Community Influential Directors and Corporate Social Performance

2020 ◽  
pp. 000765032096515
Author(s):  
Klavdia Evans ◽  
Ashley Salaiz ◽  
Seemantini Pathak ◽  
Dusya Vera
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Fortune 500 ◽  
Board Members ◽  
Data Set ◽  
Decision Context ◽  
Corporate Social ◽  
Board Level ◽  
Positive Effect ◽  
Insight Into

We draw upon the attention-based view of the firm to identify the conditions under which community influentials (CIs) on a board impact a firm’s corporate social performance (CSP). We test our hypotheses with a panel data set of Fortune 500 firms from 2004 to 2008, including 3,955 unique firm–director combinations (aggregated to the board level). Although CIs are often considered less powerful directors, we identify that when the firm is experiencing poor CSP, CIs have a positive effect on CSP. The ability of CIs to influence CSP is also conditional on the access of CIs and other board members to socially oriented board ties. Our article points out that power and influence is contingent on the decision context and the relative knowledge of organizational players, and that players with relatively lower power may improve their status and command attention when they can offer exclusive insight into important issues.

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.

Webs of Influence: Secondary Stakeholder Actions and Cross-National Corporate Social Performance

2020 ◽  
Author(s):  
Kate Odziemkowska ◽  
Witold J. Henisz
Keyword(s):  
Corporate Social Performance ◽  
Social Issues ◽  
Social Performance ◽  
Issue Salience ◽  
Firm Level ◽  
Data Set ◽  
Stakeholder Groups ◽  
Corporate Social ◽  
The Relationship ◽  
Cross National

We analyze the relationship between the actions and interactions of secondary stakeholders with an interest in corporate social performance (CSP) and variation in firm-level CSP across countries. Our work represents a significant theoretical shift in research exploring comparative CSP, which, to date, has focused on cross-national variation in institutions. We propose that stakeholders can also drive cross-country heterogeneity in CSP by influencing the salience of the issues for which they advocate. Stakeholders raise salience of CSP issues through their interactions with important sociopolitical actors within a country, signaling their collective ability to change expectations on CSP. CSP issue salience is also heightened where heterogeneous stakeholder groups advocate for CSP issues, signaling that issues have garnered widespread acceptance or legitimacy. Managers are also more attuned to the urgency of issues through the direct actions that stakeholders take against firms in the country. We also argue and find that these effects are moderated by interstakeholder interactions, which signal the degree of consensus among stakeholders on issues and their ability to mobilize repeatedly against firms. We draw on a novel data set of 250 million media-reported events to identify secondary stakeholders with interests in the environmental and social issues that constitute CSP, their direct actions against firms, and their interactions with important sociopolitical actors and each other. We show empirically that variation in secondary stakeholder actions and interactions between countries, and within countries over time, is associated with differences in firm-level CSP among a sample of 2,852 firms spanning 36 countries from 2004 to 2013.

Corporate Social Performance and Governance Quality Across the BRICS Countries

2021 ◽  
pp. 41-70
Author(s):  
Sinem Ates
Keyword(s):  
Fixed Effects ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Social Responsibilities ◽  
Brics Countries ◽  
Governance Quality ◽  
Fixed Effects Regression ◽  
Corporate Social ◽  
Positive Effect

This chapter seeks to examine the level of corporate social performance of the BRICS companies and investigate the effect of the country's governance quality on the environmental, social, and governance (ESG) performance of the companies. Analysis of the BRICS companies' ESG scores for 2009 - 2018 indicated that the level of ESG performance in the BRICS countries differs from each other considerably. Overall, results of fixed effects regression analysis revealed that governance quality of countries has a positive effect on ESG scores of companies. Based on these findings, it was suggested to improve governance quality thereby encouraging companies to fulfill their social responsibilities.

scholarly journals THE EFFECT OF CORPORATE SOCIAL PERFORMANCE ON FINANCIAL PERFORMANCE WITH FIRM SIZE AS A CONTROL VARIABLE

2019 ◽  
Vol 7 (4) ◽  
pp. 651-658
Author(s):  
Kiagus Andi ◽  
Rizky Isnaeni ◽  
Ade Widiyanti
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Control Variable ◽  
Corporate Financial Performance ◽  
Significant Positive Effect ◽  
Corporate Social ◽  
Positive Effect

Purpose: The purpose of this study is to examine whether the variables of social performance and corporate financial performance affect each other. Methodology: The research has used quantitative methods, namely, regression testing, in the form of descriptive statistics and multiple regression analysis. The data obtained in this research are analyzed by using the Statistical Product and Service Solutions (SPSS) program, version 22. In order to answer the study objectives, the researcher analyzes the mining companies listed on the Indonesian Stock Exchange (IDX). Results: The results of this study indicate that social performance has a significant positive effect on corporate financial performance; this is as per good management theory. Furthermore, it was found that financial performance has a significant positive effect on corporate social performance; this is as per slack resources theory. Implication: This study implies that social performance can help firms to improve social performance. Hence, a firm should consider depositing its profitability to increase social performance that may lead to the improvement of firm performance.

scholarly journals Green Competitive Advantage Moderate:Environmental Performance, Corporate Image And Corporate Social Performance On Economic Performance

2021 ◽  
Vol 2 (5) ◽  
pp. 1468-1478
Author(s):  
Arry Eksandy ◽  
Murtanto ◽  
Regina J. Arsjah
Keyword(s):  
Competitive Advantage ◽  
Economic Performance ◽  
Environmental Performance ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Corporate Image ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
Positive Effect

This research aims to determine the effect of environmental performance, corporate image, and corporate social performance on economic performance with moderated by green competitive advantage partially on manufacturing companies in Indonesia. The population in this research is all manufacturing companies listed on Indonesia Stock Exchange during the period 2013-2017. The total samples tested were 13 companies selected by purposive sampling technique. Data type in this research use secondary data obtained from Indonesia Stock Exchange and site respectively of company being sampled. Data analysis technique use panel data regression with Eviews 9.0 program. The result indicates that environmental performance have a positive effect on economic performance and after moderated by green competitive advantage of environmental performance has a positive effect on economic performance with a larger coefficient value. Corporate image have no effect on economic performance but after moderated by green competitive advantage of Corporate image has a positive effect on economic performance. Corporate social performance have no effect on economic performance and after moderated by green competitive advantage of Corporate image also has not effect on economic performance.

scholarly journals Board Gender Diversity, Social Performance, and CEO Compensation

1970 ◽  
Vol 36 (2) ◽  
pp. 1-27
Author(s):  
K. Gilley ◽  
Kelly Weeks ◽  
Joseph Coombs ◽  
Myrtle Bell ◽  
Donald Kluemper
Keyword(s):  
Executive Compensation ◽  
Ceo Compensation ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Gender Diversity ◽  
Fortune 500 ◽  
Fortune 500 Companies ◽  
Ceo Pay ◽  
Board Gender Diversity ◽  
Corporate Social

This study examines the extent to which board gender diversity and corporatesocial performance influence CEO compensation. The sample includes 1,829observations from 262 Fortune 500 companies over multiple years. Findings indicatethat board gender diversity and corporate social performance interact to predict CEOcompensation. The data show that boards comprised of a higher percentage of womenplace increasing emphasis on certain kinds of corporate social performance whensetting CEO pay, and decreasing emphasis on other types of social performance. Ourfindings highlight the complex interrelationships between executive compensation,board composition, and corporate social performance.

Corporate social performance and cost of debt: the relationship

2017 ◽  
Vol 13 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Barbara Sveva Magnanelli ◽  
Maria Federica Izzo
Keyword(s):  
Global Financial Crisis ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Risk Profile ◽  
Cost Of Debt ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
The Cost ◽  
Practical Implications

Purpose This paper aims to investigate the link between corporate social performance (CSP) and cost of debt financing. Despite academic debate has focused on the link between corporate social responsibility (CSR) and CSP (expressed through accounting and market measures of profitability), few empirical researches have analysed the relations between CSR, cost of debt and its relation with the risk profile of a firm. The literature on the cost of debt determinants generally documents a negative association between measures of the risk of the firm and its cost of debt. The literature on CSR defines risk reduction as one of the potential benefits related to CSR activities. Thus, the expectation is that high CSP scores are inversely related to cost of debt. Design/methodology/approach Using a unique data set of 332 firms over a time period of five years antecedent to the global financial crisis, a linear regression model is applied. Findings The results show a positive relation between CSP and cost of debt, demonstrating that CSR is not a value driver with an impact on the firm’s risk profile. Practical implications The research has also practical implications as it makes managers aware of the potentiality of CSP to reduce the firm’s cost of debt. Originality/value These findings enlarge the empirical research on the value of CSP, expanding it towards a quite new area of investigation: the cost of external financing.

scholarly journals Corporate Social Performance and the Likelihood of Bankruptcy: Evidence from a Period of Economic Upswing

2021 ◽  
Author(s):  
Florian Habermann ◽  
Felix Bernhard Fischer
Keyword(s):  
Default Risk ◽  
Instrumental Variable ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Related Literature ◽  
Stakeholder Relationships ◽  
Positive Effects ◽  
Business Environments ◽  
Corporate Social ◽  
Positive Effect

AbstractThe paper aims to investigate the effects of corporate social performance (CSP) on bankruptcy likelihood in times of economic upswing. This is important because prior related literature focused on data containing times of economic crises. We measure bankruptcy likelihood with the Altman Z score and CSP with Refinitiv ESG scores. By applying static panel data regressions and instrumental variable regressions on a sample of 6696 US-firm-year observations from 2010 to 2019 our main findings are: (i) In contrast to existing research, the level of firms’ CSP seems to have no (positive) effect on the likelihood of bankruptcy during times of economic upswing. (ii) Increasing a firm’s CSP in times of economic upswing leads to a rise in bankruptcy likelihood. We conclude that the positive effects of CSP on stakeholder relationships fail to materialize in flourishing business environments. The costs of increasing CSP, thus, exceed their immediate positive effects and raise bankruptcy likelihood. However, as they reduce financial default risk in subsequent crises, CSP investments can be seen as a balancing measure. Our findings bear implications for scholars, practitioners, and policymakers.

Antecedents of corporate social performance: the effects of task environment managerial discretion

2017 ◽  
Vol 13 (2) ◽  
pp. 339-354
Author(s):  
Matthew T. Luth ◽  
Donald J. Schepker
Keyword(s):  
Corporate Social Performance ◽  
Stakeholder Management ◽  
Social Performance ◽  
Managerial Discretion ◽  
Task Environment ◽  
Theoretical Argument ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
Industry Conditions

Purpose The purpose of this research is to better understand how industry conditions affect corporate social performance (CSP). To accomplish this objective, the authors develop and test a theoretical argument that task environment managerial discretion plays an important role in determining a firm’s level of CSP. Design/methodology/approach In this research, the authors utilize a longitudinal data set of archival data nested across year, firm and industry. They then test their research model using multilevel techniques, which account for the nested nature of their research design. Findings Firms exhibit higher levels of CSP when their industry’s environment is high in dynamism and product differentiation. Conversely, firms exhibit lower levels of CSP when capital intensity is high. Finally, the authors find that firms exhibit higher levels of both positive and negative CSP as industry munificence increases. Research limitations/implications A number of researchers have called for investigation into the antecedents of CSP. This research provides an important next step in understanding the factors that influence firm CSP. Specifically, this research illustrates how the task environment affects stakeholder management by influencing the degree to which firms engage in CSP. Practical implications Managers should be mindful of the task environment’s conditions for managerial discretion and how these conditions affect stakeholder support for CSP. Moreover, managers should understand how industry conditions affect the firm’s ability to achieve competitive advantage through the use of CSP strategies. Originality/value While there has been much research aimed at understanding the potential CSP-firm performance link, there has been relatively little attention paid to understanding what influences firm CSP in the first place. This research suggests that industry-level characteristics of managerial discretion strongly influence firm strategic actions toward social performance.

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