Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

scholarly journals A Quantitative Analysis for the Correlation Between Corporate Financial and Social Performance

2016 ◽  
Vol 4 (4) ◽  
pp. 55
Author(s):  
Wafaa Salah ◽  
Mostafa Abdelhady Salama
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Three Dimensions ◽  
Operating Income ◽  
Corporate Social Responsibility Report ◽  
Corporate Social ◽  
The Relationship

Recently, the corporate social performance (CSP) is not less important than the corporate financial performance (CFP). Debate still exists about the nature of the relationship between the CSP and CFP, whether it is a positive, negative or a neutral correlation. The objective of this study is to explore the relationship between corporate social responsibility (CSR) reports and CFP. The study uses the accounting-based and market-based quantitative measures to quantify the financial performance of seven organizations listed on the Egyptian Stock Exchange in 2007-2014. Then uses the information retrieval technologies to quantify the contribution of each of the three dimensions of the corporate social responsibility report (environmental, social and economic). Finally, the correlation between these two sets of variables is viewed together in a model to detect the correlations between them. This model is applied on seven firms that generate social responsibility reports. The results show a positive correlation between the Earnings per share (market-based measure) and the economical dimension in the CSR report. On the other hand, total assets and property, plant and equipment (accounting-based measure) are positively correlated to the environmental and social dimensions of the CSR reports. While there is not any significant relationship between ROA, ROE, Operating income and corporate social responsibility. This study contributes to the literature by providing more clarification of the relationship between CFP and the isolated CSR activities in a developing country.

Board Composition Diversity and Corporate Social Reporting: An Empirical Study in Bangladesh Perspective

2017 ◽  
Vol 7 (2) ◽  
pp. 346 ◽  
Author(s):  
Ashok Chakraborty
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Social Performance ◽  
Commercial Banking ◽  
Board Composition ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social

The study examines the relationship between diversity of firm’s board composition and corporate social responsibility reporting of Bangladeshi listed commercial banking firms in the period from 2011 to 2015. Corporate social responsibility disclosure index indicates lower level of disclosure issues with extensive narrative discussion. The study finds significant positive relationship of board activity, board expertise with corporate social responsibility disclosure. It is also found that board ownership and CEO/ chairman duality are negatively associated with corporate social responsibility disclosure having negative impact on bank’s corporate social performance and reporting. The study did not find any evidence related with independent board members to have significant positive impact on CSR disclosure of banking firms. The findings of the study are expected to have important implications for wider stakeholder society and will create further research scope in future.

scholarly journals Corporate social responsibility and financial performance: Evidence from the financial sector.

2011 ◽  
Vol 8 (2) ◽  
pp. 27-36 ◽  
Author(s):  
Maria-Gaia Soana
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Financial Sector ◽  
Financial Loss ◽  
Book Value ◽  
Corporate Social ◽  
The Relationship

Does corporate social responsibility (CSR) entail economic and financial loss or does it guarantee competitive advantage? To answer this question, many studies have aimed to establish, largely in samples from multiple industries, the relationship between corporate social performance (CSP) and corporate financial performance (CFP). These studies have produced conflicting results and any attempt to give a generalised and coherent conclusion has proved inadequate. This paper investigates the possible connection between CSP (measured by ethical rating) and CFP (measured by price-to-book-value) in a sample of international financial intermediaries. Although most previous contributions seem to confirm the hypothesis of the existence of a positive relationship between the two variables, the paper finds no clear evidence of a significant relationship between CSP and CFP in the financial sector.

Bringing theory to practice: how to extract value from corporate social responsibility

2014 ◽  
Vol 5 (1) ◽  
pp. 22-44 ◽  
Author(s):  
Maria Federica Izzo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Business Strategy ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Integrated Approach ◽  
Company Performance ◽  
Content Type ◽  
Corporate Social

Purpose – This contribution aims to clarify the role of corporate social responsibility (CSR) as an issue of governance and a strategic tool more than a mere communication activity, with a potential impact on both organizations and their economic and financial performance. Design/methodology/approach – The paper provides an overview of the literature contribution on CSR and its impact on value, offering a new conceptual model useful both for managers and relevant stakeholders in assessing, through an integrated approach, the company performance. Findings – The analysis focuses on how CSR investments can create value for companies and for stakeholders in general. This can occur if the related benefits exceed the related costs, generating a favorable balance toward what we called the virtuous cycle of CSR. This cycle is made up of four steps – decision, design, action and result – that define a potential value creation path that a responsible firm can take, assuming that it integrates a social agenda into its competitive strategy and assuming that the market appreciates real and effective social efforts of companies. Research limitations/implications – Because the descriptive chosen approach, the research could be enriched with a quantitative analysis to test the proposed propositions further. Originality/value – This paper fulfils the need, identified in the major literature, of a temporary ceasefire on corporate social performance and its link to financial performance, focusing on tools and instruments that can practically modify the companies' approach to CSR and the evaluation processes of its impact on business, strategy and disclosure.

scholarly journals Scientometric Analysis of Corporate Social Responsibility, Corporate Social Performance and Financial Performance Based on Corporate Governance

2020 ◽  
Vol 214 ◽  
pp. 03014
Author(s):  
Chung-Lien Pan ◽  
Lin Yu ◽  
Zhuoshan Lin ◽  
Jialong Li ◽  
Yu-Chun Pan
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Research Direction ◽  
Future Research ◽  
Scientometric Analysis ◽  
Future Research Direction ◽  
Corporate Social

The economic growth and social responsibility of the company have become hot topics of concern to society. Fulfilling a company’s obligations of social responsibility can establish a good corporate image and benefit the company’s long-term development. Tracking the research fronts in this field can help to understand the hotspots that scholars pay attention to and fill the gaps in the field. We used the scientometric analysis to explore corporate governance research from 1987 to 2020 based on the Web of Science (WoS) database. Our research shows that corporate social responsibility focus on topics such as sustainability, social responsibility, and shareholders, and financial performance will be more skewed towards financial crisis, company value, and other research. The main publications are the Journal of Business Ethics and Corporate Governance-An International Review. The increase in the number of publications and citations reflects the strong interest of scholars in this research area. In this area, the organizations of developed countries are dominant, especially the United States, and China has the largest number of funding agencies, suggests that the economic powers are paying more attention to the literature on economic management. However, corporate social performance articles are relatively small, and strengthening this area can become a future research direction. strengthening this area can become a future research direction.

scholarly journals Pengaruh Kinerja Lingkungan Terhadap Corporate Financial Performance Dengan Corporate Social Responsibility Disclosure Sebagai Variabel I Ntervening (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bei)

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
Syaiful Bahri ◽  
Febby Anggista Cahyani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Financial Performance ◽  
Purposive Sampling ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social

Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh kinerja ligkungan terhadap corporate financial performance dengan corporate social responsibility sebagai variabel intervening pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia. Teknik sampling yang digunakan adalah purposive sampling dengan kriteria (1) sampel penelitian ini adalah perusahaan yang bergerak di bidang manufaktur yang terdaftar di BEI periode 2013-2014. (2) perusahaan manufaktur yang melaporkan corporate social responsibility (CSR) periode 20132014. (3) perusahaan manufaktur yang telah mengikuti Program Penilaian Peringkat Kinerja Perusahan dalam Pengelolaan Lingkungan Hidup (PROPER) tahun 2013-2014. Jenis penelitian ini adalah statistic deskriptif dengan teknik analisis yang digunakan adalah regresi linear berganda dan analisis jalur. Uji hipotesis menggunakan alat statistik berupa koefisien determinasi dan uji t.Hasil analisis dengan menggunakan analisis regresi  ini menunjukkan bahwa kinerja lingkungan berpengaruh terhadap kinerja keuangan, kinerja lingkungan berpengaruh terhadap CSR, CSR berpengaruh terhadap kinerja keuangan dan uji hipotesis menggunakan analisis jalur menunjukkan secara langsung CSR dapat memediasi hubungan antara  kinerja lingkungan dengan CSR. Kata kunci : kinerja lingkungan, corporate financial performance (CFP) dan corporate social performance (CSR), PROPER

scholarly journals Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan

2012 ◽  
Vol 2 (6) ◽  
pp. 107 ◽  
Author(s):  
Nadeem Iqbal ◽  
Naveed Ahmad ◽  
Nauman Ahmad Basheer ◽  
Muhammad Nadeem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Stock Returns ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Market Value ◽  
Negative Effect ◽  
Corporate Social

This paper estimates the relationship of corporate social responsibility, financial performance, market value of the share and financial leverage . In this particular study, 156 listed companies on Karachi Stock Exchange (KSE) from textile sector, chemical sector, cement sector and the tobacco sector are taken. The observations are taken for the entire period of 2010 and 2011 from the published resources of state bank of Pakistan. In aggregate, the results of the study conclude that corporate social performance (CSR) has no effect on financial performance (CFP) . It is obvious from the results that CSR has negative effect on the market value of the share but no relationship to D/E behavior of the firm, significantly. Moreover, the investors do not have the same level of information as the information is captured by the management about the company affairs. In addition, the debt singling hypothesis indicates that the further incorporation of debt into capital structure should influence the behavior of the investor, regarding to the investment in the shares positively, but due to information asymmetry, it is negative. This study further provides the room to test the model of effect of CSR on stock returns in a portfolio construction. Key words: Corporate Social Responsibility, Financial Performance, Market Performance, Market Value.

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