Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

2020 ◽  
pp. 097215092092044 ◽  
Author(s):  
Kalpana Tokas ◽  
Kartik Yadav
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Host Country ◽  
Emerging Market ◽  
Business Group ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Domestic Firms ◽  
Corporate Social ◽  
The Impact

This article adds to the international business and corporate social responsibility (CSR) literature by investigating the impact of foreign ownership on the CSR expenditures of firms in a host country, within an emerging market context. Previous studies have examined the relationship between ownership structure and CSR engagement, primarily for the case of developed nations. This article explores the linkages between the CSR spending of foreign-owned firms in relation to their domestic counterparts for the Indian context. India provides a unique case because of the landmark legislation undertaken in 2014 that mandated CSR spending for firms based in India. This study examines the motivations that guide the CSR strategies of foreign firms in host nations and attempts to explain the usage of CSR spending as a tool to overcome Liability of Foreignness and achieve legitimacy using the neo-institutional theory. Within this unique setting, a sample of 3591 firm years in India for 2014–2018 is used to examine whether foreign-owned firms indulge in a higher CSR expenditure relative to domestic firms, using a random-effects model. Further, it is also examined whether business group-affiliated foreign firms spend differently on CSR than standalone foreign enterprises in the host nation. The results show that foreign ownership is associated with a higher CSR spending than domestic firms by an average of ₹1.35 million in the host country. Furthermore, among foreign firms, a business group affiliation leads to a higher CSR spending by an average of ₹1.55 million as compared to stand-alone foreign firms.

scholarly journals Colonial Corporate Social Responsibility: Company Healthcare in Java, East Sumatra and Belitung, 1910-1940

2018 ◽  
Vol 14 (1) ◽  
pp. 83
Author(s):  
Frank Ochsendorf
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Indigenous Communities ◽  
Foreign Firms ◽  
Public Healthcare ◽  
Private Company ◽  
Investment Activity ◽  
Corporate Social ◽  
Indigenous Society ◽  
The Impact

This article discusses the impact of investments by foreign firms in healthcare and hygienic measures on indigenous society in late-colonial Indonesia (1910-1940), focusing on three principal centers of foreign investment activity: Java, East Sumatra and the island of Belitung. Such facilities, although primarily intended for workers and their families, were sometimes accessible for members of indigenous society without contractual or family connection to the private company furnishing them. In rare cases, private companies invested directly in the welfare of local communities. The article concludes that the impact of the social investments on the state of health of indigenous communities was generally positive and a much-needed addition to scarcely available public healthcare. While such social investments can be regarded as examples of proto-corporate social responsibility strategies, the improvement of welfare was always a means through which the ultimate goal could be achieved: survival of the company and maximization of profits.

Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eswaran Velayutham ◽  
Vijayakumaran Ratnam
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Group ◽  
Shareholder Wealth ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and shareholder wealth arising from announcement returns of security issuance from a frontier market. It also explores the role of business group affiliation (BGA) on this relationship. Design/methodology/approach The study uses short-term scenarios to examine the link between CSR and shareholder wealth using the event study methodology which helps us mitigate the reverse causality problems related to studies of the relationship between CSR and firm value. Abnormal returns surrounding the security issue announcements were generated using the market model. Findings This paper finds that security issuers with high CSR scores are associated with higher shareholder value. However, this paper finds that CSR activities of security issuers with BGA are value-destroying which is consistent with the agency perspective of CSR. Research limitations/implications This study is limited to only one nascent market, namely the Colombo Stock Exchange. Originality/value This study documents that CSR and BGA are important determinants, among others, of stock price reactions to security offerings in emerging markets.

scholarly journals Corporate governance and corporate social responsibility: A study of emerging market listed firms

2021 ◽  
Vol 18 (2) ◽  
pp. 90-105
Author(s):  
Annisa A. Lahjie ◽  
Riccardo Natoli ◽  
Segu Zuhair
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Least Squares ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Listed Firms ◽  
Data Limitations ◽  
Corporate Social ◽  
The Impact

The main purpose of this paper is to examine the impact of corporate governance (CG) on corporate social responsibility (CSR) of Indonesian listed firms. Estimations via simultaneous equation models with ordinary least squares (OLS) and two-stage least squares (2SLS) were employed for 84 firms with a total of 924 observations over the period of 2007-2017. The results showed that a lack of CG in monitoring and supervisory mechanisms, as well as a high concentration of managerial ownership, can significantly contribute to low levels of CSR. There are data limitations as a number of firms were omitted due to the application of the CSR criteria utilised in this study. The research has implications for Indonesian listed firms with respect to aligning CSR initiatives to firm objectives. The paper provides recommendations for future research in this area. The paper provides one of the few studies to analyse CG on CSR via a comprehensive measurement of CSR. Further, it adds to the empirical academic literature from a developing country context

scholarly journals Business Group-Affiliation and Corporate Social Responsibility: Evidence from Listed Companies in China

2021 ◽  
Vol 13 (4) ◽  
pp. 2110
Author(s):  
Xin Huang ◽  
Xianling Jiang ◽  
Wei Liu ◽  
Qian Chen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Groups ◽  
Listed Companies ◽  
Business Group ◽  
Vital Role ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
Corporate Social

Business groups have played a vital role in the development of emerging markets. However, we share very limited understanding in the role of business group that act on affiliated firms’ CSR performance. Using manually sorted data on A-share listed companies and business groups in China from 2010–2017, we examine whether a company’s business group-affiliation affects its corporate social responsibility (CSR) performance and the mediating mechanisms of this association. Our empirical models show that group companies bear a higher level of social responsibility compared to independent companies. This positive relationship between group-affiliation and social responsibility relies on resource allocation through internal capital markets, rent-seeking initiatives, and consideration of corporate reputation. Moreover, group affiliation benefits the firm’s CSR performance in employee’s responsibilities, consumers’ responsibilities and environmental responsibilities, while significantly lower the shareholders’ responsibilities. Our empirical valuation of group companies’ CSR levels can serve as a benchmark for emerging market companies implementing social responsibility policies.

scholarly journals Foreign Ownership and Corporate Social Responsibility: Evidence from China

2021 ◽  
Vol 13 (2) ◽  
pp. 508
Author(s):  
Mingyuan Guo ◽  
Chendi Zheng
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Positive Impact ◽  
Listed Companies ◽  
Foreign Ownership ◽  
Institutional Distance ◽  
Corporate Social ◽  
The Impact ◽  
Moderating Role

This paper employs the data of corporate social responsibility rating score of A-share listed companies in China from 2009 to 2018 as a sample to verify the impacts of foreign ownership on corporate social responsibility. Furthermore, this paper explores the moderating role of legal institutional distance and economic institutional distance in the impact of foreign ownership on corporate social responsibility. The empirical results of panel data models show that: Firstly, foreign ownership has a significant positive impact on corporate social responsibility. Secondly, legal institutional distance and economic institutional distance have a positive moderating role in the impacts of foreign ownership on corporate social responsibility. The results of propensity score matching, two-stage least squares and alternative variables methods also give strong backing to the above conclusions. Finally, this paper puts forward that China’s listed companies are supposed to make full use of the supervision power of foreign ownership to promote corporate social responsibility.

scholarly journals THE IMPACT OF TAX AGGRESSIVENESS, FIRM SIZE, AND FOREIGN OWNERSHIP TO SOCIAL RESPONSIBILITY

2018 ◽  
Vol 6 (2) ◽  
pp. 156
Author(s):  
WINNY GRANDIS ◽  
ROSINTA RIA PANGGABEAN
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Size ◽  
Sampling Technique ◽  
Foreign Ownership ◽  
Environmental Damage ◽  
Tax Aggressiveness ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Mining companies in Indonesia are companies that explore naturalresources as a source of income for the company. The use of mining companies for this study is because the activities undertaken by these companies related to waste and environmental pollution so that the level of industrial risk and environmental damage becomes high. The purpose of this study is to analyze the impact of the tax aggressiveness (ETR), firm size (SIZE), and foreign ownership (FOCI) to corporate social responsibility (CSR) of the mining companies. The population in this study are the mining companies which were listed in Indonesia Stock Exchange from year 2010 to 2015. This study uses tax aggressiveness, firm size, and foreign ownership as independent variables; profitability, leverage, and market-to-book ratio as control variables; and also corporate social responsibility as dependent variable. There are 9 samples of mining companies which produced 54 data using purposive sampling technique. This study uselogistic regression method. This study uses Eviews 9 and Microsoft Excel 2007 for data processing. The results showed that the firm size (SIZE) has a significant effect on the company's CSR, while tax aggressiveness and foreign ownership have no significant effect on company’s CSR. This results indicate that the bigger the size of a company will cause greater activities and influences in the society, which make companies pay more attention to social programs and social responsibility disclosures.

scholarly journals Ownership structure and corporate social responsibility in an emerging market

2019 ◽  
Vol 37 (4) ◽  
pp. 1165-1192 ◽  
Author(s):  
Sreevas Sahasranamam ◽  
Bindu Arya ◽  
Mukesh Sud
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Ownership Structure ◽  
Emerging Market ◽  
Institutional Pressures ◽  
Socially Responsible ◽  
External Forces ◽  
Corporate Social ◽  
The Impact

Abstract While scholarship exploring the impact of ownership structure on corporate social responsibility (CSR) has investigated firms in developed markets, less work has examined how ownership in firms from emerging markets influences community-related CSR. Both internal and external forces potentially drive community-related CSR decisions. It is hence important to understand the role of internal constraints arising due to agency problems along with institutional pressures from external stakeholders in emerging markets in shaping CSR. In this study, we draw on agency theory and sociological perspectives of institutions to explore variations in the motivation of different owners to pursue a socially responsible agenda. Our analysis of a sample of Indian firms for the period 2008–2015 illustrates that business group and family ownership is beneficial for community-related CSR. Our theoretical arguments and results highlight the importance of combining multiple lenses to assess the influence of ownership structures on CSR in emerging markets.

Does the stakeholders – corporate social responsibility (CSR) relationship exist in emerging countries? Evidence from China

2016 ◽  
Vol 12 (1) ◽  
pp. 147-166 ◽  
Author(s):  
Dongwei Li ◽  
Han Lin ◽  
Ya-wen Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Central Government ◽  
Emerging Market ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Foreign Investors ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose – This study aims to examine whether the association between stakeholders and corporate social responsibility (CSR) documented in developed countries exists in China. Design/methodology/approach – This study tests the hypothesis and examines the impact of the central government, political connection, shareholders, customers, suppliers, employees and foreign investors on CSR practices by estimating the ordinary least squares regressions. Findings – Using the CSR indexes developed by the Chinese Academy of Social Science (CASS), this study finds that the central government, supplier concentration and foreign investors are positively associated with CSR, whereas shareholder concentration and customer concentration are negatively associated with CSR in China. Inconsistent with findings documented in developed countries, the result indicates that employee power is not associated with CSR. Originality/value – This paper extends prior research by including stakeholders, such as government and foreign investors, who have a unique impact on CSR activities in emerging markets in addition to other stakeholders. The findings have implications in other countries where state ownership is also prevalent (Claessens et al., 2000; Faccio and Lang, 2002). While the issue of CSR has attracted growing research interest in recent years, most empirical results are based on the US data. This paper contributes to the empirical CSR research by examining determinants of CSR in an emerging market. Interestingly, some of the findings are contrary to those documented in developed countries. The contradiction suggests the danger in generalizing CSR–stakeholder research findings in developed countries to emerging economies.

Online corporate social responsibility (CSR) disclosure in the banking industry

2016 ◽  
Vol 34 (4) ◽  
pp. 550-569 ◽  
Author(s):  
Merve Kiliç
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ownership Structure ◽  
Emerging Market ◽  
Content Type ◽  
Csr Reporting ◽  
Multiple Exchange ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose – The purpose of this paper is twofold: first, this study analyzes the extent to which banks report online their corporate social responsibility (CSR) practices; second, it determines the impact of size, ownership structure, multiple exchange listing, and the internationalization of banks on the level of their online CSR reporting. Design/methodology/approach – This study examines the Turkish banking industry’s online CSR communications by performing a content analysis of banks’ online reporting of their CSR practices in four sub-dimensions, namely, environment and energy, human resources, products and customers, and community involvement. A sample of 25 banks in Turkey was grouped according to the criteria of size, ownership structure (listed or unlisted on stock exchanges), multiple exchange listing (listing on home and foreign exchanges), and internationality (local or foreign). This study employs a nonparametric Kruskal-Wallis test to determine the significance of the differences among these groups. Findings – The results of the study demonstrate that the most disclosed dimension on the websites of the banks is products and customers. In particular, there is a lack of disclosure on items of environment and energy. Further, the findings of the research show that size, ownership structure, and multiple exchange listing are significant in explaining online CSR disclosure level. Originality/value – Several previous studies have focussed less on the CSR disclosure practices of companies in industries with little direct environmental impact, such as banking and finance. This study extends the previous studies of CSR reporting by gathering data from the banks’ websites rather than their annual reports. This study contributes to the literature by examining the online CSR disclosure practices of banks from an emerging market context and, specifically, that of Turkey.

The Effect of Internal Corporate Social Responsibility on Job Satisfaction: An Empirical Study on Jordanian Pharmaceutical Companies

2020 ◽  
Vol 8 (2) ◽  
pp. 112
Author(s):  
Sura Altheeb ◽  
Kholoud Sudqi Al-Louzi
Keyword(s):  
Job Satisfaction ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Quantitative Research ◽  
Skills Development ◽  
Future Research ◽  
Pharmaceutical Companies ◽  
Corporate Social ◽  
The Impact ◽  
Positive Results

The current research investigates the impact of internal corporate social responsibility on job satisfaction in Jordanian pharmaceutical companies. Quantitative research design and regression analysis were applied on a total of 302 valid returns that were obtained in a questionnaire based survey from 14 pharmaceutical companies among employees, supervisors and managers. The results showed that internal corporate social responsibility was significantly related to job satisfaction and three of its dimensions, namely working conditions, work life balance and empowerment contributed significantly to job satisfaction, whereas employment stability and skills development had no contribution. This study implies that Jordanian pharmaceutical companies have to try their best to promote and facilitate internal corporate social responsibility among their employees in an effort to improve their job satisfaction, which will eventually yield positive results for the company as a whole. In light of these results, the research presented many recommendations for future research; the most important ones were the application of this study in other sectors, cultures, and countries, and using of multi method for collecting data.

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