Corporate social responsibility reporting: meeting stakeholders expectations or efficient allocation of resources?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Intrinsic Value ◽  
Negative Influence ◽  
Performance Measure ◽  
Least Square ◽  
Content Type ◽  
Csr Reporting ◽  
Corporate Social

Purpose This study aims to examine whether corporate social responsibility (CSR) reporting adds any value to the firm. Design/methodology/approach This study uses content analysis to capture the specific CSR-related attributes and to construct a CSR reporting index. The data is manually collected from 115 publicly listed firms on the Dhaka Stock Exchange. The companies audited financial statements were the source of data. This study uses an ordinary least square regression analysis to examine the relationship between CSR reporting and firm performance. Findings The results of this study show that firms’ involvement in CSR activities and related reporting has a significant positive influence on firm performance only under an accounting-based performance measure. However, firms’ involvement in CSR activities and related reporting has a significant negative influence on firm performance under a market-based performance measure. Research limitations/implications This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The findings of this study imply that firms may be involved in CSR reporting to meet the stakeholders’ expectations, CSR reporting does not necessarily increase the intrinsic value of the firm. Originality/value This study supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.

scholarly journals Does Corporate Social Responsibility Mediate the Relation between Boardroom Gender Diversity and Firm Performance of Chinese Listed Companies?

2018 ◽  
Vol 10 (10) ◽  
pp. 3591 ◽  
Author(s):  
Muhammad Sial ◽  
Chunmei Zheng ◽  
Jacob Cherian ◽  
M.A. Gulzar ◽  
Phung Thu ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Gender Diversity ◽  
Chief Executive ◽  
Least Square ◽  
Csr Reporting ◽  
Corporate Social ◽  
The Relationship

Although the relationship between board gender diversity and a firm’s financial performance has been investigated before, the current study provides a valuable contribution by exploring the complex phenomenon of the mediating impact of corporate social responsibility (CSR) performance on a firm’s financial performance. The current study aims to explore whether corporate social responsibility (represented by the proxy variable of CSR reporting) mediates the relationship between boardroom gender diversity and firm performance. We use the pooled ordinary least square (OLS) regression to examine the above relationship by using data from 2008 to 2015. To control the likelihood of endogeneity we also use one-year lagged and two-stage least square (2SLS) regression models. Our results show that boardroom gender diversity is significant, positively correlated with firm performance, and CSR fully mediates the relationship between boardroom gender diversity and firm performance. In addition, four control variables (independent director, Chief executive officer (CEO power), board member meeting frequency, Big4, and leverage) have some influence on firm performance. These findings hold for a set of robustness tests. Our findings have the implication for the investors and regulators. For investors, our results show that the existence of female directors on the board can improve the firm performance. For regulators, our results advise the worldwide policy maker to give the importance to boardroom gender diversity. The paper contributes to the existing studies, by pioneering the investigations of the mediating role of CSR in the relation between boardroom gender diversity and firm performance in Chinese context.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

Can earning much lead to doing good? Firm performance implications for corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siyu Hou ◽  
Zhaoyang Guo ◽  
Chuangneng Cai ◽  
Xiaobo Jiao
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
State Ownership ◽  
Data Sets ◽  
Content Type ◽  
Multiple Data ◽  
Instrumental Variable Regression ◽  
Multiple Data Sets ◽  
Corporate Social

Purpose The purpose of this study is to examine the influence of firm performance on corporate social responsibility (CSR) and its possible moderating effect. Despite the significance of CSR, there remains an extensive debate about how it is affected by firm performance. Design/methodology/approach The conceptual model is mainly built on goal-setting theory. Based on archival data from multiple data sets on 1,650 companies, collected from 2010 to 2017, the hypotheses are tested using the two-stage instrumental variable regression method. Findings There is an inverted U-shaped relationship between firm performance and CSR that first increases and then decreases. In addition, considering the boundary conditions, state ownership makes the inverted U-shaped curve steeper, while high executive wage concentration makes the inverted U-shaped curve flatter. Research limitations/implications This study harmonizes the traditional contradictory findings of the influence of firm performance on CSR, that is, it supports a positive, negative or neutral relationship between the two. Originality/value This research provides a necessary structure for the CSR literature. By delving deeply into the relationship between firm performance and CSR, it enables scholars to better address the critical management question of whether earning more will lead to doing good.

Corporate social responsibility, visibility, reputation and financial performance: empirical analysis on the moderating and mediating variables from Korea

2017 ◽  
Vol 13 (4) ◽  
pp. 856-871 ◽  
Author(s):  
SeHyun Park
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Least Square ◽  
Mediating Effect ◽  
Financial Benefit ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Corporate Social

Purpose This paper aims to substantiate the mechanism through which corporate social responsibility (CSR) affects financial performance (FP). Specifically, this paper focuses on the moderating effect of visibility and mediating effect of reputation in the relationship. Design/methodology/approach This paper investigates 175 Korean firms from 2010 to 2012 that have been listed in the Korean Economic Justice Index for all three years. The hypotheses are tested using various measures of visibility and the Korea’s Most Admired Company index as proxy for reputation. The logistics regression and the ordinary least square are used. Findings This paper initially demonstrates that the visibility moderates the correlation between CSR and reputation. On this finding, it further proves that CSR has positive effect on the long-run FP, measured in the Tobin’s Q, both directly and indirectly through reputation. However, the influence is irrelevant in the short run. In sum, visibility moderates the correlation between CSR and reputation, which mediates the CSR-FP relationship in the long run. Practical implications This paper argues for the importance of visibility in practicing CSR, especially when reputation building and financial benefit is sought through CSR. Originality/value Despite its strategic importance, the visibility of CSR has not been sufficiently studied. Moreover, as scholars have recently suggested that the CSR–FP relationship is rather indirect, there is even more significance in investigating the moderating and mediating variable. Hence, with the intuitive results, this paper lays an integral foundation in the literature.

The impact of existence of royal family directors on corporate social responsibility reporting: a servant leadership perspective

2019 ◽  
Vol 15 (1) ◽  
pp. 120-136 ◽  
Author(s):  
Abdulsamad Alazzani ◽  
Yaseen Aljanadi ◽  
Obeid Shreim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Servant Leadership ◽  
Leadership Theory ◽  
Royal Family ◽  
Content Type ◽  
Csr Reporting ◽  
Family Leadership ◽  
Corporate Social ◽  
The Impact

PurposeDrawing on servant leadership theory, this study aims to investigate whether the presence of royal family members on boards of directors impacts corporate social responsibility (CSR) reporting.Design/methodology/approachCSR scores from a Bloomberg database are used and royal family data are collected from annual reports. The required analyses to test the hypotheses of this study have been performed.FindingsThe findings demonstrate a positive relationship between the presence of royal family directors and CSR reporting.Originality/valueThis study seeks to contribute to the literature on servant leadership theory and CSR by highlighting the impact of royal family directors on CSR reporting. This study may also contribute to an understanding of royal family leadership as a predictor of CSR reporting.

scholarly journals Board and corporate social responsibility disclosure of multinational corporations

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Board Independence ◽  
Content Type ◽  
Csr Reporting ◽  
The One ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.

scholarly journals Board meeting frequency and corporate social responsibility (CSR) reporting: Evidence from Malaysia

2017 ◽  
Vol 13 (1) ◽  
pp. 87-99 ◽  
Author(s):  
Nurulyasmin Binti Ju Ahmad ◽  
Afzalur Rashid ◽  
Jeff Gow
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Least Square ◽  
Board Meeting ◽  
Developed Country ◽  
Ordinary Least Square ◽  
Csr Reporting ◽  
Corporate Social Responsibility Reporting ◽  
The Board Of Directors ◽  
Corporate Social

This study aims at determining the effectiveness of board meeting frequency on Corporate Social Responsibility (CSR) reporting by public listed companies on the Main Market of Bursa Malaysia. A CSR reporting index consisting of 51 items was developed based on six themes: General, Community, Environment, Human Resource, Marketplace and Other. A content analysis was used to determine the extent of CSR reporting. An Ordinary Least Square (OLS) regression was employed in determining the association between board meeting frequency and CSR reporting. The finding of the study is that advising tendency (frequency of board meetings) is not associated with CSR reporting. Overall this study strengthens the idea that advising tendency of the board is essential to companies in order to safeguard all stakeholders’ interests. Accordingly, regulators and policymakers should be more stringent in monitoring company’s conformance towards regulations. This study provides a new avenue of knowledge and contributes to the literature on the practices of the board of directors and corporate social responsibility reporting in the context of a semi-developed country.

Does corporate social responsibility reporting enhance shareholders’ value?

2018 ◽  
Vol 16 (1) ◽  
pp. 158-178 ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Performance Measures ◽  
Economic Performance ◽  
Simultaneous Equation ◽  
Content Type ◽  
Listed Firms ◽  
Csr Reporting ◽  
Corporate Social Responsibility Reporting ◽  
Corporate Social

Purpose This study aims to examine whether corporate social responsibility (CSR) and relevant reporting enhances firms’ economic performance among the listed firms in Bangladesh. Design/methodology/approach This study uses a content analysis to examine specific CSR-related attributes from 115 non-financial publicly listed firms in Bangladesh. Firm CSR reporting is evaluated against accounting and market performance measures, with a simultaneous equation approach used to control the potential endogeneity problem. Findings This study finds that CSR reporting significantly influences firm performance under both performance measures, although a firm’s economic performance does not influence CSR reporting. Research limitations/implications This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The findings imply that although CSR reporting by firms in Bangladesh is discretionary in nature, the ones that report add value to their firm. Originality/value This study contributes to the literature on the practices of CSR reporting in the context of the developing countries.

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.

Institutional shareholding and corporate social responsibility reporting: evidence from Bangladesh

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Societal Issues ◽  
Corporate Social Responsibility Reporting ◽  
Sustainability Issue ◽  
Social And Environmental Reporting ◽  
Corporate Social

Purpose This study aims to examine the influence of institutional shareholding on a firm’s corporate social responsibility (CSR) practices in Bangladesh. Design/methodology/approach This study uses a content analysis to capture a firm’s CSR practices, based on various attributes of social and environmental reporting made by the firm. Based on these attributes, a corporate social responsibility reporting index (CSRI) is constructed. To examine the causal relationship between institutional shareholding and firm CSR practices, this study uses a simultaneous equations approach to control the endogeneity problem. Findings The finding of this study is that both CSR reporting and institutional shareholding negatively influence each other. Research limitations/implications This study is subject to some limitations such as the subjectivity or judgement associated in the coding process. Practical implications If the institutional investors are not concerned with its environmental and societal issues, there will be a sustainability issue for the business because companies will continue ignoring the employee health and hygiene, education, training and welfare. Their ignorance of these societal issues will lead to compromising the quality of living for important stakeholders within the society. Originality/value This study contributes the literature on CSR reporting.

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