scholarly journals The effect of national culture on the association between profitability and corporate social and environmental disclosure

2015 ◽  
Vol 23 (3) ◽  
pp. 296-321 ◽  
Author(s):  
Hichem khlif ◽  
Khaled Hussainey ◽  
Imen Achek
Keyword(s):  
Multinational Corporations ◽  
Meta Analysis ◽  
Cultural Dimensions ◽  
Policy Implications ◽  
Environmental Disclosure ◽  
Content Type ◽  
Social And Environmental Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose – This paper aims to investigate the moderating effect of cultural dimensions (masculinity, individualism and long-term orientation) on the association between profitability and corporate social and environmental disclosure (CSED). Design/methodology/approach – The authors apply the meta-analysis technique developed by Hunter et al. (1982) and Hunter and Schmidt (2000) for a sample of 48 published studies over the period of the past 20 years. Findings – The authors find that masculinity, individualism and long-term orientation moderate the association between profitability and CSED. Given the weight of US studies on the overall sample, the authors conduct a sensitivity analysis to examine how this factor may affect the findings. After excluding these studies, only long-term orientation and individualism remain strong moderators of the association between profitability and CSED. Originality/value – This study provides further evidence on the impact of institutional frameworks on CSED. It has, also, policy implications for managers of multinational corporations.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abir Hichri ◽  
Moez Ltifi
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Customer Loyalty ◽  
Mediating Effect ◽  
Content Type ◽  
Global Context ◽  
Bidirectional Relationship ◽  
Corporate Social ◽  
The Impact

Purpose The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. Design/methodology/approach Data was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses. Findings The results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship. Originality/value This study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.

scholarly journals Board and corporate social responsibility disclosure of multinational corporations

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Board Independence ◽  
Content Type ◽  
Csr Reporting ◽  
The One ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.

Corporate social responsibility and SME performance: a meta-analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Oduro ◽  
Kot David Adhal Nguar ◽  
Alessandro De Nisco ◽  
Rami Hashem E. Alharthi ◽  
Guglielmo Maccario ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Content Type ◽  
Analytic Review ◽  
Managerial Implications ◽  
Corporate Social ◽  
The Impact

PurposeThis study aims to draw on instrumental and ethical theories to offer a quantitative review of the extant literature on the corporate social responsibility (CSR)–small-medium enterprises (SMEs) performance relationship through a meta-analysis.Design/methodology/approachEmpirical studies from 57 independent peer-reviewed articles, including 66,741 firms, were sampled and analysed. Both subgroup and meta-regression analyses (MARA) were used to test the hypotheses of the study.FindingsThe authors' results demonstrated that social-oriented, economic-oriented and environment-oriented CSR activities have a positive, significant influence on overall, financial and non-financial performance of SMEs; however, the effect of social-oriented CSR activities is the strongest. Moreover, the impact CSR dimensions have on non-financial performance is stronger than on financial performance. Additionally, findings showed that the association between CSR and SME performance is positively and significantly influenced by contextual factors (i.e. sector and region of study) and methodological factors (i.e. performance measurement, study type, theory usage, sampling size and operationalisation of constructs).Originality/valueThe study is the pioneering meta-analytic review on the CSR–SME performance relationship, thereby clarifying the anecdotal results, synthesising the fragmented empirical studies and exploring the contextual and methodological factors that may account for between-study variance. Following the study's findings, the authors delineate insightful suggestions for future scholarship and fine-grained managerial implications for practitioners.

Seeking legitimacy

2019 ◽  
Vol 11 (6) ◽  
pp. 1009-1021 ◽  
Author(s):  
Dennis M. Patten
Keyword(s):  
Relevant Literature ◽  
Legitimacy Theory ◽  
Environmental Disclosure ◽  
Content Type ◽  
The Social ◽  
The Usa ◽  
Social And Environmental Disclosure ◽  
The Rich ◽  
Csr Disclosure ◽  
Corporate Social

Purpose In this essay, the author reflects on the legitimacy theory in corporate social responsibility (CSR) disclosure research. Design/methodology/approach This is a reflection/review essay based on a review of relevant literature. Findings Although almost constantly under attack from a variety of scholars, legitimacy theory seems to hold on in the social and environmental disclosure arena. However, the failure of the recent wave of CSR-themed work published in The Accounting Review to even acknowledge, let alone engage with, the theory is problematic. Research limitations/implications We, in the CSR disclosure arena, need to do all we can to help emerging scholars (particularly in the USA) find the rich body of research the mainstream journals fail to discuss. Practical implications Legitimacy-based research can help move CSR disclosure at least closer to being a tool of accountability, as opposed to a tool for legitimation. Social implications Perhaps the critique of the mainstream North American literature’s failure to consider legitimacy theory can lead to the recognition of the need to focus on the harm to sustainability that a narrow, shareholder-centric focus leads to. Originality/value This reflection takes a unique look at the contributions of legitimacy theory to CSR disclosure research.

Revisiting the relationship between corporate governance and corporate social and environmental disclosure practices in Pakistan

2019 ◽  
Vol 15 (1) ◽  
pp. 90-119 ◽  
Author(s):  
Khurram Ashfaq ◽  
Zhang Rui
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Audit Committee ◽  
Descriptive Statistics ◽  
Three Dimensions ◽  
Environmental Disclosure ◽  
Content Type ◽  
Nature Of Information ◽  
Social And Environmental Disclosure ◽  
Corporate Social

PurposeThis study aims to revisit the corporate social and environmental disclosure (CSED) practices of Pakistani companies using unique CSED index which measures the CSED through three dimensions such as theme, news type and nature of information. In addition, the effect of board composition, ownership structure and corporate characteristics on CSED was tested through performing multiple regression analysis.Design/methodology/approachFor this purpose, data were collected from annual reports of top 120 companies’ selected based on market capitalization for three years period of 2013-2015.FindingsBased on the descriptive statistics, the results found that overall level of CSED in Pakistan is moderate. However considering CSED using three dimensions, the results demonstrate that highest level of disclosure on the basis of theme is reported in terms of human resource category as compared to other categories where, as in terms of news type and nature of information, analysis shows that companies in Pakistan feel resistant to disclose bad news, monetary and non-monetary aspect of CSED information. Using multiple regression analysis, the results found that all the variables have hypothesized relationship with CSED except government and institutional ownership. The variables such as chairman as non-executive director, board diversity, appointment of independent director as audit committee chairman, CSR committee, industry type and firm size are found to have significant influence on the CSED practices in Pakistan.Research limitations/implicationsThese results imply that the CSED phenomenon is still lacking behind. Under individual categories of CSED, descriptive statistics found that environment is still not a matter of concern for companies operating in Pakistan. In addition, the results demonstrate that CSED practices are only performed by very few companies in Pakistan based on standard deviation. In addition, appointment of non-executive and independent director as chairman of board and audit committee and representation of foreigners on the board should be encouraged in order to improve CSED practices in Pakistan.Originality/valueThis study contributes to the existing literature in developing country like Pakistan through using unique CSED index and also making comparison of financial versus non-financial sectors. The author suggests that regulatory authorities in Pakistan must take reasonable steps to make the company’s operations environment-friendly.

The impact of corporate social responsibility (CSR) priming on consumers’ consumption and lifestyle choices with intertemporal tradeoffs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hajar Fatemi ◽  
Laurette Dube
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Experimental Studies ◽  
Unhealthy Food ◽  
Content Type ◽  
Trade Offs ◽  
Lifestyle Choices ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to study the unexplored possibility that priming firms’ corporate social responsibility (CSR) activity in consumers’ minds may impact consumers’ preference for non-firm related consumption and lifestyle choice options with intertemporal trade-offs. Design/methodology/approach Across four experimental studies, the authors looked at the impact of CSR priming on the preference of participants for later larger versus sooner smaller money (Study 1), saving versus spending (Study 2) and healthy versus unhealthy food choices (Studies 3 and 4). These choice options were not related to the focal firm that practiced CSR. The authors measured the changes in participants’ consideration of future consequences (CFC) as a potential mediator for the results. Findings The participants in the CSR condition showed a higher CFC and a higher preference for the options with long-term benefits and immediate costs over the ones with long-term costs and immediate benefits, i.e. later larger over sooner smaller money, saving over spending and healthy over unhealthy food. The authors documented a mediation role for CFC. Research limitations/implications All the participants in the studies were from the USA. Looking at the cultural differences can enrich the understanding of the impact of CSR on preference for the options with intertemporal trade-offs. Furthermore, this paper builds its theoretical justification based on the assumption of individuals’ acceptance of CSR activities. Nevertheless, consumers may have skepticism about these activities. Future studies may investigate the effect of CSR skepticism of individuals on the proposed effects. Additionally, investigating the moderating roles of individuals’ characteristics like their prosocial concern or their knowledge about choice options might be an avenue for future research. Practical implications The findings highlight the benefits of CSR priming on consumers’ welfare and normative behavior. Firms may use the findings to understand and manage the impact of other firms’ CSR communications on the evaluation of their own products. Originality/value This research is the first to highlight the impact of CSR priming on consumers’ non-firm-related consumption and lifestyle choices with intertemporal trade-offs. The results showed the positive effect of priming firms’ CSR activities on consumers’ CFC and the mediating role of CFC.

scholarly journals Beyond the game: perceptions and practices of sports sponsorship in German SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Datson ◽  
Wilson Ozuem ◽  
Kerry Howell ◽  
Geoff Lancaster
Keyword(s):  
Multinational Corporations ◽  
Strategic Alliances ◽  
Social Engagement ◽  
Critical Evaluation ◽  
Sport Sponsorship ◽  
Content Type ◽  
Sports Sponsorship ◽  
Signalling Theory ◽  
The Impact

Purpose The purpose of this study is by drawing on signaling theory to address the need for more investigation into the conceptual underpinnings of sponsorships by investigating and seeking to understand sponsorship objectives, opinions and practices, with a focus on smaller organisations. Design/methodology/approach This empirical study contributes to the literature through researched findings from German respondents and a critical evaluation of literature relating to the impact of sports sponsorship on SMEs within local German communities. Findings Drawing on signalling theory and extant studies, the following four categories of SME sport sponsorship activities are proposed: value-based connections, social engagement, recognition and bonding. Research limitations/implications Sponsor, sponsee and dyadic antecedents have increased in both sophistication and complexity, resulting in expected positive consumer outcomes as the justification for marketing communication investments. Practical implications Sponsorship has evolved from short-term philanthropic activities to long-term strategic alliances involving billions of dollars of annual spending globally. Social implications SME companies have certain local opportunities that larger multinational corporations cannot replicate. Originality/value No study to date has provided researchers with a framework to understand sports sponsorship from an SME perspective. This paper contributes to the theories and practice of sport sponsorship, drawing on signalling theory and extant studies.

Hofstede’s cultural dimensions in accounting research: a review

2016 ◽  
Vol 24 (4) ◽  
pp. 545-573 ◽  
Author(s):  
Hichem Khlif
Keyword(s):  
Tax Evasion ◽  
Meta Analysis ◽  
Positive Association ◽  
Historical Record ◽  
Cultural Dimensions ◽  
Environmental Disclosure ◽  
Content Type ◽  
Accounting Research ◽  
Hofstede’S Cultural Dimensions ◽  
Hofstede's Cultural Dimensions

Purpose This paper aims to review the use of Hofstede’s cultural dimensions in accounting research over the period 1995-2015. Design/methodology/approach The author combines electronic and manual searches to identify relevant studies using key words like “national culture” or “Hofstede’s cultural dimensions” and “accounting” or “auditing” or “taxation”. The search yields a total number of 35 published studies. For each reviewed stream of research, the author presents its theoretical underpinning and summarises its main results. Findings The paper identifies four main accounting research topics being reporting policy, auditing, taxation and miscellaneous accounting. These studies use three main methodologies including empirical, experiment and meta-analysis. The review reveals that individualism is positively related to corporate reporting policy, while it is associated with low levels of tax evasion. High levels of masculinity are generally associated with low disclosure environments and aggressive accounting manipulations. Finally, long-term orientation has been examined with respect to social environmental disclosure, and findings are supportive of a positive association between both variables. Originality/value This literature review represents a historical record, an introduction and a guidance for researchers who aim to examine whether Hofstede’s cultural dimensions may be useful in explaining other accounting phenomena. It also presents the main criticisms addressed to Hofstede’s framework. Finally, it conducts a critical analysis for reviewed studies and highlights their reductionist approach in explaining accounting phenomena and methodological weaknesses.

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