Can corporate philanthropy be driven from the bottom to the top? Evidence from China

2019 ◽  
Vol 11 (5) ◽  
pp. 841-861
Author(s):  
Lin Zhang ◽  
Shenjiang Mo ◽  
Honghui Chen ◽  
Jintao Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Philanthropy ◽  
Practical Implication ◽  
Top Management Teams ◽  
Top Management ◽  
Content Type ◽  
Team Members ◽  
Top Managers ◽  
Corporate Social

Purpose This paper aims to demonstrate that corporate philanthropy can be driven from the bottom to the top. In particular, the authors investigate whether employees’ donations influence corporate philanthropy and under what conditions this effect occurs. Design/methodology/approach The sample consists of Chinese listed firms that disclosed the amount employees donated in response to the Sichuan earthquake in 2008. The Heckman two-stage selection model is applied to examine the effect of employees’ donations on corporate philanthropy and the conditions under which this effect occurs. Findings The results show that employees’ donations are positively associated with corporate philanthropy. Furthermore, a higher percentage of females in top management teams can significantly strengthen the effect of employees’ donations on corporate philanthropy. When the average age of the top management team members is high, the influence of employees’ donations on corporate philanthropy is stronger. Practical implications This is an empirical study that helps to predict corporate philanthropy. Another practical implication is that employees should be recognized as an important element of corporate social responsibility. Social implications The results encourage employees to become drivers of corporate social responsibility. Originality/value This study contributes to the corporate social responsibility literature by demonstrating that corporate philanthropy can be driven from the bottom to the top. Moreover, this study integrates signaling theory into the study of corporate social responsibility. Finally, this study identifies two important contingent factors that strengthen the effect of employees on top managers’ decisions about corporate social responsibility.

Top management team heterogeneity, corporate social responsibility and firm risk: an emerging country perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Total Risk ◽  
Firm Risk ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social

Purpose This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk. Design/methodology/approach This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations. Findings This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk. Practical implications This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks. Originality/value Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure

2020 ◽  
Vol 16 (2) ◽  
pp. 293-333
Author(s):  
Zhiming Ma ◽  
Hong Zhang ◽  
Weiguo Zhong ◽  
Kaitang Zhou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Academic Background ◽  
Top Executives ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACTCorporate social responsibility (CSR) disclosure is becoming increasingly important for modern corporations. Focusing on voluntary CSR disclosure and drawing on upper echelons theory, we propose that voluntary CSR disclosure is the manifestation of managerial preferences (e.g., managers’ professional ethical values and standards). Specifically, we argue that top executives with an academic background tend to have higher professional and ethical standards than their non-academic counterparts. These standards lead them to act with self-restraint and to perceive CSR disclosure as an opportunity rather than a threat. Compared with non-academic executives, therefore, top executives with an academic background provide stakeholders with more CSR information. Based on a sample of publicly listed firms in China, we find a significant difference in voluntary CSR disclosure between firms led by academic executives and firms without academic top executives. This difference is smaller for firms that are state-owned, firms that are audited by large audit firms, and firms with greater analyst coverage. We contribute to the literature on CSR voluntary disclosure by providing an in-depth analysis of the effects of top management teams’ academic backgrounds.

Potentials of top management team career development and corporate social responsibility

2019 ◽  
Vol 24 (6) ◽  
pp. 560-579
Author(s):  
Yelin Hu ◽  
Qiwang Zhang ◽  
Xin Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Career Development ◽  
Social Responsibility ◽  
Manufacturing Industry ◽  
Negative Relationship ◽  
Top Management ◽  
Manufacturing Companies ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between potentials of top management teams’ (TMT) career development and corporate social responsibility (CSR) by examining listed manufacturing companies in China. More importantly, it tried to contribute to the understanding of the senior executive’s career development in the trend of upgrading the manufacturing industry. Design/methodology/approach The sample firms in this paper were selected from the China A-listed companies in the manufacturing industry. It collected CSR and TMT data from the Rankins CSR Ratings (RKS) Database and CSMAR database and applied the multiple regression to test the hypotheses. Moreover, it implemented the robustness test by using the standard regression method and the structural equation model. Findings The findings indicate that a firm’s CSR performance is significantly associated with TMT’s educational level and overseas background. The government background, academic background and financial background of high-level managers, instead, have a negative relationship with CSR performance. In addition, firm’s ownership moderates the relationship between TMT and CSR initiatives – the career development potential of TMT has different effects on promoting CSR in the context of different ownership. These relationships remain significant when the managers’ tenure, gender, age, wage and firm size are controlled. Research limitations/implications The empirical research on the potentials of executive career development and CSR is limited to linear assumptions. Since there are fewer overseas holding companies in Chinese state-owned and private enterprises, it failed to reflect international differences. Practical implications First, CSR is related to the potentials of TMT career development and also the potentials of TMT career development are associated with the structure of the TMT. Second, to improve CSR, it is necessary to distinguish the different ownership of companies and then adjust the TMT structure correspondingly. Last, senior executives should choose their career direction according to their own distinct and inherent career development potentials. Originality/value This study explores the relationship between potentials of TMT career development and CSR. It not only expands the research in the field of CSR but also enriches the research on the career development of top executives.

Profiting on purpose: creating a master narrative

2016 ◽  
Vol 37 (4) ◽  
pp. 47-51 ◽  
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Corporate Social Responsibility ◽  
Best Practices ◽  
Social Responsibility ◽  
Corporate Philanthropy ◽  
Corporate Citizenship ◽  
Secondary Source ◽  
Master Narrative ◽  
Bottom Line ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine the origins of and current practices in corporations seeking to define themselves as “purpose-driven”. The literature suggests that consumers, in particular Millennials, are attracted to companies that define themselves in this way both in terms of their buying behaviors and as places they would wish to work. The author also wanted to examine whether this trend represented a significant departure from previous activities in corporate citizenship, corporate social responsibility, sustainability or the triple bottom line. Design/methodology/approach This viewpoint reviewed the history of corporate philanthropy and social commitments from the 1880s to today to identify trend waves in this category. The author then examined some current examples of “purpose-driven” behavior to identify best practices. Findings The author found that there is considerable confusion in the marketplace about what constitutes best practices in corporate citizenship. The author also found that the outputs from preceding waves of corporate citizenship have created atomized pockets of similar activities in individual companies that either overlapped or were at odds with each other. This analysis suggested that there were four key requirements for companies trying to maintain a purpose-driven corporate brand: long-term commitment, authenticity, that they be employee-driven and be based on collaboration. Research limitations/implications The viewpoint was based on secondary source material and did not involve any primary research. Practical implications By identifying some core principles for purpose-driven activity, the viewpoint will help companies create and effectively maintain a master narrative. Social implications This review of corporate social responsibility will also create framework for thinking about the appropriate balance between the social and profit-driven motives of today’s corporations. Originality/value The author believes that this viewpoint is the first to examine the entire spectrum of corporate social commitment from both a historical and contemporary perspective.

Sustainability as an imperative and an opportunity: the case of Infosys Limited

2013 ◽  
Vol 3 (2) ◽  
pp. 1-16
Author(s):  
Saji K. Mathew ◽  
Thillai Rajan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Business Strategy ◽  
Top Management ◽  
It Services ◽  
Content Type ◽  
Sustainability Strategy ◽  
Sustainability Practices ◽  
Services Industry ◽  
Corporate Social

Subject area This case provides useful material for discussion on topics such as sustainability, business continuity, corporate social responsibility and green IT. Study level/applicability The case could be used in different areas of business management such as general management, information systems and business strategy. Case overview The case presents the progressive evolution of Infosys Limited from its beginnings through different stages of innovation and consolidation in the IT services industry. Senior executives at Infosys believe that the sustainability initiative at Infosys is not a new movement, but a logical extension of the company's long standing commitment to society and environment. Sustainability was a key agenda at Infosys and it was deeply ingrained in the company's ethos and the way in which it operated. The case also articulates the company's commitment to sustainability as evidenced by the involvement of the top management in providing leadership. From an academic standpoint the case provides pointers to look at how the IT services industry has responded to sustainability practices and how sustainability practices are different or similar across various firms. Expected learning outcomes The case can help students to answer the following questions: How is sustainability different from corporate social responsibility? What is the context in which Infosys' attention turned towards sustainability? How is top management involved in Infosys' sustainability initiative? What are the elements of Infosys' sustainability strategy? How does it build on its core strengths? What are the structural mechanisms the company has provided to implement its sustainability strategy? What internal challenges to change while implementing green solutions were foreseen and overcome by Infosys? How competitive is Infosys' sustainability practices with respect to its competitors? How does it help the company in competing in the market? Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Corporate social responsibility motives of Indian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sushil Kr. Dixit ◽  
Hemraj Verma ◽  
Samant Shant Priya
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Community Engagement ◽  
Top Management ◽  
Content Type ◽  
Micmac Analysis ◽  
Management Commitment ◽  
Top Management Commitment ◽  
Corporate Social ◽  
Legal Mandate

Purpose The purpose of this paper is to explore the motives of Indian firms for engaging with corporate social responsibility (CSR) practices and their interplay by using interpretive structural modelling methodology (ISM) and Matrice d’impacts croisés multiplication appliquée á un classment (MICMAC) analysis. Design/methodology/approach The research uses ISM and Matrice d’impacts croisés multiplication appliquée á un classment (MICMAC) analysis to find the structural relationship among the CSR motives of the Indian firms identified from the past literature and agreed upon by the experts. Findings The ISM model indicates that firms primarily engage in CSR either because of top management commitment to certain values, to meet the legal mandate or of the pressure from the NGOs. The top management commitment gives a strategic orientation to CSR, which results in community engagement by the firm as one of the important components of the strategy. The community engagement helps in engaging with its employees and investors along with finding sources of innovations, which, in turn, help the firm in engaging its customers, managing corporate reputation and getting a cost advantage. Collectively, these help them in improving their financial performance. However, the model highlights two autonomous sources, meeting legal mandate and pressure from NGOs also motivate firms to engage in CSR without having any strategic thought or engagement with its strategic system. Originality/value The study provides a comprehensive listing of CSR motives of Indian firms along with the structural relationships among the identified CSR motives. The model developed provides CSR professionals and policymakers an understanding of the primary CSR motives along with their driving power and dependence. This insight will help them in manipulating these motives for better CSR engagement by the Indian firms.

scholarly journals Teachers in the Top Management Team and Corporate Social Responsibility

2021 ◽  
Vol 13 (24) ◽  
pp. 13795
Author(s):  
Wenyuan Liu ◽  
Ting Ren ◽  
Weishan Tang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Teaching Experience ◽  
Management Team ◽  
Top Management ◽  
Listed Firms ◽  
Top Managers ◽  
Corporate Social ◽  
A Share

Firms are required to consider all stakeholders’ interests and achieve coordinated development of the company, society, and the environment. Teachers are often associated with high moral standards and dedication to others. Top managers in the top management team (TMT) are responsible as corporate executives for corporate governance and outcomes. How top managers’ teaching experience affects corporate social responsibility (CSR) therefore becomes a meaningful question. Based on A-share listed firms in China from 2010 to 2019, we empirically analyze the effects of teachers as top managers on firm CSR performance. According to our sample, 13.75% of A-share listed firms have top managers with teaching experience in the TMT. We find that the occurrence of teachers in the TMT has a positive impact on CSR, especially on sub-indicators like shareholder responsibility; employee responsibility; supplier, customer, and consumer responsibility; and environmental responsibility. Firms with more teachers in the TMT exhibit higher CSR performance. Further results indicate that this effect is significant only when top managers are also directors on the board. We use the propensity score matching method to alleviate the endogeneity problem and obtain robust results.

CSR@ 2%: A NEW MODEL OF CORPORATE SOCIAL RESPONSIBILITY IN INDIA

2018 ◽  
Vol 1 (3) ◽  
pp. 56-66
Author(s):  
Anupam Singh ◽  
Dr. Priyanka Verma
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Philanthropy ◽  
Social Issues ◽  
Business Community ◽  
Net Worth ◽  
The Social ◽  
Net Profit ◽  
Corporate Social ◽  
Indian Scenario

Corporate Social Responsibility (CSR) earlier applied as corporate philanthropy and has been in practice in India since ages. However, philanthropy in globalised and modern India does not solve the purpose in quantity and quality. Clause 135 of Company Act 2013 created huge hue and cry among the business community in India. As per clause 135 of the Companies Act, 2013, Every company with an annual turnover of 1,000 crore INR ($161 million) and more, or a net worth of 500 crore INR ($80 million) and more, or a net profit as low as five crore INR ($800,000) and more have to spend at least 2% of their average net profit over the previous three years on CSR activities. With the introduction of new Company act 2013 India became the first country in the world to have legislation for compulsory CSR spending. The paper aims at analyzing the motive of making CSR spending mandatory and it also attempts to explain the concept of CSR in the present Indian scenario, the social issues addressed by the Indian corporations, and methodologies adopted by them to address those issues.

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