scholarly journals Who Values Corporate Social Responsibility in the Korean Stock Market?

2019 ◽  
Vol 11 (21) ◽  
pp. 5924 ◽  
Author(s):  
Sangki Lee ◽  
Insu Kim ◽  
Chung-hun Hong
Keyword(s):  
Corporate Social Responsibility ◽  
Stock Market ◽  
Social Responsibility ◽  
Private Sector ◽  
Abnormal Returns ◽  
Pension Funds ◽  
Public Pension ◽  
Korean Stock Market ◽  
The Government ◽  
Corporate Social

In this study, we explore the stock market’s response to new information that a firm has been included in the Dow Jones Sustainability Index (DJSI) in Korea. In addition, we investigate which investor group contributes to the changes, if any significant increase in returns is found, after a firm’s incorporation into the DJSI. This study aims to identify which investors value corporate social responsibility (CSR) in the Korean stock market and examine whether the government-led campaigns for CSR have affected private sector investors, as well as those from the public sector. We find statistically significant abnormal returns for firms after their first listing in the index, implying that investors in Korean markets consider a firm’s inclusion in the DJSI as good news for the firm value. Using a unique dataset from the Korea Exchange (KRX) on investors, we classify investors into four groups: individual investors, public pension funds, other institutional investors, and foreign investors. Unlike prior studies that focus only on the existence of abnormal returns, we investigate the trading behavior of each investor group for such announcements. We find that it is mainly the buying pressure of public pension funds that generates abnormal returns. By contrast, we cannot find statistically significant results for the other investor groups. This result implies that the government-led campaign for CSR has only had limited effects in the Korean stock market, and that awareness of CSR in the private sector should be improved.

scholarly journals Corporate Social Responsibility in Perspective of Public Administration (A Governance Study)

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Dr.Sc. Said Achmad Lamo
Keyword(s):  
Corporate Social Responsibility ◽  
Service Life ◽  
Social Responsibility ◽  
Private Sector ◽  
Public Administration ◽  
Public Service ◽  
Government Regulation ◽  
Limited Liability ◽  
The Government ◽  
Corporate Social

The Implementation of CSR in Indonesia, most of them are not run in accordance with the existing theory because the government and society in CSR activities are not fully authorised to engage in these activities, due to the fact that private sector directly manages the CSR fund. Thus, the theory of governance puts three pillars as a principal provider of public service life, those are, (1) the state, (2) the civil society and (3) the private sector.  CSR has to involve all parts or elements which know about CSR, with a focus on the implementation of CSR has to be published and transparent;  the CSR Fund is administered by a forum / team through a memorandum of understanding facilitated by the government in accordance with its role as mandating, facilitating, partnering, and endorsing; the CSR forum consists of government, private sector, and society; the form of regional regulation on CSR by reference to Constitution Number 40 of 2007 on the Limited Liability Private sectors and Government Regulation Number 47 of 2012 on Corporate Social Responsibility so that CSR is considered as one of the important instruments in public administration.

scholarly journals Private Sector and Corporate Social Responsibility: Understandings and Perspectives of Different Stakeholders. Case study of a Mining Company in Laos

2021 ◽  
Author(s):  
◽  
Pisay Souvansay
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Private Sector ◽  
Significant Role ◽  
Mining Company ◽  
Wide Range ◽  
The Government ◽  
Negative Impacts ◽  
Corporate Social

<p>Corporations play a significant role in social and economical development globally. They play a significant role in supporting and boosting economic growth and local development as they provide job opportunities, contribute to infrastructure development, and generate income and wealth in societies. However, corporations also bring some negative impacts. Corporations, in particular those in extractive industries, can create a wide range of harmful effects and hazards to human health and livelihoods as well as to the environment. The negative impacts have attracted significant attention from related parties and prompted corporations to take a great deal of care in managing their impacts. As a result, companies are trying to improve their business strategies and corporate social responsibility (CSR) is one of these strategies by which companies try to differentiate themselves from others and to mitigate their negative impacts.  CSR has gradually emerged over many decades and recently became a focus of discussion among businesses and other stakeholders. However, the consensus on the definition of CSR is still limited. Various definitions of CSR have been created based on the interests, perspectives and expectations of different organisations.  This research explores the different understandings and perspectives of different groups of people around the way private sector is implementing CSR in Lao PDR, focusing on a foreign mining company as the case study. The research will also identify how these perspectives and expectations impact the strategies of CSR, especially regarding to rural development and poverty reduction in Laos.  The results of this thesis show that CSR is relatively a new concept in Laos but it is increasingly significant with the government and businesses themselves both paying more attention to CSR concerns. There is still unclear and common understanding among key stakeholders namely, government, business and other related stakeholders such as communities and other organisations. Fulfilling the legal obligations seems to be sufficient for the business and the government to claim that they are CSR companies while the community and other organisations expect corporations to do more than what only in the contract. In order to promote and encourage CSR to be effective and efficient, mutual understanding needs to be created, negotiated and agreed among keys stakeholders.</p>

scholarly journals Private Sector and Corporate Social Responsibility: Understandings and Perspectives of Different Stakeholders. Case study of a Mining Company in Laos

2021 ◽  
Author(s):  
◽  
Pisay Souvansay
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Private Sector ◽  
Significant Role ◽  
Mining Company ◽  
Wide Range ◽  
The Government ◽  
Negative Impacts ◽  
Corporate Social

<p>Corporations play a significant role in social and economical development globally. They play a significant role in supporting and boosting economic growth and local development as they provide job opportunities, contribute to infrastructure development, and generate income and wealth in societies. However, corporations also bring some negative impacts. Corporations, in particular those in extractive industries, can create a wide range of harmful effects and hazards to human health and livelihoods as well as to the environment. The negative impacts have attracted significant attention from related parties and prompted corporations to take a great deal of care in managing their impacts. As a result, companies are trying to improve their business strategies and corporate social responsibility (CSR) is one of these strategies by which companies try to differentiate themselves from others and to mitigate their negative impacts.  CSR has gradually emerged over many decades and recently became a focus of discussion among businesses and other stakeholders. However, the consensus on the definition of CSR is still limited. Various definitions of CSR have been created based on the interests, perspectives and expectations of different organisations.  This research explores the different understandings and perspectives of different groups of people around the way private sector is implementing CSR in Lao PDR, focusing on a foreign mining company as the case study. The research will also identify how these perspectives and expectations impact the strategies of CSR, especially regarding to rural development and poverty reduction in Laos.  The results of this thesis show that CSR is relatively a new concept in Laos but it is increasingly significant with the government and businesses themselves both paying more attention to CSR concerns. There is still unclear and common understanding among key stakeholders namely, government, business and other related stakeholders such as communities and other organisations. Fulfilling the legal obligations seems to be sufficient for the business and the government to claim that they are CSR companies while the community and other organisations expect corporations to do more than what only in the contract. In order to promote and encourage CSR to be effective and efficient, mutual understanding needs to be created, negotiated and agreed among keys stakeholders.</p>

scholarly journals STRATEGI TANGGUNG JAWAB SOSIAL STARBUCK DALAM MEWUJUDKAN LINGKUNGAN YANG BERKELANJUTAN

2020 ◽  
Vol 6 (3) ◽  
pp. 192
Author(s):  
Alima Fikri Shidiq ◽  
Fitri Hajar Purnama ◽  
Santoso Tri Raharjo ◽  
Sahadi Humaedi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Private Sector ◽  
Social Institutions ◽  
Marketing Strategies ◽  
Environmentally Sustainable ◽  
The People ◽  
The Government ◽  
Corporate Social

ABSTRAK Pemerintah Indonesia berkomitmen untuk mewujudkan ke 17 tujuan SDG ini dengan melibatkan seluruh komponen masyarakat Indonesia mulai dari masyarakat itu sendiri, akademisi, pemerintahan hingga pihak swasta. Dengan melibatan pihak swasta dalam mewujudkan SDGs diharapkan akan membawa dampak lebih luas terhadap masyarakat, mengingat bahwa di Indonesia banyak terdapat perusahaan yang bergerak di bidang usaha pelayanan baik barang ataupun jasa kepada masyarakat Indonesia. Salah satu cara yang bisa dilakukan perusahaan dalam mewujudkan tujuan tersebut yaitu melalui program tanggung jawab sosial perusahaan (CSR). Hal ini ditanggapi positif oleh berbagai pihak, salah satunya Starbucks Coffee Company yang mengusung tujuan SDGs ke dalam program CSR (Corporate Social Responsibility) perusahaan. Sebagai green company Starbuck mengambil peran dalam pembangunan lingkungan berkelanjutan sebagai bentuk tanggung jawab sosialnya melalui program CSR yang diintegrasikan dengan strategi marketing. Adapun program CSR tersebut dilakukan baik secara langsung kepada masyarakat, bermitra dengan lembaga sosial ataupun kepada konsumennya.  ABSTRACT The Government of Indonesia is committed to realizing these 17 SDG objectives by involving all components of Indonesian society from the community itself, academics, government to the private sector. By involving the private sector in realizing SDGs, it is expected to have a wider impact on the community, given that in Indonesia there are many companies engaged in the business of providing goods or services to the people of Indonesia. One way companies can do in realizing thes e goals is through corporate social responsibility (CSR) programs. This was positively responded by various parties, one of which was Starbucks Coffee Company which brought the SDGs goals into the company's CSR (Corporate Social Responsibility) program. As a green company Starbuck takes a role in the development of environmentally sustainable as a form of social responsibility through CSR programs that are integrated with marketing strategies. The CSR program is carried out either directly to the community, in partnership with social institutions or to consumers.

scholarly journals A Study of the Relationship between Corporate Social Responsibility Report and the Stock Market

2020 ◽  
Vol 12 (21) ◽  
pp. 9200
Author(s):  
An-An Chiu ◽  
Ling-Na Chen ◽  
Jiun-Chen Hu
Keyword(s):  
Corporate Social Responsibility ◽  
Stock Market ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Csr Reporting ◽  
Corporate Social Responsibility Report ◽  
Corporate Social ◽  
The Relationship

This study mainly investigates the relationship between corporate social responsibility (CSR) reporting and the reaction in the stock market. Specifically, we utilize the data from Taiwanese stock market from 2012 to 2017 to examine whether the CSR report disclosed by the listed companies on the Taiwan Stock Exchange and the Taipei Exchange will cause abnormal returns on the short-, mid- or long-term horizon. The empirical results demonstrate that companies which disclose their CSR reports generate higher and more positive mid- to long-term abnormal returns than undisclosed companies. In addition to filling the gap of previous studies, this study also examines whether CSR reports mitigate the information asymmetry between management and stakeholders. Companies disclosing their CSR reports will boost the confidence of investors and lead to higher stock return valuations.

scholarly journals Driving Corporate Social Responsibility (CSR) through the Companies Act: an Overview of the Role of the Social and Ethics Committee

2017 ◽  
Vol 16 (1) ◽  
pp. 165 ◽  
Author(s):  
Henk J Kloppers
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Private Sector ◽  
Ethics Committee ◽  
Socially Responsible ◽  
The Social ◽  
The Creation ◽  
The Government ◽  
Corporate Social

The corporate social responsibility (CSR) movement can be described as a bundle of trends comprising regulatory frameworks aimed at improving corporate practices and leading to changes in these practices, the mobilisation of corporate role players to support the development of states, and a management trend the purpose of which is to enhance the legitimacy of a business. Government is regarded as one of the most important driving forces behind the CSR agenda and it has a particularly important role to play in the creation of an enabling CSR environment. In general, advocates of legislative involvement in framing the CSR policy highlight the failure of existing voluntary systems as one of the main reasons why the state should play a more important role in the facilitation of CSR. Although governments realise the importance of encouraging socially responsible business, it should be noted that CSR should not replace regulation or legislation concerning social rights. Furthermore CSR should not be seen as shifting (or outsourcing) the state's responsibility for the provision of basic services (such as education or the provision of health services) to the private sector and thus "privatising" the state's responsibilities. However, the legacies of apartheid remain firmly entrenched in the social problems facing South Africa and it seems as if the Government is unable to deliver the social and physical infrastructure required to effect the desired transformation, thus necessitating the engagement of the private sector. The role of Government in establishing a CSR policy framework and driving CSR has become increasingly important. The (perceived) failure of the welfare state has given further impetus to the move of governments toward tapping into the resources of the private sector (through their CSR) in order to address socio-economic challenges. A purely voluntary approach to CSR without any legislative intervention will not succeed – a clear public policy requiring the implementation of socially responsible practices by the entire private sector is a necessity. Governments in general are increasingly beginning to view CSR as cost-effective means to enhance their sustainable development strategies, and as a part of their national competitiveness strategies to attract foreign direct investment. Given South Africa's history, legislation should be viewed as one of the main instruments enabling the Government to address the private sector's social, environmental and economic outreach activities.Against this background, this contribution identifies the regulations released in terms of the Companies Act 71 of 2008 in which the issue of the social and ethics committee is dealt with, as an important measure taken by Government to create a possible CSR platform. This contribution argues that the requirements regarding the creation of a social and ethics committee have the potential to embed the CSR notion in the corporate conscience. The aim of the contribution is to provide an overview of the role of the social and ethics committee, as envisaged by the Companies Regulations, 2011, as a potential driver of CSR.

scholarly journals Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs

2020 ◽  
Vol 7 (1) ◽  
pp. 6
Author(s):  
Nor Hadi ◽  
Udin Udin
Keyword(s):  
Corporate Social Responsibility ◽  
Small Business ◽  
Social Responsibility ◽  
Low Cost ◽  
Mining Area ◽  
Production Equipment ◽  
Loan Terms ◽  
The Government ◽  
Contract Implementation ◽  
Corporate Social

This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered.

scholarly journals Corporate Profit Tax and Strategic Corporate Social Responsibility Under Foreign Acquisition

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Lili Xu ◽  
Sang-Ho Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Nash Equilibrium ◽  
Social Responsibility ◽  
Corporate Tax ◽  
Government Grants ◽  
Corporate Profit ◽  
Foreign Acquisition ◽  
Strategic Csr ◽  
The Government ◽  
Corporate Social

Abstract This study investigates government public policies facing competing firms’ strategic corporate social responsibility (CSR) activities and finds that the choice of CSR crucially depends on corporate profit tax. We demonstrate that strategic CSR decreases while social welfare increases with corporate tax. When the government grants uniform output subsidies, we show that bilateral CSR leads to a lower CSR level than under unilateral CSR but bilateral CSR is always beneficial to society. However, when the government grants discriminatory output subsidies which yield different levels of unilateral CSR, we show that domestic CSR leads to a lower CSR level than under foreign CSR. In an endogenous CSR choice game, domestic CSR (no CSR) is a Nash equilibrium when corporate tax is low (high) under the uniform subsidy, while foreign CSR could be a Nash equilibrium when corporate tax is low under the discriminatory subsidy.

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