Influence of corporate social responsibility on non-financial performance

2019 ◽  
Vol 15 (7) ◽  
pp. 910-923 ◽  
Author(s):  
Kwamena Minta Nyarku ◽  
Seth Ayekple
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Negative Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Sub Saharan Africa ◽  
Developing Economy ◽  
Content Type ◽  
Corporate Social

Purpose Using a multinational corporation (MNC), Nestlé Ghana Limited (NGL) that operates in a developing economy (Ghana) as a case study, this paper aims to examine the influence of customers’ CSR awareness level and their perception of NGL’s corporate social responsibility (CSR) motives on the firm’s non-financial performance (image and reputation). Design/methodology/approach A quantitative approach, using questionnaires and simple random sampling method, was used to survey 300 customers. Structural equation model-partial least square (SEM-PLS) was used to analyse the data. Findings The results show that customers’ CSR awareness levels have a positive impact on NGL’s image and reputation. In contrast, the study revealed that customers’ perception of NGL’s CSR motives has a negative impact on NGL’s image and reputation. Practical implications NGL should maintain a balance between customers’ perception of its CSR motives and its image and reputation to project the firm’s CSR position as posted in the firm’s create shared value report. Originality/value The study is one of the few studies in sub-Saharan Africa, and especially in Ghana, about how an MNC’s CSR engagements influence its image and reputation in a developing economy context. It further makes a contribution to CSR literature in Ghana.

scholarly journals Good Corporate Governance, Corporate Social Responsibility, Firm Value, and Financial Performance as Moderating Variable

2019 ◽  
Vol 3 (1) ◽  
pp. 55 ◽  
Author(s):  
Mukhtaruddin Mukhtaruddin ◽  
Ubaidillah Ubaidillah ◽  
Kencana Dewi ◽  
Arista Hakiki ◽  
Nopriyanto Nopriyanto
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Firm Value ◽  
Negative Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Good Corporate Governance ◽  
Corporate Social

Good corporate governance and corporate social responsibility can assist the company in facing the challenges and risks as a strategy in increasing the firm value by building the right image from the stakeholders’ view. This study aims to determine the effect of good corporate governance and corporate social responsibility on firm value with financial performance as a moderating variable. The population of this research is banking companies listed in Indonesia Stock Exchange (IDX) for 2011–2015. The sample consisted of 23 companies which were selected by purposive random sampling. This data is analyzed by using Partial Least Square approach. The results of this study indicate that good corporate governance has an insignificant positive effect on firm value; otherwise corporate social responsibility has a significant negative impact on firm value. Financial performance has significantly strengthened the relationship between good corporate governance and corporate social responsibility on firm value.

scholarly journals The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

2018 ◽  
Vol 3 (1) ◽  
pp. 41-60 ◽  
Author(s):  
Mayang Mahrani ◽  
Noorlailie Soewarno
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Good Corporate Governance ◽  
Corporate Social

Purpose The purpose of this paper is to determine the direct influence of the mechanism of good corporate governance (GCG) and corporate social responsibility (CSR) on financial performance as well as through earnings management as a mediating variable. Design/methodology/approach The data used in this research are secondary data involving 102 companies listed on the Indonesian Stock Exchange for the period 2014. The data used in this study were analyzed using partial least square and carried out with the help of software WarpPLS 5.0. Findings The results show that the mechanism of GCG and CSR has a positive effect on financial performance as well as the CSR on financial performance. Originality/value The results also show partial mediation of earnings management on impact of GCG mechanisms on financial performance and full mediation of earnings management on impact of CSR on financial performance.

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.

scholarly journals PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Empiris Perusahaan Sektor Pertambangan dan Pertanian yang Terdaftar Di Bursa Efek Tahun 2012-2014)

2017 ◽  
Vol 2 (02) ◽  
Author(s):  
Rachmat Harisianto ◽  
Dewi Sutjahyani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Economic Performance ◽  
Structural Equation ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Social

ABSTRACTThis research was conducted to analyze the effect of Corporate Social Responsibility performance indicators Economic, Environmental, and Social on financial performance. This study was made to determine how the implementation of Corporate Social Responsibility Financial Performance. The method used in this research is quantitative method and the population is a company mining and agricultural sectors listed in Indonesia Stock Exchange in 2012-2014, using data analysis SEM (Structural Equation Modelling) by the application program PLS (Partial Least Square) version 3.2. 1. Results obtained indicate that Corporate Social Responsibility (CSR) of the three indicators Economic Performance (KE), Environmental Performance (KL), Social Performance (KS) to the company's financial performance and Agriculture Mining sector not significant coefficient -0317 parameter Corporate social yangberarti responsibility (CSR) to the financial performance had a negative relationship which means no direction opposite relationship. Keywords: Influence of Corporate Social Responsibility of the three indicators Economic Performance, Environmental, and Social the Financial Performance.

Disclosure of corporate social responsibility (CSR) and its implications on company value as a result of the impact of corporate governance and profitability

2020 ◽  
Vol 62 (4) ◽  
pp. 339-354
Author(s):  
Kamaliah Kamaliah
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to examine the effect of corporate governance and corporate profitability on firm value with corporate social responsibility (CSR) disclosure as the intervening variable. Design/methodology/approach The population of this study was all companies listed in the LQ 45 Index group in the Indonesia Stock Exchange in 2013-2014. The inferential statistics used in this study applied the partial least square (PLS) based structural equation model (SEM) method with the assistance of SmartPLS 2.0. The PLS method was selected based on the consideration that there was a construct formed with reflective indicators in this study. Findings From the results of this study, it can be concluded that corporate governance does not have any effect on CSR disclosure, profitability of company has an effect on CSR disclosure, CSR disclosure has an effect on firm value. In addition, CSR disclosure does not mediate the effect of on firm value. These results showed that corporate governance can have an effect on firm value directly, and there is no role of CSR disclosure in mediating the effect of corporate governance on firm value, and profitability of company has an effect on firm value through CSR disclosure. Originality/value The originality of this research is on the reason that many studies that have been conducted still indicated the inconsistency in the results and diversity of the indicators, so that a similar research was conducted by involving the indicators used for measuring the corporate governance variable, which were the proportion of independent commissioners and audit committee. Meanwhile, for the profitability variable, return on assets and return on equity were used as the indicators.

Earnings management, financial performance and the moderating effect of corporate social responsibility: evidencefrom France

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salma Chakroun ◽  
Anis Ben Amar ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Performance ◽  
Moderating Effect ◽  
Least Square ◽  
Content Type ◽  
Academic Researchers ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of earnings management on financial performance. In addition, the authors investigate whether corporate social responsibility has a moderating effect on the impact of earnings management on financial performance. Design/methodology/approach The empirical study is based on a sample of French companies listed on the CAC-All-Tradable index over the period 2008–2018. Feasible generalized least square regression method is used to estimate the econometric models. Findings Based on panel data of 3,003 French firm-year observations, the authors demonstrate that earnings management has a negative and significant impact on financial performance. Indeed, corporate social responsibility moderates positively the negative impact of earnings management on financial performance in the French context. Practical implications The findings have several implications for regulatory, investors and academic researchers. For regulators, it is appropriate to promote more several standards related to corporate social responsibility and earnings management. For investors, considering societal issues is very important in making decisions. For academic researchers, the results show that it is important to discover how corporate social responsibility can influence the relation between earnings management and financial performance. Originality/value The existing literature has generally focused on the impact of earnings management on financial performance and the empirical tests did not yield similar results. The study shows that corporate social responsibility has a moderating role in determining the impact of earnings management on financial performance.

The impact of financial performance on corporate social responsibility disclosure: the case of VN100 in Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thinh Quoc Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Impact ◽  
Least Square ◽  
Series Data ◽  
Content Type ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of financial performance (FP) on corporate social responsibility disclosure (CSRD) in the top 100 listed enterprises in Vietnam (VN100). Design/methodology/approach This paper uses the ordinary least square method to test and uses time series data of VN100 in five years from 2015 to 2019. Findings The results of this study show that the return on assets and return on equity have a positive impact on CSRD of VN100. Research limitations/implications This paper has not covered all independent variables related to FP. Practical implications The paper contribute to increasing CSRD of VN100. Social implications The paper contribute to raising awareness of businesses about community and society. Originality/value This paper contributes to increase the level of useful information for stakeholders to meet the trend of regional and international integration.

Commitment in corporate social responsibility and financial performance: a study in the Tunisian context

2017 ◽  
Vol 13 (2) ◽  
pp. 370-389 ◽  
Author(s):  
Haifa Chtourou ◽  
Mohamed Triki
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Impact ◽  
Negative Impact ◽  
Content Type ◽  
Social Actions ◽  
The Social ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to measure the impact of commitment in corporate social responsibility (CSR) in its various forms (CSR philanthropy/ altruism, CSR integration and CSR innovation) on the financial performance as measured by certain ratios. Design/methodology/approach Thus, on the basis of a theoretically constructed questionnaire administered to 82 responsibles (general managers, human resources managers and CSR responsibles) operating in four business areas, the authors have developed the extent of the overall CSR commitment and the extent of commitment by CSR action type. Findings The examination of the impact of the CSR commitment on the financial performance has partially approved the social impact assumption. Indeed, only the positive effect of CSR philanthropy is demonstrated. Otherwise, for integrated and innovative actions, the low involvement in these actions in relation to philanthropic ones could explain the lack of significant association. But this result is also important, as it marks the lack of any negative effects. Even if they do not result in a better financial performance, these commitments do not bring harm to the firm. As for the strategic approach predominance on the altruistic approach, this hypothesis is checked only in the case of firms operating in the chemical sector. Research limitations/implications The main limitation of the study is the limited size of the total sample and the sample by industry, so the authors expect a larger sample might be able to provide more meaningful results. Practical implications Then, the study suggests the importance of implementing real CSR strategies for firms that often find doubt and ambiguity when they decide to undertake social actions. However, these results do not mean that companies must refrain from driving altruistic or philanthropic activities but are encouraged to seek a social performance that suits a certain level of integration and innovation. Social implications The most important of all the above is that the negative impact of social actions is not verified in any way, allowing to state that the social actions do not exert a negative effect on the financial performance. So, participation in social problems do not bring harm to the firm. Originality/value The originality of this work comes from: the measure of CSR commitment, and the use of a classification typology of CSR actions in terms of their interaction with the core of the firm’s business as developed by Halme (2009). In fact, based on a theoretically constructed questionnaire, the authors have developed two measures of responsible commitment (level of commitment and intensity of commitment) of some industrial Tunisian firms.

scholarly journals DOES ISLAMIC CORPORATE SOCIAL RESPONSIBILITY IMPROVE FINANCIAL PERFORMANCE?

2019 ◽  
Vol 4 (2) ◽  
pp. 205
Author(s):  
KHAIRIYANI KHAIRIYANI
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Service Employees ◽  
Corporate Social

This research aimed to examine the effect of Islamic Corporate Social Responsibility (ICSR) on financial performance. ICSR was measured by finance and investment, product and service, employees, society, environment and corporate governance. Then, financial performance was measured by ROA and ROE. This study used 17 firms as a sample is consistently listed in Jakarta Islamic Index (JII) during 2014-2017. The sample was determined by using purposive sampling. Analysis of data in this study used Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS 3rd version. The result showed that ICSR had able to improve financial performance

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

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