Does board diversity influence firms’ corporate social responsibility reputation?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Caroline C. Hartmann ◽  
Jimmy Carmenate
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Socially Responsible ◽  
Board Diversity ◽  
Content Type ◽  
Positive Effects ◽  
Social Reputation ◽  
Global Companies ◽  
Corporate Social ◽  
The Impact

Purpose Board diversity positively impacts corporate social responsibility (CSR); however, there is limited evidence on how board diversity affects the reputation of organizations that are involved in CSR. The purpose of this paper is to examine the effect board diversity has on socially responsible firms’ corporate social responsibility reputation (CSRR). The authors specifically examine this relationship because an organization’s corporate reputation may be very different to its CSRR gained through engagement in socially responsible activities. Design/methodology/approach The authors use the CSR reputation scores for the top 100 most socially responsible global companies provided by the RepTrak Database as a measure of CSRR. Board diversity measures are calculated for gender, ethnicity and education to measure their impact on social reputation. The sample for this study consists of 146 observations for the period 2013–2017. Findings The authors find a significant and positive relation between having a combination of women and ethnically diverse members on the board and firms’ CSRR. The authors also find a significant positive effect on CSRR when the board is composed of women and educationally diverse members. Research limitations/implications Board diversity characteristics continue to impact organizations’ decision-making processes and their involvement in CSR activities as public stakeholders demand greater representation of females and minorities on the board. Because research on board diversity is in its infancy, the authors urge scholars to continue to investigate the impact board diversity has on an organization’s motivation to be socially responsible as well as how it affects their CSRR. Practical implications The findings of this study highlight the importance stakeholders place on an organization’s social responsibility reputation and the positive effects of board diversity in managing their CSRR. Social implications The findings provide evidence that the composition of the board can influence a company’s engagement in CSR activities and their CSRR as perceived by its stakeholders. Originality/value This study contributes to the CSR literature by introducing the concept of CSRR. To the best of the authors’ knowledge, this study also extends research in the diversity literature by examining the relationship between board diversity variables and an organization’s CSRR. The findings highlight the importance of having a diverse board composed of ethnically and educationally varied individuals and provide evidence of a link between organizations’ involvement in socially responsible activities and their CSRR.

The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

2019 ◽  
Vol 122 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Niccolò Nirino ◽  
Nicola Miglietta ◽  
Antonio Salvi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Social Outcomes ◽  
Content Type ◽  
Positive Effects ◽  
Food And Beverage ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector. Design/methodology/approach The authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis. Findings The findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP. Originality/value Despite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.

The impact of corporate social responsibility on employee performance and cost

2015 ◽  
Vol 14 (3) ◽  
pp. 262-284 ◽  
Author(s):  
Li Sun ◽  
T. Robert Yu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Employee Performance ◽  
Labor Cost ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose – The purpose of our paper is to empirically examine the conjectures, which prior literature suggests, that employees work more productively in socially responsible companies and employees are willing to work for less when they work for these companies. Design/methodology/approach – This study uses ordinary least squares regression to examine the relationship between corporate social responsibility (CSR) and employee performance and between CSR and employee cost. Further, 2SLS is used to address the endogeneity issue. Findings – The results indicate a positive relation between CSR and employee performance, suggesting that employees in socially responsible companies generate better operating performance than their peers in less socially responsible companies. Findings also reveal that socially responsible companies incur higher labor cost. Research limitations/implications – First, the CSR ratings constructed by KLD Inc. are an approximate measure of CSR performance. Better CSR measures may yield stronger results. Additionally, the sample firms in our study are relatively large firms. Caution needs be exercised when readers generalize these conclusions. Finally, this sample only consists of public firms. Whether these conclusions hold in private firms remains unknown. The above issues can be investigated in future studies. Practical implications – The findings of our study should interest managers who contemplate engaging in socially responsible activities, investors and financial analysts who assess firm performance and policymakers who design and implement guidelines on CSR programs. Originality/value – This is the first paper that directly tests the association between CSR and employee performance and cost. Thus, this study contributes to the CSR literature by offering evidence to show a positive effect of CSR on employee performance. It also contributes to the management accounting literature.

scholarly journals Finding the jigsaw piece for our jigsaw puzzle with corporate social responsibility

2014 ◽  
Vol 12 (3) ◽  
pp. 240-258 ◽  
Author(s):  
Ana Patrícia Duarte ◽  
Daniel Roque Gomes ◽  
José Gonçalves das Neves
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Job Search ◽  
Three Dimensions ◽  
Organizational Attractiveness ◽  
Socially Responsible ◽  
Content Type ◽  
New Employees ◽  
Corporate Social ◽  
The Impact

Purpose – This study aims to examine the influence of different corporate social responsibility (CSR) dimensions on prospective applicants’ responses, namely, organizational attractiveness and intention to apply for a job vacancy (IAJV). Design/methodology/approach – Using an experimental 2 × 3 crossed factorial design (n = 195), the level of engagement of a hypothetical company in socially responsible practices (high vs low) was manipulated concerning three dimensions of CSR (employees, community and environment and economic level). Participants were randomly assigned to one of the six conditions and, after reading the corresponding scenario, were asked to evaluate the extent to which the company was considered a good place to work and their IAJV in it. Findings – The level of engagement in socially responsible practices had a positive effect both on the degree to which participants favorably perceived the organization as a place to work and on their IAJV. Furthermore, the level of engagement in practices toward employees and in the economic domain had a stronger effect on participants’ responses than the engagement in practices that benefit community and environment. Research limitations/implications – Data were obtained in a laboratory setting, so the generalization of results to actual job search settings must be made with caution. Practical implications – CSR can be a source of competitive advantage in the recruitment of new employees. Because not all CSR dimensions have the same effect on applicants’ responses, companies should take into account the CSR dimensions in which they are engaged and communicate them to the public. Originality/value – As far as we know, this is the first study to examine the impact of different CSR dimensions both on organizational attractiveness and IAJV.

Consumer behaviour and corporate social responsibility: an empirical study of Expo 2015

2017 ◽  
Vol 119 (8) ◽  
pp. 1826-1838 ◽  
Author(s):  
Gennaro Civero ◽  
Vincenzo Rusciano ◽  
Debora Scarpato
Keyword(s):  
Corporate Social Responsibility ◽  
Food Security ◽  
Food Safety ◽  
Social Responsibility ◽  
Empirical Study ◽  
Socially Responsible ◽  
Content Type ◽  
Buying Behaviour ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to ascertain the attitudes of people towards issues of food safety, food security and sustainability. For this, an empirical study was conducted on visitors to the event Milan Expo 2015. Particular attention was paid to any greater propensity to purchase products from socially responsible agri-food companies and whether the event might have contributed to enrich the baggage of their knowledge on the issues of sustainability and corporate social responsibility (CSR) and to influence future buying behaviour. Design/methodology/approach Different groups of visiting consumers were identified through cluster analysis in order to segment and divide visitors into groups based on their approach to food safety, food security and sustainability, their willingness to pay for products from companies practising CSR, and the impact of the event on their future buying behaviour. Findings The results showed a positive attitude of respondents towards issues of food safety, food security and sustainability in general and to the purchase of sustainable food products. However, due to shortcomings in the communication strategy used by companies attending the event, the sample of visitors did not enrich their knowledge on sustainability and CSR. The impact of Expo 2015 on future buying behaviour was far from impressive. Originality/value The findings are particularly useful for the future development of the reputation and profitability of food companies, for the enrichment of knowledge concerning CSR-oriented food companies and to increase the price of products from socially responsible agri-food companies.

Corporate social responsibility (CSR) and tax incentives: the case of Tunisian companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henda Kacem ◽  
Mohamed Ali Brahim Omri
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Culture ◽  
Tax Incentives ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Theoretical Foundations

Purpose This paper aims to investigate the question concerning whether tax incentives motivate companies to be socially responsible. This study, specifically, examines the impact of tax incentives for corporate social responsibility (CSR) on the societal practices of Tunisian companies. Design/methodology/approach This study uses multiple regression models to assess the effectiveness of tax incentives for companies to take responsible actions. The study was conducted on 71 Tunisian companies operating in different sectors. Findings The results reveal that there is a negative and significant association between tax incentives and CSR practices. Therefore, there is an inefficient use of these types of incentives. Practical implications The results of the study have important implications for investors and regulatory basis wishing to enhance CSR by giving tax incentives. Investment in social responsibility may improve the corporate culture and reduce the conflict in companies. Originality/value The theoretical contributions relate mainly to the originality of the conceptual model developed, to the literature review and to the theoretical foundations mobilized. In fact, the originality of this research is justified by the scarcity of previous study dealing with the relationship between tax incentives and CSR. Thus, to the best of the authors’ knowledge, this study is one of the first to investigate the impact of tax incentives for CSR on CSR practices.

The strategic nature of corporate social responsibility in SMEs: a multiple mediator analysis

2017 ◽  
Vol 117 (1) ◽  
pp. 2-31 ◽  
Author(s):  
Domingo Martínez-Martínez ◽  
Jesús Herrera Madueño ◽  
Manuel Larrán Jorge ◽  
María Paula Lechuga Sancho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Reference Level ◽  
Competitive Performance ◽  
Socially Responsible ◽  
Content Type ◽  
Positive Effects ◽  
Relational Marketing ◽  
Mediator Analysis ◽  
Corporate Social

Purpose The purpose of this paper is to analyse empirically the corporate social responsibility (CSR) strategic effects on the competitive performance of small- and medium-sized enterprises (SMEs) by performing a multiple mediator analysis. Design/methodology/approach The empirical research was conducted in Spanish SMEs. A questionnaire was distributed among managers of these companies. Thus, with a final sample of 481 cases and using consistent partial least squares structural equation modelling, direct and mediating effects were tested. In particular, relationships among corporate social performance (CSP) (exogenous variable), competitive performance (endogenous variable), relational marketing (mediating variable) and innovative capacity (mediating variable) were hypothesized. Moreover, a further analysis about the superior returns offered by socially responsible practices related to core business stakeholders was conducted. Findings The results highlight a significant and positive effect that CSP has on competitive performance. Additionally, both mediating positive effects were supported and the firm size was checked as a relevant control variable which, as proxy for resources availability, affects all constructs used with the exception of relational marketing. Managers interested in a strategic approach to social responsibility should be aware that the investment in activities related to employees and customers leads to higher competitiveness. Research limitations/implications The study was limited to SME in Spain. Moreover, information related to competitive performance was gathered from managers’ own perceptions, considering the performance of their direct competitors as a reference level. Originality/value To the authors knowledge, no research studies were found that empirically examined the business case in SMEs and employed a CSR approach based on stakeholders’ perspective. Therefore, the main contribution of this research is to show how socially responsible management of SMEs leads to higher competitive performance both direct and indirectly, using two strategic variables suggested in literature on large corporations. Despite their resources limitations, this kind of organizations is in a favourable position to engage with different stakeholders and benefit from their relationships, especially with employees and customers.

Board diversity and corporate social responsibility in Jordan

2016 ◽  
Vol 14 (2) ◽  
pp. 279-298 ◽  
Author(s):  
Abdul Hadi Ibrahim ◽  
Mustafa Mohd Hanefah
Keyword(s):  
Corporate Social Responsibility ◽  
Data Analysis ◽  
Panel Data ◽  
Social Responsibility ◽  
Panel Data Analysis ◽  
Arab Countries ◽  
Board Diversity ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

The impact of the integrated reporting framework on corporate social responsibility (CSR) disclosures – the case of South African mining companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Mining Industry ◽  
Integrated Reporting ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.

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