Corporate social responsibility and access to bank loan: How much and how to give both matter

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Li ◽  
Jin-Xiu Sun ◽  
Chia-Huei Wu ◽  
Wei Liu
Keyword(s):  
Design Methodology ◽  
Corporate Philanthropy ◽  
Bank Loan ◽  
Private Firms ◽  
Estimation Model ◽  
Content Type ◽  
Stage Estimation ◽  
Corporate Social ◽  
Strategic Outcomes ◽  
Positive Effect

Purpose This paper aims to investigate the inverse U-shape relationship between DM and accessing loans from the banks and explore the moderating effect of donation mode diversity. Design/methodology/approach Based on a survey dataset of 1,036 private firms in China, we use a Heckman two-stage estimation model to test hypothesizes. Findings The results show an invert U-shape relationship between donation magnitude and access to bank loan. The authors also find that donation mode diversity will positively moderate donation magnitude–bank loan relationship: the positive effect of donation magnitude will be stronger for the private firms using multiple channels of philanthropic donation. Originality/value This paper extends the literatures by examining how philanthropic donation behaviors in form of donation magnitude (how much to give) and donation mode diversity (how to give) influence private firms’ loan borrowed from the bank, an important but largely ignored stakeholder. Therefore, it suggests that both the amount and the channels of philanthropic donation could have significant roles in the efficiency of achieving strategic outcomes of corporate philanthropy.

scholarly journals The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

2021 ◽  
Vol 41 (13) ◽  
pp. 100-126
Author(s):  
Matteo Podrecca ◽  
Guido Orzes ◽  
Marco Sartor ◽  
Guido Nassimbeni
Keyword(s):  
Social Responsibility ◽  
Design Methodology ◽  
Home Country ◽  
Research Area ◽  
Positive Outcomes ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect ◽  
Shed Light

PurposeIn recent years, many companies have decided to decertify from their previously adopted corporate social responsibility (CSR) standards. The aim of this paper is to explore the phenomenon by focusing on the most important auditable CSR standard: Social Accountability 8000 (SA8000).Design/methodology/approachFirst, an event study is performed on a dataset composed of 136 SA8000 decertified public listed companies to analyse the possible relationship between certification, decertification and firms’ operating performance. Second, the authors shed light on the differences between 94 SA8000 (still) certified and the abovementioned 136 decertified firms. Finally, 10 interviews are conducted with decertified firms in the dataset to deepen the outcomes of the previous analyses.FindingsThe results show that, despite an initial positive effect in terms of sales and profitability, decertified companies experienced a reduction in productivity and profitability in the years following the certification, while positive outcomes emerged after the decertification. The study also highlights that certified and decertified firms differ in terms of home country, industry and labour intensity.Originality/valueThe paper contributes to the literature by opening the debate on an important but unexplored research area: the decertification from the most popular CSR standard, i.e. SA8000, and its relationship with firms' performance. In doing this, it also highlights the main differences between decertified and certified companies.

Can corporate philanthropy change consumers’ perceptions of Japanese multinationals and reduce animosity toward them?

2019 ◽  
Vol 32 (1) ◽  
pp. 65-85 ◽  
Author(s):  
C. Min Han ◽  
Kyung Ae Kim ◽  
Hyojin Nam
Keyword(s):  
Attribution Theory ◽  
Design Methodology ◽  
Corporate Philanthropy ◽  
Consumer Perceptions ◽  
Foreign Firms ◽  
Limited Evidence ◽  
Content Type ◽  
Japanese Firms ◽  
Attribution Biases ◽  
Positive Effect

PurposeThe purpose of this paper is to empirically investigate how corporate philanthropy (CP) can affect consumer perceptions of Japanese multinationals, for which there exists strong animosity in Asia, and how this animosity can be attenuated.Design/methodology/approachThe study first examines Japanese firms in China (Study 1) and then Japanese, European and local firms in Korea (Study 2).FindingsThe results suggest that CP activities can have a positive effect on the consumer recognition of company localness and they can also attenuate company animosity for foreign multinationals. In addition, the findings suggest that Japanese multinationals can benefit greatly from CP activities in Asia than for domestic and other foreign firms.Research limitations/implicationsThe study found that consumers do not have ethnocentric attribution biases in evaluations of CP activities by foreign multinationals, as suggested by attribution theory (Hewstone, 1990; Nisbett, 1971).Originality/valueThere is limited evidence supporting the effects of CP activities by foreign multinationals from a country of origin for which there exists strong animosity.

Effects of CSR initiatives on company perceptions among Millennial and Gen Z consumers

2019 ◽  
Vol 25 (2) ◽  
pp. 299-317 ◽  
Author(s):  
Seoyeon Kim ◽  
Lucinda Austin
Keyword(s):  
Design Methodology ◽  
Corporate Philanthropy ◽  
Business Practices ◽  
Socially Responsible ◽  
Content Type ◽  
Social Initiative ◽  
Csr Communication ◽  
Responsible Business Practices ◽  
Corporate Social ◽  
Comparative Examination

Purpose The purpose of this paper is to examine Millennial consumers’ responses to two corporate social initiative types – socially responsible business practices and corporate philanthropy – in combination with proactive and reactive CSR communication strategies. Design/methodology/approach A 2 (corporate philanthropy/socially responsible business practices) ×2 (proactive/reactive CSR communication) between-subjects experiment was conducted. Findings The socially responsible business practices were largely perceived more positively than the philanthropic initiatives. Likewise, greater public-serving motives were attributed to the socially responsible business practices compared to the philanthropy. While philanthropic initiatives were perceived more negatively when communicated reactively, there were no significant differences between proactive and reactive socially responsible business practices. Originality/value As an attempt to initiate the comparative examination of the effects of different corporate social initiative types, this study suggests outperformance of the socially responsible business practices type of corporate social initiatives over the resources-giving (i.e. philanthropy) type of initiatives even in the reactive communication setting where reputational threat resides.

The effect of environmental CSR issues on corporate/brand reputation and corporate profitability

2014 ◽  
Vol 26 (4) ◽  
pp. 330-339 ◽  
Author(s):  
Morteza Khojastehpour ◽  
Raechel Johns
Keyword(s):  
Corporate Social Responsibility ◽  
Resource Utilization ◽  
Design Methodology ◽  
Extensive Literature ◽  
Corporate Brand ◽  
Content Type ◽  
Brand Reputation ◽  
Corporate Social ◽  
Positive Effect ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate the effect of environmental corporate social responsibility (CSR) (climate responsibility and natural resource utilization) on corporate/brand reputation and corporate profitability. Design/methodology/approach – Building on extensive literature, a conceptual model of environmental CSR-corporation that includes three factors of consumer behavior is proposed. Findings – The study highlights that environmental CSR has a positive effect on corporate/brand reputation and corporate profitability. Practical implications – The findings of this study highlight the importance of managing environmental CSR for corporations that intend to gain reputation and profitability. Originality/value – This paper is one of the first to highlight the effect of environmental CSR on corporate/brand reputation and corporate profitability.

scholarly journals Corporate philanthropy communication on donor websites

2017 ◽  
Vol 15 (01) ◽  
pp. 53-73 ◽  
Author(s):  
Ricardo Chalmeta ◽  
Henna Viinikka
Keyword(s):  
Charitable Giving ◽  
Design Methodology ◽  
Corporate Philanthropy ◽  
Content Type ◽  
Positive Effects ◽  
Industry Sector ◽  
Considerable Portion ◽  
To Come ◽  
Corporate Social ◽  
Missed Opportunity

Purpose This paper aims to examine whether companies engaging in corporate philanthropy, a component of corporate social responsibility (CSR), disclose information about such activities publicly on their websites, analyze whether there is a relation between the kind of charitable giving (in-kind donations or financial gifts), the number of donation types, or the industry sector the company belongs to, the mention on the company website and whether there is a relation between communicate company corporate philanthropy and communicate other company CSR issues. Design/methodology/approach The research methodology was descriptive statistics research method. The data were collected during the months of June and July 2013 from the websites of 141 companies that had recently engaged in corporate philanthropy. Findings The study found that, surprisingly, a considerable portion of companies practicing corporate philanthropy do not disclose that information on their websites. This was especially the case when donations were made with product instead of in cash. Originality/value This study quantifies the fact that many companies engage in CSR through corporate philanthropy but do not communicate those activities to a wider public. This can be seen as a missed opportunity to take advantage of a variety of positive effects that companies related to CSR benefit from. On the other hand, it can also be interpreted as a missed opportunity for the NGOs to encourage their donors to “come out” with their philanthropic activities.

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.

Handling negative publicity

2017 ◽  
Vol 21 (3) ◽  
pp. 267-286 ◽  
Author(s):  
Angie Chung ◽  
Hua Jiang
Keyword(s):  
Network Theory ◽  
Design Methodology ◽  
Content Type ◽  
Csr Communication ◽  
Subject Design ◽  
Negative Publicity ◽  
Associative Network Theory ◽  
Corporate Social ◽  
The Impact

Purpose Based on the framing theory and the associative network theory, the purpose of this paper is to develop and test a model that examines the impact of employing corporate social responsibility (CSR) communication in apology statements after negative publicity. Specifically, this study examines the role of CSR fit and CSR history in reducing anger and negative word-of-mouth (NWOM). This study also examines whether perceived CSR motivation and skepticism toward the apology statement mediate the effect of CSR fit and CSR history on anger and NWOM. Design/methodology/approach This study was a 2×2 between-subject design manipulating CSR fit (high or low) and CSR history (long or short). Findings The findings of this study suggest that strategically employing CSR communication in an apology statement after negative publicity may reduce negative consumer reactions. Originality/value The effects of CSR history and CSR fit have been studied in different contexts, but the effects of mentioning the two components in terms of apology statements had been understudied. This paper fulfills an identified need to study how employing CSR communication in apology statements after negative publicity can mitigate negative audience reactions.

Intertwining CSR with strategy – the way ahead

2014 ◽  
Vol 14 (2) ◽  
pp. 211-219 ◽  
Author(s):  
Shital Jhunjhunwala
Keyword(s):  
Business Strategy ◽  
Design Methodology ◽  
Business Models ◽  
Corporate Strategy ◽  
Sustainable Business ◽  
Socially Responsible ◽  
Content Type ◽  
Sustainable Business Models ◽  
Corporate Social

Purpose – The purpose of this paper is to emphasize the importance and means of making corporate social responsibility (CSR) an integral part of corporate strategy with the help of case studies. Design/methodology/approach – The article explores the transformation of business from being egocentric to socially responsible. With the use of examples it demonstrates how integrating CSR into strategy can create sustainable business models. Findings – Firms need to develop a framework for integrating CSR into their business strategy for long term successful survival. Social implications – Corporates and society are intertwined and mutually dependent. Business cannot survive without society's acquiescence nor succeed without its active support. Originality/value – The article explains the benefits of CSR and how to make it an integral part of business strategy to gain a competitive advantage.

Corporate social responsibility and employee organizational citizenship behavior

2017 ◽  
Vol 55 (2) ◽  
pp. 294-309 ◽  
Author(s):  
Yongqiang Gao ◽  
Wei He
Keyword(s):  
Corporate Social Responsibility ◽  
Distributive Justice ◽  
Organizational Citizenship ◽  
Ethical Leadership ◽  
Organizational Citizenship Behavior ◽  
Citizenship Behavior ◽  
Content Type ◽  
Corporate Social ◽  
Positive Effect

Purpose An increasing number of studies have demonstrated a positive effect of corporate social responsibility (CSR) on employee organizational citizenship behavior (OCB), but little attention has been paid to the mechanisms and boundary conditions underlying this effect. The purpose of this paper is to propose a trickle-down model and examine the mediating role of supervisor ethical leadership and the moderating role of perceived organizational distributive justice in the CSR-OCB relationship. Design/methodology/approach To test the arguments, the authors collected field data in four companies located in a central city of China. Through a multi-wave data collection design, a total of 187 employees reported their perceptions toward firms’ CSR and organizational justice at Time 1, and reported their direct supervisors’ ethical leadership behaviors, and their own OCBs at Time 2 (four weeks later). Findings Empirical findings demonstrated that CSR had a positive effect on employee OCB, as mediated by supervisors’ ethical leadership. In addition, this mediation effect was found to be moderated by perceived organizational distributive justice such that the mediation relationship was stronger when perceived organizational distributive justice was lower than when it was higher. Originality/value The present study makes three major contributions. First, it contributes to the CSR literature by revealing the underlying mechanism of ethical leadership through which CSR will lead to increased employee OCB in the workplace. Second, the moderation findings of the study add a new piece of empirical evidence suggesting the boundary condition of organizational distributive justice affecting the positive effect of CSR on employee OCB. Finally, the trickle-down theoretical model demonstrates the pivotal role of leadership in transforming CSR into positive employee outcomes, providing valuable insights into future research that examines why CSR motivates in-organization employees at work.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

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