Do green legitimacy and regulatory stakeholder demands stimulate corporate social and environmental responsibilities, environmental and financial performance? Evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Baah ◽  
Yaw Agyabeng-Mensah ◽  
Ebenezer Afum ◽  
Minenhle Siphesihle Mncwango
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Environmental Performance ◽  
Emerging Economy ◽  
Environmental Responsibility ◽  
Content Type ◽  
Adoption And Implementation ◽  
Social And Environmental Responsibilities ◽  
Corporate Social

PurposeOrganizations desire to achieve green legitimacy and regulatory stakeholder demands and have been potent in influencing the adoption and implementation of social and environmental responsibilities in current business settings. Perceiving that social and environmental responsibilities that promote social growth and environmental sustainability have shifted from being optional to mandatory for organizations, this study from the perspectives of institutional and stakeholder theories elucidates the efficacy of green legitimacy and regulatory stakeholder demands on the adoption of social and environmental responsibilities at the organizational level and how these variables relate with environmental and financial performance in the context of an emerging economy.Design/methodology/approachThe study adopted a positivist methodological paradigm, survey research design, a quantitative approach and partial least square structural equation modelling (PLS-SEM) in making data analysis and interpretations due to its appropriateness for predictive research models.FindingsThe results highlighted that desire for green legitimacy and regulatory stakeholder demands influenced the adoption of environmental responsibility, social responsibility, environmental and financial performance. While environmental responsibility positively and robustly influenced environmental performance, social responsibility positively and significantly influenced financial performance. The findings particularly exposed that while environmental responsibility had negative and insignificant effect on financial performance, social responsibility negatively and significantly influenced environmental performance. Moreover, environmental performance was also found to be negatively and insignificantly correlated with financial performance. Based on the results, theoretical and practical implications are explained for policymakers, managers, government authorities and business owners.Originality/valueThe study is among the few to investigate how firms desire to achieve green legitimacy and regulatory stakeholder demands motivate the adoption and implementation of environmental and social responsibilities and its implications on environmental and financial performance in the context of an emerging economy. Although environmental responsibility has received significant attention in past studies, it is mostly considered a subset of corporate social responsibility. Thus, this study is among the first to explore the dimensional effects of corporate social responsibility namely environmental responsibility and social responsibility on performance in the context of an emerging economy and as individual constructs.

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.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

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.

Corporate social responsibility disclosure on the websites of coffee chains in Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Petek Tosun
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Public Attention ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Csr Disclosure ◽  
Social And Environmental Responsibilities ◽  
Corporate Social

Purpose Coffee is among the primary products that attract the public attention to the social and environmental responsibilities of companies. Coffee shops have a big carbon footprint because of their daily operations. With the rising consciousness about sustainability in developing countries, online disclosure of corporate social responsibility (CSR) is becoming increasingly important for not only multinational but also local coffee chains. The purpose of this study is to analyze the extent to which coffee chains include CSR on their websites. Design/methodology/approach Turkey, which is a large emerging economy with an expanding coffee chain market, is selected as the research context. The CSR disclosure on the websites of coffee chains is examined by content analysis according to CSR dimensions. A sample of 27 coffee chains with more than ten stores is included in the analysis. Findings Foreign coffee chains disclose more information on the environment and fair trade than local coffee chains. On the other hand, CSR content in websites of foreign and local coffee chains does not differ significantly in human resources and community dimensions. Foreign coffee chains have comparatively longer brand history, more rooted brands and larger networks than local coffee chains. Originality/value To the best of the author’s knowledge, this study is the first that used a content analysis about CSR on the websites of coffee chains in Turkey. Findings contribute to the understanding of CSR disclosure in the coffee chain industry and can be beneficial for researchers and managers in other emerging markets.

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

Corporate social responsibility, visibility, reputation and financial performance: empirical analysis on the moderating and mediating variables from Korea

2017 ◽  
Vol 13 (4) ◽  
pp. 856-871 ◽  
Author(s):  
SeHyun Park
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Least Square ◽  
Mediating Effect ◽  
Financial Benefit ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Corporate Social

Purpose This paper aims to substantiate the mechanism through which corporate social responsibility (CSR) affects financial performance (FP). Specifically, this paper focuses on the moderating effect of visibility and mediating effect of reputation in the relationship. Design/methodology/approach This paper investigates 175 Korean firms from 2010 to 2012 that have been listed in the Korean Economic Justice Index for all three years. The hypotheses are tested using various measures of visibility and the Korea’s Most Admired Company index as proxy for reputation. The logistics regression and the ordinary least square are used. Findings This paper initially demonstrates that the visibility moderates the correlation between CSR and reputation. On this finding, it further proves that CSR has positive effect on the long-run FP, measured in the Tobin’s Q, both directly and indirectly through reputation. However, the influence is irrelevant in the short run. In sum, visibility moderates the correlation between CSR and reputation, which mediates the CSR-FP relationship in the long run. Practical implications This paper argues for the importance of visibility in practicing CSR, especially when reputation building and financial benefit is sought through CSR. Originality/value Despite its strategic importance, the visibility of CSR has not been sufficiently studied. Moreover, as scholars have recently suggested that the CSR–FP relationship is rather indirect, there is even more significance in investigating the moderating and mediating variable. Hence, with the intuitive results, this paper lays an integral foundation in the literature.

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.

Slack resources, free cash flow and corporate social responsibility expenditure: evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shah Md Taha Islam ◽  
Ratan Ghosh ◽  
Asia Khatun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cash Flow ◽  
Random Effect ◽  
Emerging Economy ◽  
Free Cash Flow ◽  
Slack Resources ◽  
Content Type ◽  
Review Reports ◽  
Corporate Social

PurposeThe purpose of this study is to investigate whether financial resource allocation decisions for corporate social responsibility (CSR) depends on slack resources and free cash flow.Design/methodology/approachThe study's sample consists of 202 company-year observations from 51 financial institutions over the period 2015–2019. The authors collected CSR data from CSR review reports published by the Central Bank (Bangladesh Bank). The financial and governance data are collected from corporate annual reports and year-end review reports published by the Dhaka Stock Exchange. This study uses both the random-effect and generalized estimating equation models to test the hypotheses.FindingsThe authors establish two key findings consistent with the predictions of slack resource theory and free cash flow theory. First, the authors find a significant and positive relationship between slack resources and CSR expenditure. This result also supports the traditional thinking about corporate giving – that doing well enables doing good. Second, the author show that increases in free cash flow are associated with increases in CSR expenditure. This indicates the presence of agency problems between managers and shareholders regarding CSR expenditure.Originality/valueThis study is the first to show the positive impacts of slack resources and free cash flow on CSR expenditure in an emerging economy characterized by both capital constraints and high salience of CSR expenditure. The study has important implications for regulators, advocacy groups, shareholders and analysts in emerging economies that share similar contextual characteristics.

The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

2019 ◽  
Vol 122 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Niccolò Nirino ◽  
Nicola Miglietta ◽  
Antonio Salvi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Social Outcomes ◽  
Content Type ◽  
Positive Effects ◽  
Food And Beverage ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector. Design/methodology/approach The authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis. Findings The findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP. Originality/value Despite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.

Corporate social responsibility, innovation capability and firm performance: evidence from SME

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Developing Country ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

The effect of corporate social responsibility performance on financial performance: the case of food industry

2020 ◽  
Vol 27 (10) ◽  
pp. 2701-2720
Author(s):  
Xanthi Partalidou ◽  
Eleni Zafeiriou ◽  
Grigoris Giannarakis ◽  
Nikolaos Sariannidis
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Generalized Least Squares ◽  
Total Quality ◽  
Environmental Index ◽  
Content Type ◽  
Operating Income ◽  
Corporate Social ◽  
The Impact

PurposeThe present study examines the impact of the different dimensions of corporate social responsibility (CSR) performance on the financial performance of food companies.Design/methodology/approachAs proxies for the financial performance, two different indices are employed: a single index, namely, operating income and an aggregate financial index, namely, economic score. The CSR performance based on Thomson Reuter’s data stream methodology involves three distinct aspects of the CSR concept: environmental, social and governance for the time spanning 2012–2017.FindingsFindings based on estimated generalized least squares (EGLS) indicate that the higher level of environmental performance (as described by an aggregate environmental index), the publishing of a stand-alone sustainable report and the implementation of quality principles, such as Total Quality Management (TQM), Lean and Six Sigma positively affect the financial performance.Originality/valueThe results provide useful implications to stakeholders, mainly to corporate managers and investors for uptaking initiatives aiming toward the eco-efficiency of the food company.

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