scholarly journals MENGIDENTIFIKASI PERAN TEORI DAN KARAKTERISTIK PERUSAHAAN YANG DAPAT MEMPENGARUHI PENGUNGKAPAN CSR

2020 ◽  
Vol 3 (2) ◽  
pp. 181-194
Author(s):  
Nufaisa Nufaisa ◽  
Binti Shofiatul Jannah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Voluntary Disclosure ◽  
Theoretical Perspective ◽  
Theoretical Development ◽  
Social Activities ◽  
Legitimacy Theory ◽  
Csr Disclosure ◽  
Corporate Social

Corporate Social Responsibility (CSR) is a part of corporate business social activities as an effort to bring good impact on environmental issues. Information regarding social activities, both economic also non-economic, has attracted the attention of users of financial reports. The disclosure of corporate social responsibility to the public is still voluntary. The theoretical development of CSR is stakeholder theory and legitimacy theory. Both of these theories come from a political economy perspective which explains the motivation for social disclosure. Stakeholder theory try to clarify the credentials of stakeholders. Meanwhile, the legitimacy theory explains that voluntary disclosure is component of the legitimacy process. The disclosure of corporate social responsibility can also be influenced by company characteristics, such as firm size, profitability, company profile, the number of  the board of commissioners, leverage, ownership structure, business age, company size, growth and industrial type. This paper aims to explain the motivation for CSR disclosure from a theoretical perspective and identify company characteristics that can influence CSR disclosure.

scholarly journals Theoretical Perspectives on Corporate Social Responsibility Disclosure: A Critical Review

2015 ◽  
Vol 5 (2) ◽  
pp. 38 ◽  
Author(s):  
Mohamed A. Omran ◽  
Dineshwar Ramdhony
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Social Contract ◽  
Critical Review ◽  
Developed Countries ◽  
Legitimacy Theory ◽  
Theoretical Perspectives ◽  
Csr Disclosure ◽  
Corporate Social

This study provides an extensive critical review of the theoretical perspectives applied on corporate social responsibility (CSR) disclosure literature. From a CSR standpoint we review and discuss, in detail, legitimacy theory, stakeholder theory, social contract theory, and signalling theory to identify the situations that suit each of these perspectives. The findings show that there is no universal theory applicable on corporate social responsibility disclosure for all situations or societies. While legitimacy theory suggests CSR disclosures are part of a process of legitimation, stakeholder theory offers an explanation of CSR accountability to stakeholders. Legitimacy theory seems to be more suitable for organizations working in developed countries, on the other hand, stakeholder theory appears to be most suitable for organizations working in developing countries; where a corporation can manage its stakeholders and the pressure to comply with existing legislation is less as compared to the developed countries. Social contract theory is appropriate for developed/emerged economies, as CSR disclosure exists due to an implicit social contract between business and society, which implies some indirect obligations of business towards society. Signalling theory will suit a situation where firms are competing for resources. A firm willing to demarcate from other firms will engage in more CSR practices. It is also important that the signal reaches the target audience by reporting on CSR. 

scholarly journals Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

2021 ◽  
Vol 13 (22) ◽  
pp. 12933
Author(s):  
Cao Thi Mien Thuy ◽  
Nguyen Vinh Khuong ◽  
Nguyen Thanh Liem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Listed Companies ◽  
Policy Implications ◽  
Firm Risk ◽  
Research Perspective ◽  
Csr Disclosure ◽  
Corporate Social

The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.

Who can realize the “spot value” of corporate social responsibility?

2020 ◽  
Vol 11 (4) ◽  
pp. 717-743
Author(s):  
Shiyu Wang ◽  
Yan Zhang ◽  
Guanzhen Wang ◽  
Zhibin Chen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Abnormal Returns ◽  
Chinese Stock Market ◽  
Chinese Market ◽  
Content Type ◽  
Retail Investors ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This paper answers, in the Chinese stock market, who can realize the “spot value” of corporate social responsibility (CSR). Design/methodology/approach The authors use event-study to build the research framework. Using CSR report content analysis, the authors measure the specification level of CSR disclosure. Applying the Baidu index, the authors mine Chinese investors’ profiles data to investigate retail investor heterogeneity closely. Findings The authors find strong evidence that the measure captures a behavioral bias in CSR pricing: firms that choose to disclose CSR report experience positive abnormal return more among retail investors than institutional investors, more among young investors than older, but no difference between female and male investors. Practical implications For Chinese public firms, the authors give them evidence that they can realize positive abnormal returns by applying certain CSR disclosure strategies. For Chinese investors, especially retail investors and youths, the authors ask them to rethink whether their positive evaluation of CSR is a rational trade-off choice or whether they are fooled by the “hedging mask” and “attention-grabbing.” Social implications The findings can give some suggestions to regulators: encouraging voluntary disclosure and reducing mandatory disclosure can drive enterprises to engage in more CSR activities because the voluntarily CSR disclosure can realize both long-term value and “spot value.” Complementarily, a more rigorous CSR report auditing regulation can suppress the “greenwash” by increasing the “lying cost.” Originality/value Using behavioral finance theory, the authors connect the gap between neoclassical research on the “U-shaped” value realization of CSR and the increasing voluntary CSR disclosure in the Chinese market. The authors find that heuristic reason and emotionality orientation results in the Chinese “CSR-friendly” market.

Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure

2020 ◽  
Vol 16 (2) ◽  
pp. 293-333
Author(s):  
Zhiming Ma ◽  
Hong Zhang ◽  
Weiguo Zhong ◽  
Kaitang Zhou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Academic Background ◽  
Top Executives ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACTCorporate social responsibility (CSR) disclosure is becoming increasingly important for modern corporations. Focusing on voluntary CSR disclosure and drawing on upper echelons theory, we propose that voluntary CSR disclosure is the manifestation of managerial preferences (e.g., managers’ professional ethical values and standards). Specifically, we argue that top executives with an academic background tend to have higher professional and ethical standards than their non-academic counterparts. These standards lead them to act with self-restraint and to perceive CSR disclosure as an opportunity rather than a threat. Compared with non-academic executives, therefore, top executives with an academic background provide stakeholders with more CSR information. Based on a sample of publicly listed firms in China, we find a significant difference in voluntary CSR disclosure between firms led by academic executives and firms without academic top executives. This difference is smaller for firms that are state-owned, firms that are audited by large audit firms, and firms with greater analyst coverage. We contribute to the literature on CSR voluntary disclosure by providing an in-depth analysis of the effects of top management teams’ academic backgrounds.

scholarly journals PENGARUH PENGUNGKAPAN CSR TERHADAP KINERJA KEUANGAN PERUSAHAAN

2017 ◽  
Vol 2 (1) ◽  
pp. 19-31
Author(s):  
Dwiyani Sudaryanti ◽  
Yosevin Riana
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Legitimacy Theory ◽  
Current Ratio ◽  
Corporate Social

Teori yang melatarbelakangi dilakukannya CSR menunjukkan bahwa tindakan tersebut akan memberikan dampak positif bagi perusahaan, baik melalui legitimasi maupun dari tanggapan positif dari masyarakat. Penelitian ini bertujuan menguji secara empiris teori tersebut. Sampel diambil dengan kriteria tertentu atas populasi dari industri kimia yang terpublikasi dari tahun 2014-2015. Metode analisis dilakukan melalui uji regresi sederhana. Hasil penelitian menunjukkan bahwa semua hipotesis yang diajukan dalam penelitian ini tidak diterima. Ketiga kinerja keuangan (current ratio, ROA dan ROE) tidak dipengaruhi signifikan oleh pelaporan CSR. Implikasi hasil penelitian ini adalah meningkatkan kesadaran perusahaan pada pertanggungjawaban sosial perusahaan. Implikasi bagi masyarakat untuk memberikan wacana dan pengetahuan mengenai kegiatan CSR. Kata Kunci: Corporate Social Responsibility (CSR), kinerja keuangan, Legitimacy Theory, Stakeholder Theory

scholarly journals The Role and Effectiveness of Corporate Social Responsibility Assurance in a Mandatory Setting: Professional Accountants’ Perceptions

M n gement ◽  
2021 ◽  
pp. 59-79
Author(s):  
Isabelle Martinez ◽  
Claire Gillet-Monjarret ◽  
Geraldine Rivière-Giordano
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Theoretical Perspective ◽  
Alternative Interpretation ◽  
Third Party ◽  
Legitimacy Theory ◽  
Online Questionnaire ◽  
Signaling Mechanism ◽  
Illusion Of Transparency ◽  
Corporate Social

Firms using corporate social responsibility assurance (or CSRA) recruit an external and independent third party to undertake assurance of the corporate social responsibility (CSR) information that they disclose. From a theoretical perspective, CSRA may play a role within two distinct mechanisms: the signaling mechanism, whereby CSRA signals both the quality of the disclosed information and firms’ CSR performance, and the legitimizing mechanism, whereby CSRA is strategically used as a ‘sophisticated’ compliance exercise. Thus, while the signaling theory predicts that CSRA should provide the expected benefits for its intended users, studies based on the legitimacy theory question the effectiveness of CSRA. In an attempt to disentangle which mechanism is dominant, this study investigates how professional accountants, as assurance providers, perceive CSRA and its effectiveness. We use an online questionnaire survey involving a between-subjects experimental design with 104 French professional accountants as participants. The quantitative and qualitative results suggest, in line with legitimacy theory, that CSRA is used more as a compliance exercise than as an effective signal. We advance the idea that in the French setting, in which CSRA is mandatory, it is used by firms to create the illusion of transparency by complying with disclosure requirements. However, we offer an alternative interpretation by arguing that some professional accountants may in fact seek to resist the implementation of mandatory CSRA using a strategy of justification.

Corporate political connection and corporate social responsibility disclosures

2018 ◽  
Vol 31 (2) ◽  
pp. 725-744 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Dessalegn Getie Mihret ◽  
Arifur Khan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
The State ◽  
Annual Reports ◽  
Political Connection ◽  
Legitimacy Theory ◽  
Corporate Sector ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to determine how the relationships between the state and the corporate sector influence CSR engagement. Design/methodology/approach Based on a neo-pluralist view of legitimacy theory, which conceptualizes the state as a concentration of power amenable to exploitation by the corporate sector, the study develops and empirically tests a hypothesis that CSR disclosures are inversely associated with political connection. A sample of 936 firm-year observations is used with data collected from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. Findings Results indicate that corporate political connection is associated with reduced CSR disclosures. This finding suggests that the perceived need for CSR disclosures as a legitimation strategy diminishes for politically connected firms. The finding supports a neo-pluralist argument that political connection could enable firms to eschew stakeholder pressure associated with potential legitimacy threats originating from poor CSR performance. This conclusion challenges the pluralist view of legitimacy theory that considers the state as a neutral arbiter resolving conflict among stakeholder groups in society. Originality/value The study makes a significant contribution to the literature by developing a neo-pluralist theorization of voluntary CSR disclosures within legitimacy theory and empirically testing it. Because prior empirical CSR disclosure research is largely underpinned by the pluralistic conception of society, examining this phenomenon from a neo-pluralist perspective enables a more complete understanding of CSR disclosure behaviors of firms.

scholarly journals A Theoretical Review on Corporate Tax Avoidance: Shareholder Approach versus Stakeholder Approach

2019 ◽  
Vol 4 (3) ◽  
pp. 82-88
Author(s):  
Nirmala Devi Mohanadas ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Suganthi Ramasamy
Keyword(s):  
Corporate Social Responsibility ◽  
Theoretical Analysis ◽  
Social Responsibility ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Tax Avoidance ◽  
Legitimacy Theory ◽  
Corporate Tax ◽  
Stakeholder Approach ◽  
Corporate Social

Objective - Although corporate tax avoidance is a widely discussed topic in the literature, conflicts do emerge when it is analyzed through the context of primary corporate duty. Should companies, in managing their taxes, solely honor their obligation to increase shareholders' wealth or should they cater to the interests of all their stakeholders? Such conflicts are especially evident in the inconsistent empirical observations on how corporate tax avoidance relate to corporate social responsibility (CSR), which makes the dearth of theoretical analysis on this issue even more conspicuous. Taking into account the socio-political nature and human elements in corporate tax avoidance, theoretical analyses from social sciences' perspectives are becoming markedly crucial. Methodology/Technique – This paper critically reviews the extant literature for discussions on how corporate tax avoidance is influenced by the dissenting approaches towards primary corporate duty. Findings – By allowing an insight into how people act and the world they live in, these analyses form a constructive tool to rationalize and foretell managerial actions towards shareholders and stakeholders alike. Novelty – It focuses particularly on the theories that are widely used to lend supports for such approaches. These theories are the agency theory, stakeholder theory, and legitimacy theory. Type of Paper - Review. Keywords: Corporate Tax Avoidance; Corporate Social Responsibility (CSR); Theoretical Analysis; Shareholder Approach; Stakeholder Approach; Agency Theory; Stakeholder Theory; Legitimacy Theory. JEL Classification: G30, G32, G39.

Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting

2011 ◽  
Vol 86 (1) ◽  
pp. 59-100 ◽  
Author(s):  
Dan S. Dhaliwal ◽  
Oliver Zhen Li ◽  
Albert Tsang ◽  
Yong George Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Equity Capital ◽  
Forecast Errors ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Cost

ABSTRACT: We examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms’ cost of equity capital. We find that firms with a high cost of equity capital in the previous year tend to initiate disclosure of CSR activities in the current year and that initiating firms with superior social responsibility performance enjoy a subsequent reduction in the cost of equity capital. Further, initiating firms with superior social responsibility performance attract dedicated institutional investors and analyst coverage. Moreover, these analysts achieve lower absolute forecast errors and dispersion. Finally, we find that firms exploit the benefit of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating firms are more likely than non-initiating firms to raise equity capital following the initiations; among firms raising equity capital, initiating firms raise a significantly larger amount than do non-initiating firms.

Development of international corporate social responsibility framework and typology

2019 ◽  
Vol 16 (5) ◽  
pp. 719-744 ◽  
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Review Paper ◽  
Theoretical Perspective ◽  
Business Environment ◽  
Resource Based View ◽  
Content Type ◽  
Theoretical Contribution ◽  
Corporate Social

Purpose The purpose of this paper is to develop a framework on international corporate social responsibility (ICSR). This ICSR framework would help portray the nature and process of internationalization of CSR activities of a firm. Further, this review paper presents a typology on the internationalization of corporate social responsibility (CSR) activities of a firm. Design/methodology/approach In this conceptual review paper, the author based upon inputs from a diverse set of the extant literature on international business strategy, resource-based view, stakeholder theory, strategic planning and implementation applied logical argumentation incrementally and sequentially to develop the ICSR framework and subsequently ICSR typology (consisting of archetypes). Findings This conceptual review paper offers a novel and rich theoretical perspective on an integrated framework on ICSR. This expands the extant theoretical knowledge boundaries on internationalization of CSR. Further, the proposed ICSR framework not only provides insight into the process of internationalization of CSR but also on typology regarding the nature of internationalization of CSR activities of a firm. Research limitations/implications There are two major theoretical contributions. First, this is one of the first integrated frameworks on ICSR that encompasses perspectives from diverse literature domains such as business environment, stakeholder theory, resource-based view, bounded rationality, bounded reliability, strategy planning and strategy execution. The second major theoretical contribution is towards categorization of firm international CSR activities based on CSR characteristics and mechanisms of deployment. The author prescribed four typologies for ICSR based upon variances in CSR perspective and CSR management. This ICSR categorization or archetypes is also a theoretical contribution. Practical implications The International Corporate Social Responsibility (ICSR framework developed would help both strategy and CSR managers to design ICSR programs and CSR activities of a firm based on a firms’ transferable resources and capabilities, replicable organizational process and activities, strategic focus and expected organizational benefits. Originality/value This is the first scholarly work on developing an integrated ICSR framework and ICSR typology (read archetypes). In this review paper, a holistic but comprehensive theoretical perspective on strategy and typology of ICSR has been provided. CSR and strategy managers for the first time would have a tool to design and manage firm international CSR initiatives in an effective and efficient manner.

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