Corporate Social Responsibility for Irresponsibility

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Matthew Kotchen ◽  
Jon J. Moon
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Community Relations ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
The Subject ◽  
Corporate Social ◽  
The Relationship ◽  
The Empirical Analysis

Abstract This paper provides an empirical investigation of the hypothesis that companies engage in corporate social responsibility (CSR) in order to offset corporate social irresponsibility (CSI). We find general support for the relationship that when companies do more “harm,” they also do more “good.” The empirical analysis is based on an extensive 15-year panel dataset that covers nearly 3,000 publicly traded companies. In addition to the overall finding that more CSI results in more CSR, we find evidence of heterogeneity among industries, where the effect is stronger in industries where CSI tends to be the subject of greater public scrutiny. We also investigate the degree of substitutability between different categories of CSR and CSI. Within the categories of community relations, environment, and human rights—arguably among those dimensions of social responsibility that are most salient—there is a strong within-category relationship. In contrast, the within-category relationship for corporate governance is weak, but CSI related to corporate governance appears to increase CSR in most other categories. Thus, when CSI concerns arise about corporate governance, companies seemingly choose to offset with CSR in other dimensions, rather than reform governance itself.

Corporate Governance and Organizational Social Responsibility: discussion about the Multilatinas case

2021 ◽  
Vol 37 (71) ◽  
pp. e2310975
Author(s):  
Carlos Tello-Castrillón
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Theoretical Model ◽  
Literature Review ◽  
Social Responsibility ◽  
Conceptual Frame ◽  
The Subject ◽  
Corporate Social ◽  
The Relationship

This paper explores the relationship between Corporate Governance and Corporate Social Responsibility (or Organizational Social Responsibility). To this end, the document is based on a case study about a Colombian long-tradition firm known as Organización Carvajal, which has extended its activity all over Latin America. The case study covers the period 2008-2015, between the arrival of a non-family CEO to the last year containing enough information about the subject at the research time. The relationship between the Corporate Governance and the Organizational Social Responsibility is studied based on a model that considers the interest of the majority-owners-block-family and CEO about the firm outlays for the Organizational Social Responsibility. The presentation is built as follows: first, central issues of the disciplinary context are shown. They are centered on placing the Corporate Governance-Organizational Social Responsibility relationship in Multilatinas among the organizational discussion. Second, the literature review explains the conceptual frame to visualize both the relationship mentioned above and the fieldwork. This part sets the theoretical model used as a referent. Finally, the case is described, discussed and the conclusions incorporated. The findings suggest that the CEO – owner agency problem in this Multilatina is not significant enough to become the main reason to alter the relationship between Corporate Governance and Organizational Social Responsibility.

scholarly journals Does capital structure influence the performance of corporate social responsibility? An analysis in companies of the world's largest economies

2021 ◽  
Vol 15 ◽  
pp. e174007
Author(s):  
Paula Pontes de Campos-Rasera ◽  
Gabriela de Abreu Passos ◽  
Romualdo Douglas Colauto
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Structure ◽  
Empirical Studies ◽  
Debt Financing ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Corporate Social ◽  
The Relationship ◽  
The Capital Structure

Companies are under external and internal pressure to adopt Corporate Social Responsibility (CSR) practices. Positive and significant results of the relationship between CSR and financial performance are not always confirmed in empirical studies, demonstrating, thus, no consensus has been achieved in CSR literature yet. Thereby, we seek to understand the influence of capital structure on the performance of CSR practices, since there is a theoretical omission about intangible attributes. We formulated three hypotheses about the relationship between CSR and: the capital structure (H1); the debt financing (H1a); and the shareholder’s equity (H1b). We used a sample of 1,642 publicly traded companies on the 10 highest GDP countries. Using GMM 2SLS estimator, the results reveal positive and significant relationship between shareholders’ equity and CSR, while for the relationship between debt financing and CSR shown a negative and significative correlation. Our findings suggest that companies with higher scores of CSR tend to finance itself through equity. We found differences between countries related to the Capital Structure volume required to achieve a CSR positive index. Our findings provoke further debate concerning the reasons that conduct organizations to adopt such practices and foster new discussions about the aspects that involve social practices responsible adoption in companies.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

scholarly journals Role for auditing in corporate social responsibility and corporate governance: under new corporate view

2007 ◽  
Vol 5 (1) ◽  
pp. 109-119 ◽  
Author(s):  
Ryuuichiro Kurihama
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Public Trust ◽  
Good Relationship ◽  
Corporate Social ◽  
The Relationship

Auditing plays a key role in Corporate Social Responsibility (CSR) and corporate governance. Auditing is essential to corporations and society because it is a medium to build a good relationship between corporations and stakeholders. However, a role for auditing in CSR and corporate governance has not been adequately discussed under new corporate view. This paper clarifies the relationship between CSR, corporate governance and auditing, and reexamines a role for auditing in CSR and corporate governance through the discussion of the relationship between corporations and society as recently brought up concerning CSR. This is necessary in order to think the view of how corporations and auditing should be toward rebuilding public trust

scholarly journals Financial Flexibility - A Synthesis of Literature Review

2019 ◽  
Vol 9 (1) ◽  
pp. 245
Author(s):  
Rashidul Islam ◽  
Man Wang ◽  
Leo Vashkor Dewri
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Balance Sheet ◽  
Z Score ◽  
Financial Flexibility ◽  
Corporate Social ◽  
The Relationship

Financial flexibility has engrossed considerable interest of researcher over the last three decades. It is considered as most critical element of capital structure decision. The objectives of this research are to synthesize the existing literature on financial flexibility and find the literature gap. First, we show the relationship between theories and financial flexibility from existing literature and discuss the relationship between cash holding, leverage, payout policy and impact on firm performance during and after financial crisis. Second, we discuss how off balance sheet instruments impact on leverage and financial flexibility. We also discuss the relationship between corporate governance, corporate social responsibility and financial flexibility. We evidence from existing literature that financial flexibility has positive relationship on investment and firm performance during and after financial crisis. In addition to that we conclude that the off balance sheet instrument financing is increasing abnormally, and it has effect on debt policy and financial flexibility that yet to be studied verified. We further document from the current literature that corporate social responsibility and corporate governance may also widen financial flexibility in the US market but no significant researcher addressed these issues in the developed markets. While using Altman’s Z-Score for measuring financial flexibility it is unable to accommodate off balance sheet items therefore market demands for adjusted Z-Score.

scholarly journals The relationship between corporate governance and corporate social responsibility

2019 ◽  
Vol 13 (3-4) ◽  
pp. 28-34
Author(s):  
Edit Veres
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Supervisory Board ◽  
Labor Law ◽  
Jel Classification ◽  
Control Mechanisms ◽  
Governance System ◽  
Corporate Social ◽  
The Relationship

Corporate governance (CG) is a corporate governance system for large companies which includes policies and procedures for corporate social responsibility (CSR). The present study examines the relationships between CG and CSR, and analyzes the studies that separate or combine the explanation of the two concepts.CG can be interpreted as the relationship between governors and stakeholders. Angyal (2009) and Auer (2017) agree that the two phenomena coexist and are connected at several points. The goals of the two phenomena are intertwined, compliance with other important requirements (environmental, labor law) besides the primary corporate goal. CG is a system based on the sharing of power and roles between owners, management and boards (board, supervisory board). The roles of ownership, supervision, and control are separated. The division of power means that the boards keep the management under strict control and the owners can account for the boards (Tasi, 2012). According to Tasi (2012), responsible CG involves careful management; financial planning and implementation; control mechanisms for the operation of the company; company transparency and business ethicsissues; publicizing corporate information and corporate social responsibility policies and practices. Angyal (2009) sees that CG and CSR are intertwined “neither intersection, nor intersection, nor parallelism, but coexistence”. (Angel,2009: 14). It does not agree with the incompatibility of corporate governance or corporate governance and social responsibility, in practice the former two are more common. Corporate governance encompasses corporate social responsibility policies, procedures, and can be interpreted as the relationship between governors and stakeholders. The authors of the studies analyzed agree that the two phenomena coexist and are connected at several points. The goals of the two phenomena are intertwined with compliance with other important requirements (environmental, labor law) besides the primary corporate goal. JEL Classification: G30; G39, M14

scholarly journals CORPORATE SOCIAL RESPONSIBILITY AND EARNINGS MANAGEMENT: THE ROLE OF CORPORATE GOVERNANCE

2019 ◽  
Vol 7 (5) ◽  
pp. 1338-1347
Author(s):  
Gemi Ruwanti ◽  
Grahita Chandrarin ◽  
Prihat Assih
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Firm Size ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

Purpose: The purpose of this paper is to examine the role of corporate governance in the relationship of Corporate Social Responsibility (CSR) and firm size to earnings management of manufacturing firms in Indonesia. Methodology: The study draws on data from 66 firms listed in Indonesian Stock Exchange from 2014 to 2017, using a multiple regression model. The present study examines the influence of CSR on earnings management, and the impact of corporate governance on the relationship between CSR and firm size with earnings management. Main Findings: The finding showed that the effect of CSR on earnings management was significant and positive. The study also finds a statistically significant negative relationship between firm size and earnings management. The evidence also shows the role of corporate governance in the relationship of CSR and firm size to earnings management is significant and negative, it means that when the firm has good corporate governance, the firms that allocate CSR funds are relatively large, then it will tend not to practice earnings management, likewise large firms with good corporate governance will tend not to do earnings management. Research limitations/implications: The present study does not include all possible other variables that influence earnings management. Further research might increase the scope of research objects by extending the study period and need to pay attention to the firm's macro factors or economic risk factors outside of financial performance so as to provide a more comprehensive picture of the results of the study. Originality/value: The study focuses on the role of corporate governance issues such as the independence and activity of the boards and their influence on earnings management. The subject analyses the possible impact of CSR and firms size-related earnings management that has received much attention from academic research, which has largely focused on studying the publications of corporate governance in Indonesia context and can be contributes thoughts about the importance of corporate social responsibility activities that are reported as a basis for consideration incorporate policy-making to further enhance corporate awareness in the social environment, as well as the importance of corporate governance to minimize earnings management practices.

scholarly journals The moderating effect of corporate governance to the relationship of corporate social responsibility and product market competition to company value

2021 ◽  
Vol 24 ◽  
pp. 317-323
Author(s):  
Elyzabet Indrawati Marpaung ◽  
Yvonne Augustine
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Company Value ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

The objective of this research is to find out the moderating effect of corporate governance on the relationship of corporate social responsibility and product market competition to company value. The control variable in this study is company size. The sample of this study was 216 observations consisting of 54 manufacturing companies listed in the Indonesia Stock Exchange from 2016 until 2019. Moreover, the simple random sampling method is employed to grab them. To analyze the data, we use the multiple regression model with polling data. The findings of this research are product market competition negatively affects company value. In opposition, corporate social responsibility and  corporate governance positively affect company value. Meanwhile, corporate governance only moderates the effect of product market competition on the company value. The implication of this study is that good corporate governance practices can reduce the negative effects of PMC on company value.    

The Relationship Between Corporate Governance and Corporate Social Responsibility Expenditure in Bangladesh: Moderating Role of Firm Value

2020 ◽  
Vol 13 (2) ◽  
pp. 190-209
Author(s):  
Md Sajjad Hosain
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Banking Sector ◽  
Gender Diversity ◽  
Annual Reports ◽  
Corporate Social ◽  
The Relationship

This article aims at identifying the relationship between corporate governance (CG) and corporate social responsibility expenditure (CSRE) for the Bangladeshi banking sector. CG has been considered as the single independent variable divided into three components: board size (BS), gender diversity (GD) and board members’ interrelationship (BMI), and CSRE has been considered as the dependent variable. Further, a single moderator—firm value (FV) as been employed in order to test the moderating influence. Annual reports from 2015 to 2019 (5 years) of 35 banking firms have been used as samples. The study utilized Pearson’s correlation coefficient in order to test the direct relationships and regression analysis to test the moderating effects. The analysis has revealed that BS and GD are positively associated with CSRE while BMI has a negative association with CSRE. Furthermore, has been revealed that FV can moderate all the direct relationships. The study is expected to aid researchers in further empirical investigation over this important issue and guide policymakers to obtain more representative outcomes to make constructive decisions regarding CG and CSRE that would, in turn, increase FV.

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