CSR at scale: the relationship between corporate social commitment and social progress in developing economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Keith L. Whittingham

PurposeIn recent decades, companies have increasingly engaged in Corporate Social Responsibility (CSR), with the goal of providing benefit to both society and the company. While these efforts can have measurable social impact at the local level, the cumulative impact may be much harder to observe and measure, due to the wide variety in both the CSR initiatives and the social challenges they seek to address. This study is an initial investigation of the relationship between national levels of commitment to CSR and national measures of social progress, in a sample of developing countries.Design/methodology/approachUsing country-level participation in the UN Global Compact (UNGC) as a proxy for the level of CSR commitment, and 2018 Social Progress Index (SPI) scores, we investigate the relationship between these variables. SPI component and sub-component scores serve as dependent variables in several OLS regression models. Independent variables included the total number of companies participating in the UNGC, along with economic and socio-political control variables.FindingsRegression models indicate that higher CSR commitment levels are related with higher scores in the primary components of social progress, but only in some sub-components and not others. Practitioners and policymakers can leverage this understanding when developing and supporting corporate social initiatives.Originality/valueTo our knowledge, this is one of the first studies to demonstrate the country-level impact of firm-level CSR commitment and is among the first to employ the Social Progress Index.

2019 ◽  
Vol 15 (2) ◽  
pp. 244-257 ◽  
Author(s):  
Tao Zeng

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and tax avoidance as well as how CSR and country-level governance interplay in affecting tax avoidance in an international setting. Design/methodology/approach This paper is an empirical work using listed companies from 35 countries and relying on several proxies for corporate tax avoidance activities including the difference between the statutory tax rate and the annual effective tax rate, the book-tax difference and the residual book-tax difference. Findings This study finds strong evidence that CSR is positively related to tax avoidance. It also finds that in countries with weak country-level governance, firms with higher CSR scores engage in less tax avoidance, implying that CSR and country-level governance are substitutes. Originality/value This paper is the first study that examines the relationship between CSR and tax avoidance in an international setting with different legal and institutional environment.


2020 ◽  
Vol 14 (2) ◽  
pp. 143-157 ◽  
Author(s):  
Charbel Chedrawi ◽  
Alain Osta ◽  
Souheir Osta

Purpose Corporate social responsibility (CSR) has become an issue in the international banking industry, where each bank must assert its stakeholders, the social fabric and the natural environment. In the same time, legitimacy which has become one of the most critical issues for corporations, can be increased in the eyes of other stakeholders or institutions by structurally or procedurally adjusting to institutional influences. By conforming to three external institutional pressures (normative, mimetic and coercive), identified by DiMaggio and Powell (1983), organizations can build, support and gain legitimacy for their activities in specific institutional environments. Design/methodology/approach Using a qualitative approach, this research highlights the input of neo-institutional theory in the CSR context in top Lebanese banks in Lebanon. Findings This paper aims to analyze the impact of neo-institutionalism and the role of stakeholders in legitimizing CSR practices in the Lebanese banking sector. Practical implications Top Lebanese banks cannot simply comply with institutional pressures to gain their legitimacy, they need to develop their CSR activities targeted toward legitimacy-building at the local level; as for managers they cannot simply adopt managerial perspectives instrumentally to gain societal support, they need to adapt such perspectives and practices to the local needs as expressed by their internal and external stakeholders. Originality/value Managers of top Lebanese banks need to proactively engage in managing institutional pressures by adopting and adapting legitimacy-seeking strategies. This study highlights that top Lebanese banks differ in their CSR orientation because of their ownership structure, number of employees and profitability.


2019 ◽  
Vol 15 (7) ◽  
pp. 924-938 ◽  
Author(s):  
Mobin Fatma ◽  
Imran Khan ◽  
Zillur Rahman

Purpose Based on the social identification theory, this study aims to understand employees’ reactions to corporate social responsibility (CSR) in oil companies. This study finds that employees’ perceived CSR is positively related to the employee organizational identification in controversial sector companies. Design/methodology/approach The authors chose to analyze five oil companies in India. These companies are large in size and revenue and provide a valid context for the present study. A survey of 316 employees had been carried out in the year 2015 at the headquarters of these companies located in India. Findings The finding shows that organization CSR activities enhance employees’ organizational identification, which in turn leads to employee commitment to their organization. Furthermore, the finding highlights the relationship between perceived CSR and organizational identification, which is mediated by perceived external prestige and perceived organizational support. Research limitations/implications The limitation of this study is the cross-sectional research design. The variables under investigation were measured only at one specific point of time. Another restriction of the study is that the data had been collected from the self-reported questionnaire. The results were dependent on how employees perceive and interpret how outside world assesses or views their organization. Originality/value This study provides a first step of empirical evidence suggesting that CSR engagement is important and can help in building the relation with stakeholders even in controversial industry.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rasha Kamal El-Deen El-Mallah ◽  
Alia Abd el Hamid Aref ◽  
Sherifa Sherif

Purpose The purpose of this paper is as follows: First, understanding the nature of the relationship between corporate adoption of the concept of societal responsibility [availability of environmental awareness, clear vision of the impact of societal responsibility on financial performance, managers informing employees of the latest developments in societal responsibility programs, managers' response to their corporate social responsibility (CSR) proposals] in the form of an annual report that supports the success of the company's objectives, the company's management encourages employees to participate collectively in societal responsibility programs and to protect the environment from pollution in the petrochemical industry. Second, understand the nature of the relationship between the dimensions of corporate social responsibility concept (cultural, social, economic, ethical and legal) and protect the environment from pollution in the petrochemical industry. Third, the research also seeks to show the role of societal responsibility and its application in the petrochemical companies to protect the environment from pollution in The Governorate of Alexandria – Egypt, and come out with results and recommendations that could help protect the environment from the forms of environmental pollution resulting from the production processes of this industry. Design/methodology/approach The researcher has relied on each of the following approaches: Case study methodology is a research strategy aimed at solving a problem or facing a particular situation. It is based on preliminary hypotheses through full analysis of all data collected and recorded. Which depends on the study of a limited number of cases or vocabulary in-depth comprehensive study through the study of all or a large number of variables overlapping and interrelated and influential on the problem under consideration. Thus, it provides a deep and rich understanding of what is going on around the research and the processes that are related to it, and not only the external or apparent description of the situation or phenomenon; it cares about the total description and looks at the particles, in relation to the whole. Quantitative approach: by giving a numerical description indicating the size or size of the phenomenon or the degree of association with the phenomenon. Other phenomena. Accordingly, the role of the petrochemical companies in Alexandria Governorate, and the social responsibility programs carried out within the governorate in terms of importance, growth and requirements, and the most important characteristics and constraints and components and methods of work and developments have been described. Thus, the researcher can analyze the relationship between CSR and environmental protection from pollution in Alexandria Governorate. Findings There is paucity in the studies that dealt with the relationship between CSR and environmental protection against pollution in public organizations. There is agreement among the sample on the importance and feasibility of adopting the concept of social responsibility and placing it at the top of the top management concerns, especially in the field of petrochemical companies. With the need to take concrete implementation measures to support social responsibility programs aimed at serving the community among all stakeholders. The effective implementation of the mechanisms for the implementation of meaningful social responsibility programs requires fundamental changes in management practices, existing organizational structures and the quality of personnel working in the relevant departments, in general, and the social responsibility group, in particular, which may be difficult for political and economic reasons. Research limitations/implications Time: The study period was set from 2015 to 2017. Place: The study focuses on the petrochemical companies operating in Alexandria. Humanity: The study focuses on the employees of the petrochemical companies operating in Alexandria Governorate. Practical implications The adoption of social responsibility positively affects the protection of the environment from pollution, and this effect shows that the adoption of the concept of corporate social responsibility is influenced by the following factors: increasing the participation of workers with healthy environmental contributions to the productive process; increasing the companies' economic and social activities toward protecting the environment from pollution; increasing the capacity of companies to pay greater costs to preserve the environment; increasing the awareness of green consumers with the products it offers Companies; development of continuous internal work environment companies; and clearly defined strategy followed in social responsibility programs. Social implications The social responsibility of the public organizations derives their strength through, first, the keenness of these organizations to analyze the variables of the ethical dimension of social responsibility and their availability, which will lead the organizations to provide their services with the highest quality and sincerity. That this analysis (ethics of individuals) as training members of the social responsibility team to solve problems using brainstorming and provide employees with official data related to improving work (ethics of leadership), such as the identification of business objectives through the participation of managers with subordinates, and the punishment of workers who exhibit immoral behaviors (ethics of productive processes) as a decision-making process to ethical standards regardless of the costs involved. When there is an immoral behavior and managers are responsible for implementing the changes needed to reach the targeted outcomes), second, promote partnerships with other relevant sectors for community service. Originality/value According to the results of the previous studies and the applied study results, the researcher would like to submit a mechanism to the directors and heads of the boards of directors of the Egyptian petrochemical companies under study.


Author(s):  
Solomon A. Keelson ◽  
Thomas Cudjoe ◽  
Manteaw Joy Tenkoran

The present study investigates diffusion and adoption of corruption and factors that influence the rate of adoption of corruption in Ghana. In the current study, the diffusion and adoption of corruption and the factors that influence the speed with which corruption spreads in society is examined within Ghana as a developing economy. Data from public sector workers in Ghana are used to conduct the study. Our findings based on the results from One Sample T-Test suggest that corruption is perceived to be high in Ghana and diffusion and adoption of corruption has witnessed appreciative increases. Social and institutional factors seem to have a larger influence on the rate of corruption adoption than other factors. These findings indicate the need for theoretical underpinning in policy formulation to face corruption by incorporating the relationship between the social values and institutional failure, as represented by the rate of corruption adoption in developing economies.


2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.


2019 ◽  
Vol 28 (4) ◽  
pp. 434-445 ◽  
Author(s):  
Angelo Jonas Imperiale ◽  
Frank Vanclay

Purpose The purpose of this paper is to reflect on what can be learned about disaster risk reduction (DRR) from the L’Aquila trial of scientists. The court case was initiated because of a controversial meeting on 31 March 2009 of the Major Risks Committee (MRC), held under the auspices of the Italian Department of Civil Protection. The purpose of the meeting was to consider (prior to the fatal earthquake of 6 April 2009) disaster risk in the L’Aquila area, which was being affected by an earthquake swarm since October 2008. Design/methodology/approach The authors undertook a document analysis of trial materials, and a review of academic and media commentary about the trial. Findings The legal process revealed that disaster governance was inadequate and not informed by the DRR paradigm or international guidelines. Risk assessment was carried out only in a techno-scientific manner, with little acknowledgement of the social issues influencing risks at the local community level. There was no inclusion of local knowledge or engagement of local people in transformative DRR strategies. Originality/value Most previous commentary is inadequate in terms of not considering the institutional, scientific and social responsibilities for DRR as exposed by the trial. This paper is unique in that it considers the contents of the MRC meeting as well as all trial documents. It provides a comprehensive reflection on the implications of this case for DRR and the resilience of peoples and places at risk. It highlights that a switch from civil protection to community empowerment is needed to achieve sustainable outcomes at the local level.


Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alhassan Haladu ◽  
Saeed Awadh Bin-Nashwan

Purpose An attempt is made in this study aims to examine the extent to which the role of environmental agencies in Nigeria, i.e. DEPARTMENT for Petroleum Resources (DPR), National Environmental Standard and Regulatory Enforcement Agency (NESREA) and Nigerian Stock Exchange (NSE), influences firms’ attributes on sustainability reporting. Design/methodology/approach Both primary and secondary data covers 2015-2019 were used to collate information for the analyzes. The analysis was done using Stata 13 to determine the moderating impact of policy administrators on the relationship between corporate attributes and sustainability reporting. Findings The findings showed a very low level of sustainability reporting (27.53%), with a high significant level. Moreover, a positive and significant relationship exists between the major corporate attributes and sustainability reporting. A highly significant moderating impact of environmental policy administrators exists on these attributes, except for board size. Research limitations/implications The theoretical and practical implications of this study show that there is an indication of the inefficiency of the environmental policy administrators in Nigeria as the significance of the political economy theory as it affects the interactive impact on sustainability reporting. Further research is recommended on political-economic theory so as to know the economic implications of the effects of corporate attributes on environmental disclosure as it impacts governments and societies. Practical implications Results show that there is an indication of inefficiency by Nigeria’s main environmental policy administrators such as DPR, NESREA and NSE as it affects environmental, economic and social issues by listed firms. Originality/value This work emphasizes the moderating impact of environmental agencies on the relationship between firms’ characteristics and sustainability disclosure through the GRI4 framework standard. More so, it applied company attributes essential for a firm’s sustainable growth and development in the developing economies of sub-Saharan Africa.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.


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