Are Socially Responsible Firms Less Likely to Expatriate? An Examination of Corporate Inversions

2017 ◽  
Vol 39 (2) ◽  
pp. 43-62 ◽  
Author(s):  
Henry He Huang ◽  
Li Sun ◽  
Tong (Robert Yu
Keyword(s):  
Stakeholder Theory ◽  
Operating Performance ◽  
Tax Planning ◽  
Data Availability ◽  
Socially Responsible ◽  
Full Sample ◽  
Planning Strategy ◽  
Corporate Social ◽  
Practical Implications

ABSTRACT This study examines whether corporate social responsibility (CSR) is related to the likelihood of corporate inversions, a legal tax-planning strategy. We use a full sample to test stakeholder theory and a risk management view of CSR. We find that firms with higher CSR performance are less likely to expatriate compared to firms with lower CSR performance. Although equity investors react positively to inversion announcements, we find that the reaction is less positive for firms with higher CSR ratings. These results are consistent with stakeholder theory. We do not find evidence that inversion firms experience significant improvements in operating performance after inversion. Overall, this study improves our understanding of the role of CSR in corporate expatriation decisions and has practical implications for a firm's stakeholders. Data Availability: Data are available from sources identified in the paper.

Grounding managerial values towards social responsibility on an ideological framework

2018 ◽  
Vol 14 (3) ◽  
pp. 516-526 ◽  
Author(s):  
Duygu Turker ◽  
Y. Serkan Ozmen
Keyword(s):  
Social Responsibility ◽  
Socially Responsible ◽  
Content Type ◽  
Managerial Values ◽  
Self Transcendence ◽  
New Perspective ◽  
Conservative Values ◽  
Corporate Social ◽  
Practical Implications

Purpose The literature on corporate social responsibility (CSR) neglects the link between values and their ideological underpinnings. This paper aims to fill this void by grounding the managerial values towards CSR on an ideological ground by following the Schwartz’s (1994) value framework. Design/methodology/approach This paper provides a theoretical construct that builds the ideological stances of different managerial values towards CSR. Findings The study proposes that ideologically liberal managers might be involved in CSR based on their openness to change values, whereas their conservative counterparts are likely motivated by the conservative values such as security, conformity and tradition. On the other hand, egalitarian managers can engage in CSR based on their self-transcendence values, while non-egalitarian managers might involve in CSR based on their self-enhancement values as achievement and power. Practical implications The study can provide to all stakeholders a new perspective and a sound reference point to understand and monitor the socially responsible behaviours of managers. Originality/value The proposed bases of managerial values to CSR deepen the understanding on the antecedents of CSR. Based on the study, the future studies can configure out the role of diverse values on CSR in line with their ideological roots.

Corporate foundations and their governance

2015 ◽  
Vol 1 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Ishva Minefee ◽  
Eric J. Neuman ◽  
Noah Isserman ◽  
Huseyin Leblebici
Keyword(s):  
Design Methodology ◽  
Potential Role ◽  
Socially Responsible ◽  
Content Type ◽  
Theoretical Perspectives ◽  
Corporate Foundations ◽  
External Stakeholders ◽  
Corporate Social ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the governance structures of corporate foundations in the implementation of corporate social responsibility (CSR) initiatives. Design/methodology/approach – After discussing the heretofore-underutilized research advantages of corporate foundations, the authors survey theoretical perspectives to explain the corporate foundation phenomenon. The authors build on this theory to construct a typology of corporate foundation structures based on their interactions with internal and external stakeholders. Findings – The findings suggest that many of the largest corporations do not embed their corporate foundation into their strategic plan as they define it (i.e. specific alignment with corporate competency). Research limitations/implications – Research limitations include an examination solely of the 50 largest corporate foundations among a field of nearly 3,000 corporate foundations. The authors advance a research agenda that addresses the potential role of corporate foundations in fulfilling CSR. Practical implications – The foundation field may see a movement toward corporate foundations being strategically aligned with the parent company’s core competence as external stakeholders continue to pressure companies. Social implications – Studying corporate foundations is important as they serve as intermediaries between corporations and civil society. Thus, they will continue to play an important role in the CSR agenda. Originality/value – This paper is one of the first to examine the corporate foundation phenomenon, with a specific focus on their governance. Thus, the authors go beyond the motivations that lead corporations to be involved in “socially responsible activities,” the types of activities that corporations select, and how these choices produce benefits for a diverse set of stakeholders.

DEVELOPMENT OF A CORPORATE TAX PLANNING STRATEGY TAKING INTO ACCOUNT THE FACTOR OF FAIR PAYMENT OF TAXES

2021 ◽  
Vol 1 (1) ◽  
pp. 94-100
Author(s):  
S. G. TER-AKOPOV ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Codes Of Conduct ◽  
Tax Planning ◽  
Corporate Tax ◽  
Socially Responsible ◽  
Planning Strategy ◽  
Ethical Decisions ◽  
Moral Aspect ◽  
Public Scrutiny ◽  
Corporate Social

The article focuses on corporate tax planning in the context of business ethics and corporate social responsibility (CSR). The increased public scrutiny of corporate tax planning practices and the moral aspect of taxation points to the need for corporations to apply good tax administration when they claim to be socially responsible. Making ethical decisions in the context of tax planning requires corporations to develop tax codes of conduct and adhere to transparency standards. This article aims to show why and how tax planning can be integrated into CSR.

scholarly journals Socially Responsible HR in Action: Learning from Corporations Listed on the Dow Jones Sustainability Index World 2018/2019

2021 ◽  
Vol 13 (6) ◽  
pp. 3237
Author(s):  
Pyounggu Baek ◽  
Taesung Kim
Keyword(s):  
Multinational Enterprises ◽  
Corporate Sustainability ◽  
Action Learning ◽  
Socially Responsible ◽  
Sustainability Index ◽  
Responsible Management ◽  
Dow Jones Sustainability Index ◽  
The Individual ◽  
Corporate Social

As ethical management, corporate social responsibility (CSR), and corporate sustainability (CS) are increasingly permeating business discourse, contemplating the role of human resources (HR) in helping organizations with socially responsible management is a proactive acceptance of stakeholders’ expectations while reinforcing the field’s identity and contribution. In response, the we examined the HR policies and practices of 46 multinational enterprises (MNEs) listed on the Dow Jones Sustainability Index (DJSI) World 2018/2019 to add new insights to the literature and inform the HR field on how to move forward with socially responsible HR. Content analysis and inductive conceptualization of the MNEs’ HR activities produced a triangular pyramid for socially responsible HR, constructed with eight major themes at the individual, organizational, and institutional levels. Building on the findings, we suggest implications for practice and research, and conclude with urging the HR community to demonstrate leadership in setting the agendas and facilitating change toward socially responsible management.

scholarly journals Examining the Role of Economic Actors in Post-war Reintegration Processes: Case of Sierra Leone.

2021 ◽  
Vol 8 (10) ◽  
pp. 158-167
Author(s):  
MaryAnne Iwara
Keyword(s):  
Sierra Leone ◽  
Economic Sectors ◽  
Planning Strategy ◽  
Social Contracts ◽  
Post Conflict ◽  
Aid Dependency ◽  
Post War ◽  
Corporate Social ◽  
National Governments

This paper examines post-conflict peacebuilding activities in Sierra Leone by critically looking at the role of economic actors in the reintegration process of its post-war Disarmament Demobilization, and Reintegration (DDR) initiative. The civil war that lasted for 11 years in Sierra Leone, put doubts on the national governments ability to effectively provide both victims and perpetuators, the necessary protection and assistance needed to fully assume responsibilities within the communities. Because of this, poverty was further entrenched, thereby increasing the countries susceptibility to return to conflict. Though reintegration processes are continuous, integrative and involve exhaustive budgetary commitments, the process, in Sierra Leone was short-termed, not well coordinated and took time to begin delivering. With the United Nations, World Bank and the weak national government leading the process, financing was often insufficient or late, in combination with the lack of a coherent planning strategy; all these factors contributed to lapses in socio-economic profiling, skills and vocational training and spread disillusionment and resentment among ex-combatants and victims. Using content analysis, the paper argues that, post-war countries need active, equitable and profitable economic sectors if they are to graduate from conflict and from post-conflict aid-dependency. Moreover, as social contracts and corporate social responsibility to communities they govern and operate in, economic actors must create enabling environments and, generate jobs to support legitimate local capacities. The utility of this paper lies in the idea that for any post-conflict country to attain long-term social and economic development, reintegration programme design and activities, must holistically incorporate critical economic actors.  

The impact of corporate social responsibility on financial distress: evidence from developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Distress ◽  
Z Score ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Firms ◽  
Responsible Behavior ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019. Design/methodology/approach The dynamic generalized method of moments (GMM) estimator is used to examine the impact of CSR on financial distress. The investment in CSR is measured through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, while the Altman Z-score is used as an indicator of financial distress. The higher the Z-score, the lower will be the probability of financial distress. Findings The authors find a significant positive impact of CSR on financial distress in GMM model. This finding is consistent with the shareholder view and over-investment hypothesis of CSR as management makes an investment in CSR to get personal benefits, which resultantly leads the firm toward financial distress state. Further, this positive relationship remains present for firms having strong involvement in foreign business through exports. Research limitations/implications Like other studies, the present study is not free from limitations. First, financial firms are skipped from the sample, although literature witnesses a lot of studies highlight the financial firms’ commitment to achieving CSR goals. Second, financial distress occurs in different stages, and this study fails to establish a linkage between CSR engagement at different stages of financial distress. In the future, researchers can make valuable addition by covering these missing links in present studies. Practical implications Findings suggest several practical implications. For policymakers, they should encourage firms to adopt more socially responsible behavior as it not only prevents them from distress but also comes with better investment behavior, minimize bankruptcies and make economies more strong and stable. Second, results suggest corporate managers emphasize socially responsible behavior as its benefits are beyond the “societal benefits” as it lessens financial distress through lower cost of debt, lesser financial constraints and reduced cost of information asymmetry, and it minimizes the cost of capital. Lastly, investors make risk premium assessments related to future earnings by determining the likelihood of financial distress in the future. Originality/value The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan, which is according to the best knowledge of the authors, not yet studied before. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

Minority-Owned Suppliers A Growing Global Supply Base

2016 ◽  
pp. 472-490
Author(s):  
Bertie Marie Greer
Keyword(s):  
Corporate Social Responsibility ◽  
Review Of The Literature ◽  
Socially Responsible ◽  
Supplier Diversity ◽  
Global Challenges ◽  
Effective Relationships ◽  
Corporate Social ◽  
Global Supplier ◽  
Practical Implications

The increased focus on globalization, corporate social responsibility, sustainability, supplier diversity and other socially responsible initiatives have made minority-owned businesses an important supply base for buyers. Moreover, this emphasis has established a need for buyers to develop long-term effective relationships with minority owned firms. Businesses seeking to increase their global supplier diversity need to understand the global challenges of defining “minority” and other critical relational issues in order to increase effectiveness. Based on a review of the literature, and interviews with a minority supplier director this chapter discusses these challenges and offers practical implications.

Solid waste management- sustainability towards a better future, role of CSR – a review

2019 ◽  
Vol 15 (6) ◽  
pp. 762-771
Author(s):  
Preethi Rajesh
Keyword(s):  
Waste Management ◽  
Solid Waste ◽  
Solid Waste Management ◽  
Content Type ◽  
Air Contamination ◽  
Healthy Environment ◽  
Multi Level ◽  
Corporate Social ◽  
Practical Implications

Purpose Human activities in household and industries generate an enormous amount of waste material, both organic and non-biodegradable matter, which substantially contribute to land, water and air contamination. The study aims to highlight the possible methods in solid waste management (SWM) and its influence on economy and environment. The paper is an attempt to bring out the necessity of corporate social responsibility (CSR) in the management of solid waste. Design/methodology/approach The paper is prepared after an elaborate review of literature connected with SWM. Findings The paper emphasizes the need of SWM and the role of corporate bodies in building a robust system in the management of solid waste, creating a healthy environment to all. Research limitations/implications The paper is entirely based on literature review and reports and not on individual's research. Practical implications The paper has a multi-level faceted approach where real-time practices in different countries have been explored. Social implications This study can enable the collaboration of corporates, scientific community and the municipal local bodies in the area of SWM. Originality/value This paper deliberates on how CSR can be a driving force for a sustainable model for SWM.

Senior Management Preferences and Corporate Social Responsibility

2009 ◽  
Author(s):  
Alison Mackey ◽  
Tyson B. Mackey ◽  
Jay B. Barney
Keyword(s):  
Social Responsibility ◽  
Senior Management ◽  
Senior Manager ◽  
Senior Managers ◽  
Socially Responsible ◽  
Corporate Behavior ◽  
The Social ◽  
Corporate Social ◽  
Management Preferences ◽  
Practical Implications

The purpose of this article is to examine whether or not having senior managers who are personally committed to socially responsible causes is either necessary or sufficient for firms to implement socially responsible activities. While not denying that having such senior managers may increase the probability that a firm will pursue a socially responsible agenda, this article concludes that senior manager commitment to socially responsible causes is neither necessary nor sufficient for a firm to implement socially responsible activities. This article has important practical implications for those seeking to increase the amount of socially responsible corporate behavior in the economy. In particular, the arguments developed here suggest that efforts that focus exclusively on changing the social responsibility preferences of senior managers in firms may be misguided, and at the least should be augmented by efforts focused on different firm stakeholders.

scholarly journals Orchestrating Governmental Corporate Social Responsibility Interventions through Financial Markets: The Case of French Socially Responsible Investment

2020 ◽  
Vol 30 (3) ◽  
pp. 288-334 ◽  
Author(s):  
Stéphanie Giamporcaro ◽  
Jean-Pascal Gond ◽  
Niamh O’Sullivan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Markets ◽  
Socially Responsible Investment ◽  
Socially Responsible ◽  
Role Of Government ◽  
Responsible Investment ◽  
Corporate Social ◽  
Private Actors

ABSTRACTAlthough a growing stream of research investigates the role of government in corporate social responsibility (CSR), little is known about how governmental CSR interventions interact in financial markets. This article addresses this gap through a longitudinal study of the socially responsible investment (SRI) market in France. Building on the “CSR and government” and “regulative capitalism” literatures, we identify three modes of governmental CSR intervention—regulatory steering, delegated rowing, and microsteering—and show how they interact through the two mechanisms of layering (the accumulation of interventions) and catalyzing (the alignment of interventions). Our findings: 1) challenge the notion that, in the neoliberal order, governments are confined to steering market actors—leading and guiding their behavior—while private actors are in charge of rowing—providing products and services; 2) show how governmental CSR interventions interact and are orchestrated; and 3) provide evidence that governments can mobilize financial markets to promote CSR.

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