizens and companies as part of our society have to deal with the implications of grand challenges such as the global climate change or the COVID-19 pandemic in…

Abstract

Employees as citizens and companies as part of our society have to deal with the implications of grand challenges such as the global climate change or the COVID-19 pandemic in this turbulent twenty-first century. Internal versus external Corporate Social Responsibility (CSR) acquires an integrative element of sustainable business strategies. Human Resource Management (HRM) contributes by defining modern internal Workplace CSR concepts for supporting sustainable business strategies. The focus of the sustainable HRM strategy is the employees as the key asset of companies, applying especially to those who are particularly talented as future leadership successors and CSR ambassadors. On the basis of the current Green HRM and Workplace CSR review, theoretical and practical implications are concluded to foster Workplace CSR strategy as part of a modern working culture and an integrative HRM frame. The COVID-19 pandemic as an accelerator of Green and social transformation is also discussed in the context of this sustainable HRM framework.

Article
Publication date: 7 December 2021

Anissa Dakhli

The purpose of this paper is to investigate the direct and indirect relationship between board gender diversity and corporate tax avoidance using corporate social responsibility …

1817

Abstract

Purpose

The purpose of this paper is to investigate the direct and indirect relationship between board gender diversity and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable.

Design/methodology/approach

This study uses a panel dataset of 200 French firms listed during 2007–2018 period. The direct and indirect effects between board gender diversity (BGD) and tax avoidance were tested by using structural equation model analysis.

Findings

The results indicate that the presence of women on corporate boardrooms negatively affects tax avoidance. The greater the proportion of women in boards, the lower the likelihood of tax avoidance practice. In the mediation test, CSR appears to partially mediate the link between women on boards and corporate tax avoidance. Additional analysis shows that the social dimension of CSR produces this mediating effect.

Practical implications

The results have practical implications for companies in regulating the composition of their boards. To benefit from diversity, firms have to increase women‘s percentage in their boards of directors. Also, investors are encouraged to pay attention to the percentage of female directors when investing and purchasing shares.

Social implications

This study proved empirically that the higher proportion of female directors significantly reduces the possibility of tax avoidance either directly or indirectly through enhancing CSR performance. The findings show that firms with gender diversified boards are more likely to get involved in CSR for hedging against the potential consequences of aggressive tax avoidance practices. In light of the above results, firms are well-advised to strongly apply the policy encouraging or mandating women as board members to take advantage of their expected benefits.

Originality/value

The originality of this paper consists in proposing the establishment of both direct and indirect relationships between BGD and corporate tax avoidance through CSR. Unlike prior studies that have been examining the direct relationship between corporate governance mechanisms and corporate tax avoidance, this study went further to investigate the indirect relationship between these two constructs. This study also differs from prior studies as it examines the effect of BGD on each of constituting pillars of CSR, namely, environmental, social and governance. To date, an extensive part of CSR research has used the combined score of CSR, but the effects on different CSR pillars remain little investigated.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 16 March 2020

Som Sekhar Bhattacharyya and Surabhi Verma

Corporate Social Responsibility (CSR) deliberated regarding business firms' actions for doing well to society and natural environment. Specifically, CSR has been about firms…

Abstract

Purpose

Corporate Social Responsibility (CSR) deliberated regarding business firms' actions for doing well to society and natural environment. Specifically, CSR has been about firms contributions towards stakeholder management. As world economy has prospered over the last couple of centuries, business firms have had also increased its footprints in social landscape. In such a scenario, the roles and responsibilities of business firms have expanded in society. Over the years, CSR as a domain of research and literature has developed into a very potent and rich field. Presently, CSR literature as a body of knowledge has become substantial. The authors in this literature review study attempts to conceptually map this complex field of CSR literature.

Design/methodology/approach

The objective of this literature review study was to present a visual mapping of intellectual structure of CSR in five-dimensions and to identify the subfields of CSR research concluded by co-citation analysis. All the citation research documents which were listed in the Web of Knowledge (WoK) database between 1998 and 2019 were analysed. Multivariate analysis was undertaken for the literature review. The study conducted a sequence of statistical analyses comprising of factor analysis, multidimensional scaling and cluster analysis.

Findings

This literature review research study summarised the contours and status of CSR research by categorizing the CSR literature into five classification factors, namely CSR Drivers CSR, Contextual Grounding of CSR, Historical Legacy of CSR, Strategic CSR and CSR Implementation. Further, based upon the analysis of literature review of extant research in CSR, both the contemporary and imminent CSR-related research themes were also deliberated upon.

Research limitations/implications

The results were helpful for academic scholars of CSR to comprehend both the gamut and focus of CSR literature over the years (between the years 1998 and 2019). The sequence of analyses involved factor, multidimensional scaling and cluster analysis. CSR literature was categorized into five factors namely- CSR Drivers, Contextual Grounding of CSR, Historical Legacy of CSR, Strategic CSR and CSR Implementation.

Originality/value

This study was one of the first set of studies to review the literature on CSR research articles by using citation, co-citation and social network analysis.

Details

International Journal of Sociology and Social Policy, vol. 40 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 13 March 2017

Marwa Samet and Anis Jarboui

The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in…

2725

Abstract

Purpose

The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in European context. Specifically, this paper aims to empirically examine how CSR moderates the sensitivity between investment spending and firm internal funds.

Design/methodology/approach

The Euler equation technique approach is applied to test the sensitivity of investment to internally generated funds for a panel data set of 398 European companies listed in the STOXX Europe 600 during 2009-2014. Furthermore, a mediated moderation model is developed in order to examine the moderating role of CSR in the investment-cash flow sensitivity, as well as the mediating role of agency costs on the moderation effect of CSR.

Findings

The results show that CSR performance weakens the sensitivity of investment to internal funds; agency costs of free cash flow mediate the negative moderating effect of CSR on investment-cash flow sensitivity. Thus, this study demonstrates empirically that firms with socially responsible practices are better positioned to obtain financing in the capital markets through reducing market frictions as well as agency costs.

Practical implications

Firms are invited to engage more in CSR activities that reduce agency conflicts between management and shareholders.

Originality/value

The originality of this paper consists in proposing the establishment of both direct and indirect link between CSR and investment-cash flow sensitivity.

Details

Managerial Finance, vol. 43 no. 3
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 10 November 2020

Corey Fox, Phillip Davis and Melissa Baucus

The purpose of the present research is to explore the relationships between corporate social responsibility (CSR), authentic leadership and business model flexibility during times…

4859

Abstract

Purpose

The purpose of the present research is to explore the relationships between corporate social responsibility (CSR), authentic leadership and business model flexibility during times of unprecedented crises.

Design/methodology/approach

The research approach in this study is conceptual. After a brief review of the literature associated with CSR, authentic leadership and business models, the authors introduce a model describing the interaction of authentic leadership and business model flexibility on CSR heterogeneity.

Findings

This research explains how firms that are led by authentic leaders and that have flexible business models will be more engaged with their stakeholders than firms with less authentic leaders or more rigid business models during unprecedented crises.

Practical implications

Prescriptions for practitioners are suggested for improving authentic leadership as well as making adaptations to the firm's business model. Regarding authentic leadership, firms can screen potential new hires and existing employees for authentic leadership qualities. Firms can also rely upon existing interventions shown to assist in authentic leadership development for current leaders. At the business model level, firms can focus on core resources and their application in related product and service markets.

Originality/value

Firms engaged in CSR activities benefit more from those activities when leaders are authentic. However, in times of unprecedented crises, business model flexibility may also dictate the extent to which firms can satisfy their stakeholders. The authors introduce a conceptual model that takes the elements of authentic leadership and business model flexibility into account to explain CSR heterogeneity.

Details

Management Decision, vol. 58 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 24 November 2020

Sami Bacha, Aymen Ajina and Sourour Ben Saad

This study aims to shed light on the effect of corporate social responsibility (CSR) on the cost of debt. It also investigates whether audit quality affects the cost of debt…

2787

Abstract

Purpose

This study aims to shed light on the effect of corporate social responsibility (CSR) on the cost of debt. It also investigates whether audit quality affects the cost of debt incurred by socially responsible firms.

Design/methodology/approach

Based on a sample of French non-financial companies over the period 2005 to 2016, this paper uses panel data regressions. This paper re-estimates the model using Newey-West standard errors and the weighted-least-squares method. For further robustness, this paper runs instrumental variable regressions using the two-stage instrument variable method (two-stage least square).

Findings

The results show a negative relationship between CSR performance and the cost of debt, suggesting that financial institutions are likely to apply preferential costs for socially responsible firms. Financial institutions reward socially responsible companies as they recognize the potentiality of CSR to reduce firm risk and enhance its reputation. The findings also show that the perceived audit quality, along with CSR performance, are relevant to banks in the pricing of debt. The incremental audit quality, attributable to audits by the Big 4 auditors, decreases the cost of debt for CSR firms. Big 4 auditors are expected to, simultaneously, play information and insurance roles, thereby enhancing the firm risk profile. The results are robust to alternative audit quality measures (i.e. audit fees).

Practical implications

This study has important implications for managers and banks. Managers will be able to understand the effect of CSR on financing costs with relevant implications for strategic financing planning. Firms are also encouraged to signal their commitment to maintain a high-level quality reporting and reduce agency costs through their expenditure in auditing (i.e. hiring a large well-known audit firm). Moreover, this study sensitizes banking institutions to encourage the concept of socially responsible finance and consider soft information (i.e. involvement in societal issues, corporate citizen, trustworthiness, integrity and non-opportunistic behavior), as part of the credit decision-making and debt pricing process.

Originality/value

This study extends the literature on CSR and the cost of debt. Unlike prior studies, this paper focuses on the debt-pricing effects of audit quality for CSR firms. Audit quality is deemed to be an important governance feature that is likely to constraint opportunistic behaviors (i.e. CSR diversion) and play information and insurance roles to lenders. Audit quality (perceived or real), along with CSR performance, are associated with lower costs of debt.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 11 September 2017

Marwa Samet and Anis Jarboui

The purpose of this paper is to investigate whether and how corporate social responsibility (CSR) performance contributes to shape firms’ payout policy. In particular, it examines…

2899

Abstract

Purpose

The purpose of this paper is to investigate whether and how corporate social responsibility (CSR) performance contributes to shape firms’ payout policy. In particular, it examines the influence of CSR performance on payout level and payout channel choice (dividend payment or share repurchases). Additionally, it examines the moderating role of CSR performance in the relationship between dividends and share repurchases.

Design/methodology/approach

Using 397 European companies listed in the STOXX Europe 600 over the period from 2009 to 2014, the authors employ regression analysis to explore the link between CSR performance and payout policy.

Findings

The first result shows that firms with high CSR performance engage more in payout policy. Second, when choosing between paying dividends and repurchasing stocks, firms with high CSR performance tend to prefer share repurchases. Finally, CSR performance plays an important role in determining the relationship between dividends and repurchases. Specifically, dividends and share repurchases seem to be more substitutable among socially responsible firms.

Practical implications

Firms that are able to develop successful CSR strategies can generate tangible benefits for their shareholders in the form of high payout levels. An increase in CSR expenditure does not lead to cut or minimize the cash flow paid out to shareholders. In addition, government and regulators have to oblige or at least encourage socially responsible firms to use executive stock option that are dividend protected, in order to reduce distortions in dividend policy.

Originality/value

This is the first attempt to investigate the association between CSR performance and share repurchase activities.

Details

Managerial Finance, vol. 43 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 22 November 2018

Francesco Gangi, Mario Mustilli and Nicola Varrone

Assuming that corporate social responsibility (CSR) is “a process of accumulating knowledge and experience” (Tang et al., 2012, p. 1298), this paper aims to investigate whether…

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Abstract

Purpose

Assuming that corporate social responsibility (CSR) is “a process of accumulating knowledge and experience” (Tang et al., 2012, p. 1298), this paper aims to investigate whether and how CSR knowledge (Asif et al., 2013; Kim, 2017) affects financial performance in the European banking industry.

Design/methodology/approach

The empirical research analyses a panel of 72 banks from 20 European countries over seven years (2009-2015). The hypotheses were tested using fixed effects regression analysis and the two-stage Heckman model (1976) to address endogeneity bias.

Findings

The findings of this work are twofold. First, consistent with the concept of knowledge absorptive capacity (Cohen and Levinthal, 1990), the internal CSR of banks (Kim et al., 2010) positively affects citizenship performance (Peterson, 2004a). Second, in line with the reputational effect of CSR (Margolis et al., 2009; Bushman and Wittenberg-Moerman, 2012), citizenship performance is a positive predictor of a bank’s financial performance.

Practical implications

From a knowledge-based perspective, the analysis shows that accrued internal CSR knowledge plays a key role in implementing effective CSR programs for external stakeholders. Moreover, this study shows how CSR engagement in external initiatives can improve a bank’s competitiveness because of the relationship between citizenship performance and the positive reputation of a bank.

Social implications

The management of CSR initiatives may favor the sharing of knowledge and creation of trust relationships among banks and internal and external stakeholders. CSR knowledge contributes to expanded value creation for both society and banks.

Originality/value

The knowledge management perspective of CSR provides new insights into the sustainability of banks’ business models and contributes to advancing the debate on the governance modes and effects of CSR. Moreover, the CSR perspective offers additional opportunities for addressing the challenges associated with sharing tacit knowledge within and outside of organizations.

Details

Journal of Knowledge Management, vol. 23 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 31 May 2022

Gianpaolo Basile, Mohammad Fotouhi Ardakani, Andrea Mazzitelli and Georgia Sakka

In developed countries, corporate social responsibility (CSR) has become an important element for firms, as CSR strategies enhance their competitiveness and corporate reputation…

Abstract

Purpose

In developed countries, corporate social responsibility (CSR) has become an important element for firms, as CSR strategies enhance their competitiveness and corporate reputation, has CSR the same role in the emergent countries? To answer this question, the authors build a conceptual framework and focus their research on Iran's context with the aim to find an answer to the following research question: does CSR influence innovation processes and how much is it increasingly a cultural value in the same level of competitive ones? Therefore the purpose of this research is to study the role of CSR in firms operating in emergent countries

Design/methodology/approach

In the pandemic era, CSR could be considered not what you do with your money once you have made it but how you make your money safeguarding environmental resources and answering community needs, in collaboration with other social and economic agents. While investigating CSR, we have to take into account the fact that different countries have different priorities and values that shape the way business operates.

Findings

To reach this aim, the authors carried out the research during the pandemic period, between September 2021 and December 2021, on almost 500 small and medium enterprises operating in Ardakan area in Iran, a simple random sample was surveyed by partial least squares-structural equation modelling.

Originality/value

Given the lack of empirical studies on the considered country, this research has attempted to determine the impact of CSR practices on innovation and, simultaneously, to check the effect of innovation on CSR practices, in order to test empirically whether there is a bidirectional relationship. Furthermore, the study reveals the importance of integrating social and economic stakeholders’ requirements and expectations about environmental and social concerns within a country in which the specific norms’ presence is weak.

Details

Management Decision, vol. 60 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of over 2000