scholarly journals Financial Stability in Companies with High ESG Scores: Evidence from North America Using the Ohlson O-Score

2022 ◽  
Vol 14 (1) ◽  
pp. 479
Author(s):  
Anton Lisin ◽  
Andrei Kushnir ◽  
Alexey G. Koryakov ◽  
Natalia Fomenko ◽  
Tatyana Shchukina

The benefits and advantages of the incorporation of ESG (Environmental, Social, Governing)-related policies have been discussed extensively. However, research articles focus not only on the socioecological aspects of Corporate Social Responsibility (CSR) but also on the underlying effects on a corporation’s corporate financial performance (CFP). In this regard, the current study aims to analyze the impact of ESG parameters on corporations’ financial stability. A sample size of 691 companies in North American countries was investigated in order to test the hypothesis that ESG has an effect on the likelihood of a company going bankrupt using the Ohlson O-score. This is conducted using regression models and the Pearson correlation coefficient. Furthermore, a follow-up hypothesis on the relationship between firm size and ESG is also tested in order to evaluate a tendency of corporate growth through ESG-based sustainable development. The results of the study conclude that the governing pillar of ESG factors has the highest positive impact on corporations’ financial success. Furthermore, the analysis conducted in the study with its sample size confirms the hypothesis that larger firms tend to have higher ESG scores.

Author(s):  
Ahmad Fathi Alheet

Environmental sustainability is an important component of a firm’s Corporate Social Responsibility. It relates to firm practices that ensure the conservation of the environment and natural resources, such as water, land and air. This research study aims to study the concept in relation to firm performance in Jordan. It proposes that environmental sustainability practices of a company in Jordan’s manufacturing industry positively influence its financial performance. For this purpose, the study assesses the relationship between environmental sustainability score and the profitability ratios. Results reveal a significant positive impact of sustainability score on the ROA of the companies. It is therefore recommended to manufacturing firms in Jordan to focus more on environmental CSR and sustainability practices, which would result in improved efficiency and profitability.


2019 ◽  
Vol 47 (8) ◽  
pp. 793-816 ◽  
Author(s):  
Didier Louis ◽  
Cindy Lombart ◽  
Fabien Durif

Purpose The purpose of this paper is to study the impact of the main dimensions of a retailer’s corporate social responsibility (CSR) activities (philanthropic activities, respect for the environment, respect for the consumers and respect for the workers) (e.g. Maignan, 2001; Brunk, 2010a; Öberseder et al., 2014) on consumers’ loyalty towards this retailer. Mediation (through consumers’ trust in this retailer and/or retailer’s perceived brand equity) and moderation effects (depending on the groups of consumers considered) are also studied. Design/methodology/approach This research was conducted on 547 consumers, representative of the Quebec population. These consumers were asked to select a retailer of their choice that they were familiar with (notably with its CSR activities) and to complete a questionnaire with regard to that retailer. Findings This research highlights that: the impact of a retailer’s CSR activities on consumers’ loyalty differs according to the dimensions considered (philanthropic activities, respect for the environment, the consumers and the workers), is fully or partially mediates by consumers’ trust in this retailer and/or retailer’s perceived brand equity and depends on the groups of consumers considered (the very responsible consumers, the local sceptical recyclers and the least responsible consumers). Research limitations/implications This research indicates that when CSR is considered not as an aggregate construct, but in terms of its dimensions, their impacts on consumers’ loyalty towards the retailer may differ or appear under certain conditions. Moreover, this research points out that consumers’ trust in the retailer is a partial mediator (for the philanthropic activities dimension of a retailer’s CSR activities for the very responsible consumers and the local sceptical recyclers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Consumers’ trust in the retailer is also a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the very responsible consumers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Lastly, retailer’s perceived brand equity is a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the three groups of consumers considered) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Practical implications This paper indicates to retailers that the dimensions respect for the consumers and the workers of their CSR activities do not have an impact on consumers’ loyalty. By contrast, for a retailer to be perceived by consumers as engaged in philanthropic activities or being environmentally friendly has a positive impact on consumers’ loyalty. Originality/value In this research, CSR is conceptualised as a multidimensional construct and the impacts of its main dimensions (philanthropic activities, respect for the environment, respect for consumers and respect for workers) on an important and strategic variables for retailers, loyalty, are highlighted. Moreover, this research also indicates that the impacts of a retailer’s CRS dimensions on consumers’ loyalty depend on individuals and may follow different paths (through consumers’ trust in the retailer and/or retailer’s perceived brand equity).


2014 ◽  
Vol 8 (2) ◽  
pp. 67 ◽  
Author(s):  
Rafeah Mat Saat ◽  
Mohamad Hisyam Selamat

Corporate Social Responsibility (CSR) is a concept that describes the relationship between company  and society. The way a company portrays corporate ethics and social initiatives can evoke strong positive reactions among consumers. The emergence of Internet creates a new communicating culture and gives an idea for a company to deliver their CSR message. Applying Media Richness Theory (MRT) in CSR message is believed could facilitate trust among consumer. Thus, this study aims to examine the impact of different level of CSR information richness with consumers trust towards the company. This study divides trust into three components that are competence, benevolence and integrity. An experimental design consisting of different levels of CSR information is selected (rich CSR information, lean CSR information and no CSR information as a control condition). The finding shows that rich CSR information has impacted on competence and integrity but not on benevolence. Result from this study is believed can assist companies in setting up their CSR communicating strategy in engaging consumers’ trust.


Author(s):  
Nazmun Nahar Emma ◽  
Sharjana Alam Shaily

The healthcare sector is one of the most important industries in the economy of a country. Ethical practices in this sector are crucial for organizations to follow. The main aim of this paper is to analyze and evaluate the impact of business ethics on the brand image in the healthcare sector. The authors have chosen Evercare Hospital which is situated in Bangladesh as their case to carry out the research for this paper. Primary data for this research has been collected from a sample size of 110 respondents, which includes both employees and customers of Evercare Hospital, with the help of a structured set of survey questions. The data collected has been analyzed using SPSS as per the purposes of the current research. The research has revealed that carrying out ethical practices has a positive impact on the brand image of a company. Therefore, Evercare Hospital needs to focus on its ethical practices and carry them out properly to further strengthen its brand image.


2021 ◽  
Vol 13 (19) ◽  
pp. 10893
Author(s):  
Hyunchul Lee ◽  
Kyungtag Lee

In this study, we systematically investigate several effects of technology innovation activity (TIA)—proxied by Korean listed corporations’ research and development investment—on the performance of corporate social responsibility (CSR) for sustainable corporate growth and value. We find that corporate TIA positively contributes to an increase in CSR performance. Furthermore, our quantile regression estimations point to a heterogeneous effect of TIA, with a significant positive impact on CSR performance at the middle and higher quantiles of the distribution of the dependent variable of CSR performance. Interestingly, we capture a U-shaped nonlinear effect of TIA on the CSR performance of Korean listed corporations. Our findings alert researchers and managers to the importance of a better understanding of the relationship between CSR and TIA for sustainable corporate growth and value.


2011 ◽  
Vol 12 (1) ◽  
pp. 15-23 ◽  
Author(s):  
Valentinas Navickas ◽  
Rima Kontautienė

The authors examine the impact of corporate philanthropic activities on their economic performance. Corporate philanthropy is defined as a component of corporate social responsibility which opens new opportunities for business relationship with stakeholders and is contributing to promotion of corporate social involvement and to diffusion of the social responsibility principles implementation. With an emphasis on the positive impact of philanthropic activities on corporate economic performance, the benefits of corporate philanthropic activities to future revenue growth, characterized by improvement in corporate image, reputation development, business growth and customer loyalty are considered, as well as other economic benefits such as improved recruitment, the growth of innovation, value of share growth, sales growth, the increase in employee morale and productivity, the rise of customer curiosity to know companies which carry out philanthropic actions. This paper reviews the corporate philanthropic activities in Lithuania in recent years and focuses on the relationship between philanthropic activities of corporation “TEO LT” and its financial performance improvements. Having examined the issue of the impact of corporate philanthropic activities on its economic performance, the authors found that corporate philanthropic activities have a positive impact not only on corporate financial indicators related to future revenue growth, but also on other economic indicators, as well as on the relationship with all stakeholders.


SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110214
Author(s):  
Yibin Li ◽  
Guiqing Zhang ◽  
Longjun Liu

Based on social exchange theory, this research developed a theoretical model on the impact of the internal corporate social responsibility (ICSR) of platform enterprises on employee innovation performance. Based on 414 employee data from 56 platform enterprises, hierarchical linear modeling was employed to test the model at two time points. The results revealed that the ICSR of platform enterprises has a significant positive effect on employee innovation performance, and employee intrapreneurship mediates the relationship; that is, the ICSR of platform enterprises promotes employees’ innovation performance by stimulating their intrapreneurship. Employees’ moral identity can also positively moderate the relationship between the ICSR of platform enterprises and employee intrapreneurship; the stronger the employees’ moral identity is, the stronger the positive impact of the platform’s ICSR is on the employees’ intrapreneurship. The relationship between the ICSR and employee innovation performance was clarified under platform economics. The current conclusions can guide platform enterprises’ innovation and sustainable development efforts.


2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Masruchin Masruchin

Corporate Social Responsibilityis a concept that a company has various forms of responsibility to all stakeholders including consumers, employees, shareholders, communities and the environment in all aspects of the company's operations that include economic, social, and environmental aspects. Therefore CSR is closely related to "sustainable development", in which a company, in carrying out its activities must base its decisions not only on the impact on economic aspects, such as the level of profits or dividends (profits), but also must consider the social and environmental impacts that arise from that decision, both for the short term and the longer term.Pondok Modern Darussalam Gontor (PMDG), in managing its Productive Waqf by establishing business units which mostly involve workers from the local society around PMDG. They are employed according to their skills. This is a form of implementing CSR in order to help advance and improve the welfare of the local society. The existence of these various business units is one of the educational facilities and as a form of CSR application which is actually intended to educate in the fields of independence, entrepreneurship, sincerity and sacrifice.PMDG involvement in social activities that are useful for the local society such as infrastructure development and village facilities, regeneration of students who are from around PMDG to be able to get higher education with funding from the PMDG, doing guidance to the local society through various religious activities, educational and economic activities is a form of PMDG responsibility to the local society environment and also to all stakeholders such as students, Ustadz, employees, so as to provide social and environmental impacts for the short term and the longer term.Keywords: Corporate Social Responsibilityandproductive waqf.


2021 ◽  
pp. 088307382110012
Author(s):  
Michelle Kowanda ◽  
Lindsey Cartner ◽  
Catherine Kentros ◽  
Alexa R. Geltzeiler ◽  
Kaitlyn E. Singer ◽  
...  

Because of the COVID-19 pandemic, in-person services for individuals with neurodevelopmental disabilities were disrupted globally, resulting in a transition to remote delivery of services and therapies. For individuals with neurogenetic conditions, reliance on nonclinical caregivers to facilitate all therapies and care was unprecedented. The study aimed to (1) describe caregivers’ reported impact on their dependent’s services, therapies, medical needs, and impact on themselves as a result of the COVID-19 pandemic and (2) assess the relationship between the extent of disruption of services and the degree of self-reported caregiver burden. Two online questionnaires were completed by caregivers participating in Simons Searchlight in April and May 2020. Surveys were completed by caregivers of children or dependent adults with neurodevelopmental genetic conditions in Simons Searchlight. Caregivers reported that the impact of the COVID-19 pandemic moderately or severely disrupted services, therapies, or medical supports. The majority of caregivers were responsible for providing some aspect of therapy. Caregivers reported “feeling stressed but able to deal with problems as they arise,” and reported lower anxiety at follow-up. Caregivers reported that telehealth services were not meeting the needs of those with complex medical needs. Future surveys will assess if and how medical systems, educational programs, therapists, and caregivers adapt to the challenges arising during the COVID-19 pandemic.


Author(s):  
Zulfiqar Ahmed Iqbal ◽  
Ghulam Abid ◽  
Muhammad Arshad ◽  
Fouzia Ashfaq ◽  
Muhammad Ahsan Athar ◽  
...  

This study empirically investigates the less discussed catalytic effect of personality in the relationship of leadership style and employee thriving at work. The growth and sustainability of the organization is linked with the association of leadership style and employee thriving at the worplace. The objectives of this study are to explore the impact of authoritative and laissez-faire leadership styles and the moderating role of the personality trait of conscientiousness on thriving in the workplace. A sample of 312 participants was taken from a leading school system with its branches in Lahore and Islamabad, Pakistan. The participants either worked as managers, teachers in headquarters, or school campuses, respectively. The regression results of the study show that authoritative leadership and conscientiousness have a significantly positive impact on thriving at work. Furthermore, conscientiousness moderates the relationship between laissez-faire style of leadership and thriving at work relationship. The findings of this study have theoretical implications for authoritative and laissez-faire leadership, employee conscientiousness, and managerial applications for the practitioners.


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