Sales response to corporate social irresponsibility and the mitigating role of advertising

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stacey Sharpe ◽  
Nicole Hanson

PurposeThis study examines the relationship between corporate social irresponsibility (CSI) and firm-level sales and estimates the potentially mitigating role of advertising.Design/methodology/approachTo test their hypotheses, the authors conduct an empirical investigation using a sample of 381 US firms engaging in socially irresponsible behavior.FindingsThe results of this investigation indicate that while sales are negatively impacted during the year of a CSI event, they generally recover in the year immediately following the event. In addition, advertising is shown to mitigate the negative impact of CSI on sales in both the event year and the year immediately following. The authors also consider whether differences exist between CSI firms with and without advertising. From this comparative analysis, it is observed that CSI firms which advertise tend to experience more severe declines in sales. Also, such firms tend to recover from the negative implications of CSI sooner.Originality/valueThis paper provides a novel and empirical approach to assessing the relationship between CSI events and firm-level sales while quantifying the mitigating effects of advertising. Furthermore, the unique contributions and practical findings of this research generate strong support for the significant role advertising can play in helping firms recover from CSI-based brand crisis events and help to establish a promising path for future research.

2019 ◽  
Vol 15 (6) ◽  
pp. 786-802 ◽  
Author(s):  
Kristijan Krkač

Purpose The supposedly radical development of artificial intelligence (AI) has raised questions regarding the moral responsibility of it. In the sphere of business, they are translated into questions about AI and business ethics (BE) and corporate social responsibility (CSR). The purpos of this study is to conceptually reformulate these questions from the point of view of two possible aspect-changes, namely, starting from corporate social irresponsibility (CSI) and starting not from AIs incapability for responsibility but from its ability to imitate human CSR without performing typical human CSI. Design/methodology/approach The author draws upon the literature and his previous works on the relationship between AI and human CSI. This comparison aims to remodel the understanding of human CSI and AIs inability to be CSI. The conceptual remodelling is offered by taking a negative view on the relation. If AI can be made not to perform human-like CSI, then AI is at least less CSI than humans. For this task, it is necessary to remodel human and AI CSR, but AI does not have to be CSR. It is sufficient that it can be less CSI than humans to be more CSR. Findings The previously suggested remodelling of basic concepts in question leads to the conclusion that it is not impossible for AI to act or operate more CSI then humans simply by not making typical human CSIs. Strictly speaking, AI is not CSR because it cannot be responsible as humans can. If it can perform actions with a significantly lesser amount of CSI in comparison to humans, it is certainly less CSI. Research limitations/implications This paper is only a conceptual remodelling and a suggestion of a research hypothesis. As such, it implies particular morality, ethics and the concepts of CSI and AI. Practical implications How this remodelling could be done in practice is an issue of future research. Originality/value The author delivers the paper on comparison between human and AI CSI which is not much discussed in literature.


Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manita Kusi ◽  
Fuqiang Zhao ◽  
Dinesh Sukamani

PurposeThe study aims to scrutinize the concomitant associations between corporate social responsibility (CSR), perceived organizational support (POS), green transformational leadership (GTL) and organizational performance (OP). This paper aims to explore the role of intervening variable to measure the strength on the relationship between CSR and OP.Design/methodology/approachThis research administered a survey through self-administered questionnaire among the staff-level employees of construction companies of Nepal. Fully filled 305 responses from the participants were analyzed using a structural equation model. The study used self-structured questionnaire as research tool and face-to-face meetings as data collection technique.FindingsThe research indicates that POS showed competitive partial mediation relation between CSR and OP. Besides, a novel exploration of the moderation effect of GTL displays a supportive role in harmonizing the CSR with organizational support to achieve better OP. This study enriches empirical evidence to understand the linkage between CSR and POS in staff-level employees in the construction area. Moreover, the research shed a light on GTL 's moderating influence on the mediated model of CSR, POS and OP.Research limitations/implicationsAlthough the results of the study add to the current knowledge base, several limitations highlight avenues for future research. Future studies can explore the relationship in other study areas with added evidence on a similar result with different analysis patterns and study sample. The research model studied in the context of Nepal creating evidence as a representation for the developing countries.Originality/valueThe intervening role of POS and GTL gives new insight for the research-based organization based social behavior and performance


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This study investigated how and when corporate social responsibility (CSR) fosters job seekers’ application intentions. The authors used a “mediated moderation mode” to explore the positive effect of CSR on job seekers’ intention to apply. They considered the moderating role of applicants’ calling and the mediating role of value congruence in the relationship between the person and organization. Design/methodology/approach To test their hypotheses the authors developed a questionnaire and sent it to a sample of 259 college students with a mean age of 22.67 in South Korea. All were either prospective or current job seekers and 55.2pc were female. Two scenarios were developed based on the real-life case of a well-known coffee franchise’s CSR policies. The scenarios were identical except that one had more proactive CSR policies. Findings Results showed that a company’s proactive CSR programs increase job seekers’ intention to apply, which was moderated by their “calling” for the job. The research also demonstrated that “value congruence” between the applicant and the organization fully mediated the interaction between CSR and calling. The results, the authors said, suggested that engaging in active CSR could attract job applicants, providing a potential competitive advantage. Originality/value The authors said their study contributed to the literature as it took the job seeker’s perspective whereas most previous research on calling focused on employees. They said it was the first study to empirically demonstrate the interaction between a sense of calling and CSR.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haruna Babatunde Jaiyeoba ◽  
Shahoriyer Hossain ◽  
Hamzah Mohd Salleh ◽  
Amal A.M. Elgharbawy

Purpose This paper aims to intend to ascertain whether corporate social responsibility (CSR) can serve as an effective promotional tool for the Malaysian halal certified companies in the era of Covid-19 pandemic. Starting from being nice to do, the emergence of the Covid-19 pandemic has brought CSR to the forefront of businesses, forcing them to rapidly shift from profit maximisation to business preservation. Thus, it is practically crucial to ascertain whether CSR could be effectively used to promote halal brands in this era. Design/methodology/approach To achieve the stated aim, a survey questionnaire was developed and used to collect data from 295 participants who are familiar with the concepts of CSR and halal in Malaysia. The data collected were analysed using both descriptive and inferential statistics. Findings The findings reveal that the commitment to halal best practices, zakat and charitable donations, environmental responsibility, employee welfare and responsible dealings with clients are the most important CSR activities that can promote halal certified companies in the era of Covid-19. Whilst there is a positive relationship between halal economic responsibility and CSR as a promotional tool, such relationship is not significant. Nevertheless, the relationship between legal responsibility and CSR as a promotional tool is negative and insignificant. Research limitations/implications Limitations are inevitable in any study where a convenient sampling technique is used. Respondents from Klang Valley in Malaysia make up a large proportion of the study’s sample. This may consequently limit the generalisability of the findings of this study. Hence, future research should adequately collect data from other cities in Malaysia. Moreover, this paper does not differentiate between perceptions of Muslims and non-Muslims or between male and female; this might have an effect, as Muslims are likely to favour most of the items in the questionnaire used to collect data for this study. Thus, future research may collect sufficient data to shed more light on this issue. Originality/value The researchers have revealed that CSR is an effective promotional tool for the Malaysian halal certified companies in the era of Covid-19 pandemic. Study of this nature is rare in academic literature.


2020 ◽  
Vol 8 (3) ◽  
pp. 345-360
Author(s):  
Ece Ömüriş ◽  
Ferda Erdem ◽  
Janset Özen Aytemur

PurposeThis study aims to investigate the relationship between cooperative and competitive behavioral tendencies and trust of coworkers in organizations. Two main hypotheses were developed. The first hypothesis was that cooperativeness and trust in coworkers is positively correlated. The second hypothesis was that competitiveness and trust in coworkers is negatively correlated.Design/methodology/approachThe sample was 442 Turkish tourism sector employees in a labor-intensive industry. Two scales were used to measure trust in coworkers and cooperativeness/competitiveness. A hierarchical regression analysis was performed to understand how individuals' behavioral tendency affects their coworkers' trust in them.FindingsThe findings strongly supported the first hypothesis, in that cooperativeness was positively correlated with trust in coworkers. The second hypothesis was only partially supported because there was no significant relationship between competitiveness and the competency and trustworthiness dimensions of trust. Unselfishness aspect of trust, however, was negatively correlated with competitiveness.Research limitations/implicationsThe main contribution of this study is to show that employee cooperativeness and competitiveness can affect trust in coworker relations. However, the measurement of competitiveness and cooperativeness measurement had limitations due to differences in the culture-specific meanings of cooperation and competition. Future research employing mixed methods research is needed to further explain the content of the two tendencies and the relationship between the concepts.Originality/valueThe literature on trust and employee relations tends to focus more on the issue of trust between managers and subordinates while neglecting the complex and multifaceted structure of trust in employee–employer relations. However, new working forms mean that horizontal relations are increasingly important. Therefore, more research is needed to address the tendencies and structures that affect trust in coworkers. This study draws attention to the potential role of cooperative and competitive behaviors in trust in horizontal employee relations.


2019 ◽  
Vol 10 (1) ◽  
pp. 183-207 ◽  
Author(s):  
Anne-Kathrin Hinze ◽  
Franziska Sump

PurposeThe purpose of this paper is to systematise the current state of research on the association between companies’ corporate social responsibility (CSR) engagement and financial analysts’ company assessment. Additionally, it aims to identify fruitful directions for future research that contribute to a further exploration of the link between CSR and financial analysts.Design/methodology/approachThis study reviews and synthesises existing research on CSR and financial analysts. Based on the research question, “What is the relationship between CSR engagement and financial analysts’ metrics?,” the authors conduct a systematic literature review. The authors search three major databases and use an extensive search term to ensure exhaustive coverage of the field. The paper then systemises the current state of research and identifies knowledge gaps and potential directions for future research.FindingsThe review of existing research shows that several studies confirm a positive link between CSR performance and analyst coverage, suggesting that external monitoring through analysts incentivises companies to enhance their CSR engagement. Further, results indicate that a company’s involvement in “sin” industries is linked to lower analyst coverage. Besides, a higher level of CSR disclosure is positively associated with analyst forecast accuracy, thus indicating that the provision of CSR-related information is linked to an enhanced information environment. High levels of CSR performance are associated with more positive recommendations from analysts. However, recent surveys and interview studies on analysts’ perceptions of CSR fail to uniformly support an increasing interest in CSR.Research limitations/implicationsFor a better understanding of the link between CSR engagement and financial analysts, two fruitful directions for future research are observed. First, future research designs should clearly differentiate between CSR disclosure and CSR performance and take account of interdependencies between them. Second, studies should address behavioural insights into how analysts process information and the influence of individual analyst characteristics on the link between CSR engagement and an analyst’s assessment of a company.Originality/valueThis study is the first to review the literature on the relationship between CSR and financial analysts. The association between CSR and financial analysts is particularly interesting given the pivotal role financial analysts play as information intermediaries in financial markets. This study delivers an in-depth understanding of existing studies and their theoretical underpinnings. Based on the existing literature, this paper develops innovative directions for future research.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.


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