Do corporate social responsibility disclosures influence investment efficiency in the emerging markets of Asia?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farah Zamir ◽  
Greg Shailer ◽  
Abubakr Saeed
Keyword(s):  
Economic Development ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Information Asymmetry ◽  
Investment Efficiency ◽  
Content Type ◽  
External Finance ◽  
Asian Emerging Markets ◽  
Corporate Social

PurposeCorporate investment efficiency ultimately influences economic development but is largely at the discretion of managers. Information asymmetries are problematic in emerging markets, but it is widely believed that corporate social responsibility (CSR) disclosures can reduce information asymmetries. This paper examines whether CSR disclosures influence corporate capital investment efficiency in emerging Asian markets.Design/methodology/approachInvestment inefficiency is measured as the residuals from an investment model that is constructed by combining variables from prior studies to obtain a more detailed specification. A CSR disclosure index (CSRDI) is constructed from manually collected CSR disclosures for the largest corporations in each of the nine Asian emerging markets, as categorised by the MSCI Emerging Market Index, during 2015–2017. Underinvestments and overinvestments are regressed against the CSRDI, using a two-stage model to address the potential self-selection of CSR report issuers.FindingsThe results indicate that CSR disclosures reduce underinvestment for large firms but do not constrain overinvestment. These results are consistent with the propositions that, by increasing transparency or reducing information asymmetry, CSR disclosures can improve firm access to external finance needed to invest in profitable projects but cannot constrain entrenched managers who are not reliant on external finance.Originality/valueThis study extends the literature by analysing the impact of CSR disclosures on both underinvestments and overinvestments and by examining the CSR-investment efficiency across the nine emerging Asian markets. This enhances generalisability compared to single market studies. More generally, this study enhances the understanding of the role of non-financial disclosures in the Asian emerging markets, where corporate investment efficiency is important for economic development but where severe information asymmetry and agency conflicts between insiders and external investors are prevalent. Both the investment community and policymakers should benefit from enhanced understanding of factors that influence investment efficiency in those markets.

Corporate social responsibility, country reputation and corporate reputation

2019 ◽  
Vol 27 (2) ◽  
pp. 178-197 ◽  
Author(s):  
Keith James Kelley ◽  
Thomas A. Hemphill ◽  
Yannick Thams
Keyword(s):  
Latin America ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Shared Value ◽  
Content Type ◽  
Country Reputation ◽  
Creating Shared Value ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to explore the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) from a shared value perspective. Adopting reputation as a multilevel form of value that mediates the CSR–CFP relationship, the paper explains how CSR initiatives may enhance both firm and country reputation and how the amount of shared value between the two leads to CFP. Design/methodology/approach The paper first establishes the theoretical foundation for the relationship between CSR and CFP. It then draws connections to a more recent stream of literature surrounding the concept of creating shared value to expand upon this relationship, adopting reputation as a multilevel form of shared value that mediates the CSR–CFP relationship. The paper further discusses moderating influences of this relationship that may vary contextually with emerging economies such as those in Latin America. Findings The paper argues that as markets become further developed, CSR initiatives will create a higher proportion of shared reputational value between a corporation and country. This is the result of from aligning CSR initiatives that benefit a society, with the strategic goals of the firm – the essence of creating of shared value – but is more difficult in emerging markets, especially volatile ones. Originality/value This paper offers insight into a complex relationship between CSR, shared reputational value and CFP by introducing the more recent concept of creating shared value. Several propositions related to this general relationship, and some related to the difference among emerging markets (such as those in Latin America), address the need for more research related to corporate and country reputation, creating shared value and in the emerging market context.

Does corporate social responsibility really increase customer relationship quality? A meta-analytic review

2018 ◽  
Vol 16 (1) ◽  
pp. 28-49 ◽  
Author(s):  
Ahmad Aljarah ◽  
Lawrence Emeagwali ◽  
Blend Ibrahim ◽  
Bashar Ababneh
Keyword(s):  
Economic Development ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Relationship Quality ◽  
Meta Analysis ◽  
Customer Relationship ◽  
Effect Sizes ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of corporate social responsibility (CSR) on customer relationship quality (RQ) based on three main aspects of RQ, namely, satisfaction, trust and commitment. Design/methodology/approach A quantitative meta-analysis of 80 unique effect sizes reported in 60 articles (n = 27,805) was conducted to determine effect sizes of the relationship between CSR and the aspects of RQ of the customer. Furthermore, the economic development has been examined as potential moderators between CSR and RQ. Findings Meta-analysis suggests that a positive relationship between CSR and the three studied aspects of RQ is well established; however, the strength of studied relationships has revealed variations in magnitude. Customer commitment was affected by CSR (r = 56) the most, closely followed by customer trust (r = 0.52), while customer satisfaction (r = 0.44) was affected the least. Moreover, the result of meta-regression shows that the economic development moderates only one relationship, CSR and trust. Originality/value Presenting a summary of the direction of primary research on the relationship between CSR and RQ, as no prior meta-analysis on the primary relationship has been conducted till date (to the best of the authors’ knowledge).

scholarly journals Towards a holistic view of corporate social responsibility. The antecedent role of information asymmetry and cognitive distance

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesco Caputo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Holistic View ◽  
Cognitive Distance ◽  
Content Type ◽  
Csr Strategies ◽  
Oriented Path ◽  
Corporate Social

Purpose This paper aims to enlarge ongoing debate about corporate social responsibility (CSR) proposing reflections about the role of cognitive and information flows in influencing companies’ approaches and market expectations related to CSR. Design/methodology/approach The paper builds upon the research streams related to the information asymmetry and cognitive distance, for identifying through the interpretative lens provided by systems studies, possible key drivers on which policymakers, researchers and practitioners should act for building a suitable, shared and long-term oriented path for CSR. Findings The paper defines a scenario map about CSR in the light of information asymmetry and cognitive distance. Such a map supports both researchers and practitioners in better understanding actions and paths required for building a shared approach to CSR. Research limitations/implications Recognizing the multidimensionality of CSR and the multiple managerial and organizational contributions provided for underling its advantages for companies, the paper focuses the attention on the elements and conditions able to promote, stimulate and encourage companies’ CSR strategies. Originality/value The paper provides a fresh conceptual framework for explaining conditions and elements required for ensuring the success of strategies for CSR. Adopting a systems view, the paper overcomes the limitations related to a reductionist view about advantages and results of CSR to call the attention on the conditions that should be met for ensuring the emergence of a shared approach to CSR.

Corporate Social Responsibility (CSR) communication patterns in an emerging market

2018 ◽  
Vol 31 (4) ◽  
pp. 795-809 ◽  
Author(s):  
Noha El-Bassiouny ◽  
Menatallah Darrag ◽  
Nada Zahran
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Exploratory Study ◽  
Emerging Market ◽  
Listed Companies ◽  
Content Type ◽  
Csr Communication ◽  
Corporate Social

Purpose The purpose of this paper is to explore the concept of Corporate Social Responsibility (CSR) communication. This paper specifically aims at introspecting into CSR communication patterns in the Egyptian context, where the top ten companies in the Egyptian Stock Exchange–Environmental, Social and Governance Index (EGX-ESG) are sampled. Design/methodology/approach The paper presents an exploratory study where content analysis of the communications of the ten top-listed companies in the ESG Index in Egypt was analyzed. Findings The results showed that most companies are using the “stakeholder information” strategy, with the “stakeholder involvement” strategy being the least used. Research limitations/implications The results are limited to the use of the content analysis method which is a qualitative methodology. Hence, the results should be generalized with caution. Practical implications CSR communication is crucial to the success of companies, regardless of business size, industry or culture. Several aspects of CSR communication, to this day, remain vague for academics and practitioners alike. Therefore, additional insights about the topic should be generated. The present work aids in the understanding of CSR communication as a facet of organizational change and a new trend in emerging markets. Social implications The current exploratory study sheds light on the topic of CSR communication in an important emerging market in transition, namely Egypt. The results of the communication strategies utilized by the top-listed companies can be generalized to other similar contexts. Originality/value The majority of the studies conducted on this particular topic took place in the USA and Europe; hence, few insights are provided about the concept in emerging markets.

Collecting channel selection and information value of a closed-loop supply chain with corporate social responsibility

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kebing Chen ◽  
Qi Wang ◽  
Shengbin Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Supply Chain ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Closed Loop ◽  
Information Value ◽  
Cost Information ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Corporate Social

PurposeThe paper aims to explore how the participants in the closed-loop supply chain (CLSC) select collecting strategies under the scenarios of information symmetry and asymmetry, and to investigate the value of corporate social responsibility (CSR) cost information for participants.Design/methodology/approachThis paper constructs a two-echelon CLSC Stackelberg game consisting of one manufacturer and one retailer, where the manufacturer undertakes CSR and is responsible for the remanufacturing of used products. First, the authors establish two collecting models under information symmetry: manufacturer-collecting and retailer-collecting. Second, the authors construct two collecting models under information asymmetry and propose a two-part tariff contract to coordinate the participants’ profits. Finally, the authors make a numerical analysis to verify the results.FindingsUnder information symmetry, the profit of the participant who does not undertake collecting is positively related to the collecting rate, and the other participant may not benefit from the increase in the collecting rate. Under information asymmetry, the manufacturer will still select the retailer-collecting channel. Asymmetric information only affects the retailer’s selection. In addition, the manufacturer’s private CSR cost information is always valuable to the retailer.Originality/valueThis paper first explores the influence of the CSR cost information value on the selection of collecting channel under information asymmetry in the CLSC. The results can help company managers choose optimal collecting channel under information symmetry or under information asymmetry.

Corporate social responsibility as a marketing strategy in foreign markets

2016 ◽  
Vol 33 (4) ◽  
pp. 530-554 ◽  
Author(s):  
Amjad Hadjikhani ◽  
Joong Woo Lee ◽  
Sohee Park
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Environmental Problems ◽  
Business Network ◽  
Foreign Markets ◽  
Content Type ◽  
Theoretical View ◽  
Csr Strategy ◽  
Corporate Social

Purpose – The authors are witnessing the increasing extent of corporate social responsibility (CSR) performance as strategic behaviour specifically in emerging markets. The purpose of this paper is to investigate how multinational companies (MNCs) manage CSR activities in emerging markets to aid their core business activities. In line with this question, the paper aims to develop a theoretical view for deeper understanding of the strategy in CSR practices aiding internationalization. The view is based on a business network perspective highlighting the four concepts of learning, commitment, legitimacy and trust. Design/methodology/approach – The methodology employed is qualitative, based on interviews with involved parties. The case study is about the experiences of a Korean MNC’s CSR strategy when entering into the Chinese electronics industry. Findings – The case illustrates how the Korean MNC committed resources to gain trust and legitimacy that improved their market position. It further manifests that the firm’s CSR strategy was proactive because of the large commitment in several long- and short-term projects towards the society. Investment in social issues like education, environmental problems and communities aided the firm’s entry. Research limitations/implications – The study has a qualitative and in-depth nature. Future research is needed in order to generalize the proposed theoretical frame. Practical implications – The study manifests how a MNC employs CSR strategy for internationalization in a foreign market. It shows how managers can undertake different practical CSR measures to enter and expand in foreign markets. Social implications – While internationalization of firms is mainly based on their business commitment towards counterparts or business firms, the study shows how CSR strategy and activities towards the society support their businesses. Originality/value – While internationalization of firms is mainly based on their business commitment towards counterparts or business firms, the study shows how CSR strategy and activities towards the society support their businesses. The study investigates CSR strategy and enlightens activities like education and environmental problems. The study further develops the business network view and includes social aspects. The theoretical view holding the four relationship elements of trust, knowledge, legitimacy and commitment permits deeper understanding of the MNC’s proactive CSR behaviour in new markets.

Corporate social responsibility performance and information asymmetry: the moderating role of ownership concentration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ijaz Ur Rehman ◽  
Syeda Khiraza Naqvi ◽  
Faisal Shahzad ◽  
Ahmed Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Ownership Concentration ◽  
Method Of Moment ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to examine the moderating effect of ownership concentration on the relationship between corporate social responsibility performance (CSRP) and information asymmetry using a sample of Chinese firms. Design/methodology/approach The authors use a sample of 208 listed firms from nine different sectors in China over the period of 2008–2018. They use the generalized method of moment approach to examine the dynamic relationship between CSRP, information asymmetry and ownership concentration. CSRP index is constructed using environmental performance, social performance and corporate governance performance measures. Findings The results indicate that CSRP positively affects the information asymmetry. Moreover, by taking ownership concentration as a moderating variable, the results indicate that ownership concentration negatively moderates the association between CSRP and information asymmetry. Research limitations/implications The findings of the study advance the understanding of CSR practices in China. The findings have important implications for the regulators and managers in China for adopting socially responsible activities for the improvement of firm performance and protecting shareholder rights. Originality/value The study extends the existing research on the association between CSRP and information asymmetry by including the ownership concentration as a moderating variable. The research showed that CSR plays an important role in reducing the informational gap between managers and outside stakeholders. However, the relationship between CSR and information asymmetry is not studied yet with the moderating role of ownership concentration.

Multicultural leaders from emerging markets: transforming international acquisitions and corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kathleen Park ◽  
Frederick Wallace
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Emerging Market ◽  
Community Outreach ◽  
Business Leaders ◽  
Content Type ◽  
Corporate Leaders ◽  
Strategic Actions ◽  
Corporate Social

PurposeThe purpose of this paper is to explore the influence and advantages of leadership multiculturalism on global strategy development through cross-border mergers and acquisitions (CBA) and corporate social responsibility (CSR) from emerging market multinational companies (EMNCs) expanding into emerged markets. The key contribution of asymmetric multiculturalism is a novel finding based on inductive research. We fill a gap by further linking business leader characteristics and corporate strategic actions and examining how multicultural business leaders from emerging markets can be highly effective at CBA and CSR.Design/methodology/approachThe paper draws on in-depth interviews, observations and documentary evidence analyzed with iterative coding, construct definition and thematic development to understand how leadership multiculturalism affects CBA and CSR in an EMNC over time.FindingsThe new construct of leadership asymmetric multiculturalism describes strategic advantages accruing to leaders from developing markets who are culturally fluent in both emerging and emerged market milieus. The construct contributes to emergent research on the rise of multicultural leaders and their strategic advantages and delineates a pathway toward identifying advantages of emerging over emerged market business leaders.Research limitations/implicationsThe research addresses specific CBA and CSR strategies within one emerging market region and EMNC. Future research should further articulate and validate the key construct of asymmetric multiculturalism, further examine its sources, draw more explicit comparisons with data from emerged market leaders, and explore the applicability of these findings to strategic actions and advantages in both emerging and emerged markets.Practical implicationsEmerging market corporate leaders should identify and develop pertinent aspects of their own asymmetric multiculturalism in enacting CBA and CSR strategy with respect to EMNCs and firms from developed markets. Emerged market leaders should become more aware of and cultivate their own multiculturalism.Social implicationsAsymmetric multiculturalism can be accompanied by heightened awareness of global citizenship — including codes of ethics, environmental challenges, community outreach and fair labor practices — which, in tandem with CBA, can strengthen emerging market firms’ performance and reinforce their global stature and reputation.Originality/valueAsymmetric multiculturalism is a new explanatory construct in the sociological, economic and management disciplines. Emerging markets corporate leaders utilize their multicultural competence to accelerate global CBA and CSR activity and advance strategic opportunities for their firms. The identification of advantages deriving from emerging market leadership capabilities is an unusual finding given the more typical emphasis on the privileges of emerged market leaders and firms.

Does Corporate Social Responsibility Matter in Asian Emerging Markets?

2009 ◽  
Vol 92 (3) ◽  
pp. 401-413 ◽  
Author(s):  
Yan Leung Cheung ◽  
Weiqiang Tan ◽  
Hee-Joon Ahn ◽  
Zheng Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Asian Emerging Markets ◽  
Corporate Social

scholarly journals Corporate social responsibility in emerging markets: case studies of Spanish MNCs in Latin America

2015 ◽  
Vol 27 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Belen Lopez ◽  
Gaston Fornes
Keyword(s):  
Latin America ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Financial Performance ◽  
Case Studies ◽  
Positive Relation ◽  
Content Type ◽  
Depth Analysis ◽  
Corporate Social

Purpose – This paper aims to analyse corporate social responsibility (CSR) initiatives in emerging markets (EMs) from developed countries-based multinational companies (MNCs). Design/methodology/approach – The analysis is based on eight case studies with data collected through in-depth interviews with senior managers of the companies representing 85 per cent of the Spanish foreign investments in Latin America. Findings – The findings tend to indicate that instrumental theories of CSR seem to apply for Western MNCs operating in EMs. CSR initiatives from these companies seem to be guided by instrumental theories, as they use these initiatives as a strategic tool to achieve economic objectives, seek a positive relation between them and their financial performance and use them to strengthen their reputation. Research limitations/implications – The results of this article resulted from an in-depth analysis of case studies with data collected from a carefully selected theoretical sample with data analysed by following well-established methods like coding, triangulation and pattern matching. This combination was designed to minimise possible concerns in these areas, and as a consequence to strengthen the research design and, therefore, the conclusions of the paper. Measures were taken to minimise possible concerns in this area. The companies were selected for theoretical, not statistical, reasons with the aim to replicate or extend emergent theories, which is one of the main objectives of the research. Practical implications – Companies are using CSR in EMs as a strategic tool to achieve economic objectives (the main principle behind instrumental theories). MNCs seek a positive relation between CSR initiatives in EMs and their financial performance (also a key principle within instrumental theories). Companies in the sample develop CSR initiatives, including those in EMs, to increase their legitimacy as part of their global reputation rather to deal with host country challenges. Finally, MNCs actively manage stakeholders to strengthen their local reputation as a means to improve financial performance. Social implications – Instrumental theories of CSR seem to apply for Western MNCs operating in EMs. These findings highlight the need to continue the study of CSR from Western MNCs in Ems, as the vast majority of academic literature relates to the characteristics of social responsibility initiatives in developed economies. Originality/value – Instrumental theories apply in a global market for MNCs; in this case, Spanish companies operating in more than 30 countries with a global strategy in CSR and similar objectives.

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