Family Firms, Social Responsibility, and Non-Family Member Employees Identification

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 10-19
Author(s):  
Ang Bao
Keyword(s):  
Resource Allocation ◽  
Social Responsibility ◽  
Family Member ◽  
Program Implementation ◽  
Social Identity Theory ◽  
Family Firms ◽  
The Family ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

The Heterogeneity of Family Firms in CSR Engagement

2014 ◽  
Vol 27 (3) ◽  
pp. 206-227 ◽  
Author(s):  
Pilar Marques ◽  
Pilar Presas ◽  
Alexandra Simon
Keyword(s):  
Corporate Social Responsibility ◽  
Grounded Theory ◽  
Social Responsibility ◽  
Case Studies ◽  
Family Involvement ◽  
Family Firms ◽  
Stewardship Theory ◽  
Spanish Family ◽  
Corporate Social ◽  
Csr Engagement

This study addresses the heterogeneity of family firms in their engagement with corporate social responsibility (CSR). We build on stewardship theory and socioemotional wealth to explore the foundations of CSR in family firms and to examine whether the extent of engagement is based on values, and how and why this happens. We use the interpretative method of grounded theory to address these questions. Based on 12 case studies of Spanish family firms, this article illustrates the patterns of influence of family involvement and values in explaining the extent and scope of CSR.

scholarly journals Corporate Social Responsibility and Banks’ Financial Performance

2018 ◽  
Vol 11 (10) ◽  
pp. 42 ◽  
Author(s):  
Francesco Gangi ◽  
Mario Mustilli ◽  
Nicola Varrone ◽  
Lucia Michela Daniele
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Performance ◽  
The Social ◽  
Stakeholder Perspective ◽  
European Banking ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

This study analyzes whether and how corporate social responsibility (CSR) affects the financial performance of the European banking industry. According to agency theory, CSR engagement should be negatively related to financial performance. By contrast, from the stakeholder perspective and according to the resource-based view, CSR should positively impact banks’ financial performance. Over a period of six years (2009-2015) following the explosion of the sub-prime crisis, the econometric estimates of the current study confirm a positive effect of CSR engagement on banks’ financial performance. Net interest income and profitability increase with the increase in social performance. At the same time, CSR is negatively related to non-performing loans. Therefore, in contrast to the trade-off model, our results support a win-win vision of the relationship between the social and financial performance of banks.

scholarly journals A study on Taiwanese corporate social responsibility and ownership structures

2012 ◽  
Vol 9 (3) ◽  
pp. 111-122 ◽  
Author(s):  
Shihwei Wu ◽  
Fengyi Lin ◽  
Chiaming Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Ownership Structure ◽  
Family Firms ◽  
Earnings Quality ◽  
Ownership Structures ◽  
Professional Managers ◽  
Corporate Social ◽  
The Relationship

This study develops several models to examine the relationship between the corporate social responsibility (CSR) and the ownership structure of Taiwanese firms. Our results suggest that firms which are controlled by professional managers, government-owned, or collectively-owned would like to undertake serious efforts to integrate the CSR into various aspects of their companies. Due to Asia firm’s culture, family firms might be more reluctant to put efforts on CSR activities. We also report that there is a positive relationship between (a) the CSR and financial performance and (b) the CSR and earnings quality. This study suggests that the ownership structures are found to have effects on the CSR and the CSR could also decrease the information asymmetry between managers and investors.

Corporate social responsibility and dividend policy: a strategic choice in family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Fayyaz Sheikh ◽  
Aamir Inam Bhutta ◽  
Bareera Rehman ◽  
Muhammad Bazil ◽  
Ali Hassan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Family Firms ◽  
Family Members ◽  
Dividend Payout ◽  
Content Type ◽  
Corporate Social ◽  
Propensity To Pay ◽  
The Relationship

PurposeThe purpose of this study is to examine whether corporate social responsibility (CSR) affects dividend policy (the propensity to pay dividends as well as the dividend payout ratio) and what role family ownership plays in this regard in an emerging market.Design/methodology/approachThe study uses a sample of 1,480 observations from Pakistan for the period 2010–2016 and accounts for Hackman self-selection bias and endogeneity issues using a robust regression analysis. CSR activity is measured by CSR score developed through a content analysis of firms' annual reports.FindingsThe study finds that the greater number of CSR activities increases the propensity to pay dividends, but reduces the dividend payout in dividend-paying firms. On the other hand, in family firms, the greater number CSR activities decreases the propensity to pay dividends, but increases the dividend payout in dividend-paying firms. The findings hold for a series of robustness and sensitivity checks, for example, alternative measures, specifications and estimators.Practical implicationsA trade-off between firms' CSR activities and dividend policy needs to be the point of concern for investors, minority shareholders and policy makers. The role of the non-executive and independent directors becomes more important, especially in the family firms where family members sitting on the boards may drive CSR activities in their own interests opportunistically. The potential opportunistic behaviour of family members warrants the need for policy reform initiatives to strengthen the protection of other stakeholders' interests.Originality/valueThe study highlights that family owners' efforts to preserve their socio-emotional wealth in family firms affect the relationship between CSR activities and dividend policy. Further, the relationship between CSR and dividend policy in emerging markets is different from developed markets. This study simultaneously focuses on both the propensity to pay dividends and the amount of dividend payment and documents that the implications of CSR are different for them.

Corporate social performance in family firms: a meta-analysis

2018 ◽  
Vol 8 (3) ◽  
pp. 235-273 ◽  
Author(s):  
Sergio Canavati
Keyword(s):  
Family Firms ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Content Type ◽  
The Family ◽  
Corporate Social ◽  
The Relationship

Purpose Empirical studies provide conflicting conclusions regarding the corporate social performance (CSP) of family firms. The purpose of this paper is to synthesize the existing empirical evidence and examine the potential role of research design and contextual factors. Design/methodology/approach A meta-analysis of existing empirical studies was performed to examine the role of sampling, measurement and contextual factors in explaining the different and often conflicting results of empirical studies in the family business literature. Findings The overall relationship between family firms and CSP is positive. The relationship between family firms and CSP is positive for private family firms but is negative for public family firms. The relationship between family firms and CSP is positive when family involvement includes both family ownership and management as opposed to only family ownership or family management. Private family firms care more and public family firms care less about the community, environment, and employees than private and public nonfamily firms. The relationship between family firms and CSP is stronger in institutional environments with weak labor and corporate governance regulatory frameworks. Research limitations/implications The operationalization of both the family firm and CSP constructs significantly predicts the magnitude and direction of the relationship between family firms and CSP. Practical implications Family firms should become more skilled at measuring and disseminating information about the firm’s CSP. Family firms should work to improve public perceptions about the CSP of family firms. Social implications Policy should encourage family firms to remain privately owned by the family. Policy should also incentivize the involvement of family owners in the management of family firms. Originality/value Although several literature reviews address the relationship between family firms and CSP, this is the first review to use the meta-analysis method. The authors contribute to the family business literature by analyzing how differences in study-, firm- and country-level factors can explain some of the variance in the results of the studies in the literature.

Corporate social responsibility and employees’ affective commitment

2019 ◽  
Vol 57 (1) ◽  
pp. 152-167 ◽  
Author(s):  
Khadija Bouraoui ◽  
Sonia Bensemmane ◽  
Marc Ohana ◽  
Marcello Russo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Social Identity Theory ◽  
Organizational Support ◽  
Affective Commitment ◽  
Multiple Mediation ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

PurposeThe purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and employees’ affective commitment. Three underlying mechanisms are used to explain the relationship between CSR and commitment, namely, deontic justice, social identity theory and social exchange theory.Design/methodology/approachData were collected through survey questionnaires. The sample consisted of 161 employees who work in private and public organizations in Tunisia. Regression analysis was conducted using a multiple mediation model.FindingsThe results reveal a positive and significant relationship between CSR and employees’ affective commitment. The perception of person–organization fit, organizational identification and perceived organizational support mediates the relationship between CSR and affective commitment.Originality/valueWith regard to CSR, past studies have never deal with deontic values in analyzing work behaviors. Furthermore, most previous studies have considered a direct effect between CSR perceptions and affective commitment. This study extends the literature by conceptualizing the indirect mechanisms linking CSR to employees’ affective commitment.

scholarly journals Corporate Social Responsibility Engagement, Economic Policy Uncertainty, and Firm Financial Performance

1970 ◽  
Vol 37 (2) ◽  
pp. 1-21
Author(s):  
Bruce Walters ◽  
Sammy Muriithi ◽  
Otis Gilley
Keyword(s):  
Economic Policy ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Policy Uncertainty ◽  
Strategic Decisions ◽  
Economic Policy Uncertainty ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The link between corporate social responsibility (CSR) engagement and firmfinancial performance has been examined in a variety of contexts. We extend thislink to an understudied but important context for strategic decisions: environmentaluncertainty. We draw on stakeholder theory to investigate the potential moderatinginfluence of an increasingly important measure of environmental uncertainty –economic policy uncertainty (EPU), on the CSR-performance relationship. Paneldata analysis of 484 firms using KLD data and the Compustat/Capital IQ databasereveal that EPU appears to moderate the relationship between CSR and financialperformance. Moreover, supplemental analysis reveals that this moderatedrelationship varies when considering individual components of CSR. Implicationsfor both research and practice are suggested regarding managers’ emphases amongvarious CSR initiatives in times of high policy uncertainty.

scholarly journals Efficacy of corporate social responsibility in corporate governance structures of family owned business groups in India

2018 ◽  
Vol 2 (1) ◽  
pp. 52-68 ◽  
Author(s):  
Raveena Naz
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Business ◽  
Family Firms ◽  
Business Groups ◽  
Business Group ◽  
Governance Structures ◽  
The Family ◽  
Corporate Social

The concept of ‘Corporate Social Responsibility’ (CSR) has often relied on firms thinking beyond their economic interest despite the larger debate of shareholder versus stakeholder interest. India gave legal recognition to CSR in the Companies Act, 2013. CSR in India is believed to be different for two reasons: the dominance of family business and the history of practice of social responsibility as a form of philanthropy (mainly among the family business). This paper problematises the actual structure of business houses in India and the role of CSR in a context where the law identifies each company as a separate business entity while the economics of institutions emphasizes the ‘business group’ consisting of a plethora of firms as the institutional organization of business where capital owned or controlled by the family group is spread across the firms through the interlocked holding structures. Within this framework, the largest family firms, which are part of family owned business groups, top the CSR expenditure list. The governance structure of family firms allows family owned business group to show mandatory compliance of CSR even when they actually spend much less than what is prescribed by law. This aspect of the family firms is not addressed by the CSR legislation in particular or corporate governance legislation in general in India. The paper illustrates this with an empirical study of one of the largest family owned business group in India Reliance Industries Limited (RIL), which is well acclaimed for its CSR activities. The paper demonstrates how the business group through these series of shareholding network reduces its legally mandated CSR liability. The paper thus indicates the inadequacy of CSR legislation in India because the unit of compliance is an individual firm and it assumes that each firm is independent and only connected to each other through market dealings. The law does not recognize the inter-connections of firms (through common ownership and control) in corporate governance structures of family owned business group and hence is inadequate in its design to effect the threshold level of CSR expenditure. This is the central argument of the paper.

scholarly journals Founder-Controlled Family Firms, Overconfidence, and Corporate Social Responsibility Engagement: Evidence From Survey Data

2020 ◽  
pp. 089448652091872 ◽  
Author(s):  
Markus Dick ◽  
Eva Wagner ◽  
Helmut Pernsteiner
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Survey Data ◽  
Family Firms ◽  
Socially Responsible ◽  
Low Levels ◽  
Corporate Social ◽  
Managerial Overconfidence ◽  
Csr Engagement ◽  
Control Risk

Drawing on (mostly) medium-sized and unlisted Polish firms, this study explores the influence of the interaction between founder-controlled family firms and managerial overconfidence on corporate social responsibility (CSR). We demonstrate that founder-controlled family firms show low levels of CSR engagement. This suggests that families try to limit CSR activities that could challenge their control and thus their socioemotional endowment. Moreover, overconfident executives in these firms tend to exhibit superior CSR performance. Consequently, the family’s preference for control can be mitigated by overconfident executives who underestimate the family’s control risk and focus on building reputation by acting socially responsible.

scholarly journals Is Corporate Social Responsibility Used to Mask Corporate Speculation? Evidence from Emerging China

2019 ◽  
Vol 11 (12) ◽  
pp. 3375
Author(s):  
Sui ◽  
Yang ◽  
Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Political Involvement ◽  
Informal Institution ◽  
Corporate Social ◽  
The Relationship ◽  
Privately Owned ◽  
Csr Engagement ◽  
Moderating Role

Why do rational, profit-orientated firms generously engage in corporate social responsibility (CSR)? Our study explores the real motives of speculative firms for CSR engagement and the hidden causality behind it. Using national survey data of privately owned firms in China, we find that corporate speculation positively influences firms’ engagement in CSR, revealing that CSR is instrumental and that firms use it as a tool to mask their speculative activities by building their reputations and buying ‘leniency insurance’ against potential penalties. Further, the relationship between speculation and CSR is less pronounced in firms with political involvement, revealing that the effect of political involvement as an informal institution somewhat protects speculators from potential sanctions without a CSR premium. We also discovered that the relationship between corporate speculation and CSR—as well as the moderating role of political involvement—is less pronounced among developed regions, revealing that the development of formal institutions can restrict the instrumentality of CSR and the effect of political involvement. Such findings have important implications for CSR in emerging economies.

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