Do consumers really care about organisational motives behind CSR? The moderating role of trust in the company

2019 ◽  
Vol 15 (8) ◽  
pp. 977-991 ◽  
Author(s):  
Grzegorz Zasuwa
Keyword(s):  
Attribution Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Relevant Literature ◽  
Initial Trust ◽  
Content Type ◽  
Consumer Responses ◽  
Social Initiatives ◽  
Corporate Social

Purpose Literature on corporate social responsibility (CSR) posits that organisational motives underlying corporate social initiatives play a key role in stakeholder responses to these activities. However, individuals do not always make attributions. This study aims to examine when CSR attributions shape consumer reactions to CSR initiatives. Design/methodology/approach Drawing on attribution theory and relevant literature on consumer trust, this study proposes a framework for explaining when attributions shape reactions to CSR initiatives. To test this framework, the study uses data from a random sample of 512 Polish consumers. Findings The results show that consumer responses to corporate social initiatives are largely independent of perceived corporate motivation when a consumer has a high trust in the firm. However, a low level of initial trust triggers causal thinking and its effects. Specifically, if a firm lacks credibility, self-serving attributions negatively influence consumer outcomes of social initiatives, but they remain neutral when trust is high. Accordingly, when trust is low, other-serving attributions have greater effects on the initiative outcomes than when trust is high. Originality/value The paper provides important insights into CSR literature by showing that initial trust in the company is a salient variable that moderates the link between CSR attributions and consumer responses to these actions. This role of trust has been largely unexplored as past studies considered trust in the firm to be a key outcome of corporate social performance.

Corporate social performance in family firms: a meta-analysis

2018 ◽  
Vol 8 (3) ◽  
pp. 235-273 ◽  
Author(s):  
Sergio Canavati
Keyword(s):  
Family Firms ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Content Type ◽  
The Family ◽  
Corporate Social ◽  
The Relationship

Purpose Empirical studies provide conflicting conclusions regarding the corporate social performance (CSP) of family firms. The purpose of this paper is to synthesize the existing empirical evidence and examine the potential role of research design and contextual factors. Design/methodology/approach A meta-analysis of existing empirical studies was performed to examine the role of sampling, measurement and contextual factors in explaining the different and often conflicting results of empirical studies in the family business literature. Findings The overall relationship between family firms and CSP is positive. The relationship between family firms and CSP is positive for private family firms but is negative for public family firms. The relationship between family firms and CSP is positive when family involvement includes both family ownership and management as opposed to only family ownership or family management. Private family firms care more and public family firms care less about the community, environment, and employees than private and public nonfamily firms. The relationship between family firms and CSP is stronger in institutional environments with weak labor and corporate governance regulatory frameworks. Research limitations/implications The operationalization of both the family firm and CSP constructs significantly predicts the magnitude and direction of the relationship between family firms and CSP. Practical implications Family firms should become more skilled at measuring and disseminating information about the firm’s CSP. Family firms should work to improve public perceptions about the CSP of family firms. Social implications Policy should encourage family firms to remain privately owned by the family. Policy should also incentivize the involvement of family owners in the management of family firms. Originality/value Although several literature reviews address the relationship between family firms and CSP, this is the first review to use the meta-analysis method. The authors contribute to the family business literature by analyzing how differences in study-, firm- and country-level factors can explain some of the variance in the results of the studies in the literature.

“Being true to oneself”: the interplay of responsible leadership and authenticity on multi-level outcomes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muzhar Javed ◽  
Muhammad Waheed Akhtar ◽  
Khalid Hussain ◽  
Muhammad Junaid ◽  
Fauzia Syed
Keyword(s):  
Social Capital ◽  
Research Design ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Responsible Leadership ◽  
Content Type ◽  
Multi Level ◽  
Corporate Social ◽  
The Relationship

PurposeDrawing on stakeholder theory, this study examines the relationship between responsible leadership and its macro-, meso- and micro-level outcomes. Further, this study investigates the moderating role of authenticity on the relationship between responsible leadership and its multi-level effects, i.e. relational social capital, corporate social performance and community citizenship behaviour among employees.Design/methodology/approachThe authors conducted four field studies using the quantitative methodology to test the hypotheses. In study 1 (N = 236), by adopting a multi-wave and multi-source research design, the authors examine the relationship between responsible leadership, authenticity and relational social capital. In study 2 (N = 203), by adopting a multi-wave research design, the authors examine the relationship between responsible leadership, authenticity and corporate social performance. In study 3 (N = 203), by adopting a multi-wave and multi-source research design, the authors examine the relationship between responsible leadership, authenticity and employees' community citizenship behaviour. In study 4 (N = 257), by adopting a multi-wave and multi-source research design, the authors capture the impact of responsible leadership on outcomes (social capital, corporate social performance and community citizenship behaviour) with a boundary condition of authenticity.FindingsThe authors find that responsible leadership enhances relational social capital, improves a firm's social performance and develops community citizenship behaviour among employees. Further, the study finds that authenticity positively moderates the relationship between responsible leadership and its multi-level outcomes.Originality/valueFirst, it is a maiden study to investigate the multi-level outcomes of RL in a series of three empirical studies. Second, it contributes to RL literature by testing a unique moderating role of authenticity between RL and its multi-level outcomes of relational social capital, corporate social performance and employees' community citizenship behaviour. This study also provides empirical evidence for the multi-level implications of stakeholder theory.

Revisiting the financial performance – corporate social performance link

2018 ◽  
Vol 30 (7) ◽  
pp. 2586-2602 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The existing literature has focused heavily on investigating the effect of corporate social performance (CSP) on financial performance (FP) but has not paid sufficient attention to an inverse causation of the relationship. Moreover, while some of the literature argues that FP positively affects CSP, based on the slack resources theory, others have found negative effects of FP on CSP, supporting the managerial opportunism perspective. Thus, this paper aims to address the impact of FP on CSP. Further, this study examines the moderating role of franchising to better understand the relationship. Design/methodology/approach This study uses and expands the models derived from the CSP literature to confirm the effects of FP on CSP with the moderating role of franchising within the restaurant industry. Using two-way fixed effects models, it effectively addresses important problems embedded in the panel data. Findings The findings show a positive effect of FP on CSP, which is inconsistent with Park and Lee’s (2009) findings and supports the slack resources theory. Further, the interesting results show that the impact of FP on CSP diminishes as a firm franchises more, supporting the double-sided moral hazard framework of the agency theory. Originality/value This paper fills the lacuna in both the existing literature on the relationship between CSP and FP and the franchising. This study contributes to enhancing restaurant practitioners’ understanding of the double-sided moral hazard of agency theory unique to franchising context.

Towards a more ethical market: the impact of ESG rating on corporate financial performance

2019 ◽  
Vol 15 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Giovanni Landi ◽  
Mauro Sciarelli
Keyword(s):  
Data Analysis ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Panel Data Analysis ◽  
Abnormal Returns ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015. Design/methodology/approach This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation. Findings The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI). Practical implications The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior. Originality/value This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.

In search of ethics: from Carroll to integrative CSR economics

2019 ◽  
Vol 15 (4) ◽  
pp. 469-491 ◽  
Author(s):  
Sigmund Wagner-Tsukamoto
Keyword(s):  
Institutional Economics ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Case ◽  
Future Research ◽  
Market Exchange ◽  
Content Type ◽  
Four Dimensions ◽  
Corporate Social ◽  
Practical Implications

PurposeRevisiting Carroll’s classic corporate social responsibility (CSR) pyramid framework, this paper aims to evolve a novel synthesis of ethics and economics. This yielded an “integrative CSR economics”.Design/methodology/approachThis theory paper examined how to conceptually set up CSR theory, argue its ethical nature and establish its practical, social and empirical relevance. Economic analysis reached out from contemporary institutional economics to Smith’s classic studies.FindingsThe paper reconstructed all of Carroll’s four dimensions of CSR – economic, legal, ethical and philanthropic responsibilities – through economics. The paper discounted a core assumption of much CSR research that economic approach to CSR, including the instrumental, strategic “business case” approach to CSR, were unethical and lacked any foundations in ethics theory. Integrative CSR economics reframes research on viability and capability requirements for CSR practice; redirecting empirical research on links between CSP (corporate social performance) and CFP (corporate financial performance).Research limitations/implicationsThe paper focused on Carroll as the leading champion of CSR research. Future research needs to align other writers with integrative CSR economics. Friedman or Freeman, or the historic contributions of Dodd, Mayo, Bowen or Drucker, are especially interesting.Practical implicationsThe paper set out how integrative CSR economics satisfies the “business case” approach to CSR and develops practical implications along: a systemic dimension of the market economy; a legal-constitutional dimension; and the dimension of market exchanges.Social implicationsIntegrative CSR economics creates ethical benefits for society along: a systemic dimension of the market (mutual gains); a legal-constitutional dimension (law-following); and the dimension of market exchange (ethical capital creation). Social benefits are not only aspired to but also are achievable as a business case approach to CSR is followed.Originality/valueThe paper’s main contribution is a new synthesis of economics and ethics that yields an “integrative CSR economics”.

Systemic corporate social responsibility: micro-to-macro transitions, collective outcomes and self-regulation

2016 ◽  
Vol 12 (2) ◽  
pp. 209-227 ◽  
Author(s):  
Brent D. Beal ◽  
Cristina Neesham
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Corporate Citizenship ◽  
Social Performance ◽  
Self Regulation ◽  
System Level ◽  
Content Type ◽  
Management Approaches ◽  
Corporate Social

Purpose The purpose of this paper is to call attention to the need to revitalize the systemic nature of corporate social responsibility (CSR) and offer some suggestions about how this might be accomplished. The authors introduce the concept of systemic CSR and associate it with micro-to-macro transitions, the need to make systemic objectives explicit and the responsibility of system participants to regulate their behavior to contribute to these outcomes. Design/methodology/approach The authors comment, from a systemic perspective, on four different management approaches to CSR – shareholder value, corporate social performance, stakeholder theory and corporate citizenship. Three general systemic principles that participants can use as decision-making guides are a focus on value creation, ongoing assessment of collective outcomes and reflective engagement in the aggregation process. Findings The authors observe that businesses routinely demonstrate their ability to think in systemic terms in strategic contexts that require it. If businesses can address systemic issues in these contexts, then they can also apply systemic logic in furtherance of collective (or system-level) objectives. Originality/value The authors propose an approach to CSR that emphasizes micro-to-macro transitions, the need to make systemic objectives explicit and the responsibility of system participants to regulate their behavior to contribute to these desired objectives. Systemic CSR is unique in its explicit focus on the micro-to-macro transition (i.e. the process of aggregation), systemic objectives and the need to actively insource responsibility for contribution to the realization of those objectives.

Stakeholder performance, corporate social performance

2019 ◽  
Vol 14 (3) ◽  
pp. 242-253
Author(s):  
Jean Biwole Fouda ◽  
Irène Abessolo Abessolo
Keyword(s):  
Life Cycle ◽  
Corporate Social Performance ◽  
Social Performance ◽  
The Other ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Dominant Type ◽  
Content Type ◽  
Essentially Contested Concepts ◽  
Corporate Social

Purpose The purpose of this paper is to find out what added value does the stakeholder performance concept bring with respect to that of corporate social performance. To better understand the developments of these concepts, the authors resort to Gallie’s theory (1956) of essentially contested concepts, the life-cycle model of Hirsch and Levin’s (1999) umbrella concepts. Reconciling these two theoretical frameworks allows us to introduce the competing category notion consisting of a dominant and a dominated-type concepts. Through a historical and synchronic literature examination, CSP is shown to have characteristics of the dominant type, thanks to its more diffuse character. On the other hand, the stakeholder performance would relate to the dominated type, though it provides better operationalization possibilities. Design/methodology/approach To better understand the developments of these concepts, Gallie’s theory (1956) of essentially contested concepts, the life cycle model of Hirsch and Levin’s (1999) umbrella concepts are used. Findings CSP has characteristics of the dominant type, thanks to its more diffuse character. On the other hand, the stakeholder performance relates to the dominated type, though it provides better operationalization. Originality/value CSP as a dominant type and stakeholder performance is a dominated type.

The relationship between poor CSR performance and hard, negative CSR information disclosures

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maher Jeriji ◽  
Waël Louhichi
Keyword(s):  
Information Disclosure ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Panel Data Analysis ◽  
Content Type ◽  
Csr Reporting ◽  
Opportunistic Behaviour ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between hard, negative corporate social responsibility (CSR) information disclosure and corporate social performance. Design/methodology/approach This study uses a generalised least squares panel data analysis based on a sample of firms ranked in the Fortune Global 500 for the period 2013–2016. Robustness check tests were conducted to limit endogeneity concerns. Findings The results show that in line with strategic legitimacy theory, agency theory and organisational stigma theory, poor sustainability performers disclose a low quality of hard, negative CSR information. Practical implications This paper provides guidance for stakeholders to identify good and poor CSR performers by better understanding whether corporate CSR reports are more likely to be symbolic or substantive when considering the amount of hard, negative content in their CSR stand-alone reports. Social implications The research highlights the opportunistic behaviour of CSR reporting, which is used more as a legitimation device than as an accountability mechanism. Thi Originality/value Although numerous studies have investigated the association between the level of corporate social disclosure (CSD) and corporate social performance, no research has focussed on hard, negative CSD. Also, an index that captures the disclosure quality rather than the quantity of negative CSR information was constructed.

Bridging the gap between corporate social responsibility performance and tax aggressiveness

2020 ◽  
Vol 33 (4) ◽  
pp. 825-855 ◽  
Author(s):  
Eduardo Ortas ◽  
Isabel Gallego-Álvarez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Cultural Dimensions ◽  
Economic Sectors ◽  
Data Set ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Corporate Social

PurposeThis paper addresses the role of corporate social responsibility (CSR) performance as a potential mechanism for reducing firms' likelihood of engaging in tax aggressiveness (TAG). The paper also contributes to the existing literature by addressing the moderating effect of national cultures on the link between CSR performance and corporate TAG.Design/methodology/approachThe focus is placed on an unbalanced panel of 2,696 companies distributed in 30 countries and seven economic sectors over the period of 2002–2014.FindingsThe results provide support for those companies achieving high corporate social performance (CSP), corporate environmental performance (CEP) and corporate governance performance (CGP) being less likely to engage in aggressive tax practices. Finally, the results identify some national cultural dimensions moderating the link between disaggregated measures of CSR performance and firms' TAG.Research limitations/implicationsThe difficulty of accessing CSR and TAG data for non-listed companies could bias the data set towards a compliant company profile because of the higher visibility. In addition, the use of effective tax rates to examine firms' TAG should be interpreted with some caution.Practical implicationsThe paper's findings provide unique and useful information for company stakeholders and managers aiming to address the factors that enhance firms' incentives to engage in aggressive tax practices.Originality/valueThis paper addresses the multidimensional nature of CSR performance by analysing the links between CSP, CEP and CGP and corporations' TAG. Furthermore, the research addresses the way in which national culture moderates the links between disaggregated measures of CSR performance and corporate TAG.

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