scholarly journals Doing Well by Doing Good, Uniquely: Materiality and the Market Value of Unique CSR Strategies

2021 ◽  
Author(s):  
Leandro Nardi ◽  
Todd Zenger ◽  
Sérgio Giovanetti Lazzarini ◽  
Sandro Cabral
Keyword(s):  
Degrees Of Freedom ◽  
Strong Support ◽  
Market Value ◽  
Strategic Decision ◽  
Market Returns ◽  
Individual Level ◽  
Csr Strategies ◽  
Key Stakeholders ◽  
Corporate Social

Corporate social responsibility (CSR) has become a strategic decision for organizations. The capacity to invest in several distinct CSR categories at varying levels (e.g., environmental innovation, diversity, community) leaves firms with a multitude of patterns from which to choose. However, the question of whether market returns to CSR are defined by individual-level positioning choices or by industry-level conditions––particularly the materiality of distinct categories of CSR––remains unresolved. Drawing on the literature arguing that stakeholders are crucial enablers of value creation and capture, we theorize that unique CSR strategies more effectively promote stakeholder engagement by helping firms develop differentiated and unrivaled positions with key stakeholders. Thus, we argue that CSR uniqueness is positively associated with market value. Yet we also argue that uniqueness can be constrained by materiality: in industries in which a higher number of CSR categories are considered material, firms have fewer degrees of freedom to successfully differentiate from competitors; hence, the market returns to unique CSR positioning are negatively associated with the number of CSR categories deemed material to the industry. Using a novel measure of uniqueness of CSR strategies and a database containing environmental, social, and financial information of 2,093 firms between 2002 and 2017, we find strong support for our hypotheses. To shed further light on the mechanisms driving the role of materiality, we examine the 2010 BP Deepwater Horizon oil spill.

scholarly journals M&As get another assist: when CEOs add intuition to the decision mix

2019 ◽  
Vol 41 (3) ◽  
pp. 57-65 ◽  
Author(s):  
Hannu Kuusela ◽  
Siiri Koivumäki ◽  
Mika Yrjölä
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Group Interactions ◽  
Content Type ◽  
Individual Level ◽  
Top Executives ◽  
Positive Effects

Purpose The purpose of this paper is to analyze the use of intuition in successful merger and acquisition (M&A) decisions. M&As are strategic decisions that can create growth, open up new markets and strengthen the company’s position and competence portfolio. Strategic decisions involve, by their very nature, considerable investments and have company-wide and long-lasting implications. At the same time, the decision-makers have access to large amounts of data from various sources, but these data are often uncertain and inaccurate and entail numerous assumptions. Therefore, M&A decisions are only rational to a degree, and emotional elements, such as intuition, likely play a significant role. Design/methodology/approach Acknowledging how critically important, but also how difficult, M&As are, the authors analyzed nine instances (cases) of successful acquisitions, in which the executives believed that the role of intuition was critical. Findings The findings show that intuition in strategic decision-making emerges on three levels: individual, collective and environmental. Practical implications This paper encourages top executives to proactively acknowledge and take advantage of intuition in their strategic decision-making. It proposes a framework to help with these endeavors. Originality/value This paper contributes by highlighting that intuition is not just a factor on an individual level; it can also surface from group interactions as well as the environment. Surprisingly, all the executives interviewed spoke of the positive effects that intuition can have on acquisition decisions. This is in contrast to the dominant view that considers intuition as nonrational and even as a form of bias.

scholarly journals Corporate Social Responsibility Activities that Influence Customer Loyalty of SMEs

2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Key Stakeholders ◽  
Medium Enterprises ◽  
Corporate Social

Businesses are increasingly required to address the demands of key stakeholders, in addition to those of shareholders. There is an increasing role of corporate social responsibility (CSR) to large businesses and small and medium enterprises (SMEs) alike. However, research to support the degree of the application of CSR activities to SMEs with respect to customer loyalty is limited. The purpose of this study was to examine the selected CSR activities that impact the customer loyalty of SMEs. A self-administered questionnaire was distributed to selected SMEs in Kampala District, while Structural Equation Modeling was utilised to determine the influence of independent variables on the dependent variable. The study findings revealed that the selected CSR activities (Society-oriented CSR activities, Market-oriented CSR activities and Environmental-oriented CSR activities) positively influence the Customer loyalty of SMEs.

scholarly journals Do Stakeholders Modulate Philanthropic Strategy? Corporate Philanthropy as Stakeholders’ Engagement

2020 ◽  
Vol 12 (18) ◽  
pp. 7242
Author(s):  
María Lourdes Arco-Castro ◽  
María Victoria Lopez-Pérez ◽  
Sara Rodriguez-Gomez ◽  
Raquel Garde-Sánchez
Keyword(s):  
Common Good ◽  
Corporate Philanthropy ◽  
Theoretical Implication ◽  
Key Stakeholders ◽  
The Common ◽  
Corporate Social ◽  
The Relationship ◽  
Stakeholder Attitudes ◽  
Practical Implications

Corporate philanthropy, as an expression of commitment to the common good, can contribute to the creation of social value in companies. This corporate philanthropy can be managed in various ways. The choice of how to channel corporate philanthropy could be, in accordance with stakeholder theory, the result of companies’ interactions with key stakeholders and, in accordance with the theory of signaling, a signal that companies use to respond to their demands. This approach contributes to the literature on bottom-up initiatives (stakeholder–managers) as opposed to top-down strategies (board–stakeholders) in relation to corporate social responsibility, which is becoming increasingly important in a society where networks of communication, cooperation and interaction are established. To this end, a study was conducted on 221 European companies indexed in the Dow Jones Sustainability Indices in the year 2018. The findings have several practical implications: The management of corporate philanthropy should take into account the stakeholders’ requirements, and stakeholders show greater affinity and trust with the company when philanthropy is channeled through foundations. By contrast, donations are not associated with stakeholder attitudes. As a theoretical implication, this paper supports the theories of stakeholders and signaling by explaining the role of philanthropy in the relationship with stakeholders.

Relevance of voluntary environmental and social reporting in the French context: Does CSR assurance matter?

2020 ◽  
Vol 11 (1) ◽  
pp. 54-64
Author(s):  
Amira Lajmi ◽  
Gilles Paché
Keyword(s):  
Environmental Economics ◽  
Market Value ◽  
Social Reporting ◽  
Global Reporting Initiative ◽  
Csr Reporting ◽  
Market Values ◽  
Social Actions ◽  
Corporate Social ◽  
The Relationship

Corporate social responsibility (CSR) reporting is of high importance for firms that wish to communicate their environmental and social actions to stakeholders and society at large. Of course, the credibility of CSR reporting affects considerably the market reaction to the information provided. Although research on environmental and social reporting is important, empirical evidence regarding the relevance of environmental and social disclosure to firms’ market values is scarce. This paper specifically analyzes the moderating role of external CSR assurance on the relationship between voluntary environmental and social reporting and firm market value. A content analysis index is then developed based on disclosure items specified in the Global Reporting Initiative guidelines. Using hand-collected data on a sample of French companies, the authors find that CSR assurance has a negative moderating effect on the relationship between high environmental and social reporting and firms’ market value, raising questions about the role of external assurance in assessing CSR reporting credibility. AcknowledgmentThe authors sincerely thank three anonymous reviewers of Environmental Economics for their insightful comments on a previous version of the paper.

The evolving path of CSR: toward business and society relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuldeep Singh ◽  
Madhvendra Misra
Keyword(s):  
Business And Society ◽  
Society Business ◽  
Content Type ◽  
Study Approach ◽  
Key Stakeholders ◽  
Wide Range ◽  
Managerial Implications ◽  
Future Direction ◽  
Corporate Social

PurposeThis paper takes a critical look at the meaning of corporate social responsibility (CSR) based on the available literature on the subject matter. As CSR is an evolving concept both in meaning and practice, this study aims to highlight CSR actions of the world's six largest organizations (Google, Twitter, Amazon, Apple, ExxonMobil and Walmart). The purpose of choosing these organizations and their CSR adoption was to examine the business-society relationship and the role of key stakeholders in establishing this association.Design/methodology/approachThis study examined CSR through the case study approach and provides valuable insights by showing that CSR is a connecting link between business and society. Specifically, the authors took a crucial look at various contentious, often ambiguous definitions, theoretical framework, brief historical development, issues and controversies surrounding it, the role of CSR in community development and summing it up with the future direction and managerial implications.FindingsThis study observed that there are some developmental strategies taking place today which are relevant to the issue at stake, such as: contributing to the world economy, corporations donating or engaging in a wide range of philanthropic gestures now than ever and contributing to the beauty of the society by meeting rising community expectations.Originality/valueBy analyzing the worlds' 6 largest companies' CSR initiatives, this study provides valuable insights by showing that CSR is a connecting link between business and society and is based on win-win collaborations between civil society, business, investors and government. These companies' CSR initiatives have been mostly unexplored in past studies.

CSR and ICT

2018 ◽  
pp. 24-53
Author(s):  
Chiara Meret ◽  
Michela Iannotta ◽  
Mauro Gatti
Keyword(s):  
Information And Communication Technologies ◽  
Communication Technologies ◽  
Shear Zones ◽  
Demographic Development ◽  
Bottom Line ◽  
Systematic Analysis ◽  
Csr Strategies ◽  
Information And Communication ◽  
Corporate Social

In line with the recent tendencies of limited natural resources, demographic development, dematerialization, and digitalization, this chapter underlines the necessity of deepening the role information and communication technologies (ICTs) play for corporate social responsibility (CSR) challenges. In fact, due to the diffuse integration of ICT into most of people's and firms' daily activities, companies cannot neglect the role of ICT in shaping CSR strategies. Hence, ICT has the potential to support the three main aspects of sustainable development—people, profit, and planet—which can be found in the so-called triple bottom line approach (TBL). However, the role of ICTs in supporting the shear zones between the abovementioned lines still counts a lack of contribution. Through a systematic analysis of the literature, the chapter affords insights for a further advance compared to the extant literature as the content analysis provides a description of how ICT support the sub-dimensions included in the three shear zones.

Proactive Corporate Social Responsibility (CSR) Strategies

2013 ◽  
pp. 59-75
Author(s):  
Dahouk Dawoudi ◽  
Anton Sabella
Keyword(s):  
Organizational Behavior ◽  
Pilot Program ◽  
Business Sector ◽  
Job Market ◽  
Leading Role ◽  
Csr Strategies ◽  
Business Competitiveness ◽  
Corporate Social ◽  
Shed Light

This case attempts to shed light on a range of issues typically encountered in the business sector in Palestine. It illustrates innovative approaches to resolving socio-economic challenges and their implications on CSR practices, communication, and organizational behavior. It examines the leading role of the private sector in forging partnerships with universities to tackle the persisting and widening skill-employability gap and lack of business competitiveness. The case explores a program initiated by PADICO and built on a competence-based model, which is the first of its kind in Palestine. The model addresses unemployment among Palestinian youth and the undersupply of relevant skills to the job market that is handicapping Palestinian businesses. Despite the fact that it is a pilot program, PADICO’s partnering strategies serve as a case in point of the shift in CSR focus, namely from building reputation and engaging in philanthropic activities to proactively engaging in issues of education and competitiveness.

Sales response to corporate social irresponsibility and the mitigating role of advertising

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stacey Sharpe ◽  
Nicole Hanson
Keyword(s):  
Negative Impact ◽  
Strong Support ◽  
Future Research ◽  
Firm Level ◽  
Content Type ◽  
Irresponsible Behavior ◽  
Corporate Social Irresponsibility ◽  
Corporate Social ◽  
The Relationship

PurposeThis study examines the relationship between corporate social irresponsibility (CSI) and firm-level sales and estimates the potentially mitigating role of advertising.Design/methodology/approachTo test their hypotheses, the authors conduct an empirical investigation using a sample of 381 US firms engaging in socially irresponsible behavior.FindingsThe results of this investigation indicate that while sales are negatively impacted during the year of a CSI event, they generally recover in the year immediately following the event. In addition, advertising is shown to mitigate the negative impact of CSI on sales in both the event year and the year immediately following. The authors also consider whether differences exist between CSI firms with and without advertising. From this comparative analysis, it is observed that CSI firms which advertise tend to experience more severe declines in sales. Also, such firms tend to recover from the negative implications of CSI sooner.Originality/valueThis paper provides a novel and empirical approach to assessing the relationship between CSI events and firm-level sales while quantifying the mitigating effects of advertising. Furthermore, the unique contributions and practical findings of this research generate strong support for the significant role advertising can play in helping firms recover from CSI-based brand crisis events and help to establish a promising path for future research.

scholarly journals Bridging the Gaps in Employee Volunteering: Why the Third Sector Doesn’t Always Win

2017 ◽  
Vol 47 (1) ◽  
pp. 165-184 ◽  
Author(s):  
Joanne Cook ◽  
Jon Burchell
Keyword(s):  
Corporate Social Responsibility ◽  
Third Sector ◽  
Local Communities ◽  
Added Value ◽  
The Third ◽  
Csr Strategies ◽  
Employee Volunteering ◽  
The Third Sector ◽  
Corporate Social

Employee Volunteering (EV) schemes represent a cornerstone of many company Corporate Social Responsibility (CSR) strategies, being identified as a classic “win-win” situation in which businesses contribute significant resources into local communities while gaining a more skilled and engaged workforce and increased reputational benefits. This article questions the “win-win” scenario of EV arguing that existing research has focused predominantly upon the business–employee dimension while largely ignoring the role of third sector organizations engaging in these relationships. By focusing more directly on third sector experiences, the article identifies four “gaps” which place considerable constraints on the reach and impact of EV. It demonstrates the importance of not simply presuming a “win” for the third sector and the added value that can be gained from redirecting EV research toward the “business/nonprofit interface.”

scholarly journals Towards a holistic view of corporate social responsibility. The antecedent role of information asymmetry and cognitive distance

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesco Caputo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Holistic View ◽  
Cognitive Distance ◽  
Content Type ◽  
Csr Strategies ◽  
Oriented Path ◽  
Corporate Social

Purpose This paper aims to enlarge ongoing debate about corporate social responsibility (CSR) proposing reflections about the role of cognitive and information flows in influencing companies’ approaches and market expectations related to CSR. Design/methodology/approach The paper builds upon the research streams related to the information asymmetry and cognitive distance, for identifying through the interpretative lens provided by systems studies, possible key drivers on which policymakers, researchers and practitioners should act for building a suitable, shared and long-term oriented path for CSR. Findings The paper defines a scenario map about CSR in the light of information asymmetry and cognitive distance. Such a map supports both researchers and practitioners in better understanding actions and paths required for building a shared approach to CSR. Research limitations/implications Recognizing the multidimensionality of CSR and the multiple managerial and organizational contributions provided for underling its advantages for companies, the paper focuses the attention on the elements and conditions able to promote, stimulate and encourage companies’ CSR strategies. Originality/value The paper provides a fresh conceptual framework for explaining conditions and elements required for ensuring the success of strategies for CSR. Adopting a systems view, the paper overcomes the limitations related to a reductionist view about advantages and results of CSR to call the attention on the conditions that should be met for ensuring the emergence of a shared approach to CSR.

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