Impact of executive citizenship and organizational commitment on corporate social responsibility

2015 ◽  
Vol 11 (2) ◽  
pp. 387-402 ◽  
Author(s):  
Sakthi Mahenthiran ◽  
Jane Lai Yee Terpstra-Tong ◽  
Robert Terpstra ◽  
Shanthy Rachagan

Purpose – This Malaysian study aims to use upper echelons theory and social identity theory variables to determine the chief executive officer (CEO) characteristics and attitudes associated with economic corporate social responsibility (CSR), legal-ethical CSR and discretionary CSR in Malaysian firms. The authors hypothesize that CSR engagements in the form of altruistic behaviour, with executives being part of the upper echelon, would tend to be expressing their values at individual level through the firm if they are affectively committed to their company. Design/methodology/approach – Using a sample of 151 Malaysian firms that took part in an annual CEO survey in 2010, the study measures executive citizenship as CEOs’ having critical attitude towards public issues such as public transportation, public education and crime. Hierarchical regression analyses are used to associate the CEO attitudes with the firms CSR. Findings – The authors find that executive citizenship attitude is significant and positively related to firm’s legal–ethical CSR. The authors also find that executive organizational commitment has a significant positive impact on dimensions of CSR. Additionally, the executive tenure impacts the level of philanthropic CSR of the firm. Originality/value – In Malaysia, firms have a strong incentive to engage in CSR to enhance their reputation and legitimacy because of the government’s influence on commercial activities. Our study is the first to examine how this notion of legitimization efforts at the individual level affects firms CSR activities.

2019 ◽  
Vol 16 (8) ◽  
pp. 1293-1323 ◽  
Author(s):  
Patrick Velte

Purpose This paper aims to analyze whether chief executive officer (CEO) incentives and characteristics (e.g. CEO power, CEO tenure) are linked with corporate social responsibility (CSR) and vice versa. Design/methodology/approach Based on upper echelons theory, the author conducts a structured literature review and evaluates 84 empirical-quantitative studies on CEO and CSR variables. Findings While the majority of the included studies analyzed the CEO-CSR link, there are indicators for a bidirectional relationship. Moreover, prior research has focused on CEO incentives, especially compensation contracts, and on the US capital market. A major research gap relates to CEO characteristics, e.g. CEO values, education and experience. Research limitations/implications Heterogeneous CEO and CSR variables and endogeneity concerns lower the validity of recent studies. Future research is encouraged to implement dynamic regression models, increase CSR and CEO proxies and focus on international samples with country-specific effects. Practical implications As CEO activities can have a major impact on CSR activities, the author recommends firms to search for opportunities to make their CSR strategy more comprehensive by their stakeholder communication, thus providing deeper insights into their CSR performance in line with stakeholders’ interests. Originality/value The paper is the first literature review on the interaction between CEO and CSR so far. The author explains the main CEO and CSR variables that have been included in research, stresses the limitations of the studies and gives useful recommendations for future research, practice and regulators.


2016 ◽  
Vol 7 (2) ◽  
pp. 181-195 ◽  
Author(s):  
Caitlin Paige Roach ◽  
Daniel Joseph Slater

Purpose This paper aims to determine whether CEOs with a humanities education (e.g. English/literature, philosophy, history, languages, religion, visual arts, or performing arts) exhibit higher levels of corporate social responsibility (CSR) within their firms than those who have studied other disciplines. Design/methodology/approach This paper is an empirical examination of S&P 500 CEOs’ undergraduate education and their firms’ level of CSR as measured by Kinder, Lydenberg & Domini (KLD). Findings CEO undergraduate humanities education is associated with higher levels of CSR even after accounting for several firm- and individual level controls. In addition, the CSR dimensions of community and diversity were found to be key drivers of the association. Research limitations/implications This research is limited in understanding the micro-processes of the CEOs affected by a humanities education, as it relates to CSR. However, the results imply a values-based connection that is supported by the upper echelons theory. Practical implications CSR-minded firms may seek out humanities-educated executives. In addition, the results would suggest a need for humanities education despite the recent waning interest. Originality/value First, the findings of Manner (2010) will be confirmed using a different sample. Second, the humanities education and CSR relationship will be explored using a composite measure of CSR as opposed to analyzing its strengths and weaknesses separately (Manner, 2010), thus representing a holistic evaluation of the relationship. Third, previous research will be extended by examining the specific CSR dimensions (e.g. customers, employees) that are affected by a humanities education.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olfa Ben Salah ◽  
Anis Ben Amar

Purpose The purpose of this paper is to focus on the impact of corporate social responsibility (CSR) on dividend policy in the French context. In addition, the authors seek to determine if the individual components of CSR influence dividend policy. Design/methodology/approach This study uses panel data methodology for a sample of French non-financial firms between 2008 and 2018. Generalized least squares method is used to estimate the models. Findings Using panel data methodology for a sample of 825 observations for the period 2008–2018, this study finds a positive impact of CSR practices on dividend policy. The authors also find that individual components of CSR positively influence dividend policy. To check the robustness of the results, this study further runs a sensitivity tests, including an alternative measure of dividend policy, all of which confirm the findings. Practical implications This study has examined the impact of CSR on dividend policy in France and may have implications for regulatory, investors, analysts and academics. First, the involvement in CSR best practices encourages companies to pay more dividends to investors. Therefore, investors are more motivated to invest in socially responsible firms than socially irresponsible firms. Second, given the association of CSR with the quality of accounting information and financial markets, regulators should step up recommendations relating to the different societal dimensions of CSR. Originality/value While little previous work has focused on the causal link between CSR and dividend policy, this research is the first, to the authors’ knowledge, to have looked at the impact of CSR on dividend policy in France.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ananda Silva Singh ◽  
Eduardo De Carli ◽  
Luiz Aurélio Virtuoso ◽  
Andréa Paula Segatto ◽  
Fernanda Salvador Alves

Purpose The purpose of this paper is to analyze the commitment to a corporate social responsibility (CSR) practice developed by Company of Urbanization of Curitiba S/A – URBS, located in Curitiba (Paraná), Brazil. The paper observes the CSR practice developed by the company. Design/methodology/approach A descriptive study that used a qualitative approach was held. The research strategy of the research used consisted of a case study. Data were collected through semi-structured, in-depth interviews, documental analysis and direct observation. These data were further analyzed through the content analysis’ perspective. Findings The organization in question, even without obligation, develops a CSR project that contributes to the formation and awareness of young citizens, comprising ethical, voluntary, economical and legal responsibilities. Research limitations/implications Because of the fact that this is a single case study, the results cannot be generalized, representing only the reality of this case. Practical implications The practical implications of this study lies in the attention toward training of students of public schools, especially in aspects of buses and services usage and care for public equity, factors that even contribute to citizenship and the formation of better people and professionals. This will, in the future, contribute to form citizens that are more aware and who will tend to contribute to adequate usage of the transportation system as a whole, resulting in savings for the organization. Social implications The project analyzed in this study contributes to the formation of better citizens regarding the respect and ethical responsibilities they develop toward the public transportation system. Originality/value This paper demonstrates the commitment to a CSC practice made by a mixed-economy organization that develops this practice to contribute to the formation of citizens of the city. The value of this paper lies in the fact that it shows how CSR practices can be aligned with other practices of organizations, contributing to all stakeholders involved in it.


2020 ◽  
Vol 15 (3) ◽  
pp. 255-272
Author(s):  
Nimmy A. George ◽  
Nimitha Aboobaker ◽  
Manoj Edward

Purpose Drawing from the social identity theory and social exchange theory, the purpose of this study is to examine the intervening mechanisms linking perceived corporate social responsibility (CSR) and employees’ affective organizational commitment. It is proposed that organizational trust (OT) and organizational identification (OID) would serially mediate the aforementioned relationship. Furthermore, this paper attempts to understand how employees’ attitude toward the importance of CSR (ICSR), moderates the linkages under the focus of this study. Design/methodology/approach This descriptive study was conducted among a sample of 519 employees working in the manufacturing sector in India. Self-reporting standardized questionnaires were administered among the respondents, who were selected through the judgment sampling method. Measurement model analysis was done using IBM AMOS 24.0 and Hayes’ PROCESS macro 3.0 (Models 6 and 84) was used for testing the serial mediation and moderated serial mediation. Findings Results revealed a significant indirect effect of all dimensions of CSR on employees’ affective commitment, serially mediated through OT and OID. The conditional indirect effects varied significantly and it was identified that CSR to customers and CSR to employees had a significant conditional indirect effect on affective commitment, through attitude toward the ICSR, OID and OT. However, the conditional indirect effect of CSR to social and non-social stakeholders on affective commitment was not statistically significant. Originality/value This study is pioneering in conceptualizing and empirically testing an integrated theoretical framework that models the influences of perceived CSR, employees’ attitude toward the ICSR, OID and OT on their affective commitment toward the organization. CSR plays a vital role in strengthening the employer-employee relationship and managers should facilitate a work environment that befits the alignment of organizational and individual ethics and values.


2016 ◽  
Vol 9 (2) ◽  
pp. 172-201 ◽  
Author(s):  
Linda Mory ◽  
Bernd W. Wirtz ◽  
Vincent Göttel

Purpose – The purpose of this paper is to investigate how employees perceive corporate social responsibility (CSR) within their organizations, thus employees’ Internally Perceived CSR and how it impacts their organizational commitment. Design/methodology/approach – For conceptualizing, the constituents of Internally Perceived CSR – Individual CSR-Perception, Organizational CSR-Perception and their respective factors – are derived from social exchange theory, social identity theory and further relevant literature. The study’s research model is tested through a survey consulting 386 respondents from a company operating in renewable energies. Findings – The results lead to the following conclusions: Internally Perceived CSR strongly impacts employees’ Affective Organizational Commitment and comparatively low influences Normative Organizational Commitment. Moreover, Affective Organizational Commitment mediates Normative Organizational Commitment. Originality/value – The implementation of CSR has evolved to a crucial component of both organizational behavior and management. Nevertheless, the internal CSR-dimension has been largely neglected so far.


2020 ◽  
Vol 16 (4) ◽  
pp. 525-546
Author(s):  
Shahbaz Sheikh

PurposeThe purpose of this paper is to empirically examine the relation between incentives from CEO inside debt (deferred compensation and pension benefits) and corporate social responsibility (CSR).Design/methodology/approachInstrumental variable (IV-GMM) regressions are used to estimate the relation between CEO inside debt and CSR.FindingsThe results of this paper indicate that CEOs with large inside debt tend to invest more in CSR. Analysis of CSR strengths and concerns supports this finding and shows that CEO inside debt is significantly positively (negatively) associated with CSR strengths (concerns). Further tests indicate that CEO inside debt exerts a positive and significant effect on all five dimensions of social performance (diversity, community, product, employee relations and environment).Research limitations/implicationsThe results of this study are based on US corporations. Future research should investigate if these results hold for firms in other countries in order to better our understanding of the relation between CEO inside debt and CSR.Practical implicationsCEOs use CSR as a risk management strategy to reduce corporate risk in order to protect the value of their inside debt.Social implicationsThe results in this paper provide a practical tool to boards of corporations to increase investment in CSR. The results suggest that boards can encourage CEOs to invest in CSR by increasing incentives from inside debt.Originality/valueThis study contributes to the literature that examines the relation between inside debt and CSR by showing that CEO inside debt exerts a positive impact on CSR.


2014 ◽  
Vol 10 (4) ◽  
pp. 569-590 ◽  
Author(s):  
Grigoris Giannarakis

Purpose – This study aims to investigate the relationship between corporate governance and financial characteristics and the extent of corporate social responsibility (CSR) disclosure in the USA. These corporate governance and financial characteristics are the board meetings, average age of board members, presence of women on the board, the board’s size, chief executive officer duality, financial leverage, profitability, company’s size, board composition and board’s commitment to CSR. Design/methodology/approach – The sample consists of 100 companies from the Fortune 500 list for 2011. The environmental, social and governance disclosure score calculated by Bloomberg is used as a proxy for the extent of CSR disclosure. A multiple linear regression was incorporated to investigate the association of corporate characteristics with CSR disclosure. Findings – Results indicate that the company’s size, the board commitment to CSR and profitability were found to be positively associated with the extent of CSR disclosure, while financial leverage is related negatively with the extent of CSR disclosure. Research limitations/implications – The research is based only on the presence or absence of CSR items in CSR disclosure, and it ignores the quality dimension which can lead to misinterpretation. The results should not be generalized as the sample was based on US companies for 2011. Originality/value – The study assists stakeholders to identify US companies through the extent of CSR disclosures which contributes to the understanding of determinants of CSR disclosure to improve the implementation of disclosure guidelines.


2017 ◽  
Vol 13 (3) ◽  
pp. 585-600 ◽  
Author(s):  
Gregory W. Allen ◽  
Prince A. Attoh ◽  
Tao Gong

Purpose The purpose of this research was to examine the mediating roles of staff-level employee perceptions of corporate social responsibility (PCSR) and organizational identification in the relationship between transformational leadership and affective organizational commitment. Design/methodology/approach A survey was administered to staff-level employees of private sector companies through social media groups comprising members of the alumni associations of two universities in the northeast of America. A total of 218 responses were received, and the data were analyzed using a serial multiple mediator model. Findings The research indicates that transformational leadership helps staff-level employees perceive the organization as socially considerate, which in turn adds to their feelings of identification and commitment to the organization. Perceived corporate social responsibility and organizational identification do mediate the relationship between transformational leadership and affective organizational commitment. Leader development programs should consider emphasizing transformational leadership to achieve a win for both organizations and society. Originality/value This study adds empirical evidence to understand the linkage between transformational leadership and PCSR in staff-level employees. The research provides insight into how leaders can be responsive to stakeholder demands through transformational leadership, how PCSR is engendered at the staff-level, how staff-level employee PCSR contributes organizational value and how PSCR and organizational identification partly explain how transformational leadership effects affective organizational commitment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nripinder Kaur ◽  
Vikramjit Singh

PurposeThis paper aims to examine the impact of corporate social responsibility (CSR) on financial performance (FP) of Indian steel industry in terms of value-added (VAM), profitability (PM), market (MM) and growth measures (GM).Design/methodology/approachIt is an empirical study using secondary data of 40 companies for 14 years collected from CSR/annual reports/official websites of the companies and Prowess database. The panel regression analysis, MANOVA and univariate ANOVA have been conducted to examine the impact of CSR on FP.FindingsThe result indicates a positive impact of CSR on FP in terms of VAM, PM and GM, thereby indicating that more investments in CSR will generate wealth for shareholders, enhance profitability and sales. Moreover, this study shows no noticeable relationship between CSR and MM.Social implicationsThis study contributes to the literature on the CSR–FP relationship and also has implications for managers, investors and other stakeholders. Companies with higher CSR rating create a brand image, attract proficient employees, get greater profit, loyal customers and have less possibility of bribery and corruption. This study may result in being influential to companies confined not only to this sector but also reaching to the others, thus inspiring them to contribute their share of profit for the welfare of society.Originality/valueTo the best of the authors' knowledge, it is the first comprehensive study to examine the impact of CSR on FP of Indian steel industry by considering four dimensions for measuring FP. It provides evidence about the relationship between CSR and FP.


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