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1 – 10 of over 39000Wonsuk Cha, Michael Abebe and Hazel Dadanlar
The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s…
Abstract
Purpose
The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s social and environmental performance.
Design/methodology/approach
A theoretical framework was developed based on upper echelons and stakeholder theories to argue that CEOs’ professional background characteristics can be closely related to firm-level social and environmental performance. Hierarchical OLS analysis was conducted using data from 178 large, publicly traded large US firms between 2010 and 2013.
Findings
Overall, the findings suggest that firms led by CEOs with active civic engagement are more likely to support various philanthropic efforts. Additionally, the findings suggest that firms led by civic-minded CEOs are more likely to support an active corporate environmental engagement by investing significant resources in various environmental causes. Contrary to the authors’ predictions, the level of CEO civic engagement was not a significant predictor of firm level community engagement activities.
Research limitations/implications
The findings extend current scholarly work on executive determinants of corporate social performance by highlighting the important role of CEOs’ personal engagement beyond studying CEOs’ demographic characteristics. Specifically, the findings that the CEO-civic engagements lead to higher degrees of corporate philanthropy and environmental performance show that CEOs’ civic engagement can go beyond what is considered symbolic executive actions.
Practical implications
The findings suggest that firms that seek to foster social and environmental performance in a meaningful way should recruit and retain CEOs that have a personal commitment to and engagement in various social and environmental issues and causes.
Originality/value
By empirically examining the effect of CEO civic engagement on corporate philanthropy, community involvement and environmental performance, this paper seeks to contribute to the scholarly conversation on the effects of CEOs in shaping the firm’s social and environmental engagement and addressing external stakeholder concerns.
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This study aims to investigate the role of firm age in the relationship between CEO characteristics (measured by founder status and civic engagement) and the level of corporate…
Abstract
Purpose
This study aims to investigate the role of firm age in the relationship between CEO characteristics (measured by founder status and civic engagement) and the level of corporate philanthropy which is one of the important components of corporate social responsibility (CSR) practices (Carroll, 1991).
Design/methodology/approach
Drawing from upper echelons theory, this study argues that firm age functions as a barrier that limits the relationship between CEO characteristics and the level of corporate philanthropy. Moderated regression analysis (MRA) was used to analyze data from 146 publicly traded US firms between 2010 and 2017.
Findings
This study verified that there is a significantly positive relationship between CEO civic engagement and the level of corporate philanthropy although the relationship between CEO founder status and the level of corporate philanthropy was not found to be significant. Specifically, the relationship between CEO characteristics and the level of corporate philanthropy was weaker as firms get older. Overall, the results indicate that the organizational inertia of older firms can restrict the effect of CEO characteristics on corporate philanthropy.
Research limitations/implications
This study provides new insight into the underlying mechanisms between CEOs and firm age. This study also suggests that CEOs interpret corporate philanthropy as an important part of their civic engagement which broadly supports business legitimacy for their firm.
Practical implications
This study provides lessons for executive selection and succession decisions toward CSR strategies. Specifically, this study provides a practical foundation of how executives’ civic engagement can be related to corporate philanthropy as an important dimension of CSR practices. Furthermore, this study suggests that shareholders pay more attention to the ultimate decision-maker, the CEO, in an organization as his or her background characteristics can reflect a firm’s social responsibility initiatives, including corporate philanthropy.
Originality/value
This study contributes to on-going scholarly work in the field of strategic leadership and corporate philanthropy literature. In addition, this study provides empirical evidence to the nature of scholarly conversations regarding the role of firm age in shaping the relationship between CEO characteristics and corporate philanthropy.
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Salifu Yusif and Abdul Hafeez-Baig
This study aims to explore the strategies corporations use in engaging stakeholders to sustain healthy corporate partnerships and create value for the corporate entity and the…
Abstract
Purpose
This study aims to explore the strategies corporations use in engaging stakeholders to sustain healthy corporate partnerships and create value for the corporate entity and the society in which they operate and their influence on the corporate manager’s cognitive abilities and decision-making.
Design/methodology/approach
The authors used an interpretive research approach leveraging the strengths of qualitative method of content analysis and comparative and critical analyses to report the results. Interpretive methods incorporate social theories and standpoints that view reality as the social construction of understandable events in the context of organizational communication.
Findings
The findings of this study suggest that corporations are assumed to follow and execute the principles of engaging stakeholders to achieve corporate social responsibility (CSR) claiming to manage a sustainable and responsible business practices that recognize local cultures, human rights and protect the environment. However, little attention has been paid to the cognitive reasoning of the individuals responsible for CSR and corporate sustainability (CS) as opposed to the growing concerns about strategies corporations use in engaging stakeholders to sustain healthy corporate partnerships and create value – especially the processes that take place during engagement and decision-making including cognitive offloading.
Practical implications
Stakeholder engagement requires practical approaches that enable corporations and individuals charged with decision-making responsibilities to understand, respond and fulfill their CSRs. To achieve CSRs, corporations and managers responsible for relevant decision-making would need to involve stakeholders in social performance planning, as social reporting/auditing has long been advocating for preventing managerial biasness, groupthink and increased information dissemination via detailed reporting practices toward more collaborative stakeholder relationships. Thus, it is crucial for corporations to implement enhanced stakeholder and managerial decision-making strategies such as integrative approaches to achieve balance in the trio elements of sustainability as well as the growing use of paradox perspective to understand the nature of the tensions being sought to balance and, in the process, provide opportunity for a better evaluation of complex sustainability issues for innovative approach to resolving them. While cognitive decision-making is at play, in practice, managers tasked with making decisions must ensure the most effective stakeholder engagement strategies that are transparent and inclusive are used.
Originality/value
The main contribution of this study is its argument regarding the tools corporations use in engaging key stakeholders and the cognitive reasoning of the individuals responsible for CSR and CS. The study further contributes to interpreting the integrative approach to achieving balance in the trio elements of sustainability as well as the growing use of paradox perspective to understand the nature of the tensions being sought to balance and, in the process, provide an opportunity for a better evaluation of complex sustainability issues for an innovative approach to resolving them.
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Federica Doni, Antonio Corvino and Silvio Bianchi Martini
Lately, sustainability issues are increasingly affecting all sectors, even if oil and gas industry is highly required to improve its social performance because of the societal…
Abstract
Purpose
Lately, sustainability issues are increasingly affecting all sectors, even if oil and gas industry is highly required to improve its social performance because of the societal pressure to environmental protection and social welfare. Sustainability concerns and corporate governance features and practices are more and more connected because sustainability has been perceived as a crucial topic by owners and managers. In this perspective, the empirical analysis aims to explore whether and to what extent, sustainability-oriented corporate governance model is linked with social performance.
Design/methodology/approach
By adopting a multi-theoretical framework that includes the legitimacy theory, the stakeholder theory and the resource-based view theory, this analysis used a sample of 42 large European-listed companies belonging to the oil and gas industry. The authors run fixed effects regression models by using a dependent variable, i.e. the social score, available in ASSET4 Thomson Reuters, and some independent variables focused on sustainable corporate governance models, stakeholder engagement, firm profitability, market value and corporate risk level.
Findings
Drawing upon the investigation of a moderating effect, findings display that stakeholder engagement is positively associated with corporate social performance and it can be considered an important internal driver able to shape a corporate culture and most likely to address corporate social responsibility issues.
Research limitations/implications
This study confirms the need to develop an organizational and holistic approach to corporate governance practices by analyzing internal and external governance mechanisms. From the managerial perspective, managers should opt for a sustainable corporate governance model, as it is positively correlated with corporate social performance.
Originality/value
There is an urgent need to investigate sustainability issues and their potential association with firm internal mechanisms, particularly in the oil and gas industry. This paper can extend the current body of knowledge by pointing out a positive relationship between stakeholder engagement and firm social performance.
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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.
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Linjuan Rita Men and Chun-ju Flora Hung-Baesecke
Academics and professionals across management and communication fields have increasingly recognized significant contributions of engaged employees to organizations. The purpose of…
Abstract
Purpose
Academics and professionals across management and communication fields have increasingly recognized significant contributions of engaged employees to organizations. The purpose of this paper is to investigate the effect of communication channels, and communication attributes of transparency and authenticity on employee engagement in China.
Design/methodology/approach
A web survey was conducted with 407 employees randomly selected from a variety of medium-sized and large corporations in China.
Findings
The study results show that face-to-face interactions and social media are the most effective channels in building organizational transparency, authenticity, and engaging employees in China. Organizational transparency and authenticity demonstrate strong positive effects on employee engagement. Theoretical and practical implications are discussed.
Originality/value
This study was among the first empirical attempts to examine the impact of corporate communication channels on employee engagement in China. It also contributes to the growing literature on corporate transparency and authenticity, two of the major communication trends identified in the twenty-first century.
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Wafa Jilani, Jamel Chouaibi and Ahmed Kouki
The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role…
Abstract
Purpose
The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role of bank risk-taking behavior.
Design/methodology/approach
Based on a 13-year data set (2007–2019), the authors applied the feasible generalized least squares with panel data to test the hypotheses.
Findings
The findings reveal a positive and significant link between CEO behavior and CSR engagement. Based on these findings, it can be argued that the characteristics of the CEO of the banks would improve the CSR strategies. Furthermore, the study suggests a moderating effect of bank risk-taking in the link between psychological bias and corporate social responsibility engagement (CSR engagement).
Practical implications
As CEO behavioral characteristics are essential to understanding CSR practice, boards of directors should consider the behavioral traits of dominant and overconfident CEOs while designing CSR practices.
Social implications
If the bank behaves in a socially responsible manner, direct and indirect stakeholders may be able to evaluate the level of risk-taking in more detail.
Originality/value
This research highlights the importance of CEO behavior characteristics for CSR, which is a crucial application that supports the upper echelons theory; and fills a gap in literature research. It is one of the few studies examining the interaction between risk-taking, CEO behavior and CSR engagement.
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Afework Getachew Kassa and Geremew Teklu Tsigu
Synthesizing theoretical and empirical literature, this study aims to build a theoretical model linking the constructs; corporate entrepreneurship, employee engagement and…
Abstract
Purpose
Synthesizing theoretical and empirical literature, this study aims to build a theoretical model linking the constructs; corporate entrepreneurship, employee engagement and innovation.
Design/methodology/approach
Using an integrative review method the current study conducted an examination of related literature on the areas of corporate entrepreneurship, employee engagement, as well as innovation and developed an integrated model which combines the three constructs. The study bases itself on the resource-based view (RBV) for looking into corporate entrepreneurial ecosystems as organizational capabilities and employee engagement as a human resource. The social exchange theory (SET) was also used to analyse the interrelationships.
Findings
An RBV synthesis made on corporate entrepreneurship, employee engagement, as well as innovation literature shows that while corporate entrepreneurship has been recognized as beneficial to bring positive organizational outcomes, attempts to tie it in the core resource, capability and competence input-output linkage are scanty. The study shows that the RBV can be a good way to see human resources as a source of organizational competitive advantage and corporate entrepreneurship as the capability to product innovation as a competence. The study also shows that by combining the RBV with the SET corporate entrepreneurship, employee engagement and innovation can be integrated as a basis for developing organizational competitiveness.
Practical implications
The implication of this paper to future empirical studies is that corporate entrepreneurship can be integrated with the RBV to relate it to the core competitive advantage development endeavour. The implication for policymakers and management practitioners on the other hand is that managers can consider corporate entrepreneurship as a major capability to bring the employee resource on board the innovation process. The study further implies that management practitioners need to provide time, freedom, boundary, reward and support to get their employees engaged in innovation. Hence, managers can integrate the SET into their motivation principles.
Originality/value
The study is original in its attempt to integrate the SET and RBV for studies in the area of corporate entrepreneurship, employee engagement and innovation.
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Lindani Myeza, Marianne Kok, Yvette Lange and Warren Maroun
This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa.
Abstract
Purpose
This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa.
Design/methodology/approach
This study uses a qualitative approach based on semi-structured interviews with 18 participants, comprising of preparers of financial statements, board members and management consultants/advisors. The study also relied on the analysis of articles on corporate webpages and publications produced by professional bodies on the economic, social and environmental impact of COVID-19.
Findings
The results of this study indicated that governing bodies demonstrated stakeholder engagement during times of crisis through transparent reporting, corporate social responsibility initiatives and active stakeholder inclusivity.
Originality/value
This study contributes to the body of research on stakeholder engagement during a crisis and provides evidence of the role stakeholder inclusivity can play in responding to a crisis. The findings will be useful in understanding the importance of stakeholder engagement during times of crisis. The study is one of the first, to the best of the authors’ knowledge, to evaluate how stakeholder engagement principles can be followed by governing bodies during a crisis.
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Brendan O'Dwyer, Jeffrey Unerman and John Bradley
This study presents an in‐depth investigation of non‐governmental organisations' (NGO) perceptions of CSD (corporate social disclosure) in Ireland. It commences the process of…
Abstract
Purpose
This study presents an in‐depth investigation of non‐governmental organisations' (NGO) perceptions of CSD (corporate social disclosure) in Ireland. It commences the process of addressing a lacuna in the CSD literature, whereby the perspectives of non‐managerial stakeholders have been largely ignored. In particular, it responds to O'Dwyer call for research to examine the nature and extent of stakeholder demand for CSD in Ireland in order to inform the future development of accountable Irish CSD practices.
Design/methodology/approach
Evidence is collected from in‐depth interviews with senior representatives of major Irish NGOs. The paper focuses on the nature of NGO demand for administrative reforms encompassing types of CSD and the prospects for supporting institutional reforms aimed at further empowering less powerful stakeholder groups.
Findings
A demand for the development of stand‐alone, mandated, externally verified CSD mechanisms predominates the perspectives. This is motivated by a desire to see stakeholder “rights” to information enforced given Irish companies' apparent resistance to engaging in complete and credible CSD. A number of perceived obstacles to the development of institutional mechanisms designed to support any desired CSD developments are exposed. These encompass: active corporate resistance to discursive dialogue, corporate resistance to voluntary information disclosure, a compliant political elite unwilling to confront the corporate sector on social and environmental issues, and a fragmented NGO community which has difficulty in raising public awareness about corporate social and environmental impacts. Evidence of antagonism between certain NGOs and elements within the Irish corporate sector is also illuminated.
Practical implications
The paper reflects on these perspectives and considers their implications for the development of accountable CSD mechanisms in Ireland.
Originality/value
Adds to the literature on CSD.
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