Corporate governance and corporate social responsibility (CSR) disclosure in an emerging economy: evidence from commercial banks of Kazakhstan

2019 ◽  
Vol 19 (3) ◽  
pp. 490-507 ◽  
Author(s):  
Nurlan Orazalin
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Commercial Banks ◽  
Banking Sector ◽  
Emerging Economy ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Social ◽  
The Given

Purpose This paper aims to explore the extent and nature of corporate social responsibility (CSR) reporting practices in the banking sector of Kazakhstan and investigates the effects of board characteristics on CSR disclosures in the given emerging economy. Design/methodology/approach Data on CSR disclosures were manually collected from annual reports of all commercial banks listed in the Kazakhstan Stock Exchange (KASE) for the period 2010-2016. Financial data were obtained from audited financial statements available on bank websites and the Web page of the National Bank of Kazakhstan. Findings The empirical results reveal that board gender diversity has a positive influence on CSR reposting, while board size and board independence have no impact on the level of CSR disclosures. Furthermore, the results show that bank size and bank age are significant factors in the dissemination of CSR disclosures. Additionally, the findings suggest that banks with a share of foreign ownership disclose more extensive and transparent information on CSR activities than banks owned by local investors and state-owned banks. Originality/value The study provides evidence on the relationship between corporate governance and the level of CSR in the context of an emerging economy such as Kazakhstan, representing the Central Asian region. The study contributes to the current literature by focusing on the banking sector of Kazakhstan as a research context due to its substantial representation in the capital market of the given emerging economy.

Corporate social responsibility reporting practices in banking companies in Bangladesh

2015 ◽  
Vol 13 (2) ◽  
pp. 200-225 ◽  
Author(s):  
Md. Hafij Ullah ◽  
Mohammad Afjalur Rahman
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Annual Report ◽  
Regulatory Change ◽  
Content Type ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Corporate Social ◽  
The Impact

Purpose – This paper aims to provide a deeper understanding of the nature and extent of corporate social responsibility (CSR) reporting in the annual report by banking companies in Bangladesh, identify the impact of regulatory change on CSR reporting and examine whether there is any relationship between the extent of CSR reporting and bank characteristics. CSR movement and CSR reporting practices by financial sector have gathered great momentum in recent years. Banking sector is in the leading position in discharging CSR reporting. Design/methodology/approach – The sample composed of all the 30 banking companies enlisted in Dhaka Stock Exchange (DSE), and the study used content analysis approach for systematic categorization and analysis of the contents reported in the annual report. A total of 97 CSR items classified into seven classes were selected through a relevant literature review, as the expected items and average, standard deviation, coefficient of variation, percentage and correlation, etc. were used as the tools of analysis. SPSS software version 19.0 was used to analyze the data. An ordinary least square (OLS) regression model is fitted to the data for assessing the effect of independent variables on total CSR reporting score. Findings – The study found that the extent of CSR reporting in banking companies in Bangladesh varies from 27.84 to 65.98 per cent, and on an average, they report 47.39 per cent of the expected CSR items in annual report. It is also observed that banking companies in Bangladesh emphasized on linguistic or written form than charts, graphs or pictures in reporting CSR activities to their stakeholders, and the study found no significant influence of the selected bank characteristics on the extent of CSR reporting. Moreover, the study observed significant impact of regulatory change on nature and extent of CSR reporting. Research limitations/implications – The study considered all the listed commercial banking companies in Bangladesh, and the annual report of 2011 was taken as the main source of data. Social implications – Among others, the implications of the study include the following. Banking companies are expected to get a real scenario of CSR reporting of the banking sector in Bangladesh and banking companies with poor CSR contribution expected to be motivated for contributing more in CSR activities. Government and other regulatory bodies can also get detailed information regarding CSR reporting practices for formulating guidelines in this regard. Originality/value – This empirical study on the determinants of extent of CSR reporting using a larger number of expected CSR items contributes toward a better understanding of the CSR reporting practices of the banking companies in Bangladesh. The study used a new independent variable “CSR Expenditure” in justifying its influence on CSR reporting and identified the impact of regulatory change on CSR reporting. The study expects contributing in the enactment of more regulatory requirements for bringing the CSR reporting into a certain framework and encouraging in more CSR reporting in Bangladesh.

scholarly journals Relationship between corporate social responsibility performance and disclosures: commercial banks of Bangladesh

2019 ◽  
Vol 15 (4) ◽  
pp. 451-468 ◽  
Author(s):  
Anup Kumar Saha
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Commercial Banks ◽  
Policy Development ◽  
Banking Sector ◽  
Least Square ◽  
Government Ownership ◽  
Content Type ◽  
Corporate Social

Purpose The research investigates the determinants of corporate social responsibility (CSR) spending and CSR disclosures by the Bangladeshi commercial banks. In the process, it explains the relationship between CSR disclosures and CSR expenditure by Bangladeshi commercial banks. Design/methodology/approach Legitimacy theory has been used to explain the motivation for such expenditure and disclosure. For purpose of analysing the determinants, ordinary least square (OLS) regression analysis has been used for the first test with CSR expenditures and ordered PROBIT regression analysis has been used for test with CSR disclosures. Findings The result found that CSR expenditure depend on banks’ size, age and government ownership, whilst CSR disclosures depend on CSR expenditure, profitability, age, government ownership and Islamic compliance. Practical implications The practical contribution of this study includes the assistance for the public policy development by providing better understanding of extent and credibility of CSR reporting by the Bangladeshi banking sector. Originality/value The study contributes to the academic literature by presenting preliminary findings from different focus on a developing economy like Bangladesh. The study leads to draw a standard for the developing country to find out the differences compared to developed country.

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

2019 ◽  
Vol 9 (1) ◽  
pp. 75-102 ◽  
Author(s):  
Łukasz Matuszak ◽  
Ewa Różańska ◽  
Małgorzata Macuda
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Positive Influence ◽  
Content Type ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Majority Shareholder

Purpose The purpose of this paper is to investigate the extent and trend of corporate social responsibility (CSR) reporting in commercial banks in Poland and examine the link between corporate governance characteristics, namely size of the bank, ownership, boards size, board diversity and CSR disclosures in the banks. Design/methodology/approach The annual reports and CSR reports of the banks were examined between 2008 and 2015 using content analysis and panel data analysis. Findings The results indicate that banks improved their CSR reporting practices during examined period. There are statistically significant differences in the level of CSR disclosures between banks with a different ownership structure. Both foreign majority shareholder group as well as state majority shareholder group have a positive influence on CSR as compared with Polish majority shareholder (PMS) group (excluding State). Moreover, being listed on stock exchange has a positive influence on CSR as compared with not being listed. Further, the results also revealed that there is a significant positive effect of almost all variables related to the management board, namely, size, female board leadership and foreign board members on CSR disclosure, whereas all supervisory board variables and all considered ownership variables have no statistically significant impact on CSR disclosure. Originality/value This research contributes to the existing literature because the banking sector is often excluded from CSR studies due to its specific legal regulations and seemingly little environmental impact. Moreover, there are only few studies analysing the effect of boards characteristics on the banks CSR disclosure, especially in emerging countries. This study is also the first of this kind focusing on the two-tier system. Furthermore, the study provides the instrument to measure CSR in the banking industry. Finally, the research stresses the crucial implications for banking sector, shareholders and regulatory bodies.

Consequences of corporate social responsibility on employees

2019 ◽  
Vol 49 (1) ◽  
pp. 231-249
Author(s):  
Evans Asante Boadi ◽  
Zheng He ◽  
Eric Kofi Boadi ◽  
Josephine Bosompem ◽  
Philip Avornyo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Structural Equation ◽  
Social Exchange Theory ◽  
Banking Sector ◽  
Work Motivation ◽  
Content Type ◽  
Time Lagged ◽  
Corporate Social

Purpose The purpose of this paper is to draw on affect social exchange theory and related literature to develop and test a research model linking employees’ perception of corporate social responsibility (CSR) to their outcomes [performance and organisational pride (ORP)] with moderating variables: perceived work motivation patterns (autonomous and controlled motivation) to sustain firm’s operations through their employees. Design/methodology/approach The authors used Ghana as a case for this study due to recent turbulences in the banking sector of Ghana. A sample data of 244 subordinate/supervisor dyads from rural and community banks was collected with a time-lagged technique and analysed through a structural equation modelling for this study. Findings These employee’s perceptions of CSR positively related to their performance and ORP. Autonomous motivated employees had a stronger positive moderated impact on perceived CSR-Performance link whereas controlled motivated employees recorded a stronger impact on perceived CSR-ORP link. Practical implications Based on these results, managers and human resource (HR) professionals can aim at acquiring favourable employees’ perception of their firms’ CSR initiatives. In that, it can help firms to remain in business particularly in difficult times. Also, autonomous and controlled motivators may seem inversely related, however, they are not contradictory to each other. Both can coexist within a firm and it is crucial that HR professionals and managers endeavour to balance them discreetly to attain organisational goals. Originality/value Despite the growing interest in CSR across continents, CSR outcomes on employees among small and medium scale firms especially in Africa has fairly been toned-down by respective management of firms, governments and researchers.

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jamel Chouaibi ◽  
Saida Boulhouchet ◽  
Raghad Almallah ◽  
Yamina Chouaibi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Moderating Effect ◽  
Integrated Reporting ◽  
Board Diversity ◽  
Content Type ◽  
Board Characteristics ◽  
Good Corporate Governance ◽  
Corporate Social

PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

Board independence and corporate social responsibility reporting: mediating role of stakeholder power

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ordinary Least Squares ◽  
Board Independence ◽  
Content Type ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Corporate Social ◽  
Stakeholder Power

Purpose This study aims to examine the association between board independence and corporate social responsibility (CSR) reporting and the moderating role of stakeholder power on the association between board independence and CSR reporting. Design/methodology/approach Using a sample of 707 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item of CSR reporting index. This study uses the ordinary least squares regression method to examine the relationship between board independence and CSR reporting. Findings The study finds that board independence does not influence CSR activities and relevant reporting in general. However, the non-influence of board independence and CSR reporting is offset by stakeholder power. Insider ownership, firm age, firm size, growth opportunities and market capitalisation have a positive influence on such reporting. Practical implications While this study suggests that stakeholders’ influence is an important factor in determining the firms’ incentives to disclose CSR information, this finding creates a new debate on the efficacy of independent directors and whether they are good monitors and are able to fulfil all the stakeholders’ expectations. Originality/value This study makes an important contribution to the literature on CSR practices by documenting that firms having powerful stakeholders induce the board and management to make more CSR reporting practices in the context of emerging economies.

Slack resources, free cash flow and corporate social responsibility expenditure: evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shah Md Taha Islam ◽  
Ratan Ghosh ◽  
Asia Khatun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cash Flow ◽  
Random Effect ◽  
Emerging Economy ◽  
Free Cash Flow ◽  
Slack Resources ◽  
Content Type ◽  
Review Reports ◽  
Corporate Social

PurposeThe purpose of this study is to investigate whether financial resource allocation decisions for corporate social responsibility (CSR) depends on slack resources and free cash flow.Design/methodology/approachThe study's sample consists of 202 company-year observations from 51 financial institutions over the period 2015–2019. The authors collected CSR data from CSR review reports published by the Central Bank (Bangladesh Bank). The financial and governance data are collected from corporate annual reports and year-end review reports published by the Dhaka Stock Exchange. This study uses both the random-effect and generalized estimating equation models to test the hypotheses.FindingsThe authors establish two key findings consistent with the predictions of slack resource theory and free cash flow theory. First, the authors find a significant and positive relationship between slack resources and CSR expenditure. This result also supports the traditional thinking about corporate giving – that doing well enables doing good. Second, the author show that increases in free cash flow are associated with increases in CSR expenditure. This indicates the presence of agency problems between managers and shareholders regarding CSR expenditure.Originality/valueThis study is the first to show the positive impacts of slack resources and free cash flow on CSR expenditure in an emerging economy characterized by both capital constraints and high salience of CSR expenditure. The study has important implications for regulators, advocacy groups, shareholders and analysts in emerging economies that share similar contextual characteristics.

Corporate governance and corporate social responsibility interface: a case study of private equity

2020 ◽  
Vol 20 (4) ◽  
pp. 703-717 ◽  
Author(s):  
Virgo Süsi ◽  
Krista Jaakson
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Private Equity ◽  
Resource Dependence Theory ◽  
Medium Size ◽  
Content Type ◽  
Corporate Social

Purpose This paper aims to explore why private equity (PE) cares about corporate social responsibility (CSR) of its investees given their relatively short investment time-horizon and how it designs corporate governance (CG) bundle to achieve both financial and CSR goals of the private firms it invests in. Design/methodology/approach Case study design is applied to get deeper insights on the why and how questions posed. Analysis is based on triangulation of secondary data and in-depth interviews with both PE and their investee firms. Findings The authors find that long-term sustainability supported by CSR increases firm value. They also outline specific CG bundle that the PE uses to achieve both its financial and CSR goals. CG mechanisms appeared to reflect agency theory, but even more resource dependence theory. Practical implications The outlined CG bundle could be used as a template for all types of private firm owners to improve both financial and CSR performance of the firm. Originality/value The paper adds to fragmented area of CG and CSR interface. The authors specifically focus on several under-researched contexts of this interface: private small and medium size firms (SMEs), emerging markets and PE investors.

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