scholarly journals Do Corporate Social Responsibility Disclosures Improve Financial Performance? A Perspective of the Islamic Banking Industry in Pakistan

2020 ◽  
Vol 12 (8) ◽  
pp. 3302 ◽  
Author(s):  
Zia Ur Rehman ◽  
Muhammad Zahid ◽  
Haseeb Ur Rahman ◽  
Muhammad Asif ◽  
Majed Alharthi ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Least Squares ◽  
Banking Industry ◽  
Ordinary Least Squares ◽  
Global Reporting Initiative ◽  
Islamic Banking ◽  
Corporate Social ◽  
The Impact

This study aims to investigate the impact of corporate social responsibility disclosures (CSRD) on the financial performance of the Islamic banking industry of Pakistan. The study employed the method of content analysis for collecting the required data from annual reports of all four full-fledged Islamic banks operating in Pakistan from 2012 to 2017. The study developed a novel comprehensive CSRD index by using the “Global Reporting Initiative” (GRI) and “Accounting and Auditing Organization of Islamic Financial Institutions” (AAOIFI). This index consists of five dimensions and 105 sub-dimensions of CSRD. The use of Ordinary Least Squares (OLS), Panel Corrected Standard Errors (PCSEs), and Generalized Least Squares (GLS) using random-effect (RE) and fixed-effect (FE) estimators revealed a significant negative relationship between CSRD and the financial performance of the sample firms. Regarding separate dimensions, the relationship of the Environmental and Economic dimensions of CSRD is significantly positive with current performance, but it is insignificant for the relationships of Legal, Philanthropic, and Ethical dimensions of CSRD with the current financial performance. In addition to contributing to the scarce literature in the Islamic banking industry of a developing country like Pakistan, the study will also help the policymakers and other stakeholders, including the AAOIFI, to develop a comprehensive CSRD policy or index and further improve the already established standards for CSRD.

The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

2019 ◽  
Vol 122 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Niccolò Nirino ◽  
Nicola Miglietta ◽  
Antonio Salvi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Social Outcomes ◽  
Content Type ◽  
Positive Effects ◽  
Food And Beverage ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector. Design/methodology/approach The authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis. Findings The findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP. Originality/value Despite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.

The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry

2019 ◽  
Vol 23 (1) ◽  
pp. 110-134 ◽  
Author(s):  
Francesco Gangi ◽  
Mario Mustilli ◽  
Nicola Varrone
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Industry ◽  
Content Type ◽  
External Stakeholders ◽  
Citizenship Performance ◽  
European Banking ◽  
Corporate Social ◽  
The Impact

PurposeAssuming that corporate social responsibility (CSR) is “a process of accumulating knowledge and experience” (Tang et al., 2012, p. 1298), this paper aims to investigate whether and how CSR knowledge (Asif et al., 2013; Kim, 2017) affects financial performance in the European banking industry.Design/methodology/approachThe empirical research analyses a panel of 72 banks from 20 European countries over seven years (2009-2015). The hypotheses were tested using fixed effects regression analysis and the two-stage Heckman model (1976) to address endogeneity bias.FindingsThe findings of this work are twofold. First, consistent with the concept of knowledge absorptive capacity (Cohen and Levinthal, 1990), the internal CSR of banks (Kim et al., 2010) positively affects citizenship performance (Peterson, 2004a). Second, in line with the reputational effect of CSR (Margolis et al., 2009; Bushman and Wittenberg-Moerman, 2012), citizenship performance is a positive predictor of a bank’s financial performance.Practical implicationsFrom a knowledge-based perspective, the analysis shows that accrued internal CSR knowledge plays a key role in implementing effective CSR programs for external stakeholders. Moreover, this study shows how CSR engagement in external initiatives can improve a bank’s competitiveness because of the relationship between citizenship performance and the positive reputation of a bank.Social implicationsThe management of CSR initiatives may favor the sharing of knowledge and creation of trust relationships among banks and internal and external stakeholders. CSR knowledge contributes to expanded value creation for both society and banks.Originality/valueThe knowledge management perspective of CSR provides new insights into the sustainability of banks’ business models and contributes to advancing the debate on the governance modes and effects of CSR. Moreover, the CSR perspective offers additional opportunities for addressing the challenges associated with sharing tacit knowledge within and outside of organizations.

The impact of corporate social responsibility and internal controls on stakeholders’ view of the firm and financial performance

2017 ◽  
Vol 8 (3) ◽  
pp. 246-280 ◽  
Author(s):  
Orhan Akisik ◽  
Graham Gal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Internal Control ◽  
Internal Controls ◽  
Third Party ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to empirically examine whether two major stakeholder groups – customers and employees – consider third party-reviewed corporate social responsibility (CSR) reports and assurance on the quality of internal controls as value determinant in their decisions, and how their decisions influence financial performance through the halo effect of these reports. Design/methodology/approach Using Compustat North America and Global Reporting Initiative data, the authors used first-order autoregressive models over the period from 2006 to 2012. Findings The results indicate that the impacts of customers and employees on financial performance are influenced by third party-reviewed CSR reports and effective internal control. Moreover, it is found that the third party-reviewed CSR reports and effective internal control enable the persistence of financial performance. Social implications The findings have implications for stakeholders in terms of third party-reviewed CSR reports and effective internal control. The findings are important due to the influence that these stakeholders (customers and employees) have on the financial performance of firms and the impact that CSR actions can have on society as a whole. Originality/value To the authors' knowledge, this is the first study that contributes to the literature by demonstrating that information about third party-reviewed CSR reports and internal control reviews may influence the perceptions of firms by two primary stakeholders – customers and employees.

scholarly journals Corporate governance and corporate social responsibility: A study of emerging market listed firms

2021 ◽  
Vol 18 (2) ◽  
pp. 90-105
Author(s):  
Annisa A. Lahjie ◽  
Riccardo Natoli ◽  
Segu Zuhair
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Least Squares ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Listed Firms ◽  
Data Limitations ◽  
Corporate Social ◽  
The Impact

The main purpose of this paper is to examine the impact of corporate governance (CG) on corporate social responsibility (CSR) of Indonesian listed firms. Estimations via simultaneous equation models with ordinary least squares (OLS) and two-stage least squares (2SLS) were employed for 84 firms with a total of 924 observations over the period of 2007-2017. The results showed that a lack of CG in monitoring and supervisory mechanisms, as well as a high concentration of managerial ownership, can significantly contribute to low levels of CSR. There are data limitations as a number of firms were omitted due to the application of the CSR criteria utilised in this study. The research has implications for Indonesian listed firms with respect to aligning CSR initiatives to firm objectives. The paper provides recommendations for future research in this area. The paper provides one of the few studies to analyse CG on CSR via a comprehensive measurement of CSR. Further, it adds to the empirical academic literature from a developing country context

Corporate social responsibility and financial performance in Saudi Arabia

2018 ◽  
Vol 44 (6) ◽  
pp. 648-664 ◽  
Author(s):  
Husam-Aldin Nizar Al-Malkawi ◽  
Saima Javaid
Keyword(s):  
Saudi Arabia ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on corporate financial performance (CFP) using Zakat as a measure for CSR.Design/methodology/approachThe study examines a sample of 107 non-financial firms listed on the Saudi Arabia stock market over a ten-year period from 2004 to 2013. The authors use the generalized method of moments framework developed by Arellano and Bover (1995) and Blundell and Bond (1998). In addition, for comparison purpose and as a robustness check, the present study uses other panel data techniques including fixed effects model, random effects model (and pooled ordinary least squares.FindingsThe results reveal that there is a strong positive relationship between CSR (Zakat) and CFP. This suggests that Zakat contribute positively to both firm’s profitability and value and can be considered as a win-win strategy to maximize returns and improve performance while considering the society as a whole. The results are robust to alternative econometric estimation methods.Practical implicationsThe companies in Islamic economies can effectively and efficiently implement the basic Shari’a Law of paying Zakat, as a successful measure to implement CSR program, thus benefiting the society by narrowing the gap between the haves and have-nots, that, in turn, leads the company to achieve successfully its short-term as well as long-term goals and enhances the value of the firm in the market. Moreover, corporations are generally encouraged to adopt CSR because of its perceived benefits to both macro- and micro-performances.Originality/valueTo the best of the author’s knowledge, this is the first empirical study attempting to examine CSR-CFP relationship within Saudi context employing Zakat as a proxy for CSR. Additionally, the paper provides support for the stakeholder theory from an Islamic perspective.

scholarly journals Relationship between Corporate Social Responsibility Performance and Systematic Risk—A Case Study of A-share Listed Chinese Companies

2021 ◽  
pp. 66-76
Author(s):  
Chih-Yi Hsiao ◽  
Xue Lin ◽  
Ke-Ke Cen ◽  
Wan-Ping Zheng
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Systematic Risk ◽  
Ordinary Least Squares ◽  
Global Reporting Initiative ◽  
Systematic Risks ◽  
The Government ◽  
Corporate Social ◽  
The Impact ◽  
A Share

Taking the A-share listed companies in the 2018-2019 Environment, Social and Governance (ESG) rating by the China Alliance of Social Value Investment (CASVI) as samples, we analyze the impact of Corporate Social Responsibility (CSR) performance on the current systematic risk and its deferred effect. By using quantile regression and the ordinary least squares (OLS) for cross-comparison, we find that 1) for high-risk companies, the current performance of CSR can help reduce systematic risks, and 2) for low-risk companies, the more progress they make in CSR performance but do not disclose social responsibility information according to the global reporting initiative (GRI) guideline, the more systematic risks they will encounter; if they proactively disclose such reports, however, they may reduce systematic risks. Based on our findings, we propose the following measures: 1) the government should properly guide economic development; 2) companies should actively disclose CSR reports so as to achieve a win-win result for both the companies and their stakeholders; 3) investors should consult social responsibility information to make rigorous investment plans, before making investment decisions.

A Comparison of CSR Disclosure Guidelines and a Self-Prepared CSR Disclosure Index- A Study of Select Automotive Companies

2015 ◽  
Vol 4 (2) ◽  
Author(s):  
N.K. Gupta ◽  
Shilki Bhatia
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Environment ◽  
Global Reporting Initiative ◽  
The Social ◽  
Regulatory Bodies ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Voluntary Guidelines

In India, corporate social responsibility and its disclosure got attention during the eighties and have been gaining importance with time in present economic environment, especially after adoption of liberalization, privatization, and globalization (LPG) (Goswami, 2011). Guidelines, principles, and codes are being developed by various regulatory bodies in India and across the globe to increase transparency and accountability about both a companys daily operations and the impact of these operations on society (Tran, 2014) In this paper, the author has studied the CSR guidelines laid down by Global Reporting Initiative G3.1 (GRI-G-3) and The National Voluntary Guidelines by Ministry of Corporate Affairs (NVG-MCA) and has compared them with a self-composed CSR Disclosure Index (CSRDI). The social responsibility initiatives taken by select Indian Automotive Companies have been analyzed and the companies have been rated as per the disclosures made by them. The main focus of the research is to compare the CSR Rankings of companies as per CSRDI with the companies rankings as per GRI-G-3 and NVG-MCA. It was observed that out of 30 sensex companies, Maruti Suzuki and TATA Motors have been the pioneers in contribution towards CSR initiatives. The top five rated companies were TATA Motors, Maruti Suzuki, Mahindra and Mahindra, Hero Motocorp, Bajaj Auto, and Apollo Tyres.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

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