Outsourcing mandated corporate social responsibility in India: risks and performance

2019 ◽  
Vol 15 (3) ◽  
pp. 453-472 ◽  
Author(s):  
Nava Subramaniam ◽  
Monika Kansal ◽  
Dessalegn Getie Mihret ◽  
Shekar Babu
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Service Providers ◽  
Management Control ◽  
Principal Agent ◽  
Control Mechanisms ◽  
Content Type ◽  
Bridging Capital ◽  
Corporate Social

Purpose This paper aims to assess the risks and challenges of corporate social responsibility (CSR) management in the Indian-mandated CSR ecosystem from a service purchaser–supplier dualistic perspective and the role management control systems (MCS) and social capital play in managing such risks and challenges. Design/methodology/approach This study undertook a qualitative approach that involved in-depth interviews of 22 CSR directors, managers or chief executive officers from 13 central public sector enterprises (CPSEs) that had purchased CSR services and nine managers of non-government organisations (NGOs) serving as CSR suppliers. Data analysis was founded on the principal–agent and social capital theoretical perspectives. Findings A highly bureaucratic, time-pressured mandated environment poses several goal congruence and adverse selection threats to outsourced CSR project arrangements. A mix of formal and informal control mechanisms is critical for enhancing trust or bonding between service purchasers and service providers and enriching bridging capital or access to resources derived from interpersonal connections between NGOs and communities. Practical implications NGOs and CPSEs may benefit from understanding each other’s goals and culture and using appropriate formal and informal MCS for managing CSR expectations and outcomes. Originality/value Drawing on a unique mandatory CSR regime, this study offers principal–agent and social capital perspectives on CSR programme delivery, highlighting the importance of various formal and informal MCS in lowering agency costs in outsourced CSR relationships.

Perceptions of corporate social responsibility amongst immigrant entrepreneurs

2012 ◽  
Vol 8 (1) ◽  
pp. 63-76 ◽  
Author(s):  
Fara Azmat ◽  
Ambika Zutshi
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Small Sample Size ◽  
Small Sample ◽  
Future Research ◽  
Sri Lankan ◽  
Content Type ◽  
Immigrant Entrepreneurs ◽  
Corporate Social

PurposeThe purpose of this paper is to explore the understanding of the term corporate social responsibility (CSR) by Sri Lankan immigrant entrepreneurs in Australia. It also seeks to investigate the importance the entrepreneurs place on CSR, their understanding of stakeholders, the types of CSR activities undertaken by them, and the issue of social capital.Design/methodology/approachData were collected through in‐depth semi‐structured interviews with Sri Lankan entrepreneurs based in Victoria, Australia.FindingsThe interviewees were aware of the term CSR but, nevertheless, had different interpretations of its meaning. However, CSR was considered important and all the interviewees were, in some way, involved in CSR activities and also had a good understanding of the importance of their stakeholders. Findings also highlighted the significance attached to social capital by the entrepreneurs such as informal relationships and trustworthiness which build the intangible attributes of CSR. The present findings can be attributed to immigrant entrepreneurs behaving partly to adapt to the host country, by changing their beliefs, values, traditions and partly by being influenced by their home country culture as found in the extended part of this current study.Research limitations/implicationsThis paper addresses gaps in the fields of both CSR and immigrant entrepreneurship literature. However, the small sample size is a limitation and further research is required in order to generalize the findings.Originality/valueIt is important to have an understanding of the interpretation of social responsibility amongst immigrant entrepreneurs. Despite the steadily growing number of Sri Lankan immigrant entrepreneurs and their potential impact on the Victorian and Australian socio‐economic context, this area remains under‐researched. This paper addresses this gap in the literature and makes an attempt to provide insight into this area that can be used as a catalyst for future research.

Are corporate social responsibility reports informative? Evidence from textual analysis of banks in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jerry C. Ho ◽  
Tinghsuan chen ◽  
Jia-Jin Wu
Keyword(s):  
Social Capital ◽  
Corporate Governance ◽  
Human Rights ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Textual Analysis ◽  
Content Type ◽  
Social Contributions ◽  
Regulatory Bodies ◽  
Corporate Social

PurposeThe authors investigate the association of the constructed corporate social responsibility (CSR) measures with the banks’ profitability, social contributions and CSR spending as well as the market reaction to CSR spending.Design/methodology/approachUsing textual analysis of the CSR reports of banks listed on the Chinese market, the authors construct CSR measures in six domains: business, environment, human rights, corporate governance, charity and social capital. Our textual-based CSR measures contain substantial and valuable information beyond what Rankins CSR ratings offer.FindingsThe findings suggest that banks with stronger engagements and interests in the business-related CSR domain experience higher profitability, while those that are more committed to the corporate governance and charity-related domains create larger social contributions. Banks tend to incur higher CSR spending when they are more active in corporate governance. Although the stock market reacts positively to CSR expenditures, the reaction is less favorable for banks with CSR expenditures above the industry norm.Practical implicationsThis study offers insights to policymakers of the regulatory bodies and the banks in China. To enhance the financial safety and soundness of the banking system, the regulatory bodies should encourage banks to strategically allocate corporate resources to achieve higher CSR ratings and engage more business-related CSR activities. To create larger social values, bank management should invest more in philanthropic CSR initiatives such as corporate governance and charity activities. To pursue higher corporate profits, they should engage more in self-centered business-related CSR activities. However, according to the reaction of the market, they should not over-invest in CSR activities.Originality/valueWhile the use of textual analysis to evaluate CSR disclosure has recently emerged in the literature, few studies focus on banks in China. Using the term frequency–inverse data frequency (TF-IDF) method, the authors constructed a score for each of the six CSR domains: business (BUS), environment (ENV), human rights (HR), corporate governance (GOV), charity (CHY) and social capital (SCAP). To the best of our knowledge, no studies have adopted the textual approach to evaluate social reporting quality and CSR activities in the context of the banking industry in China.

scholarly journals Indian Railways – World’s largest commercial employer’s social capital inventory

2016 ◽  
Vol 6 (3) ◽  
pp. 1-27
Author(s):  
Vijay Pereira ◽  
Gopalakrishnan Narayanamurthy
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Subject Area ◽  
Primary Objective ◽  
Change Initiatives ◽  
Content Type ◽  
The Social ◽  
Corporate Social

Subject area Human Resource Management & Social Entrepreneurship. Study level/applicability The target audiences for the case study are undergraduate and postgraduate (e.g. BSc, MSc as well as MBA) students and also management trainees and executives who are interested in understanding the social capital enhancing practices, policies and strategies adopted by the world’s largest commercial employer to ensure complete satisfaction and contentment of 1.7 million employees and their family. Even senior management teams could be targeted in executive education programs, as this case discusses time tested practices, policies and strategies which have been sparsely discussed so far and hence can be expected to provide insights to senior corporate managers. The case also demonstrates the application of different frameworks on social capital and corporate social responsibility which can be used by the participants in their firms to assess the social capital. Case overview Indian Railways (IR) remains the world’s largest commercial employer, with approximately 1.7 million employees, which conveys the huge magnitude of social capital inventory accrued. This social capital, especially people side of IR, played a very crucial role in running the organization successfully for more than a century. As an organization, IR has guaranteed heavy importance for its employees while making decisions on strategic level. But recently, IR was moving towards automation and was cutting on cost incurred for its employees. IR was already exhibiting decreasing trend in the number of employees employed in the organization. These initiatives were resisted by IR employees due to fear of job losses and insecurity. In 2013, Chief Personnel Officer’s (CPO) of different zones have to rethink about their HR practices to assure confidence for employees on the security of their jobs and sustain the social capital accrued by IR over years. The objective of this case study is to describe the social capital accrued by IR over the years by offering livelihoods for nearly 1.7 million families across the country. Teaching note applies the frameworks on social capital in literature in the context of IR. Teaching note also discusses how CPOs of IR can pursue the change initiatives among the employees without affecting the social capital accrued so far. Expected learning outcomes Case study’s primary objective is to apply frameworks available in literature on social capital and corporate social responsibility to understand the social capital accrued by IR over decades. The case study attempts to answer the following assignment questions which forms the learning objectives of this case study: How do the existing frameworks on social capital measurement explain the social capital accrued by IR over decades? How can a firm assess its accrued social capital? How can one demonstrate the same using the case of IR? How can IR pursue change initiatives when it comes to its employees without affecting the social capital accrued over time? Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS:10 Public sector management.

Management control systems and corporate social responsibility: perspectives from a Japanese small company

2018 ◽  
Vol 18 (1) ◽  
pp. 68-80 ◽  
Author(s):  
Masahiro Hosoda
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Informal Control ◽  
Content Type ◽  
Formal Control ◽  
Corporate Social

Purpose Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan. Design/methodology/approach The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs. Findings The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities. Originality/value This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

scholarly journals Can corporate social responsibility enhance organizational image and commitment in the ocean freight forwarding industry?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ching-Chiao Yang ◽  
Po-Lin Lai ◽  
Xiaonan Zhu
Keyword(s):  
Corporate Social Responsibility ◽  
Organizational Commitment ◽  
Social Responsibility ◽  
Organizational Performance ◽  
Service Providers ◽  
Business Environment ◽  
Corporate Image ◽  
Content Type ◽  
Freight Forwarding ◽  
Corporate Social

Purpose In the past few decades, the concept of corporate social responsibility (CSR) has received substantial interest in the competitive business environment. This study aims to empirically examine the impact of CSR on corporate image, organizational commitment and organizational performance in ocean freight forwarders. Design/methodology/approach Five critical CSR dimensions were identified based on factor analysis: consumer interests, employee interests, environmental management, disclosure and corporate commitment and sponsorship. Structural equation modelling was subsequently performed to examine the hypothesized relationships among CSR, corporate image, organizational commitment and organizational performance. Findings Results indicated that CSR had significantly positive effects on corporate image and organizational commitment, whereas corporate image was positively related to organizational commitment and organizational performance, respectively. Organizational commitment was also positively related to organizational performance. However, CSR did not have a significant direct effect on organizational performance. Research limitations/implications This study intended to conduct a survey on logistics service providers; however, due to the limited availability of research on ocean freight forwarding service providers, the present sample was limited to ocean freight forwarding enterprises. Originality/value From a theoretical perspective, this study contributes to the field by identifying the important dimensions of CSR and their effects on corporate image, organizational commitment and organizational performance. Particularly, it demonstrated the effect of CSR on ocean freight forwarding employees’ organizational commitment.

Unlocking corporate social responsibility

2017 ◽  
Vol 22 (2) ◽  
pp. 192-208 ◽  
Author(s):  
Robert L. Heath ◽  
Damion Waymer
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Strategic Management ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Content Type ◽  
Organizational Policies ◽  
Communication Approach ◽  
Corporate Social

Purpose The purpose of this paper is to explore the proposition that organizational policies and actions gain more legitimacy when they proactively improve (rather than reactively defend) their corporate social responsibility (CSR) standing by meeting challenges discursively mounted by competitors, watchdog activists, and governmental officials. Design/methodology/approach The paper reviews literature, including social capital, to consider CSR as both a reactionary and proactionary construct that guides how organizations defend and publicize their corporate social performance (CSP). The paper examines four premises relevant to the discursive (contentious and collaborative) approach to formulating and implementing CSR norms. The case of fracking (hydraulic fracturing) in the USA provides text for exploring these premises, especially the advantages of a proactionary strategy. Findings This paper concludes that CSR expectations of industry performance rest on threshold legitimacy standards that not only withstand but also are improved by discursive challenge. Research limitations/implications The case study offers limited support for the findings; more cases need to be examined to determine whether the findings are robust. Practical implications This paper, based on theory and research, proposes a strategic management and communication approach to social responsibility based on proaction. Social implications CSR communication is most constructive to a fully functioning social that generates social capital by proactive engagement rather than reactive challenges of stakeholder CSR expectations. Originality/value Discussion of CSR and CSP as employing profit for the good of society, based on discussions of legitimacy and social capital, strengthens CSR as strategic management and communication options. Such research clarifies how evaluative expectations of CSR are a legitimacy threshold as well as basis for reputational enhancement.

Corporate social responsibility and earnings management in the EU: a panel data analysis approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panagiotis E. Dimitropoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Reporting ◽  
Negative Association ◽  
Content Type ◽  
Corporate Social ◽  
The Eu

Purpose Over the past decades, corporate social responsibility (CSR) has been considered as a significant corporate strategy and also has been documented as a main information dissemination mechanism of corporations to shareholders, creditors and other external stakeholders. This fact makes the CSR activities and CSR performance interconnected with the quality of firms’ financial reporting. The purpose of this paper is to study the impact of CSR performance on the earnings management (EM) behaviour using a sample from 24 European Union (EU) countries summing up to 121,154 firm-year observations over the period 2003–2018. Design/methodology/approach The study uses a multi-country data set with various dimensions of CSR performance including indexes regarding workforce, community relations, product responsibility and human rights protection. The empirical analysis is conducted with panel data regressions. Findings Evidence supports the negative association between CSR and EM indicating that high CSR performing firms are associated with less income smoothing and discretionary accruals, thus with higher financial reporting quality. Practical implications Regulatory agencies in the EU could use the findings of the study for the improvement of the accounting framework via enhancing the use and publications of social and environmental responsibility information and reports. Social implications Also, the current paper could be of interest not only to academic researchers but also to potential and existing investors in European corporations. The negative association between CSR performance and EM could be used by investors in assessing the risk of firms and the quality and reliability of their financial information. Originality/value This is the first study within the EU, which considers the multi-facet characteristics of CSR on the quality of accounting earnings and offers useful policy implications for regulators and investors.

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.

Board diversity and corporate social responsibility in Jordan

2016 ◽  
Vol 14 (2) ◽  
pp. 279-298 ◽  
Author(s):  
Abdul Hadi Ibrahim ◽  
Mustafa Mohd Hanefah
Keyword(s):  
Corporate Social Responsibility ◽  
Data Analysis ◽  
Panel Data ◽  
Social Responsibility ◽  
Panel Data Analysis ◽  
Arab Countries ◽  
Board Diversity ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Establishing a benchmark for continuous HR improvement

2016 ◽  
Vol 24 (1) ◽  
pp. 1-3
Author(s):  
Claire Clifford
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Human Resource ◽  
Design Methodology ◽  
Response Rate ◽  
Leadership Communication ◽  
Content Type ◽  
Corporate Social

Purpose – This paper explains how Sabio approached benchmarking of their overall human resource (HR) performance. Design/methodology/approach – Sabio asked employees for feedback, achieving an impressive 92 per cent response rate. Findings – Feedback from employees highlighted issues around leadership, communication and corporate social responsibility. The article explains how Sabio addressed these issues. Originality/value – This paper gives a first-hand account of benchmarking for HR departments and how the company addressed the issues raised.

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