Can corporate social responsibility deter consumer dysfunctional behavior?

2020 ◽  
Vol 37 (7) ◽  
pp. 729-738
Author(s):  
Alexis M. Allen ◽  
Todd Green ◽  
Michael K. Brady ◽  
John Peloza

Purpose The purpose of this paper is to examine how and when a reputation for corporate social responsibility (CSR) can deter dysfunctional consumer behaviors (DCBs) such as shoplifting or negative word-of-mouth (WOM) in response to firm failures. The authors predict that congruency of the CSR activities and the basis for the firm failure (e.g. environmental protection, environmental harm) provides protection for firms while incongruency (e.g. environmental protection, social harm) does not. The authors base this prediction on the process of retroactive attribution and sense-making. Design/methodology/approach Across two studies the research finds support that a reputation for CSR can deter consumer dysfunctional behavior. Study 1 uses an experimental design with a Mturk sample, and a behavioral outcome using an overpayment situation, to examine when consumers will act honestly and recognize overpayment. Study 2 uses secondary data, across three novel data sources (Google trends data, an existing data set of consumer perceptions of CSR and Factiva to uncover press coverage of negative firm events). Study 2 examines how CSR reputation impacts consumers’ participation in negative WOM in response to firm failures. Findings Study 1 finds support for CSR congruency as a protection mechanism against dysfunctional behavior in response to negative events. The authors find that dysfunctional behaviors in conditions of congruency, while incongruent and a control condition do not provide such protections. Study 2 supports these findings using Google trends data in the form of online negative WOM. The authors find that when firms are known for their social performance, negative events in the social domain result in significantly lower levels of negative WOM. Originality/value The current paper makes the novel prediction that consumers will use a current negative event (corporate social irresponsibility) to re-evaluate previous CSR. Thus, in contrast with prior research, the authors argue that a negative event is not affected by previous CSR but that previous CSR is affected by a negative event. Furthermore, the authors posit that the congruency between the transgression and previous CSR moderates consumer perceptions, such that incongruent CSR and transgression contexts lead to increased DCBs through consumers’ retroactive sense-making process.

2015 ◽  
Vol 57 (4) ◽  
pp. 265-280 ◽  
Author(s):  
Dimitrios Chatzoudes ◽  
Dimitrios Papadopoulos ◽  
Efstathios Dimitriadis

Purpose – The purpose of this paper is to examine the relationship between consumer perceptions about large companies and behavioral intention toward buying products from these companies. It is hypothesized that the better the perceptions, the higher the behavioral intention. Corporate social responsibility (CSR) policies are proposed as the perfect tool to improve consumer perceptions and, hence, increase the customer base of large organizations. Such an approach has randomly been explored in the existing literature, making the examination of the proposed conceptual framework of the study an interesting research topic. Design/methodology/approach – The proposed conceptual framework was tested on a sample of Greek consumers. The final sample consisted of 454 adult consumers. The reliability and the validity of the newly developed questionnaire were thoroughly examined. Empirical data were analyzed using the “Structural Equation Modeling” technique. Findings – The results of the quantitative research highlighted the negative perceptions of Greek consumers toward large companies but, at the same time, revealed the statistically significant positive effect of certain dimensions of consumer perceptions on behavioral intention. In more detail, “interest toward community and employees” and “contribution to economic prosperity” seem to enhance behavioral intention, with the first being the most important factor. Research limitations/implications – A limitation stemming from the implemented methodology is the use of self-report scales to measure the constructs of the proposed model. Moreover, as the measurement of consumer perceptions has never been attempted in the existing literature, the items used to measure this construct were created after an extensive review of theoretical papers, failing to incorporate scales that have been already tested for their reliability. Practical implications – Using the findings of the empirical analysis as guiding lights, the present study proposes certain measures for large organizations. Highly proposed policies are offered in the final part of the paper. These policies are connected with enhancing the perceived interest of the company toward its community and employees. Originality/value – The present paper proposes a conceptual framework that examines CSR under a context that has been randomly examined before. It goes beyond theoretical principles and approaches issues that are vital for large organizations. Moreover, the results of the study may be generalized in other developed countries with similar economic realities (e.g. Spain, Italy, Portugal and Ireland).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamran Mohy-Ud-din ◽  
Muhammad Azam ◽  
Hamad Ul Haq ◽  
Shakeel Aslam

Purpose This study aims to investigate the determinants of localised corporate social responsibility (LCSR) activities in Pakistan. The present study explores factors influencing the corporate sector to promote the welfare of local areas where the company has located its manufacturing plants. Design/methodology/approach The authors selected 100 companies listed on the Pakistan Stock Exchange. Data were collected from the companies’ financial reports issued from 2012 to 2017 (N = 700). The authors analysed the data using fixed- and random-effects regression models to test the factors influencing LCSR activities. Findings The findings indicate that directors’ ancestry significantly enhances LCSR. This implies that boards with a greater number of directors whose names indicate their relevant ancestry are more likely to engage in LCSR. Moreover, environmental-protection activity by the corporate sector promotes LCSR initiatives. However, Pakistan’s corporate sectors are not promoting the essential aspects of their workers’ welfare, e.g. health and education. Research limitations/implications The present study was limited to the directors’ ancestry, environmental corporate social responsibility (CSR), CSR for factory workers and donation. Other factors, such as culture and language, may play an important role in determining LCSR. Practical implications The results suggest that the Security and Exchange Commission of Pakistan should emphasise the importance of LCSR to develop rural areas and devise meaningful policy for CSR. These findings provide substantial evidence that regulators and policymakers should encourage the inclusion of LCSR by firms listed on the stock exchange to increase environmental protection through CSR policy. Originality/value To the best of the authors’ knowledge, this study is the first to explore the determinants of LCSR. Moreover, the present study investigates for the first time the influence of directors’ ancestry on rural development in any of Asia’s developing countries, including Pakistan. The findings of this study contribute theoretically and empirically to the literature.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rasha Kamal El-Deen El-Mallah ◽  
Alia Abd el Hamid Aref ◽  
Sherifa Sherif

Purpose The purpose of this paper is as follows: First, understanding the nature of the relationship between corporate adoption of the concept of societal responsibility [availability of environmental awareness, clear vision of the impact of societal responsibility on financial performance, managers informing employees of the latest developments in societal responsibility programs, managers' response to their corporate social responsibility (CSR) proposals] in the form of an annual report that supports the success of the company's objectives, the company's management encourages employees to participate collectively in societal responsibility programs and to protect the environment from pollution in the petrochemical industry. Second, understand the nature of the relationship between the dimensions of corporate social responsibility concept (cultural, social, economic, ethical and legal) and protect the environment from pollution in the petrochemical industry. Third, the research also seeks to show the role of societal responsibility and its application in the petrochemical companies to protect the environment from pollution in The Governorate of Alexandria – Egypt, and come out with results and recommendations that could help protect the environment from the forms of environmental pollution resulting from the production processes of this industry. Design/methodology/approach The researcher has relied on each of the following approaches: Case study methodology is a research strategy aimed at solving a problem or facing a particular situation. It is based on preliminary hypotheses through full analysis of all data collected and recorded. Which depends on the study of a limited number of cases or vocabulary in-depth comprehensive study through the study of all or a large number of variables overlapping and interrelated and influential on the problem under consideration. Thus, it provides a deep and rich understanding of what is going on around the research and the processes that are related to it, and not only the external or apparent description of the situation or phenomenon; it cares about the total description and looks at the particles, in relation to the whole. Quantitative approach: by giving a numerical description indicating the size or size of the phenomenon or the degree of association with the phenomenon. Other phenomena. Accordingly, the role of the petrochemical companies in Alexandria Governorate, and the social responsibility programs carried out within the governorate in terms of importance, growth and requirements, and the most important characteristics and constraints and components and methods of work and developments have been described. Thus, the researcher can analyze the relationship between CSR and environmental protection from pollution in Alexandria Governorate. Findings There is paucity in the studies that dealt with the relationship between CSR and environmental protection against pollution in public organizations. There is agreement among the sample on the importance and feasibility of adopting the concept of social responsibility and placing it at the top of the top management concerns, especially in the field of petrochemical companies. With the need to take concrete implementation measures to support social responsibility programs aimed at serving the community among all stakeholders. The effective implementation of the mechanisms for the implementation of meaningful social responsibility programs requires fundamental changes in management practices, existing organizational structures and the quality of personnel working in the relevant departments, in general, and the social responsibility group, in particular, which may be difficult for political and economic reasons. Research limitations/implications Time: The study period was set from 2015 to 2017. Place: The study focuses on the petrochemical companies operating in Alexandria. Humanity: The study focuses on the employees of the petrochemical companies operating in Alexandria Governorate. Practical implications The adoption of social responsibility positively affects the protection of the environment from pollution, and this effect shows that the adoption of the concept of corporate social responsibility is influenced by the following factors: increasing the participation of workers with healthy environmental contributions to the productive process; increasing the companies' economic and social activities toward protecting the environment from pollution; increasing the capacity of companies to pay greater costs to preserve the environment; increasing the awareness of green consumers with the products it offers Companies; development of continuous internal work environment companies; and clearly defined strategy followed in social responsibility programs. Social implications The social responsibility of the public organizations derives their strength through, first, the keenness of these organizations to analyze the variables of the ethical dimension of social responsibility and their availability, which will lead the organizations to provide their services with the highest quality and sincerity. That this analysis (ethics of individuals) as training members of the social responsibility team to solve problems using brainstorming and provide employees with official data related to improving work (ethics of leadership), such as the identification of business objectives through the participation of managers with subordinates, and the punishment of workers who exhibit immoral behaviors (ethics of productive processes) as a decision-making process to ethical standards regardless of the costs involved. When there is an immoral behavior and managers are responsible for implementing the changes needed to reach the targeted outcomes), second, promote partnerships with other relevant sectors for community service. Originality/value According to the results of the previous studies and the applied study results, the researcher would like to submit a mechanism to the directors and heads of the boards of directors of the Egyptian petrochemical companies under study.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panagiotis E. Dimitropoulos

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.


2019 ◽  
Vol 49 (1) ◽  
pp. 231-249
Author(s):  
Evans Asante Boadi ◽  
Zheng He ◽  
Eric Kofi Boadi ◽  
Josephine Bosompem ◽  
Philip Avornyo

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.


2016 ◽  
Vol 14 (2) ◽  
pp. 279-298 ◽  
Author(s):  
Abdul Hadi Ibrahim ◽  
Mustafa Mohd Hanefah

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.


2016 ◽  
Vol 24 (1) ◽  
pp. 1-3
Author(s):  
Claire Clifford

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.


2016 ◽  
Vol 12 (3) ◽  
pp. 484-505 ◽  
Author(s):  
Joana Story ◽  
Filipa Castanheira ◽  
Silvia Hartig

Purpose Talent management is a twenty-first-century concern. Attracting talented individuals to organizations is an important source for firm competitive advantage. Building on signaling theory, this paper proposes that corporate social responsibility (CSR) can be an important tool for talent recruitment. Design/methodology/approach Across two studies, this paper found support for this hypothesized relationship. In Study 1, a job advertisement was manipulated to include information about CSR and tested it in two groups of 120 master’s degree students who would be in the job market within the year. It was found that CSR was an important factor that increased organizational attractiveness. In Study 2, with 532 external talented stakeholders of 16 organizations, our findings were replicated and advanced by testing whether perceptions of CSR practices (internal and external) influenced perceptions of organizational attractiveness and if this relationship was mediated by organizational reputation. Findings This study found that perceptions of internal CSR practices were directly related to both organizational attractiveness and firm reputation. However, perceptions of external CSR practices were related only to organizational attractiveness through organizational reputation. Research limitations/implications The article’s one of the main limitations has to do with generalizability of the results and the potential common method variance bias. Practical implications The findings demonstrate that CSR can play an effective role in attracting potential employees, through enhancement of organizational reputation and organizational attractiveness. If organizations are willing to implement practices that protect and develop their employees, along with practices that improve the quality of the natural environment and the well-being of the society, they can become an employer-of-choice. Originality/value This study expands on previous studies by including an experimental design, including two types of CSR practices and a mediating variable in this field study.


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