Investigating determinants of localised corporate social responsibility: evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamran Mohy-Ud-din ◽  
Muhammad Azam ◽  
Hamad Ul Haq ◽  
Shakeel Aslam
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Protection ◽  
Rural Areas ◽  
Stock Exchange ◽  
Corporate Sector ◽  
Financial Reports ◽  
Content Type ◽  
Factors Influencing ◽  
Corporate Social

Purpose This study aims to investigate the determinants of localised corporate social responsibility (LCSR) activities in Pakistan. The present study explores factors influencing the corporate sector to promote the welfare of local areas where the company has located its manufacturing plants. Design/methodology/approach The authors selected 100 companies listed on the Pakistan Stock Exchange. Data were collected from the companies’ financial reports issued from 2012 to 2017 (N = 700). The authors analysed the data using fixed- and random-effects regression models to test the factors influencing LCSR activities. Findings The findings indicate that directors’ ancestry significantly enhances LCSR. This implies that boards with a greater number of directors whose names indicate their relevant ancestry are more likely to engage in LCSR. Moreover, environmental-protection activity by the corporate sector promotes LCSR initiatives. However, Pakistan’s corporate sectors are not promoting the essential aspects of their workers’ welfare, e.g. health and education. Research limitations/implications The present study was limited to the directors’ ancestry, environmental corporate social responsibility (CSR), CSR for factory workers and donation. Other factors, such as culture and language, may play an important role in determining LCSR. Practical implications The results suggest that the Security and Exchange Commission of Pakistan should emphasise the importance of LCSR to develop rural areas and devise meaningful policy for CSR. These findings provide substantial evidence that regulators and policymakers should encourage the inclusion of LCSR by firms listed on the stock exchange to increase environmental protection through CSR policy. Originality/value To the best of the authors’ knowledge, this study is the first to explore the determinants of LCSR. Moreover, the present study investigates for the first time the influence of directors’ ancestry on rural development in any of Asia’s developing countries, including Pakistan. The findings of this study contribute theoretically and empirically to the literature.

Board diversity and corporate social responsibility: the moderating role of Shariah compliance

2019 ◽  
Vol 19 (6) ◽  
pp. 1274-1288 ◽  
Author(s):  
Muhammad Azam ◽  
Muhammed Usman Khalid ◽  
Syeda Zinnaira Zia
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Well Being ◽  
Board Diversity ◽  
Financial Reports ◽  
Content Type ◽  
High Level ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to investigate the effect of board diversity on corporate social responsibility (CSR) practices and the interaction effect of Shariah compliance of firms with religious and ethical principles. Design/methodology/approach A total of 65 firms listed on the Pakistan Stock Exchange (PSX) were selected. The data were collected from the companies’ financial reports from 2012 to 2018 (n = 455). The data were analyzed using fixed and random effects regression models to test the effect of board diversity on firms’ CSR activities, while hierarchical moderated regression analysis was used to determine the moderating effects of Shariah compliance. Findings The study found evidence for a moderating effect of Shariah compliance on the relationship between board diversity and CSR activities. The findings suggest that a high level of Shariah compliance together with diverse educational backgrounds and presence of both genders among corporate members significantly promoted CSR activities. Research limitations/implications The present study included the demographic variables, gender, ethnicity and education; but excluded language and culture. The results suggest that the Security and Exchange Commission of Pakistan should attach more importance to Shariah compliance by firms in developing their CSR policies to improve social development and human well-being. Policy-makers should encourage more women to become directors on company boards and to increase philanthropic and charitable activities. These findings possess important implications for many Islamic countries irrespective of whether they are developed or developing. Originality/value To the best of the authors’ knowledge, this study provides the first empirical analysis of the relationship between CSR and board diversity from the perspective of Islamic Shariah law. The findings will contribute both theoretically and empirically to the existing body of knowledge.

A paradigm shift in corporate social responsibility: India’s transition from mandatory regime to the COVID-19 era

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aparna Bhatia ◽  
Amandeep Dhawan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Paradigm Shift ◽  
Design Methodology ◽  
Gradual Increase ◽  
Stock Exchange ◽  
Content Type ◽  
Global Pandemic ◽  
Corporate Social ◽  
Practical Implications

Purpose This study aims to examine the pattern of corporate social responsibility expenditure (CSRE) incurred by Indian companies after the inception of Companies Act 2013. It also highlights the resultant change brought in the corporate social responsibility (CSR) spends of the companies because of COVID-19 pandemic. Design/methodology/approach The CSR index provided by the Ministry of Corporate Affairs under Companies (CSR Policy) Rules 2014, is adopted to measure the extent of CSRE made by top 30 Indian companies listed on Bombay Stock Exchange. To study the pattern of CSRE in various domains mentioned in the CSR index, the study is conducted over four points of time. Three alternative years since the commencement of the Companies Act 2013 i.e. 2014–2015, 2016–2017 and 2018–2019 have been taken up. Additionally, the financial year 2019–2020 is included as it marks the inception of the COVID-19 pandemic. Findings The findings show that the CSRE made by companies is increasing every year over all points of time taken in the study. In addition to this, Indian companies have voluntarily contributed a substantial amount towards COVID-19 relief over and above the required mandatory limits. Practical implications The gradual increase in CSR contributions even above the mandated amount and voluntary contribution towards COVID-19 relief by Indian companies implies that the nature of CSR in India is still philanthropic. Originality/value The study contributes to the CSR literature after the implementation of the mandatory CSR provisions in India and in the wake of the global pandemic caused by COVID-19 as so far there is no such study available in the extant literature.

scholarly journals Corporate social responsibility through sport: a longitudinal study of the FTSE100 companies

2015 ◽  
Vol 5 (3) ◽  
pp. 218-241 ◽  
Author(s):  
Tom Bason ◽  
Christos Anagnostopoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Longitudinal Study ◽  
Social Responsibility ◽  
Multinational Enterprises ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Annual Reports ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose – Under growing public scrutiny of their behaviour, the vast majority of multinational enterprises (MNEs) have been undertaking significant investments through corporate social responsibility (CSR) in order to close legitimacy gaps. The purpose of this paper is to provide a descriptive account of the nature and scope of MNEs’ CSR programmes that have sport at their core. More specifically, the present study addresses the following questions. First, how do Financial Times Stock Exchange (FTSE) 100 firms utilise sport as part of their CSR agendas? Second, how do different industries have different approaches to CSR through sport? And third, can the types of CSR through sport be classified? Design/methodology/approach – Centred on legitimacy theory and exploratory in nature, the study employed a content analysis method, and examined three types of document from each of the FTSE100 firms, namely, annual reports, annual reviews and CSR reports over the ten-year period from 2003 to 2012. In total, 1,473 documents were content analysed, thereby offering a sound representation of CSR disclosure of the FTSE100. Findings – From the analysis, three main streams emerged: “Philanthropy”, “Sponsorships” and “Personnel engagement” with the first showing the smallest growth compared with the other main streams. Findings show the general rise in CSR through sport, thereby demonstrating that the corporate world has practically acknowledged that the sporting context is a powerful vehicle for the employment of CSR. Originality/value – Previous empirical studies have sought to investigate CSR through sport, yet they have generally suffered from sampling limitations which have, in turn, rendered the drawing of reliable conclusions problematic. Particularly, the lack of an explicit focus on longitudinality is a typical limitation, meaning that no conclusions can be made regarding the trend. The study outlined in this paper offers the most comprehensive longitudinal study of CSR through sport to date, and thus contributes to the increasing volume of literature that examines the application of CSR in relation to the sport sector.

The effect of managerial and institutional ownership on corporate social responsibility disclosure

2018 ◽  
Vol 60 (4) ◽  
pp. 979-987 ◽  
Author(s):  
Nurleni Nurleni ◽  
Agus Bandang ◽  
Darmawati Darmawati ◽  
Amiruddin Amiruddin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

PurposeThis study aims to analyze the effect of ownership structure that consists of managerial ownership and institutional ownership of the extensive of corporate social responsibility (CSR) disclosure.Design/methodology/approachThe population in this study is manufacturing companies listed in Indonesia Stock Exchange (BEI), as the manufacturing companies are considered to have great potential on environmental damage (Mathews, 2000). The selected sample were the companies which meet certain criteria (purposive sampling) which published the complete annual financial statements from 2011 to 2015. This study used an analysis method using partial least square (WarpPLS) to assess the effect of the structure of ownership consists of managerial ownership and institutional ownership on the extent of the CSR disclosure.FindingsThe results showed that there is a direct effect of a negative and significant correlation between managerial ownership on CSR disclosure, and there is a direct effect of a positive and significant correlation between institutional ownership on CSR disclosure.Originality/valueOriginality of this paper shows PLS (WarpPLS) that applied to determine the effect between variables managerial and institutional ownership on CSR disclosure. This research is collected data financial statements and annual reports of manufacturing companies obtained from the Indonesia Capital Market Reference Center (PRPM), which is located in the Indonesia Stock Exchange (IDX), which there has not been research by the methods and the same location.

Does Warsaw Stock Exchange value corporate social responsibility?

2016 ◽  
Vol 12 (3) ◽  
pp. 611-622 ◽  
Author(s):  
Jacek Lipiec
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Future Research ◽  
Public Companies ◽  
Content Type ◽  
Exchange Value ◽  
Warsaw Stock Exchange ◽  
Corporate Social

Purpose This paper aims to examine the performance of corporate social responsibility (CSR) portfolio at the Warsaw Stock Exchange. Design/methodology/approach This paper uses the CSR portfolio of public companies that was selected in a three-step procedure. In total, 23 companies were selected and formed a CSR portfolio that is traded on the Warsaw Stock Exchange under the Respect Index. The Capital Asset Pricing Model (CAPM) is used to compare returns of CSR companies with respect to the market. The performance of this portfolio is measured in the period from 2010 to 2012. Findings This paper finds that the CSR portfolio measured under the Respect Index outperformed market in all time periods from 2010 to 2012. In addition, in 2010, the CSR portfolio exceptionally outperformed the market by almost 80 per cent. In 2011, even though the market was down, the CSR portfolio reported lesser losses: −0.93 vs −1.73 per cent. In the following year, the market regained and the CSR portfolio again outperformed the market by 14 per cent. This paper also finds that the CSR portfolio is more sensitive to systematic risk than to specific risk. In addition, the CSR securities move according to the market trend. Research limitations/implications The limitation of this paper is attributed to a cause-and-effect relationship. In other words, it did not answer whether adopting CSR led to higher profitability or profitability reflected an awareness of market conditions that favored the adoption of CSR. The future research should focus on this issue and indicate whether investors prioritize CSR over profits or vice versa. Practical implications The results indicate that investments in CSR portfolio companies bring abnormal returns to investors. In addition, the CSR portfolio may resist market downturns and even bring exceptional profits to investors. Originality/value This study explains the CSR portfolio’s performance on the Warsaw Stock Exchange by using the CAPM.

scholarly journals Pengaruh profitabilitas, ukuran perusahaan dan ukuran dewan komisaris terhadap pengungkapan tanggung jawab sosial perusahaan pada perusahaan manufaktur yang terdaftar di bursa efek indonesia

2018 ◽  
Vol 23 (1) ◽  
Author(s):  
Chelsya Chelsya
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Annual Reports ◽  
Financial Reports ◽  
Board Of Director ◽  
Corporate Size ◽  
Corporate Social ◽  
Positive Effect ◽  
Sustainability Report

This research aims to determine the factors that influence the level of Corporate Social Responsibility Disclosures by testing the effect of corporate size, profitability, and board of director size on corporate social responsibility disclosures index. Sample used are manufactur sector companies that listed on Indonesia Stock Exchange. The sources of the data were taken from audited financial reports and annual reports and sustainability report, if any. This research uses quantitative approach with multiple linier regression analysis. The results show that profitability, firms’ size and board of director size have a positive effect on corporate social responsibility disclosures.

scholarly journals Factors Influence Corporate Social Responsibility Disclosure

2019 ◽  
Vol 9 (2) ◽  
pp. 185-190
Author(s):  
Wike Mardiana ◽  
Anik Irawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Palm Oil ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Reports ◽  
Corporate Social Responsibility Disclosure ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Independent Audit

This study aims to analyze factors influence Corporate Social Responsibility Disclosure in palm oil plantation companies in Indonesia and Malaysia. This study analyzes influences of total assets, profitability, leverage, independent proportion of commissioners, the proportion of independent audit committee. This study is conduct on financial reports published in Indonesia and Malaysia. Methods of data collection are taken from the annual financial statements in Indonesia Stock Exchange of 17 companies and Bursa Malaysia of 22 companies. Data analysis techniques used multiple regressions. The results showed that; 1) there is no influence of total asset, profitability, leverage, and proportion of independent audit committee in palm oil plantation companies in Indonesia and Malaysia; 2) there is influence of independent board of commissioner on CSR disclosure practices in palm oil plantation companies Indonesia and Malaysia

scholarly journals Corporate governance and corporate social responsibility synergies: evidence from New Zealand

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rashid Zaman ◽  
Muhammad Nadeem ◽  
Mariela Carvajal
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
New Zealand ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Business Practices ◽  
Content Type ◽  
Listed Firms ◽  
Responsible Business Practices ◽  
Corporate Social

Purpose This paper aims to provide exploratory evidence on corporate governance (CG) and corporate social responsibility (CSR) interfaces. Although there remains a voluminous literature on CG and CSR, very little effort has been put forward to explore the nature of this relationship. Design/methodology/approach Using interviews with Senior Executives of New Zealand Stock Exchange listed firms, this research assesses CG and CSR practices, identifies barriers for CG and CSR adoption and investigates the nature of the relationship between CG and CSR. Findings The results indicate a moderate level of CG and CSR practices, with a lack of resources and cost-time balance as common barriers for CG and CSR adoption. However, despite these barriers, we note that the majority of executives appreciate the increasing convergence between CG and CSR, and believe that a more robust CG framework will lead to more sustainable CSR practices. Originality/value These findings have important implications for managers and policymakers interested in understanding the CG-CSR nexus and promoting responsible business practices.

Can corporate social responsibility deter consumer dysfunctional behavior?

2020 ◽  
Vol 37 (7) ◽  
pp. 729-738
Author(s):  
Alexis M. Allen ◽  
Todd Green ◽  
Michael K. Brady ◽  
John Peloza
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Protection ◽  
Consumer Perceptions ◽  
Google Trends ◽  
Sense Making ◽  
Negative Events ◽  
Content Type ◽  
Dysfunctional Behavior ◽  
Corporate Social

Purpose The purpose of this paper is to examine how and when a reputation for corporate social responsibility (CSR) can deter dysfunctional consumer behaviors (DCBs) such as shoplifting or negative word-of-mouth (WOM) in response to firm failures. The authors predict that congruency of the CSR activities and the basis for the firm failure (e.g. environmental protection, environmental harm) provides protection for firms while incongruency (e.g. environmental protection, social harm) does not. The authors base this prediction on the process of retroactive attribution and sense-making. Design/methodology/approach Across two studies the research finds support that a reputation for CSR can deter consumer dysfunctional behavior. Study 1 uses an experimental design with a Mturk sample, and a behavioral outcome using an overpayment situation, to examine when consumers will act honestly and recognize overpayment. Study 2 uses secondary data, across three novel data sources (Google trends data, an existing data set of consumer perceptions of CSR and Factiva to uncover press coverage of negative firm events). Study 2 examines how CSR reputation impacts consumers’ participation in negative WOM in response to firm failures. Findings Study 1 finds support for CSR congruency as a protection mechanism against dysfunctional behavior in response to negative events. The authors find that dysfunctional behaviors in conditions of congruency, while incongruent and a control condition do not provide such protections. Study 2 supports these findings using Google trends data in the form of online negative WOM. The authors find that when firms are known for their social performance, negative events in the social domain result in significantly lower levels of negative WOM. Originality/value The current paper makes the novel prediction that consumers will use a current negative event (corporate social irresponsibility) to re-evaluate previous CSR. Thus, in contrast with prior research, the authors argue that a negative event is not affected by previous CSR but that previous CSR is affected by a negative event. Furthermore, the authors posit that the congruency between the transgression and previous CSR moderates consumer perceptions, such that incongruent CSR and transgression contexts lead to increased DCBs through consumers’ retroactive sense-making process.

Corporate Social Responsibility in Emerging Economies

2020 ◽  
pp. 263-273
Author(s):  
Ayesha Khatun ◽  
Sajad Nabi Dar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Rural Areas ◽  
Policy Making ◽  
Corporate Sector ◽  
Low Literacy ◽  
Medical Facilities ◽  
The World ◽  
The Government ◽  
Corporate Social

India, a developing and the second largest populated country in the world after China, is characterized by many burning issues like unemployment, low literacy, lack of modern medical facilities mainly in rural areas, lack of connectivity of the rural areas with the mainland cities, and the like. Although government has been working on all these issues and has been very much successful, it is not possible for the government alone to solve all the issues in such a vast populated country in a desired period of time. Amidst such situation, it is the corporate sector that can play a bigger role in the development of the society through its CSR initiatives. This chapter attempts to study corporate social responsibility, its role and issues in a developing country with special reference to India. The findings show that lack of understanding, inadequately trained personnel, lack of proper policy making, lack of participation of the local people, and so on affects the reach and effectiveness of CSR programs in India.

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