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1 – 10 of 805Bambang Tjahjadi, Noorlailie Soewarno, Tsanya El Karima and Annisa Ayu Putri Sutarsa
This study aims to determine whether socially friendly business strategy impacts social sustainability performance and, if so, whether social management process and spiritual…
Abstract
Purpose
This study aims to determine whether socially friendly business strategy impacts social sustainability performance and, if so, whether social management process and spiritual capital act as mediators and moderators of the relationship.
Design/methodology/approach
This study uses a comprehensive research framework consisting of the mediation and moderation relationship among four constructs, namely, socially friendly business strategy, social management process, spiritual capital and social sustainability performance. A total of 433 owners/managers of micro, small and medium-sized firms (MSMEs) in the Indonesian province of East Java took part in this study, and the data were gathered using a survey method. The resource-based view, stakeholder theory and partial least squares structural equation modelling are all used in this study to evaluate and explain the hypotheses.
Findings
The results show that both socially friendly business strategy and social management process positively affect social sustainability performance. Further analysis reveals that spiritual capital moderates the effect of socially friendly business strategy on social sustainability performance. Second, social management process mediates the influence of socially friendly business strategy on social sustainability performance in part.
Research limitations/implications
The current study has limitations. First, it restricts the scope of its sample to MSMEs in Indonesia’s East Java Province. As a result, it also restricts its generalizability, and care must be used if the findings are applied to other types of organizations and geographic areas. Second, some survey participants needed help to complete the online questionnaire. As a result, collecting the data were less successful than anticipated. This study has significant implications for the development of the stakeholder theory, particularly in elucidating the mechanisms by which socially responsible corporate strategies, social management practices and performance in terms of social sustainability are affected.
Practical implications
The findings provide a comprehensive guidance for owners/managers in reorienting their business strategy, managing the social management process and building their spiritual capital to achieve social sustainability performance. It provides materials for researchers and students who are interested in studying the subject matter.
Social implications
MSMEs have a significant role in society. The welfare of society will therefore increase if social sustainability performance is successful. The overall model of social sustainability performance improvements and its antecedents are presented in this study.
Originality/value
To the best of the authors’ knowledge, this study is among the first attempts to explore the general model of improving social sustainability performance using four constructs that are rarely used in previous studies. It also uses a new data set and research setting in Indonesia as one of the emerging countries.
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Ivo Hristov, Matteo Cristofaro and Riccardo Cimini
This study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the…
Abstract
Purpose
This study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the role of NFRs in value creation.
Design/methodology/approach
Data from 76 organizations from 2017 to 2019 were collected and analyzed. Four primary NFRs and their key value drivers were identified, representing core elements that support different dimensions of a company’s performance. Statistical tests examined the relationship between stakeholders’ NFRs and financial performance measures.
Findings
When analyzed collectively and individually, the results reveal a significant positive influence of stakeholders’ NFRs on a firm’s profitability. Higher importance assigned to NFRs correlates with a higher return on sales.
Originality/value
This study contributes to the literature by empirically bridging the gap between stakeholder theory and the resource-based view, addressing the intersection of these perspectives. It also provides novel insights into how stakeholders’ NFRs impact profitability, offering valuable implications for research and managerial practice. It suggests that managers should integrate nonfinancial measures of NFRs within their performance measurement system to manage better and sustain companies’ value-creation process.
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Ikenna Elias Asogwa, Maria Estela Varua, Rina Datt and Peter Humphreys
The purpose of this study is to present an in-depth examination of stakeholder engagement processes in non-governmental organisations (NGOs) from the perspective of NGO managers…
Abstract
Purpose
The purpose of this study is to present an in-depth examination of stakeholder engagement processes in non-governmental organisations (NGOs) from the perspective of NGO managers to enhance accountability and the effectiveness with which aid services are delivered. Specifically, demand-side (downward) accountability and the implications of an accountability system that is predominantly supply-side (upward) focused are explored.
Design/methodology/approach
This study draws on evidence gathered from 25 in-depth interviews with representatives of leading NGOs in Nigeria to explore and uncover the nature of stakeholder engagement and accountability processes in their respective organisations. This study shows prospects for entrenching organisational reform that balances power and influence that benefits the less economically powerful demand side of the stakeholders. A relevant aspect of stakeholder theory was used to frame the analysis.
Findings
The study reveals an overlay of a blanket engagement system and a seeming reluctance of NGOs to disclose critical information to the demand-side stakeholders (DSS), and suggests ways to meet sustainability demands and address the militating concerns. A perceived lack of understanding and prospects or outcomes of demand-side accountability are central to this; however, engagement outcomes that account for impact rather than output are explored and reported. The findings suggest that proper accountability involves adequate stakeholder engagement which is a prerequisite and paramount for sustainability.
Research limitations/implications
This study primarily delineates NGO managers’ views on NGO engagement and accountability dynamics. Future research may explore the perspectives of downward stakeholders themselves. The study highlights the concern for NGOs to maintain a defined stakeholder engagement process that resists external forces that may impact on their operations and derail their mission, resulting in duplication of services.
Practical implications
The study shows the implications of donors’ influence on accountability practices which can be improved by re-structuring supply-side stakeholders to significantly include DSS accountability requirements in the key performance indicators of NGOs in developing countries. The authors present a nuanced perspective to aid delivery and access that ensures improved services and more effective, impactful and sustainable aid which is of practical relevance to NGOs and their accountability mechanism.
Originality/value
This study deepens the understanding of the dynamics of stakeholder engagement and accountability processes and shows that the most effective way to deploy aid funds to meet sustainability goals is to draw on the experiences and local knowledge of the DSS. This would require an effective and results-driven dialogue among all the stakeholders involved. The proposed engagement and management framework contribute to theory and practice by fostering multi-stakeholder cooperation, DSS accountability and the advancement of sustainable development
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Ingo Pies and Vladislav Valentinov
Stakeholder theory understands business in terms of relationships among stakeholders whose interests are mainly joint but may be occasionally conflicting. In the latter case…
Abstract
Purpose
Stakeholder theory understands business in terms of relationships among stakeholders whose interests are mainly joint but may be occasionally conflicting. In the latter case, managers may need to make trade-offs between these interests. The purpose of this paper is to explore the nature of managerial decision-making about these trade-offs.
Design/methodology/approach
This paper draws on the ordonomic approach which sees business life to be rife with social dilemmas and locates the role of stakeholders in harnessing or resolving these dilemmas through engagement in rule-finding and rule-setting processes.
Findings
The ordonomic approach suggests that stakeholder interests trade-offs ought to be neither ignored nor avoided, but rather embraced and welcomed as an opportunity for bringing to fruition the joint interest of stakeholders in playing a better game of business. Stakeholders are shown to bear responsibility for overcoming the perceived trade-offs through the institutional management of social dilemmas.
Originality/value
For many stakeholder theorists, the nature of managerial decision-making about trade-offs between conflicting stakeholder interests and the nature of trade-offs themselves have been a long-standing point of contention. The paper shows that trade-offs may be useful for the value creation process and explicitly discusses managerial strategies for dealing with them.
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Syed Quaid Ali Shah, Lai Fong Woon, Muhammad Kashif Shad and Salaheldin Hamad
The primary objective of this research is to conceptualize the integration of enterprise risk management (ERM) as a mechanism to enhance the connection between corporate…
Abstract
The primary objective of this research is to conceptualize the integration of enterprise risk management (ERM) as a mechanism to enhance the connection between corporate sustainability (CS) reporting and financial performance. This study suggests that future researchers should validate the proposed conceptualization by conducting a comprehensive content analysis of sustainability reports of Malaysian oil and gas companies. This analysis will allow for the collection of pertinent data regarding CS reporting and ERM implementation. The present study takes a comprehensive approach by integrating legitimacy, stakeholder, and resource-based view (RBV) theories, proposing a robust conceptual design that emphasizes the role of ERM in the connection between CS reporting and firm performance. Drawing on theoretical foundations, this study proposes that CS reporting will have a direct effect on financial performance. Moreover, the integration of ERM serves to strengthen the nexus between CS reporting and financial performance. This study offers valuable insights for stakeholders in the oil and gas sector by providing strategic guidance to enhance financial performance not only through CS reporting but also by implementing ERM. Moreover, the framework proposed in this study is expected to bring tangible and intangible benefits to corporations, including reducing information asymmetry, improving the quality of disclosure, and creating value within the field of CS. The proposed conceptual framework holds great significance as it enhances the applicability of legitimacy, stakeholder, and RBV theories, while also creating value for stakeholders through CS reporting and the adoption of risk management practices to enhance financial performance.
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Valentina Cucino, Cristina Marullo, Eleonora Annunziata and Andrea Piccaluga
Humane Entrepreneurship (HumEnt) is strongly purpose-oriented and characterized by a focus on inclusiveness and social and environmental sustainability, with attention to both…
Abstract
Purpose
Humane Entrepreneurship (HumEnt) is strongly purpose-oriented and characterized by a focus on inclusiveness and social and environmental sustainability, with attention to both internal and external stakeholders and their needs. In the attempt to provide new research in this field, this study aims to conduct an empirical investigation within the theory of HumEnt and, in particular, of the Human Resource Orientation (HRO) model among Italian Small and Medium-size Enterprises.
Design/methodology/approach
Based on quantitative data, this study used a deductive approach to investigate the relationship between the HumEnt model and firms’ relational embeddedness with different types of stakeholders (value chain stakeholders and societal stakeholders, respectively). More concretely, to investigate the relationships between the dimensions of the HumEnt model and firms’ relational embeddedness, partial least squares structural equation modeling was applied.
Findings
Findings of this study suggest that Entrepreneurial Orientation (EO) directly contributes only to value chain embeddedness. However, the results also show that if EO is mediated by an HRO (i.e. companies with a high HRO), a high level of societal embeddedness is also present.
Originality/value
This study represents a first attempt to provide comprehensive empirical evidence about the different dimensions characterizing the HumEnt theoretical model, and to highlight their relevance in supporting companies’ relational embeddedness capacity with different categories of stakeholders.
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Yoo Na Youm, Jin Young Lee and Chong Kyoon Lee
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to…
Abstract
Purpose
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to examine what factors influence a firm’s decision in its scope of CSR. In exploring what factors influence CSR scope, the authors examine the relationship between a firm’s prosocial orientation and CSR and further examine its boundary conditions by the existence of CSR department.
Design/methodology/approach
This study uses a data set – the Social Value Survey – administered by the Center for Social Value Enhancement Studies based in the context of Korean firms. Based on 86 firm responses, statistical models were performed to test hypotheses.
Findings
The findings show that a firm’s prosocial orientation is positively associated with CSR scope. Further, this study shows that there is a negative moderating effect of the CSR department for the relationship between the prosocial orientation and CSR scope.
Originality/value
This study attempts to contribute to the extensive line of work on the antecedents of CSR by exploring the simultaneous existence of various drivers of CSR and the interplay between the drivers. And this study enhances the understanding on what factors influence the decision of CSR scope within a complex system of diverse stakeholder relationships. Additionally, this study has potentially shed light on the role of CSR departments to determine CSR scope.
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Ines Bouaziz Daoud and Amani Bouabdellah
This study aims to investigate the association between Corporate Social Responsibility (CSR) and tax avoidance, as well as the effect of earnings performance on this link. We…
Abstract
This study aims to investigate the association between Corporate Social Responsibility (CSR) and tax avoidance, as well as the effect of earnings performance on this link. We suggest a negative association between CSR and tax avoidance based on the Stakeholder Theory. We also suggest that earnings performance moderates this relationship. Based on a sample of 25 Tunisian firms during the years 2012–2017, data were gathered via annual reports of the companies, and a survey-questionnaire was used to gather CSR information. The research design uses ordinary least squares (OLS) regression to investigate the association between CSR and tax. In addition, the analysis is performed using panel data to account for heterogeneity at the individual level and over time. Using this research design, the study provides a comprehensive examination of the effect of CSR on tax avoidance among Tunisian companies over a 6-year period. According to our findings, companies that participate in CSR initiatives show less tax avoidance than those that do not. Moreover, in line with the Slack Resource Theory, for businesses with higher earnings, the negative link between CSR and tax avoidance is stronger. Our research demonstrates that businesses may utilize CSR to improve their standing in the community and lower the likelihood of tax avoidance. These results suggest that profitable firms may have more funds available to spend on CSR initiatives and, as a result, are more motivated to maintain a positive reputation by refraining from tax avoidance strategies.
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Huthaifa Al-Hazaima, Hashem Alshurafat, Mohannad Obeid Al Shbail and Husam Ananzeh
To effectively integrate sustainability education into accounting, the needs of stakeholders such as educators, practitioners, regulators, students, and politicians must be…
Abstract
To effectively integrate sustainability education into accounting, the needs of stakeholders such as educators, practitioners, regulators, students, and politicians must be considered. While existing literature reflects their separate perceptions, this study considers their influence on the integration process. Sustainability accounting can play a key role in supporting sustainability practices, which businesses need to be accountable for. This study focuses on how sustainability accounting education can improve corporate sustainability practices. However, most existing studies only consider one stakeholder group, and there is a gap in literature on sustainability accounting education in developing countries, particularly in the Middle East. This study informs future researchers about various research gaps in sustainability education.
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Mohammad Alta’any, Ven Tauringana, Alaa Zalata and Laura Obwona Achiro
This paper aims to document international evidence of the impact of a board-level governance bundle [size, independence, CEO duality, gender diversity and sustainability committee…
Abstract
Purpose
This paper aims to document international evidence of the impact of a board-level governance bundle [size, independence, CEO duality, gender diversity and sustainability committee (SC)] on sustainability reporting (SR) and, separately, on its three dimensions (economic, environmental and social).
Design/methodology/approach
The sample includes 370 listed firms from 50 countries. A GRI standards-based disclosure index was constructed to quantify SR across various reporting media.
Findings
The baseline findings show that SC positively affects SR and its three dimensions. Board size also has a significant and positive impact on SR and two of its dimensions (economic and social). Similarly, board independence and CEO duality have a significant but negative association with SR and the same two dimensions. Finally, board gender diversity has no significant impact on SR and all its three dimensions.
Practical implications
The findings that only SC significantly influences SR, and its three dimensions, have important implications for corporate governance reforms internationally to improve SR in countries where such committees are not yet part of the board of directors’ sub-committees.
Originality/value
Overall, this study contributes to board characteristics–SR literature and holds significant theoretical and practical implications.
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