Do institutional investors have homogeneous influence on corporate social responsibility? Evidence from investor investment horizon

2019 ◽  
Vol 46 (3) ◽  
pp. 301-322 ◽  
Author(s):  
Yun Meng ◽  
Xiaoqiong Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Investors ◽  
Empirical Support ◽  
Investment Horizon ◽  
Short Term ◽  
Content Type ◽  
Corporate Social ◽  
Institutional Shareholders

Purpose The purpose of this paper is to investigate the relation between the investment horizon of institutional investors and corporate social responsibility (CSR). Design/methodology/approach Utilizing unique datasets on CSR and the investor horizon measures (Gaspar et al., 2005), the authors categorize institutional investors into long-term and short-term investors. This method captures the heterogeneity of investors. Findings The authors show that long-term institutional investors promote CSR engagement, while short-term investors discourage it. The authors further document that shareholders’ ownership horizon has implications on corporate decisions in the CSR framework. The presence of long (short)-term institutional investors is positively (negatively) associated with dividend payout, discourages (encourages) managerial misbehaviors and enhances (reduces) firm valuation, only for firms with high CSR performance. Research limitations/implications Different from previous studies that treat institutional investors homogeneously, this paper provides empirical support that investors are indeed different in influencing CSR. Originality/value Few prior studies address the question of whether active engagement by institutional shareholders on CSR issues differs by the types of institutional ownership. The study attempts to fill this gap by examining the effects of institutions’ investment horizon, one of the major ways to classify institutional shareholders, on the CSR performance of firms.

scholarly journals Executive Incentives Matter for Corporate Social Responsibility under Earnings Pressure and Institutional Investors Supervision

2020 ◽  
Vol 12 (6) ◽  
pp. 2492 ◽  
Author(s):  
Lili Ding ◽  
Zhongchao Zhao ◽  
Lei Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Investors ◽  
Short Term ◽  
Institutional Csr ◽  
Csr Strategy ◽  
Technical Csr ◽  
Corporate Social ◽  
The Impact

This paper theoretically explores the impact of the incentive preferences of executives (i.e., short-term incentives and long-term incentives) on corporate social responsibility (CSR) decisions (i.e., institutional CSR and technical CSR). Further, the paper presents the mechanism through which executives influence CSR activities by the pressures from financial analysts and institutional investors supervision. Using a large sample of China-listed firms over 2007–2017, we achieve some helpful empirical results. The executives with short-term incentives tend to implement technical CSR strategy, while those with long-term incentives tend to implement institutional CSR strategy. Executives with short-term incentives, compared with those with long-term incentives, show stronger inter-temporal tradeoffs behaviors in the earnings pressure context. Furthermore, dedicated institutional investors can effectively attenuate the hypocritical behaviors of executives, and the effectiveness of governance shows a positive relationship with investors’ horizon. Our findings enrich the understanding on the relationship between the executives and CSR decisions in the earnings pressure context and further helps to perfect the institutional design in China’s listed companies.

scholarly journals Program Corporate Social Responsibility di Industri Hotel: Sebuah Keuntungan atau Kerugian untuk Hotel

2012 ◽  
Vol 3 (1) ◽  
pp. 502
Author(s):  
Maria Pia Adiati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Activity ◽  
Public Image ◽  
Term Result ◽  
Short Term ◽  
Short Term Result ◽  
The Social ◽  
Corporate Social

A word of CSR which stands for Corporate Social Responsibility is now becoming popular and more often many companies insert the CSR activities into its company profile. CSR has another different names such as Social Activity or Sustainability Development. CSR program according to wikipedia ia an organization or company has a responsibility to its customer, employees, share holders, community and environment in every aspect involved in company operasional. In the management science, there is a level whereas it is called social responsibility or it is just social obligation. Many opinions argues that CSR program will reduce the profit of the respected company. But many opinions denies the previous argue by saying the CSR program is a long term program profit gain since the short term result is good public image. The good public image will lead the loyalti of customer to keep using the product or service from the hotel. The customer loyalti also affected by the customer’s opinion, if they involves in the social activities held by the hotel, they also participate in a social activity.

scholarly journals Employees’ perceptions of corporate social responsibility and ethical leadership: are they uniquely related to turnover intention?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehran Nejati ◽  
Michael E. Brown ◽  
Azadeh Shafaei ◽  
Pi-Shen Seet
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ethical Leadership ◽  
Turnover Intention ◽  
Turnover Intentions ◽  
Empirical Support ◽  
Well Being ◽  
Relative Importance ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this study is to investigate the simultaneous effect of ethical leadership (EL) and corporate social responsibility (CSR) on employees’ turnover intention and examine the mediating mechanism in these relationships. Design/methodology/approach The authors conducted a field study of 851 employees across a variety of industries. This study applied partial least squares structural equation modelling for hypothesis testing. Findings The results show that employees’ perceptions of CSR as well as EL are both uniquely and negatively related to turnover intention. The authors also found that employees’ job satisfaction but not commitment, mediates these relationships. Research limitations/implications This study answers the recent call (Schminke and Sheridan, 2017) for ethics researchers to put competing explanations to the test to determine their relative importance. Research limitations have been discussed in the paper. Social implications Through providing empirical support for the positive impact of CSR and EL on employee-related outcomes and creating a decent and empowering work environment, this study provides further support for CSR and EL. As CSR and EL require accountability, responsible management and addressing societal well-being of stakeholders, this study can contribute to the United Nations sustainable development goals. Originality/value Previous research has found that both employees’ perceptions of supervisory EL and CSR are negatively related to employees’ turnover intentions. Yet, researchers know little about their relative importance because these relationships have not been adequately examined simultaneously.

Corporate social responsibility and institutional investors: the intervening effect of financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafat Maqbool ◽  
Nasir Zamir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Institutional Investors ◽  
Decision Process ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

PurposeThe research on the role of corporate social responsibility in investors' decision process has proliferated over the past few decades. This paper aims to explore the mediating role of financial performance in the relationship between corporate social responsibility and institutional investors.Design/methodology/approachPanel regression was performed on a sample of 29 commercial banks nine years from 2009 to 2017.FindingsThe initial findings of the study show that that corporate social responsibility has a positive and significant impact on institutional investors. However, when the interaction term (financial performance) was incorporated, the relationship between CSR and institutional turns out to be neutral. The study concludes that financial performance plays a pivotal role in the selection of investment avenues.Originality/valueIn Indian context, there is a dearth of research work which studies the impact of sustainable practices on investors' decision process. This topic has received wider attention but lacks insights from developing countries, like India. This article presents a new approach to verify the relationship through the mediating variable (financial performance).

Social impact of a corporate social responsibility initiative

2019 ◽  
Vol 9 (4) ◽  
pp. 344-362 ◽  
Author(s):  
Brendan Riggin ◽  
Karen Danylchuk ◽  
Dawn Gill ◽  
Robert Petrella
Keyword(s):  
Physical Activity ◽  
Health Promotion ◽  
Weight Loss ◽  
Corporate Social Responsibility ◽  
Waist Circumference ◽  
Social Responsibility ◽  
Social Impact ◽  
Content Type ◽  
Corporate Social

PurposeThe purpose of this paper is to examine the social impact of an initiative (Hockey FIT) aimed at improving the health and well-being of sport fans and their community.Design/methodology/approachFans (n=80) participated in 12 weekly health promotion sessions hosted in local hockey club facilities. Objective health measurements, diet and physical activity levels of fans were measured at baseline, 12 weeks and 12 months, to determine the intermediate, long-term, individual and community impact. Furthermore, one-on-one interviews with 28 program participants were conducted to further understand the program’s social impact.FindingsThe intermediate impact was noticed as improvements in weight loss, body mass index, waist circumference, systolic blood pressure (BP), steps per day, healthful eating, self-reported overall health and fatty food scores at 12 weeks. The long-term individual impact of Hockey FIT was realized as participants maintained or continued to improve their weight loss, waist circumference, healthful eating, systolic BP and diastolic BP 12 months after the program had been offered. The program was also reported to increase family bonding time and improved the diet, daily physical activity, and general awareness of health promotion programs and components for friends, family members and coworkers.Originality/valueThe positive health-related results from this study contradict prior research that has suggested there is minimal evidence of any substantial contributions from social programs in sport. Through a collective approach to corporate social responsibility, this research demonstrates the ability for sport organizations to contribute to meaningful social change and the positive role that they play within the community.

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.

From surface to deep corporate social responsibility

2016 ◽  
Vol 7 (2) ◽  
pp. 275-287 ◽  
Author(s):  
Cameron Richards ◽  
Irina Safitri Zen
Keyword(s):  
Sustainable Development ◽  
Corporate Social Responsibility ◽  
Social Learning ◽  
Social Responsibility ◽  
Policy Implementation ◽  
Public Awareness ◽  
Policy Research ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to develop and explore the policy concept of corporate social responsibility (CSR) as a focus for sustainable development. To this end, it develops and explores the implications of a distinction between CSR as a marketing strategy and a more sustainable long-term commitment to changes in organizational culture and also society. Design/methodology/approach This a conceptual paper which develops a policy research framework for examining the CSR rationale as well as general concept as applied to the “plastic bags” public awareness campaign in the Malaysian case study. On this basis, its central inquiry approach is to develop and explore the distinction between surface and deep modes of CSR policy implementation as also related modes of social learning. Findings The findings from the conceptual inquiry recognize that corporations which fail to apply a deep rather than a surface commitment to their own CSR polices will sooner or later be judged on that basis by their customers as well as external stakeholders. Although CSR policies will always involve a corporate marketing focus, this is sustainable only if framed by a long-term organizational commitment to accountable change. Originality/value The paper makes, develops and further explores a basic accountability distinction between surface and deep modes of CSR as a management commitment, corporate policy implementation and related processes of corporate cultural change. This links to the paper’s associated innovation of linking CSR as both internal organizational learning and a larger sustainable development process of social learning.

Corporate social responsibility, stock salience, and the asymmetric market impact of consumer sentiment news on Spanish firms

2015 ◽  
Vol 7 (2) ◽  
pp. 98-115
Author(s):  
Barry Oliver ◽  
Blanca Pérez-Gladish ◽  
Paz Méndez-Rodríguez
Keyword(s):  
Corporate Social Responsibility ◽  
Stock Market ◽  
Social Responsibility ◽  
Consumer Sentiment ◽  
Global Compact ◽  
Un Global Compact ◽  
Content Type ◽  
Negativity Effect ◽  
Corporate Social

Purpose – The purpose of this paper is to identify whether the Spanish stock market experiences a negativity effect on the announcement of Spanish consumer sentiment information and if firms that are signatory to the UN Global Compact on corporate social responsibility are relatively more salient in the minds of investors. Design/methodology/approach – The authors use consumer sentiment announcements to show how the negativity effects on the Spanish stock market are significantly influenced by how salient the stock is in the minds of investors. If a firm’s stock exhibits negativity effects on the release of consumer sentiment information then this stock is salient to investors. If firms who are signatory to the UN Global Compact exhibit significant negativity effects, it could be concluded that these stocks are salient, particularly if firms that are not signatory to the Global Compact do not exhibit a similar negativity effect. Findings – The IBEX35 index experiences significant negativity effects upon the release of Spanish consumer sentiment announcements. This is similar to that reported in other countries, notably Australia and the USA. Using the constituent firms in the IBEX35 index, the authors find that those firms that are signatory to the UN Global Compact are significantly more likely to experience negativity effects upon the release of Spanish consumer sentiment information than if they are not signatory to the Global Compact. This indicates that firms that are part of the UN Global Compact are more salient to investors. Research limitations/implications – Available published Spanish data on consumer sentiment. Practical implications – Little is understood of the impact that consumer sentiment announcements have on stock prices. Studies in USA and Australia have identified significant negativity effects in stock markets when consumer sentiment information is released. This research has found that a psychological negativity bias occurs in firms that are salient to investors. Salience has been found to be important in asset pricing. Originality/value – This paper tries to find out which companies are more likely to sign the UN Global Compact. These companies are more sensitive to consumer sentiment, because they depend on the everyday decisions of the consumers. The more the companies depend on consumers, the more they care about them. And, when the consumer sentiment goes down, they are more affected by this sentiment. These firms are also more worried about the long term. They are not only thinking about the profits in the short term but also about maintaining the generation of profits in the long term.

scholarly journals Do Corporate Social Responsibility Activities Reduce Credit Risk? Short and Long-Term Perspectives

2019 ◽  
Vol 11 (24) ◽  
pp. 6962 ◽  
Author(s):  
Thuy Thi Thu Truong ◽  
Jungmu Kim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Credit Risk ◽  
Credit Default Swap ◽  
Community Diversity ◽  
Employee Relations ◽  
Short Term ◽  
Long Run ◽  
Corporate Social

This study examines the short- and long-run effects of corporate social responsibility (CSR) activities on the credit risk implied in credit derivative prices. Measuring the different term effects on credit risk by the slope of credit default swap (CDS) spreads with different maturities, we investigate how CSR activities affect credit risk differently in the short and long run. Fama-MacBeth regressions reveal that firms with higher CSR scores tend to have more gently decreasing CDS slopes because, on average, CSR activities reduce credit risk in the long run more than in the short run. An analysis of individual CSR categories shows that while community, diversity and employee relations lead to a lower CDS slope, human rights and product characteristics increase the CDS slope. This finding suggests that not all CSR activities affect short-term and long-term credit risks in the same direction. Therefore, even though CSR activities can reduce credit risk in the long-run, some CSR activities may increase the short-term credit risk and hence increase short-term borrowing costs.

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