Barriers to corporate social responsibility implementation in the medium size manufacturing sector: an interpretive structure modelling approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gaurav Dawar ◽  
Seema Singh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Manufacturing Sector ◽  
Medium Size ◽  
Governance System ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
Expert Opinions ◽  
Corporate Social Responsibility Implementation ◽  
Corporate Social

Purpose Corporate social responsibility (CSR) practices are gaining momentum globally but their implementation becomes problematic due to the presence of barriers. So, this study aims to identify the barriers to CSR implementation among manufacturing enterprises, develop their classification and establish relationships among the barriers. Design/methodology/approach An exhaustive list of barriers was identified from the literature, and following surveys and expert opinions, 19 critical barriers were extracted. Interpretive structure modelling was used to understand the hierarchal and contextual relationships among barriers of CSR implementation. Findings The results show that are no autonomous variables present in the study. The proposed conceptual framework presents the hierarchy and interlinkage of barriers to CSR implementation in manufacturing enterprises. The results also indicate that rigidity in culture and corruption in the system and within the governance system of the country are the two most influential barriers that impede CSR implementation in manufacturing enterprises. Originality/value The interactions among CSR barriers provide policymakers, industrial practitioners and managers with a framework to recognise and evaluate mutual relationships and interlinking among barriers. CSR training and undertaking CSR in collaboration can help medium enterprises overcome these barriers and prepare strategies to mitigate their impact.

Corporate governance and corporate social responsibility interface: a case study of private equity

2020 ◽  
Vol 20 (4) ◽  
pp. 703-717 ◽  
Author(s):  
Virgo Süsi ◽  
Krista Jaakson
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Private Equity ◽  
Resource Dependence Theory ◽  
Medium Size ◽  
Content Type ◽  
Corporate Social

Purpose This paper aims to explore why private equity (PE) cares about corporate social responsibility (CSR) of its investees given their relatively short investment time-horizon and how it designs corporate governance (CG) bundle to achieve both financial and CSR goals of the private firms it invests in. Design/methodology/approach Case study design is applied to get deeper insights on the why and how questions posed. Analysis is based on triangulation of secondary data and in-depth interviews with both PE and their investee firms. Findings The authors find that long-term sustainability supported by CSR increases firm value. They also outline specific CG bundle that the PE uses to achieve both its financial and CSR goals. CG mechanisms appeared to reflect agency theory, but even more resource dependence theory. Practical implications The outlined CG bundle could be used as a template for all types of private firm owners to improve both financial and CSR performance of the firm. Originality/value The paper adds to fragmented area of CG and CSR interface. The authors specifically focus on several under-researched contexts of this interface: private small and medium size firms (SMEs), emerging markets and PE investors.

Corporate social responsibility, governance and stakeholders: a bank in the upbeat of the crisis

2016 ◽  
Vol 12 (4) ◽  
pp. 388-412 ◽  
Author(s):  
Frank Jan de Graaf
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Structure ◽  
Governance System ◽  
Content Type ◽  
Social Responsibilities ◽  
The Social ◽  
Corporate Social ◽  
A Company

Purpose Using the global financial crisis as a critical event and based on institutional theory and stakeholder theory, this paper aims to explore the relationship between corporate governance and corporate social responsibility (CSR). The question is how stakeholders can influence corporate responses to societal change by using their position in the governance structure. Design/methodology/approach The analysis is based on a historical analysis of data collected mainly between 2002 and 2004. The historical perspective enables an understanding of the response of the company to environmental changes. Findings The approach enables researchers to relate the normative component of CSR to specific governance mechanisms. These governance mechanisms are specified in direct and indirect influence pathways. Historical data shed light on how, in the upbeat of the crisis, stakeholders have influenced the principles and policies of the ING Group, a Dutch financial company. Research limitations/implications The paper suggests that stakeholders influence principles – normative assumptions that guide corporate decisions – mainly in dialogue-based meetings (direct influence pathways). Companies are made accountable in indirect influence pathways such as regulations. The author also demonstrates that a historical approach enables an understanding of long-term historical developments and the linking of corporate policies to the normative assumptions of stakeholders. Practical implications If stakeholders wish to assess the social responsibility of a company, then they should assess the governance structure in relation to the principles and policies. The power structure within a company and that within the institutional framework in which the company operates (the governance system) strongly influences how a company executes its social responsibilities. Social implications The paper demonstrates how stakeholders can use the governance structure to influence a bank. If society – or a specific group in society – wants banks to play a different role, this paper points to what could be the levers of change in the governance system and the governance structure. Originality/value Insights into the complex relationship between corporate governance and the processes in which the social responsibilities of a company are developed.

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.

Corporate social responsibility and organizational attractiveness: implications for talent management

2016 ◽  
Vol 12 (3) ◽  
pp. 484-505 ◽  
Author(s):  
Joana Story ◽  
Filipa Castanheira ◽  
Silvia Hartig
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Well Being ◽  
Talent Management ◽  
Organizational Attractiveness ◽  
Firm Reputation ◽  
Content Type ◽  
Job Advertisement ◽  
Organizational Reputation ◽  
Corporate Social

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.

Enhancing the employer-employee relationship through corporate social responsibility (CSR) engagement

2015 ◽  
Vol 27 (7) ◽  
pp. 1479-1498 ◽  
Author(s):  
Daraneekorn Supanti ◽  
Ken Butcher ◽  
Liz Fredline
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Hotel Management ◽  
Content Type ◽  
Beneficial Effects ◽  
Specific Effects ◽  
Employee Relationship ◽  
Hotel Managers ◽  
Corporate Social ◽  
Csr Engagement

Purpose – The purpose of this study is to understand how hotel managers perceive the benefits that may accrue to employees and hotels through their engagement in corporate social responsibility (CSR) activities. Design/methodology/approach – In-depth interviews with 23 hotel managers, representing various functional responsibilities, were undertaken across four provinces in Thailand. The sample included local and international chain hotels. Findings – Hotel managers from all functional areas and levels acknowledged that CSR substantially enhanced the employer–employee relationship. Five themes depicting the beneficial effects were identified: a relationship unifying process, having fun, feeling pride, developing skills and building teamwork. These themes reflect three core factors of emotional responses, social capital and task-related skills. Practical implications – The paper illustrates that CSR activities can be customised to elicit specific effects that will engender beneficial outcomes for both hotel management and employees. Originality/value – This paper provides new insights into how hotel managers perceive the employer-employee relationship is enhanced through CSR engagement. In addition, the paper presents a practical model that will be of interest to both academics and practitioners.

Internal auditing and assurance of corporate social responsibility reports and disclosures: perspectives of some internal auditors in Ghana

2016 ◽  
Vol 12 (4) ◽  
pp. 706-718 ◽  
Author(s):  
Samuel Nana Yaw Simpson ◽  
Francis Aboagye-Otchere ◽  
Ruby Lovi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Audit ◽  
Structured Interview ◽  
Research Approach ◽  
Limited Information ◽  
Content Type ◽  
Internal Auditors ◽  
Changing Roles ◽  
Corporate Social

Purpose This study aims to examine the nature and extent of internal auditors’ (IAs) involvement in corporate social responsibility (CSR) assurance. It also ascertains the capacity building requirements to legitimise the role of IAs as a credible form of providing CSR assurance. Design/methodology/approach A qualitative research approach was adopted, where data were collected through semi-structured interview of IAs of companies in Ghana that produce CSR reports. Findings Findings suggest that companies appreciate the fact that the internal audit function could provide independent assurance on CSR reports. However, there is limited information on the nature and scope of the assurance procedures. Moreover, most IAs seem to lack the requisite knowledge and skills needed to effectively carry out CSR assurance engagements. These evidences suggest a relatively low level of reliance being placed on CSR assurance services provided internally. Research limitations/implications Findings are purely based on the perceptions of IAs. Future studies may include the views of those who appoint IAs (i.e. management). Practical implications Findings engender discussions on the need for IAs and regulators of IAs (e.g. the Institute of Internal Auditors), particularly those in developing countries to begin to conscientise practitioners on the changing roles of the IA in the areas of CSR and CSR assurance. Originality/value This study is one of the very few studies on CSR assurance from the perspective of IAs and it also based on evidence from an African context. Also, the study provides evidence on the need for a deliberate effort to equip internal audit practitioners to provide at least some minimal assurance on CSR disclosures and reports.

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