scholarly journals Corporate Governance and Corporate Social Responsibility Society Disclosure: The Application of Legitimacy Theory

2020 ◽  
Vol 21 (2) ◽  
pp. 660-678
Author(s):  
Joanne Shaza Janang ◽  
Corina Joseph ◽  
Roshima Said
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Legitimacy Theory ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Corporate Social

It is important for companies to adhere to society’s values by engaging in corporate social responsibility activities to remain legitimate, which in turn, translated into disclosures in annual reports. Corporate governance mechanisms have been used as explanatory factors in determining the level of disclosures. This paper aims to determine the influence of corporate governance mechanisms on the society disclosure in Malaysian companies’ annual reports using the legitimacy theory. The level of society disclosure is examined against the Modified Society Disclosure Index (MoSDI), which was developed based on the society indicatorof Global Reporting Initiative Version 4.0, preliminary observation on the 2016 NACRA winners’ annual reports and past literature. The analysis involved 234 top Malaysian companies’ annual reports from 2014 to 2016. The results found that audit committee, independent directors, and size are significantly associated withthe level of society disclosure. By complying with good corporate governance practice, awareness can be raised and preventive measures can be taken in addressing society’s issues through proper society disclosure.The legitimacy gap can be reduced via the society disclosure.

scholarly journals Corporate Social Responsibility, Corporate Governance and Aggressive Tax Action

2019 ◽  
Vol 22 (2) ◽  
Author(s):  
I Made Pradana Adiputra ◽  
Dwi Martani ◽  
I Putu Hendra Martadinata
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Internal Audit ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Probability Method ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social

This study aims to analyze the effect of corporate social responsibility disclosure and corporate governance on aggressive tax action. This study analyzes corporate social responsibility disclosure based on Global Reporting Initiative (GRI), corporate governance analysis using Asean Corporate Governance Scorecard and measurement of aggressive tax action by using abnormal book tax difference (ABTD). This study was conducted using secondary data in the form of annual reports and financial statements of companies listed on the Indonesia Stock Exchange in 2012-2014. Sampling was done by purposive sampling, with non probability method. Determination of many samples based on companies that disclose corporate social responsibility in accordance with content analysis on GRI4. Using regression analysis for testing the research model, the results of the analysis show that the disclosure of corporate social responsibility negatively affects aggressive tax action. The results also show that corporate governance through corporate boards can reduce aggressive tax action by firms, while the audit committee and internal audit in this study have little effect on the tendency of aggressive tax action. The study's contribution is to examine corporate governance factors that have not been tested in research on social responsibility by using GRI and Asean Scorecard measures against aggressive tax action.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP CORPORATE SOCIAL RESPONSIBILITY PADA PERUSAHAAN SUB SEKTOR TRANSPORTASI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2020 ◽  
Vol 6 (1) ◽  
pp. 59-65
Author(s):  
Noriko Thasya ◽  
Lisah Lisah ◽  
Angeline Angeline ◽  
Natasyah Gozal ◽  
Veronica Veronica
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Good Corporate Governance ◽  
Corporate Social

This study aims to examine the effect of good corporate governance on corporate social responsibility. The Data that used in this research are all form of annual reports published by companies on the Indonesia Stock Exchange website. The population used is transportation sub Sector Company listed on the Indonesia Stock Exchange for the period 2014-2018 which amounted to 37 companies. Purposive sampling is used in this research to obtain 8 companies as research sample. The data were analyzed using multiple regression analysis using SPSS Version 25. The results of the research showed audit committee negatively influence on the corporate social responsibility, the board of commissioners has no influence on the corporate social responsibility, the institutional ownership negatively affected on the corporate social responsibility, and the independent commissioner no impact on the corporate social responsibility.

Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

2019 ◽  
Vol 15 (2) ◽  
pp. 208-225 ◽  
Author(s):  
Mohammad Ali Fallah ◽  
Fayegh Mojarrad
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Content Type ◽  
Heavy Pollution ◽  
Csr Disclosure ◽  
Corporate Social

PurposeThis paper aims to investigate the relationship between corporate governance (CG) and corporate social responsibility (CSR) disclosure in a sample of 64 companies listed on the Tehran Stock Exchange.Design/methodology/approachThis study opts for a descriptive-correlational method. To measure the extent of CSR disclosure and CG variables, companies’ annual reports and websites during 2014-2015 are content analyzed by applying a 64-item checklist. Boards’ size, age, tenure and independence, CEO duality, audit committee (AC) composition and ownership concentration are considered as CG variables. To ascertain the CG–CSR disclosure relationship, multivariate linear regression analysis is incorporated.FindingsBased on the results, audit committee composition, board tenure and ownership concentration positively influence CSR disclosure level with ownership concentration as the most influential variable, that is, in companies with majority shareholders ownership, managers tend to disclose more CSR information.Research limitations/implicationsOnly annual reports and company websites are analyzed. Researchers are encouraged to apply other methods such as interview and to consider other variables, such as board diversity, proportion of female members and the extent of shareholders activities, to measure CG.Practical implicationsThis paper provides implications at the policy level to identify governance mechanisms to increase CSR awareness of heavy-pollution industries in developing countries.Originality/valueStudies rarely examined CSR reporting in Iran, particularly among heavy-pollution companies. Besides, the paper highlights the role of majority shareholders and non-executive AC members in CSR disclosure.

scholarly journals Corporate Governance Mechanisms and Corporate Social Responsibility (CSR) in Kuwaiti Listed Firms

2020 ◽  
Vol 16 (8) ◽  
pp. 10
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ownership Concentration ◽  
Governance Mechanisms ◽  
Board Size ◽  
Corporate Governance Mechanisms ◽  
Large Shareholders ◽  
Corporate Social ◽  
The Impact

Firms must maintain a balance between their performance and corporate social responsibility (CSR). This study examines the relationship between corporate governance mechanisms and the CSR of firms listed on the Kuwait Stock Exchange (KSE) within the framework of agency theory. Using a sample of 86 firms in 2019, this study explored five corporate governance mechanisms (i.e., ownership concentration by large shareholders, ownership concentration by government, board size, board independence, and family directors) and five control variables (i.e., debt, firm size, firm age, profitability, and industry type). The study used the index checklist to measure CSR and found that ownership concentration by large shareholders, ownership concentration by government, and board size affect a firm’s social responsibility while other variables have no impact. This study was the first to examine the impact of corporate governance mechanisms on corporate social responsibility in Kuwait after introducing the new corporate governance rules, and the findings will help Kuwait’s government, firms, and investors evaluate the current rules and improve CSR requirements.

scholarly journals DETERRMINAN CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2020 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Furqonti Ranidiah ◽  
Geby Dinasti
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Company Size ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACT This study aims to determine the effect of environmental performance, auditcommittee, profitability, Leverage, and company size to corporate social responsibility (CSR) disclosure in companies listed on the Indonesia Stock Exchange. Corporate Social Responsibility disclosure measured by CSR index based on the Global Reporting Initiative (GRI) G4. The population of this study are manufacturing company listed on IndonesianStock Exchange in 2016-2018. Data collected by documentation method and literature study. Sampling using purposive sampling method, and obtained 18 companies in each period. Sources of data obtained from annual reports of companies listed on Indonesia Stock Exchange in 2016-2018. The analytical method for this study uses multiple regression analysis with SPSS 16.The result of this study showed that environmental performance and company size has positiveeffect to CSR disclosure. Audit committee and profitability has not effect to CSR disclosure, while Leverage has negative effect to CSR disclosure.Keywords: Corporate Sosial Responsibility (CSR) Disclosure, environmental performance, auditcommittee, profitability, Leverage, and company size, Global Reporting Initiative (GRI) G4.

The Impact of Firm Performance and Corporate Governance on Corporate Social Responsibility

2020 ◽  
pp. 266-288
Author(s):  
Souhaila Kammoun ◽  
Sahar Loukil ◽  
Youssra Ben Romdhane Loukil
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Negative Impact ◽  
Vital Role ◽  
Organizational Legitimacy ◽  
Annual Reports ◽  
Corporate Governance Mechanisms ◽  
Corporate Social

Based on the behavioral aspect of the governance theory, this chapter explores the effect of the firm performance and corporate governance (CG) on corporate social responsibility (CSR) engagement by investigating their causal effects. Using annual reports of a large and extensive sample of French firms for the year 2014‐2016, we find that firm performance significantly improves that firm's social responsibility, but it has a significant and negative impact when we consider corporate government as a contingency factor. The results show that the existence of institutional administrator is in favor of CSR while it is the inverse effect when we consider the other independent administrators. However, we fail to find any significant impact of administrator's expertise. Our results suggest that pressures exerted by outsiders and corporate governance mechanisms influence CSR practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organizational legitimacy through CSR. The study findings should be of interest to regulators and policy makers.

Corporate Governance and Islamic Corporate Social Responsibility Disclosures : Shari’ah Compliant Companies in Malaysia

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Syahiza Arsad ◽  
Roshima Said ◽  
Haslinda Yusoff ◽  
Rahayati Ahmad
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Reports ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

The paper attempts to examine the relationship between six (6) Corporate Governance mechanisms (namely board matters, nomination matters, audit matters, remuneration matters, communication matters and risk management matters) of Shari’ah Compliant Companies (ShCC) with Islamic Corporate Social Responsibility (i-CSR) disclosure. The i-CSR disclosure index was developed by incorporated the five values of Maqasid Shari’ah and Maslahah. While, this study employed the corporate governance index based on the Malaysian Code on Corporate Governance (MCCG) 2007 (Securities Commission, 2007b), MCCG 2012 (Securities Commission, 2012), Corporate Governance Guide issued by Bursa Malaysia (Bursa Malaysia, 2012), and MCCG Index 2011 from the Minority Shareholder Watchdog Group (MSWG, 2011); Omar & Abdul Rahman, (2009) and Mohammed et al. (2009).  The research used content analysis and a sample of 187 ShCC annual reports from 2008 to 2013. STATA was used to assess the relationship between CG mechanisms and i-CSR disclosure in this analysis. The result of the relationship between CG mechanisms and i-CSR disclosure after statistically control by firm size (proxy by total assets) and profitability (proxy by return on assets, net profit margin and return on equity) showed that only remuneration matters (RM), communication matters (CM) and risk management matters (RK) positive and significantly influenced the i-CSR disclosure.

scholarly journals Corporate Governance and Corporate Social Responsibility Synergies: A Systemic Approach

2018 ◽  
Vol 64 (3) ◽  
pp. 36-46 ◽  
Author(s):  
Jelena Nikolić ◽  
Dejana Zlatanović
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Soft Systems Methodology ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Systems Methodology ◽  
Soft Systems ◽  
Corporate Governance Mechanisms ◽  
Corporate Social

AbstractRespecting the importance of corporate governance (CG), particularly various corporate governance mechanisms for improving corporate social responsibility (CSR) activities, the paper highlights relevant CG–CSR synergies from the perspective of systems thinking. The paper further aims to demonstrate the ways in which selected systems methodologies can support CG–CSR synergies. Accordingly, we selected appropriate systems methodologies, such as dialectical systems theory, soft systems methodology, and system dynamics. We defined the dialectical system, consisting of essential corporate governance mechanisms, which contribute to CSR; we also identified the key stakeholders and their perceptions of CG–CSR relations through CATWOE analysis; thus, the appropriate root definition and conceptual model, including the activities that are relevant for CG–CSR relations, were developed. Developed systemic framework provided a relevant methodological support to highlight the various issues of corporate governance, such as institutional framework, market for corporate control, ownership structure, board structure, and their contribution to CSR.

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