Do Corporate Social Responsibility Activities Alleviate Agency Problems? Focusing on Conflicts of Interest between Controlling Shareholders and Creditors

2021 ◽  
Vol 35 (1) ◽  
pp. 1-43
Author(s):  
Hyung Cheol Kang ◽  
Hee Sub Byun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Conflicts Of Interest ◽  
Agency Problems ◽  
Controlling Shareholders ◽  
Corporate Social

scholarly journals Corporate Social Responsibility Strategies of Spanish Listed Firms and Controlling Shareholders’ Representatives

2017 ◽  
Vol 31 (4) ◽  
pp. 339-359 ◽  
Author(s):  
María Consuelo Pucheta-Martínez ◽  
Blanca López-Zamora
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mutual Funds ◽  
Legal Protection ◽  
Pension Funds ◽  
Insurance Companies ◽  
Investment Funds ◽  
Controlling Shareholders ◽  
Csr Strategies ◽  
Corporate Social

This article aims at analyzing how controlling shareholders’ representatives on boards affect corporate social responsibility (CSR) strategies (disclosing CSR matters) in Spain, a context characterized by high ownership concentration, one-tier boards, little board independence, weak legal protection for investors, and the presence of large shareholders, especially institutional shareholders. Furthermore, among controlling shareholders’ representatives, we can distinguish between those appointed by insurance companies and banks and those appointed by mutual funds, investment funds, and pension funds. The effect of these categories of directors on CSR strategies is, therefore, also analyzed. Our findings suggest that controlling shareholders’ representatives have a positive effect on CSR strategies, as do directors appointed by investment funds, pension funds, and mutual funds, while directors appointed by banks and insurance companies have no impact on CSR strategies. This analysis offers new insights into the role played by certain types of directors on CSR strategies.

Corporate social responsibility: from labour law to consumer law

2004 ◽  
Vol 10 (3) ◽  
pp. 401-415 ◽  
Author(s):  
André Sobczak
Keyword(s):  
Developing Countries ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Conflicts Of Interest ◽  
Social Rights ◽  
Labour Law ◽  
Labour Relations ◽  
Consumer Law ◽  
Corporate Social ◽  
Labour Regulation

Corporate social responsibility (CRS) modifies the balance between different branches of law. Indeed, CSR instruments are indicative of the inroads made by commercial and consumer law into the field of labour relations. This paper argues that this shift from labour law to consumer law is not neutral and has more than a purely theoretical impact. It means not only that the existing law is more likely to protect consumers (in Europe or North America) than workers (in developing countries). It may lead to conflicts of interest between the company's different stakeholders, especially between workers and consumers, and also to a selective form of labour regulation, since consumer pressure affects only some companies and some social rights while neglecting others.

Do Corporate Social Responsibility Engagements Lead to Real Environmental, Social, and Governance Impact?

2020 ◽  
Vol 66 (6) ◽  
pp. 2564-2588 ◽  
Author(s):  
Jun Li ◽  
Di (Andrew) Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Chain ◽  
Conflicts Of Interest ◽  
Striking Difference ◽  
Private Firms ◽  
Firm Level ◽  
Public And Private ◽  
Ex Post ◽  
Corporate Social

We construct an event-based outcome measure of firm-level environmental, social, and governance (ESG) impact for public and private firms globally from 2007 to 2015 using data from RepRisk. Then we measure the societal impact of corporate social responsibility (CSR) engagements using participation in the United Nations Global Compact (UNGC) as a proxy. We demonstrate a robust and striking difference between public and private firms: whereas private firms significantly reduce their negative ESG incident levels after UNGC engagements, public firms fail to do so and are more likely to engage in decoupled CSR actions—actions with no subsequent real impact. We then conduct a series of in-depth analyses to examine possible economic mechanisms. Our results are most consistent with shareholder–stakeholder conflicts of interest being the main moderator of decoupling. The intensity of this conflict is further moderated by three factors: ownership type, proximity to final consumers on the value chain, and specific ESG incident types. Other possible mechanisms, such as selective entry into UNGC and heterogeneities in media exposure, country representation, and entry timing, do not survive our analysis. Our results suggest that existing CSR engagements and one-size-fits-all CSR policy mandates might not necessarily lead to better societal outcomes, and a multi-tiered policy targeting different ownership and industry types might be more efficient at maximizing ex post ESG benefits.

scholarly journals Faktor-Faktor yang Memengaruhi Nilai Perusahaan dengan Profitabilitas sebagai Variabel Mediasi pada Sektor Pertambangan di BEI Tahun 2015-2018

2021 ◽  
Vol 9 (1) ◽  
pp. 264
Author(s):  
Emi Mei Astutik
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Path Analysis ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Agency Problems ◽  
Managerial Ownership ◽  
Corporate Social ◽  
Age Independent

The purpose of this study is to determine the effect of corporate social responsibility, dividend policy, company age, independent board of commissioners, and managerial ownership with profitability as a mediating variable. The population used is mining sector companies listed on the Indonesia Stock Exchange (BEI) in 2015-2018. By using purposive sampling, the sample is ten companies. This study using path analysis and processed with IBM SPSS 25. This study's results are only corporate social responsibility, dividend policy, and profitability that affect firm value.Meanwhile, variable company age, independent board of commissioners, and managerial ownership do not affect firm value. Investors are not interested in old companies because they cannot adapt to existing developments. Investors are also not interested in investing in companies that have agency problems. The variables that influence profitability are corporate social responsibility and independent board of commissioners. Meanwhile, dividend policy, company age, and managerial ownership cannot affect profitability. There are characteristics of some investors who do not like the distribution of dividends. Investors prefer newly established companies because they are more innovative in their business. Agency problems are also a factor that hinders investors from investing in companies. This study shows that profitability cannot be a mediating variable in this study because high profitability cannot determine high firm value.

scholarly journals How Do Stakeholder Pressures Affect Corporate Social Responsibility Adoption? Evidence from Chinese Manufacturing Enterprises in Ethiopia

2021 ◽  
Vol 14 (1) ◽  
pp. 443
Author(s):  
Ma Ying ◽  
He Shan ◽  
Gashaw Awoke Tikuye
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Large Scale ◽  
Conflicts Of Interest ◽  
Equation Modeling ◽  
Research Approach ◽  
Manufacturing Enterprises ◽  
Stakeholder Pressure ◽  
Stakeholder Pressures ◽  
Corporate Social

In today’s globalized world, one of the great challenges for enterprises is integrating CSR adoption into their operations. The study aims to investigate how stakeholder pressure influences the adoption of corporate social responsibility (CSR) practices by Chinese medium and large-scale manufacturing enterprises in Ethiopia. This study used a mixed-methods research approach that includes primary and secondary data sources. The employed research data were analyzed using stakeholder theory, structural equation modeling, and multivariate regression analysis to identify the causal relationship between the stakeholder pressures and CSR adoption. The finding shows that overseas Chinese medium and large-scale enterprises at least have CSR awareness to meet compliance requirements. Comparatively, employees, community, and customers are the most influential and significant factors determining the enterprises’ stakeholder pressure on the CSR engagement. The finding indicates that Chinese enterprises are unrecognized for their CSR contribution due to a lack of public relation in displaying what they display the firms are doing. There is no strong link between Chinese manufacturing enterprises and the regulatory stakeholders to implement inclusive CSR awareness and eliminate conflicts of interest on legal frameworks. The study proposed some recommendations to solve the gaps regarding indifference to CSR adoption, the community’s lack of concern for CSR, and lack of proactive involvement. Government laws are required to legally control unbalanced practices and distorted views, as well as to guide fixing conflicts of interest. These finding are important for enterprises, policymakers, government officials, and local and foreign investors to identify, understand, and use the driving factors of stakeholder pressures on CSR practices.

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