Overcoming the ‘Window Dressing’ Effect: Mitigating the Negative Effects of Inherent Skepticism Towards Corporate Social Responsibility

2015 ◽  
Vol 145 (3) ◽  
pp. 599-621 ◽  
Author(s):  
Scott Connors ◽  
Stephen Anderson-MacDonald ◽  
Matthew Thomson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Negative Effects ◽  
Window Dressing ◽  
Corporate Social

Contrast in Ethics, Morality, Justice, and Behavior

2021 ◽  
pp. 292-305
Author(s):  
Khaliq Ahmad ◽  
Burhan Uluyol ◽  
Othman Altwijry
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ethical Dilemma ◽  
Islamic Perspective ◽  
Window Dressing ◽  
Corporate Social ◽  
And Behavior

The ethical dilemma begins due to greed, jealousy, and discontentment, and these have solutions in life. This chapter aims to analyze and apply the understanding of dichotomy of contrast in ethics, morality, justice, and behavior. Since ethics matters a lot in discharging corporate social responsibility in business and trade, the chapter will also examine the application of these ethics, morality, and behaviour from an Islamic perspective. The authors derive that “one must strengthen contentment, remembrance of death, the firm belief in Allah's mercy, generosity” while refraining from common contemporary business problems such as window dressing of financial results, fraud, deception, bribery to get contracts, and among others.

scholarly journals Effects of International Exposure on Corporate Social Responsibility of the Chinese Corporate Sector: The Moderating Role of CEO Duality

2021 ◽  
Author(s):  
◽  
Radhika Ravi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Agency Theory ◽  
Home Country ◽  
Negative Effects ◽  
Corporate Sector ◽  
Ceo Duality ◽  
Corporate Social ◽  
Moderating Role

<p>International exposure of a firm into new environments is one of the most important paths to firm growth. It provides growth opportunities and learning, and poses challenges of managing uncertainties of the new institutional environment, and demands of diverse domestic and international stakeholders. Despite the abundance of research on the effects of international exposure of a firm on its performance, the effects on corporate social responsibility (CSR) are not well understood. In addition to examining the direct effects of the international exposure of a firm on CSR activities in the home country, this study also examines the moderating role of Chief Executive Officer (CEO) duality in the association between international exposure of a firm and CSR activities in the home country.  Drawing from institutional theory and agency theory, this study argues that international exposure of a firm leads to a decrease in CSR activities in the home country. It further posits that CEO duality also negatively affects CSR activities in the home country. Further, the proposed moderation hypotheses argue that the negative effects of international exposure of a firm on CSR activities in the home country are stronger for firms with CEO duality as compared to non-duality. The proposed hypotheses are tested with data from 240 publicly listed Chinese firms between 2008 and 2016, consisting of 1920 firm-years. The panel data is analysed using Linear Mixed Modelling (LMM) with the SPSS software. The findings support all the proposed hypotheses.  This study makes three key contributions. Firstly, the study uses the institutional theory and agency theory to provide evidence for the negative effects of international exposure of a firm and CEO duality on CSR activities in the home country. Secondly, it enhances the understanding of how CEO duality acts as a boundary condition between international exposure of a firm and CSR relationships. Thirdly, it contributes to the emerging economy multinational enterprises literature by enhancing understanding of the proposed relationships in the context of the Chinese corporate sector.</p>

Bound to Fail? Exploring the Systemic Pathologies of CSR and Their Implications for CSR Research

2019 ◽  
Vol 59 (7) ◽  
pp. 1303-1338 ◽  
Author(s):  
Anselm Schneider
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Public Goods ◽  
Negative Effects ◽  
Capitalist System ◽  
Stepwise Manner ◽  
Business Operations ◽  
Systemic Level ◽  
Close Relationship ◽  
Corporate Social

Among critics of corporate social responsibility (CSR), there is growing concern that CSR is largely ineffective as a corrective to the shortcomings of capitalism, namely, the negative effects of business on society and the undersupply of public goods. At the same time, researchers suggest that despite the shortcomings of CSR, it is possible to make it more effective in a stepwise manner. To explain the frequent failures of current CSR practices and to explore the possibilities of remedying them, I examine the close relationship between CSR, the persistent expansion of capitalism, and the pressure that capitalism puts on companies to legitimize their business operations. My analysis shows that the failure of CSR to serve as a corrective to the problematic effects of capitalism is, in fact, an inevitable consequence of the problematic dynamics of the capitalist system. On this basis, I suggest that capitalism limits the possibilities of making CSR more effective, argue for change on the systemic level of capitalism, and explore the ways in which CSR research can contribute to this political endeavor.

scholarly journals Effects of International Exposure on Corporate Social Responsibility of the Chinese Corporate Sector: The Moderating Role of CEO Duality

2021 ◽  
Author(s):  
◽  
Radhika Ravi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Agency Theory ◽  
Home Country ◽  
Negative Effects ◽  
Corporate Sector ◽  
Ceo Duality ◽  
Corporate Social ◽  
Moderating Role

<p>International exposure of a firm into new environments is one of the most important paths to firm growth. It provides growth opportunities and learning, and poses challenges of managing uncertainties of the new institutional environment, and demands of diverse domestic and international stakeholders. Despite the abundance of research on the effects of international exposure of a firm on its performance, the effects on corporate social responsibility (CSR) are not well understood. In addition to examining the direct effects of the international exposure of a firm on CSR activities in the home country, this study also examines the moderating role of Chief Executive Officer (CEO) duality in the association between international exposure of a firm and CSR activities in the home country.  Drawing from institutional theory and agency theory, this study argues that international exposure of a firm leads to a decrease in CSR activities in the home country. It further posits that CEO duality also negatively affects CSR activities in the home country. Further, the proposed moderation hypotheses argue that the negative effects of international exposure of a firm on CSR activities in the home country are stronger for firms with CEO duality as compared to non-duality. The proposed hypotheses are tested with data from 240 publicly listed Chinese firms between 2008 and 2016, consisting of 1920 firm-years. The panel data is analysed using Linear Mixed Modelling (LMM) with the SPSS software. The findings support all the proposed hypotheses.  This study makes three key contributions. Firstly, the study uses the institutional theory and agency theory to provide evidence for the negative effects of international exposure of a firm and CEO duality on CSR activities in the home country. Secondly, it enhances the understanding of how CEO duality acts as a boundary condition between international exposure of a firm and CSR relationships. Thirdly, it contributes to the emerging economy multinational enterprises literature by enhancing understanding of the proposed relationships in the context of the Chinese corporate sector.</p>

Foreign Direct Investment in China

2020 ◽  
pp. 1205-1218
Author(s):  
Agya Atabani Adi ◽  
James A. Rossi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Direct Investment ◽  
Domestic Economy ◽  
Negative Effects ◽  
Corporate Social ◽  
Investment In China ◽  
The Relationship

In accounting for the gaps in the literature between the period 2011 and 2016, more recent literature – particularly empirical related studies on the topic have been consulted to consolidate on the paper “Foreign Direct Investment in China: Its Sectoral and Aggregate Impact on Economic Growth”. As highlighted by Wei (2013), it is important to recognize and acknowledge that the relationship between FDI and employment is affected by many variables, such as growth of the national population, increased exports, and growth of the domestic economy. Furthermore, as illustrated by Iamsiraroj and Doucouliagos (2015), whilst positive and negative effects may be demonstrated in relation to economic growth, in some countries, no effects can be deduced as regards the relationship between economic growth and FDI in certain other countries. This chapter also aims to accentuate the need for greater focus on environmental issues - as well as poverty alleviation - than is currently the case within the sphere and framework of Carroll's pyramid of Corporate Social Responsibility.

scholarly journals Corporate Social Responsibility Information Disclosure and Corporate Fraud—“Risk Reduction” Effect or “Window Dressing” Effect?

2019 ◽  
Vol 11 (4) ◽  
pp. 1141 ◽  
Author(s):  
Haifeng Hu ◽  
Bin Dou ◽  
Aiping Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Risk Reduction ◽  
Information Disclosure ◽  
Lower Probability ◽  
Corporate Fraud ◽  
Window Dressing ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

We examine the impact in Chinese capital markets of publishing information on corporate fraud in a corporate social responsibility (CSR) report. We develop and test two competing hypotheses of “risk reduction” and “window dressing”. Based on the listed company’s CSR report, we analyze the effect of CSR disclosure on the commission of corporate fraud, fraud detection and the severity of corporate fraud. The research results show that after controlling for the firms’ characteristics and corporate governance factors, the CSR report’s information disclosures have a significantly negative relation to corporate fraud. Specifically, the CSR report’s publication reduces the information asymmetry between the insiders and the stakeholders, thus decreasing the tendency to commit fraud. Our findings support the risk reduction hypothesis but not the window dressing hypothesis. Further research shows that firms with a good CSR disclosure practice have a lower probability of committing corporate fraud and have fewer types of fraud violations, thereby mitigating the severity of corporate fraud.

scholarly journals Sustainability Claims and Perceived Product Quality: The Moderating Role of Brand CSR

2020 ◽  
Vol 12 (9) ◽  
pp. 3711
Author(s):  
Jenny van Doorn ◽  
Peter C. Verhoef ◽  
Hans Risselada
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Product Quality ◽  
Negative Effects ◽  
Negative Effect ◽  
Perceived Product Quality ◽  
Corporate Social ◽  
Moderating Role

In this research, we focus on the presumed negative effect of a sustainability claim on product quality. We propose that a brands’ corporate social responsibility (CSR) can reduce this negative effect. We conduct an experiment to test our hypotheses for a newly introduced detergent brand with an ecolabel vs. without one for high and low brand CSR levels. The experiment was conducted among 304 participants. Our results show that the ecolabel of the detergent can indeed trigger quality concerns. These quality concerns are reduced for brands high in CSR. This suggests that a brand’s sustained commitment to sustainability is important in overcoming negative effects of sustainability claims on product quality.

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