From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Corporate social responsibility, innovation capability and firm performance: evidence from SME

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Developing Country ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

Corporate social responsibility and institutional investors: the intervening effect of financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafat Maqbool ◽  
Nasir Zamir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Institutional Investors ◽  
Decision Process ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

PurposeThe research on the role of corporate social responsibility in investors' decision process has proliferated over the past few decades. This paper aims to explore the mediating role of financial performance in the relationship between corporate social responsibility and institutional investors.Design/methodology/approachPanel regression was performed on a sample of 29 commercial banks nine years from 2009 to 2017.FindingsThe initial findings of the study show that that corporate social responsibility has a positive and significant impact on institutional investors. However, when the interaction term (financial performance) was incorporated, the relationship between CSR and institutional turns out to be neutral. The study concludes that financial performance plays a pivotal role in the selection of investment avenues.Originality/valueIn Indian context, there is a dearth of research work which studies the impact of sustainable practices on investors' decision process. This topic has received wider attention but lacks insights from developing countries, like India. This article presents a new approach to verify the relationship through the mediating variable (financial performance).

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

Exploring the role of corporate social responsibility skepticism in ethical purchase intention

2019 ◽  
Vol 16 (2) ◽  
pp. 291-307 ◽  
Author(s):  
Salmi Mohd Isa ◽  
Phaik Nie Chin ◽  
Irene Liew
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Peer Influence ◽  
Purchase Intention ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Research Approach ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose Few studies exist which delve into the possible factors that prevent ethically minded consumers from translating their ethical perceptions into ethical purchase intention (EPI). Thus, this study aims to explore how consumers assess corporate social responsibility (CSR) based on several influencing factors toward EPI, with CSR skepticism (SKP) as a moderator. Design/methodology/approach This cross-sectional study is conducted through a self-administered questionnaire and uses a positive research approach with a quantitative basis of enquiry. The partial least squares–structural equation modeling- model is used to examine the causal relationship between seven independent variables of CSR assessment (i.e. CSR awareness, knowledge of CSR position of company, cause importance, price consciousness, CSR image of company, credibility of CSR efforts and peer influence) with EPI. In addition, this study also examines the moderating effect of SKP in the relationship. Findings The findings show that CSR assessment factors are important to convert mere purchase criteria into EPI and SKP does play a significant role in weakening the relationship. Originality/value This study examines the moderating effect of CSR skepticism, the exploration of which still remains very limited in current literature.

Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Geographical Area ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

scholarly journals Analisis Pengaruh Corporate Governance, Corporate Social Responsibility, dan Corporate Financial Performance terhadap Perusahaan Indeks Kompas100 (The Influence Analysis of Corporate Governance, Corporate Social Responsibility, and Corporate Financial Performance to Companies in Kompas100 Index)

2015 ◽  
Vol 5 (1) ◽  
pp. 74-85
Author(s):  
Annisa Putri Caesari ◽  
Abdul Kohar Irwanto ◽  
Muhammad Syamsun
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Operational Activities ◽  
Corporate Social ◽  
The Relationship

The main objective of a company in running its operational activities is to maximize profit. Apart from that, the company is also obliged to provide maximum contribution to the community. To accommodate the objectives and obligations, the company may apply a system called Corporate Governance (CG). The company can also implement Corporate Social Responsibility (CSR) as its significant step in contributing to the community. The implementation of CG and CSR is related because CSR is a consequence of CG implementation. In addition to CG and CSR are interconnected, CG and CSR are also interconnected with Corporate Financial Performance (CFP). Through the implementation of CG, the company can improve CFP. The relationship between CSR and CFP can be associated positively or negatively. The research was conducted on 100 companies listed in Kompas100 index to determine the influence of CG to CSR, influence of CG to CFP, influence CSR to CFP, and influence of CG to the CFP with CSR as a moderating variable. Structural equation modeling (SEM) analysis was used to determine the relationship of these three variables. The results showed that CG influenced positively to CSR, but influenced negatively to CFP. Likewise, CSR influenced negatively to CFP. Due to the negative influence of CG to CFP and CSR to CFP, CG also influenced negatively to the CFP through the disclosure of CSR as moderating variable.Keyword: corporate governance, corporate social responsibility, corporate financial performance, Indeks Kompas100

How does corporate social responsibility influence firm financial performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sourour Ben Saad ◽  
Lotfi Belkacem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Structure ◽  
Financial Performance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Structure Channel ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

Purpose This paper has three main purposes. First, this paper aims to study the effect of corporate social responsibility (CSR) on firm financial performance. Second, this study aims to examine how mandatory CSR disclosure impacts financial performance. Further, this paper aims to investigate the intervening role of capital structure decisions on the relationship between CSR and financial performance. Design/methodology/approach Based on a sample of French non-financial listed companies over the period 2006–2017, this study uses structural equations modeling and a difference-in-differences approach to highlight these effects. Findings This paper finds that CSR has a significant positive association with financial performance. In addition, although the mandate does not require firms to spend on CSR, the socially responsible firms experience an increase in profitability subsequent to the mandate. Finally, this study argues and finds evidence that the relationship between CSR and financial performance is mediated through the capital structure channel. Originality/value This paper contributes to the literature in several ways. First, the study provides a new research stream by examining the effect of mandatory CSR disclosure on firm financial performance. Second, is to knowledge the first to examine whether and how CSR affects financial performance through the capital structure channel.

Corporate social responsibility (CSR), ethical climate and pride in membership moderated by casino dealers’ customer orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Yongho Hyun ◽  
Lisa Gao ◽  
Seoki Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ethical Climate ◽  
Customer Orientation ◽  
Equation Modeling ◽  
Empirical Examination ◽  
Content Type ◽  
Corporate Social ◽  
Moderating Role

Purpose This study aims to develop a theoretical framework that specifies how corporate social responsibility (CSR) and ethical climate (ETHIC) affect pride in membership (PRIDE), and in turn, attitudinal responses (i.e. job satisfaction and turnover intention) among employees, solely focusing on dealers in the casino industry. In addition, the moderating role of customer orientation is examined for internally motivated enjoyment (ENJOY) and externally motivated needs (NEED). Design/methodology/approach This study uses a non-probability convenience-sampling method by distributing 400 individual questionnaires to respondents. A total of 358 responses are used for data analysis using exploratory and confirmatory factor analyses. Furthermore, this study tests the proposed hypotheses using structural equation modeling. Findings This study finds the effect of CSR on ETHIC and the effect of ETHIC on PRIDE along with the subsequent effect on attitudinal responses. Findings also reveal a significant moderating role of ENJOY (NEED) on the relationship between ETHIC (CSR) and PRIDE (PRIDE). Research limitations/implications This study provides meaningful contributions to extant casino CSR literature, as well as opportunities for future research. The topic may be further explored from cross-cultural perspectives and adapt a methodology to enhance the generalizability and applicability of the findings. Originality/value This study attempts to explore the CSR effectiveness on casino dealers, in whom past empirical examination has found little interest. Moreover, according to the multi-experience model, this study investigates the relationships among CSR, ethical climate and pride in membership that have been rarely verified in the past literature. Finally, this study reveals a significant moderating role of ENJOY and NEED that has not been explored, particularly among casino dealers.

Exploring the Bi-directional relationship between corporate social responsibility and financial performance in Indian context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafat Maqbool ◽  
Shabir Ahmad Hurrah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Strategy ◽  
Random Effect ◽  
Social Dimension ◽  
Content Type ◽  
Indian Context ◽  
Corporate Social ◽  
The Relationship

Purpose This study aims to investigate the relationship between corporate social responsibility (CSR) and financial performance from the bi-directional perspective. Design/methodology/approach The final sample for this study are 79 companies listed in the national stock exchange for a period of eight-years (2008–2015). Random effect panel regression was performed to examine the possible link. Findings The result shows that CSR has a positive impact on the contemporaneous and future financial performance of the selected companies. Further, the study shows that only social dimension has a positive and significant impact on concurrent and future financial performance. The results further validate slack resource theory as lagged financial performance has a positive and significant impact on CSR. Practical implications The strategic value of CSR indicates that it should be seen as a value-enhancing strategy, and therefore, incorporated with the broader corporate strategy of the company. Companies should not trade-off between CSR and financial performance, rather a strategic synchronization of CSR with corporate functioning is essential. This will pave a way to build a stakeholder-sense in the corporate entities. Originality/value The study comprehensively examines the relationship between CSR and financial performance from both “prospective” and “retrospective” framework. This bi-directional approach has received minimal attention in the Indian context.

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