Strategic CSR for airlines: does materiality matter?

2018 ◽  
Vol 30 (12) ◽  
pp. 3592-3608 ◽  
Author(s):  
Seoki Lee ◽  
Bora Kim ◽  
Sunny Ham
Keyword(s):  
Firm Performance ◽  
Airline Industry ◽  
Low Cost ◽  
Clustering Coefficient ◽  
Economic Conditions ◽  
Content Type ◽  
Strategic Csr ◽  
Corporate Social ◽  
The Relationship ◽  
Recessionary Periods

Purpose Considering the increasing significance of corporate social responsibility (CSR) in the corporate world and the mixed findings of the financial implication of CSR investment in the financial economics literature, the purpose of this study is to examine the relationship between (im)material CSR investment and firm performance and the moderating role of airline type and economic conditions based on the stakeholder theory and institutional pressure argument. Design/methodology/approach This study uses a two-way random-effects model by firm and year along with using clustering coefficient estimation by firm to control for the possibility of inflated standard errors because of autocorrelation across years within a given firm. Findings This study finds that both material and immaterial CSR initiatives do not directly influence firm performance, but airline type and economic conditions do moderate the relationship. In specific, the study found that airlines’ investments in material CSR initiatives show an indifferent effect on firm performance between low-cost and full-service carriers and also between non-recessionary and recessionary periods. On the other hand, investments in immaterial CSR initiatives present different impacts on firm performance between low-cost and full-service carriers and between non-recessionary and recessionary periods. In details, the effect is more negative for low-cost carriers and recessionary periods than full-service carriers and non-recessionary periods. Originality/value This is the first empirical investigation of materiality for the airline industry in relation to firm performance using the industry-specific Materiality Map developed by the Sustainability Accounting Standards Board. Further, this study incorporates two additional moderators (airline type and economic conditions) to enhance the understanding of the proposed relationships between (im)material CSR and firm performance.

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

2018 ◽  
Vol 10 (2/3) ◽  
pp. 184-199 ◽  
Author(s):  
Muhammad Safdar Sial ◽  
Zheng Chunmei ◽  
Tehmina Khan ◽  
Vinh Khuong Nguyen
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Earnings Management ◽  
Generalized Method Of Moments ◽  
Chinese Firms ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and firm performance and the moderating role of earnings management on the relationship between CSR and firm performance. Design/methodology/approach The empirical study used the updated data set (3,481 unbalanced observations for period 2009–2015) from Chinese listed companies on Shenzhen and Shanghai stock exchanges. The generalized method of moments (GMM) statistical approach has been used for the analysis. The authors utilized STATA to test GMM on a sample of Chinese listed firms data over the period 2009–2015. The unbalanced sample obtained 3,481 observations from China stock market and accounting research database and CSR ratings provided by Rankins (RKS). Findings The results demonstrated that CSR has a positive and significant relationship with firm’s performance; also, earnings management has a negatively moderate relationship between CSR and firm performance. These results imply that a high value of earnings management, which results in high level of symbolic CSR, converts to low firm performance of the Chinese firms. CSR actions (only as symbolic measures) promoted by managers as a means to cover their profit management incite an adverse effect on the company’s performance. This study has highlighted the impact of two different corporate social responsibilities: substantive and symbolic (genuine CSR vs greenwashing) on firm performance. Research limitations/implications The results of this investigation will be of distinct interest to company owners who wish to ascertain the effectiveness of the sustainability decisions of directors and managers, and also to investors and public authorities to estimate the positive relationship between CSR and company’s reputation and image, and thus, the positive influence on firm performance. Originality/value Previous studies have generally focused on the relationship between CSR and firm performance. This study provides the impact of earnings management (measurement of both aspects of accrual-based earnings management and real earnings management) on this relationship. Furthermore, this study examines the state of CSR in the Chinese market and provides empirical evidence of this relationship in emerging markets.

Corporate social responsibility and firm performance: does institutional quality matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Majdi Karmani ◽  
Rim Boussaada
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Institutional Quality ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

PurposeThe purpose of this paper is to investigate whether institutional quality influences the corporate social responsibility (CSR) and firm performance (FP) relationship.Design/methodology/approachThis paper uses a large sample of 814 European firms from roughly 2008 to 2017. In order to resolve the problem of endogeneity and heterogeneity the system generalized method of moment is performed.FindingsFirst, the effect of CSR on FP is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. Second, we found that the institutional quality matters, as corruption significantly decreases the FP, while government stability law and order exert a positive impact. Third, results suggest, similarly, that FP benefits from the interactional relationship between CSR and institutional quality. Finally, as for firm specifics, we found that the lagged performance and growth rate of sales significantly increase the European FP. However, FP is negatively sensitive to the leverage ratio.Research limitations/implicationsThis study aims to fill the gap in the CSR-FP interrelation and institutional context. Since we have a large number of firms (814) compared to a relatively small temporal dimension (10 years), the dynamic panel data analysis, and more precisely, the SGMM approach, is the most appropriate to resolve the problem of endogeneity and heterogeneity.Practical implicationsThe institutional environment affects the firm's CSR response and results. The strong institutional quality may result in increased regulatory pressures placed on the firm related to social responsibility compliance and can thereby enhance the CSR–FP relationship.Originality/valueTo the best of our knowledge, this is the first study that explored the relationship between CSR–FP and institutional quality in the European context. Indeed, this paper shows that institutional quality mediates the relationship between CSR practices and FP.

scholarly journals Industry-specific effect of CSR initiatives: hotels and airlines

Kybernetes ◽  
2014 ◽  
Vol 43 (3/4) ◽  
pp. 547-564 ◽  
Author(s):  
Ana B. Casado-Díaz ◽  
Juan L. Nicolau ◽  
Felipe Ruiz-Moreno ◽  
Ricardo Sellers
Keyword(s):  
Firm Performance ◽  
Airline Industry ◽  
Hotel Industry ◽  
Specific Effect ◽  
Fixed Costs ◽  
Content Type ◽  
Specific Effects ◽  
Specific Factors ◽  
Corporate Social ◽  
Positive Effect

Purpose – This study aims to examine the relationships between a firm's corporate social responsibility (CSR) activities and its performance and risk. The authors hypothesize that industry-level effects are highly determinant of the sign and magnitude of these relationships to establish a ranking of industries to identify the position of the most prominent tourism-related industries: hotels and airlines. Based on the cybernetic model of decision making and the heuristics thereof, shareholders base their investment decisions derived from CSR announcements on the idea that the industries behave differently; their fixed costs being a relevant factor. Design/methodology/approach – The authors estimate the industry-specific effects of CSR initiatives on firms' performance and risk using a sample of 583 announcements from the Spanish Stock Market. Findings – The results show that while CSR announcements have a positive effect on performance when the authors do not account for industry-specific factors, once the authors incorporate these factors into the analysis, the authors find that firm performance and risk vary quite substantially as a function of the industry to which the firm belongs. Interestingly, while the hotel industry presents an average behavior (standing at 9th position in returns, 15th in terms of risk, and 8th according to the ratio returns/volatility), the airline industry presents the worst situation of all industries: last in performance and last in risk. Practical implications – The results help managers assess their decisions and allocate CSR resources optimally. Originality/value – This article is the first attempt to empirically test and comprehensively detect the different relationships between CSR and firm performance across industries.

Employee response to CSR in China: the moderating effect of collectivism

2019 ◽  
Vol 48 (3) ◽  
pp. 839-863 ◽  
Author(s):  
Lifang Zhao ◽  
Jiman Lee ◽  
Sungok Moon
Keyword(s):  
Organizational Identification ◽  
Moderating Effect ◽  
Three Dimensions ◽  
Hierarchical Regression ◽  
Content Type ◽  
Multiple Dimensions ◽  
Workplace Attitudes ◽  
Strategic Csr ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between employees’ corporate social responsibility (CSR) perception and their organizational identification in a Chinese context. The moderating effect of employees’ collectivist orientation on the relationship between CSR perception and organizational identification is also examined. Design/methodology/approach Data were collected from 308 employees of 7 firms in Zhejiang Province, located in southeast China. Hierarchical regression analyses were utilized to test the hypotheses. Findings The results indicate that all three dimensions of CSR perception in this study, specifically, economic, philanthropic and strategic CSR perception, are strongly and positively related to the organizational identification of employees. Employees’ collectivist orientation positively influences the relationship between strategic CSR perception and organizational identification. In contrast, collectivist orientation negatively influences the relationship between economic CSR perception and organizational identification. However, no moderating effect of collectivism on the relationship between philanthropic CSR perception and organizational identification was found. Research limitations/implications The findings highlight the positive relationship between employees’ CSR perception and their workplace attitudes, shedding particular light on how employees’ personal values influence their responses to CSR in Chinese organizations. Originality/value This study extends the current understanding on the relationship between CSR and organizational identification. Particularly, the authors include multiple dimensions of CSR (economic, philanthropic and strategic CSR) in the research model, demonstrating that the link between CSR perception and organizational identification is influenced by employees’ collectivist orientation.

Corporate social responsibility and firm performance through the mediating effect of organizational trust in Chinese firms

2014 ◽  
Vol 8 (4) ◽  
pp. 577-592 ◽  
Author(s):  
Yanni Yu ◽  
Yongrok Choi
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Organizational Trust ◽  
Well Being ◽  
Mediating Effect ◽  
Chinese Firms ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the mediating effect of organizational trust on the relationship between perceived corporate social responsibility (CSR) practices and firm performance. Design/methodology/approach – A total of 674 questionnaires were sent randomly to Chinese firms to obtain a total of 168 reliable responses. A confirmatory factor analysis was conducted for a validity test, and structural equation modeling was employed to test the mediating effect of organizational trust. Findings – The empirical results show that perceived CSR practices of firms had significant direct effects on employee well-being and organizational performance and that organizational trust partially mediated the relationships of CSR practices to employee well-being as well as to organizational performance. Research limitations/implications – The data may not fully represent a generalized survey of all industries with CSR management. In this regard, future research should focus on a specific Chinese industry. The results suggest that firms should more actively promote the role of employees in CSR strategies to better build organizational trust. Originality/value – Previous CSR studies have generally focused on customers’ perceptions, paying little attention to employees’ viewpoints. This study provides the first empirical analysis of the relationship between CSR and firm performance from the perspective of employees in Chinese firms. In addition, the study examines the mediating role of trust in CSR, which has been rarely considered in the context of Chinese firms.

The illusion of CSR: drawing the line between core and supplementary CSR

2016 ◽  
Vol 7 (1) ◽  
pp. 125-151 ◽  
Author(s):  
Pablo Gomez-Carrasco ◽  
Encarna Guillamon-Saorin ◽  
Beatriz Garcia Osma
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Theoretical Framework ◽  
Content Type ◽  
Savings Banks ◽  
Strategic Csr ◽  
Key Aspects ◽  
Corporate Social ◽  
The Relationship

Purpose – The purpose of this paper is to contribute to the development of the theoretical framework for corporate social responsibility (CSR) and to provide a number of conceptual considerations which can be considered in the design of measures for corporate social performance (CSP). Design/methodology/approach – This study develops a theoretical framework of CSR and provides conceptual considerations to improve the measurement of CSP. The example of Spanish savings banks is used to illustrate the complexity of the concept of CSR, which includes different dimensions and relationships. Findings – CSP evaluation can be affected by the illusion of CSR, which may result in invalid conclusions on the relationship with financial performance. This risk mainly affects those studies whose CSP measure is based on charity or philanthropic activities, as most of the time they are disconnected from core business. These activities enjoy great visibility and, in some cases, such as Spanish savings banks, they become a thick veil that can be used to hide serious deficiencies in other key aspects of CSP. Research limitations/implications – This study has implications for the literature on the conceptual and theoretical framework of CSR and the research on the link between CSP and financial performance. This paper highlights the importance of seeking comprehensive measures that cannot be misleading because of the relationships between the components of CSR. Originality/value – The paper provides a novel conceptual framework for CSR, which connects the conceptual debate around “Strategic CSR” with the theoretical framework designed by Carroll’s (1991) Pyramid of CSR and emphasizes the importance of a meticulous examination of the CSP construct before studying its relationship with financial performance.

scholarly journals Innovative low-cost strategy and firm performance of restaurants

2019 ◽  
Vol 13 (3) ◽  
pp. 266-281 ◽  
Author(s):  
Collins Kankam-Kwarteng ◽  
Barbara Osman ◽  
Jacob Donkor
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Low Cost ◽  
Competitive Intensity ◽  
Content Type ◽  
Interaction Terms ◽  
Cost Strategy ◽  
Low Cost Strategy ◽  
The Relationship

Purpose The purpose of this paper is to improve the appreciation of the moderating role of competitive intensity on the relationship between low-cost strategy and firm performance of restaurants. Design/methodology/approach The study uses empirical data collected from 118 restaurants operators, Ghana. The effects of relationships and the interaction of low-cost strategy and competitive intensity were tested using regression analysis. Findings The findings indicate the existence of a significant positive relationship between low-cost strategy and firm performance. The effect of competitive strategy on firm performance was found to be partially significant. The findings revealed that competitive intensity does moderate the relationship between low-cost strategy and firm performance of restaurants. Practical implications Implications of the findings for restaurant operators suggest that effective application of low-cost strategy and monitoring and managing competitive intensity results in high performance. Originality/value This study contributes to the existing literature on low-cost strategy, competitive intensity and firm performance. More specifically, the interaction terms of low-cost strategy and competitive intensity have been explored in this study and can be used for further investigations.

Entrepreneurial orientation and firm performance in Italian firms

2020 ◽  
Vol 26 (4) ◽  
pp. 629-646 ◽  
Author(s):  
Jeremy Galbreath ◽  
Lorenzo Lucianetti ◽  
Ben Thomas ◽  
Daniel Tisch
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Entrepreneurial Orientation ◽  
Competitive Strategy ◽  
Low Cost ◽  
Secondary Data ◽  
Content Type ◽  
For Profit ◽  
Contingency Perspective ◽  
The Relationship

PurposeConsidering that context is important and relying on a contingency perspective, the purpose of the study is to analyze the relationship between an entrepreneurial orientation (EO) and firm performance in one of the world's oldest economies: Italy. The contingency perspective relies on competitive strategy as a moderating variable.Design/methodology/approachUsing a mix of primary and secondary data sources, relationships are explored in a sample of 229 Italian for-profit firms. Moderated regression analysis is used for the sample and additional tests are conducted by firm size groupings.FindingsThe analysis suggests that an EO is positively associated with firm performance in the sample firms. Further, competitive strategy acts as a moderating influence: a low-cost strategy negatively influences the relationship, while a differentiation strategy positively influences the relationship. The firm size groupings do not appear to affect the results.Research limitations/implicationsThe study examines only for-profit firms in a single country, Italy; therefore, generalizability is limited. The results must be interpreted in light of these limitations.Originality/valueThis study contributes to the entrepreneurship literature by considering a relatively new international context in the EO–firm performance relationship. Further, a new contingency perspective is advanced by considering competitive strategy. In doing so, this study extends an understanding of the conditions under which an EO might be associated with firm performance.

CSR, social ties and firm performance

2019 ◽  
Vol 19 (6) ◽  
pp. 1310-1323 ◽  
Author(s):  
Soojeen Sarah Jang ◽  
Hyesoo Ko ◽  
Yanghon Chung ◽  
Chungwon Woo
Keyword(s):  
Regression Analysis ◽  
Firm Performance ◽  
Design Methodology ◽  
Social Ties ◽  
Board Members ◽  
Moderating Effects ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to explore the effect of social ties on the relationship between corporate social responsibility (CSR) and firm performance in Korea. Design/methodology/approach Social ties were measured from firm disclosures of 318 Korean firms from 2012 to 2015. Propensity score matching and regression analysis were used to investigate the moderating effects of social ties on the relationship between CSR and firm performance. Findings The result shows that social ties have more negative moderating effects on the relationship between CSR and firm performance in Chaebol firms than in non-Chaebol firms. Practical implications Firms need to enhance the monitoring of social ties within board members to assure the proper oversight of CSR. Originality/value This paper contributes to the CSR literature by providing empirical evidence of the negative aspects of social ties on the relationship between CSR and firm performance in Korea.

English football clubs and strategic CSR

2017 ◽  
Vol 33 (7) ◽  
pp. 29-31
Keyword(s):  
Design Methodology ◽  
Strategic Decision ◽  
Content Type ◽  
Football Clubs ◽  
Charitable Foundations ◽  
Strategic Csr ◽  
Pertinent Information ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The relationship between corporate social responsibility (CSR) and strategy is a complex one. Full understanding of strategic decision-making in this context is unlikely when the issue is considered from a single perspective. Therefore, it is more appropriate to adopt an approach using different paradigms that overlap in certain respects. This can enable additional insights into the processes involved that would otherwise not be perceptible without multiple paradigms being used. Such an approach helps increase awareness of the challenges facing managers responsible for CSR of the charitable foundations of leading English soccer clubs. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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