scholarly journals DP 0258 - Measuring the impact of the OECD guidelines for multinational companies

2021 ◽  
pp. 1-42
Author(s):  
Bernardo Mueller ◽  
Felipe Yudi Roviello
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Multinational Enterprises ◽  
Multinational Companies ◽  
Market Model ◽  
Public Image ◽  
Contact Points ◽  
Corporate Social ◽  
The Impact

The OECD Guidelines for the responsible business conduct of Multinational Enterprises is one of the largest corporate social responsibility programs (CSR) in the world. By February 2021, 501 allegations of misconduct by multinational companies have been brought to the attention of the National Contact Points (NCP) of its signatory countries. These cases have resulted in a varied sample of experiences which can be used to quantitatively identify the impact on a company of being denounced within this framework. This paper describes an approach to measure the impact of the OECD Guidelines on the affected enterprises. Because adherence to the Guidelines is voluntary, these do not have judicial force or official sanctioning mechanisms. Their efficacy depends on the impact that they have on companies’ reputation and public image. Measuring this impact is not straightforward, yet a large literature on Corporate Social Responsibility has developed many methods to detect and quantify how the public’s perception of companies’ behavior and choices in areas not directly linked to their core business can be measured. In this paper we use several variants of event studies as methods to detect potential costs imposed on a multinational company of having an allegation of misconduct brought before a NCP. These methods use stock market data to detect stock price if there are oscillations around the time of the denunciation. If the companies’ returns suffer due to having alleged misconduct brought before this mechanism, it is reasonable to assume that the Guidelines and NCPs are effective. The variations revolve on what is used as a counterfactual to the observed market oscillations. We consider three counterfactuals: i) a market model; ii) a sample of non-denounced companies matched along a set of covariates; and iii) the firms’ returns over an interval of placebo-dates, when they were not denounced. We find clear evidence that in many cases the firms’ exposure through the program led to a statistically significant decrease in returns at the time of the denunciation. These effects varied, however, across firms, sectors and countries.

scholarly journals How Do Corporate Social Responsibility and Corporate Governance Affect Stock Price Crash Risk?

2020 ◽  
Vol 13 (2) ◽  
pp. 30 ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Rashid Mehmood ◽  
Tahar Tayachi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Crash Risk ◽  
Corporate Social ◽  
The Impact

We investigate the impact of corporate social responsibility (CSR) and corporate governance on stock price crash risk in manufacturing sector of India and Pakistan. We collect data of nine years from 2010 to 2018 from DataStream of 353 manufacturing firms. We apply the Generalized Method of Moments (GMM) to the analysis of the data. We find that when firms actively engage in CSR activities, they lead to reduced stock price crash risk. We further find that managerial ownership has a significant positive impact on stock price crash risk, while board size and CEO duality show a significant and negative impact on stock price crash risk.

scholarly journals CORPORATE SOCIAL RESPONSIBILITY, MULTINATIONAL COMPANIES AND ECONOMIC GLOBALIZATION

2019 ◽  
Vol 17 (4) ◽  
Author(s):  
Selma Alves Dios ◽  
José Paulo Cosenza
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Enterprises ◽  
Economic Globalization ◽  
Developed Countries ◽  
Multinational Companies ◽  
Global Inequality ◽  
Corporate Social ◽  
The Cost ◽  
Intense Process

This paper presents theoretical reflections whose purpose is to discuss the performance of Multinational Enterprises (MNEs) and the fact that the impacts of their activities are the result of their management, despite their focus on Corporate Social Responsibility (CSR). For this purpose, we reviewed some of the main CSR concepts and reference documents to identify in which way this type of organization could be contributing to global inequality. Additionally, we describe the characteristics of the general orientation of CSR in these companies. The main results indicate that when moving to less developed countries, MNEs take advantage of the existing unequal conditions of income and precariousness of labor and environmental rules. The construction of a favorable image through CSR contributes to MNEs success, but at the cost of a complex and intense process of concentration of wealth and deepening of social inequality and poverty.

Corporate social responsibility and stock price crash risk

2016 ◽  
Vol 42 (10) ◽  
pp. 963-979 ◽  
Author(s):  
Ming-Te Lee
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Crash Risk ◽  
Least Squares Regression ◽  
Content Type ◽  
Empirical Results ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to test opposing views of the relationship between corporate social responsibility (CSR) and stock price crash risk in a major Asian emerging stock market. Design/methodology/approach This paper suggests an endogenous relationship between CSR and stock price crash risk. Hence, this paper uses two-stage least squares regression analysis to address the bias and inconsistency associated with endogeneity issues. Moreover, previous studies argue that the level of effectiveness of corporate governance significantly affects firm-specific stock price crash risk. Thus, this paper further divides the overall sample into two sub-samples according to the median of the corporate governance index. Furthermore, this paper investigates the impact of CSR on stock price crash risk under corporate governance. Findings The empirical results show that CSR significantly mitigates Taiwanese stock price crash risk. This finding is consistent with the notion that socially responsible Taiwanese firms commit to a higher standard of transparency and engage in less bad news hoarding, thus reducing crash risk. The empirical results also show that CSR has a more pronounced effect in mitigating crash risk for Taiwanese firms with less effective corporate governance. Originality/value The study findings indicate that CSR plays a more important role in reducing crash risk for Taiwanese firms with weak governance mechanisms.

scholarly journals Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

2019 ◽  
Vol 11 (2) ◽  
pp. 448 ◽  
Author(s):  
Jingwen Dai ◽  
Chao Lu ◽  
Jipeng Qi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Stock Price ◽  
Crash Risk ◽  
Significant Difference ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

We take Chinese A-share listed companies in years 2010–2015 as a sample to examine the relationship between Corporate Social Responsibility (CSR) information disclosure and stock price crash risk using the fixed effect model. The results show that: (1) There is an inverted U-shaped nonlinear relationship between CSR information disclosure and stock price crash risk. That is, as the CSR information disclosure level increases, the CSR information disclosure first aggravates and then reduces the stock price crash risk; (2) under different disclosure motives, there is a significant difference in the impact of CSR information disclosure on stock price crash risk. There is still an inverted U-shaped relationship between mandatory CSR information disclosure and stock price crash risk, but not for the semi-mandatory and voluntary disclosure; (3) the academic independent director has a positive adjustment effect on the relationship between CSR information disclosure and stock price crash risk, while the institutional investor has a negative adjustment effect on the relationship between CSR information disclosure and stock price crash risk. The research is of great significance for promoting the fulfillment of CSR, improving corporate governance and stabilizing the capital market.

Corporate social responsibility behaviors and corporate reputation

2019 ◽  
Vol 15 (3) ◽  
pp. 395-408 ◽  
Author(s):  
Scott Jeffrey ◽  
Stuart Rosenberg ◽  
Brianna McCabe
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Reputation ◽  
Stock Price ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to study how corporate social responsibility (CSR) behaviors can lead to corporate membership on Fortune Magazine’s Most Admired Companies list. Design/methodology/approach Regression analysis using environmental, social and governance (ESG) statistics published by MSCI-KLD as independent variables to predict the behaviors that lead to most admired status. Findings Not surprisingly, corporate financial performance (CFP) is the largest contributor to membership on the list. However, after controlling for CFP, the analysis finds that specific social responsibility behaviors contribute to membership on the Fortune list. Practical implications This paper finds that CSR behaviors are important to a firm’s reputation as measured by Fortune’s Most Admired Companies list. Therefore, companies should continue with social responsibility activities to improve their reputation with investors. Originality/value Many articles test the effect of ESG on financial performance and the role of financial performance on stock price. This paper is unique in that it measures the impact of CSR on corporate reputation using an important financial market benchmark – the Fortune Most Admired Companies list.

scholarly journals The Impact of CSR Practices of MNCS on Dairy Industry in Malaysia

2019 ◽  
Vol 9 (2) ◽  
pp. 638-648
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Dairy Industry ◽  
Secondary Data ◽  
Multinational Companies ◽  
Host Countries ◽  
Dairy Consumption ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Impact

This paper aims to conceptualize the relationship between Corporate Social Responsibility Practices of Multinational Companies and growth of Malaysian dairy Industry. Malaysia is a net food importer, and it has been experiencing an upward trend in dairy consumption. But Malaysia imports 95% of its milk requirements and spend a lot of revenue in importing milk and related products as there is not a considerable number of local firms or companies producing dairy products. Malaysian dairy industry depends heavily on Multinational Companies brands e.g.; Nestle, Dutch Lady, F & N. This study focuses on how dairy Multinational Companies are affecting dairy stakeholders of Malaysia; the producers, and the overall local industry. It also concentrates on the procedures and policies which are designed by these Multinational Companies for serving in host countries, specifically regarding Corporate Social Responsibility. The study deals answer that what factors are restraining Malaysian dairy industry to grow and what big Multinational Companies are earning and what are they giving back to Malaysian dairy industry. The proposed methodology for this research will be content analysis, using secondary data from Corporate Social Responsibility reports and financial statements of these Multinational Companies.

The Effect of Internal Corporate Social Responsibility on Job Satisfaction: An Empirical Study on Jordanian Pharmaceutical Companies

2020 ◽  
Vol 8 (2) ◽  
pp. 112
Author(s):  
Sura Altheeb ◽  
Kholoud Sudqi Al-Louzi
Keyword(s):  
Job Satisfaction ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Quantitative Research ◽  
Skills Development ◽  
Future Research ◽  
Pharmaceutical Companies ◽  
Corporate Social ◽  
The Impact ◽  
Positive Results

The current research investigates the impact of internal corporate social responsibility on job satisfaction in Jordanian pharmaceutical companies. Quantitative research design and regression analysis were applied on a total of 302 valid returns that were obtained in a questionnaire based survey from 14 pharmaceutical companies among employees, supervisors and managers. The results showed that internal corporate social responsibility was significantly related to job satisfaction and three of its dimensions, namely working conditions, work life balance and empowerment contributed significantly to job satisfaction, whereas employment stability and skills development had no contribution. This study implies that Jordanian pharmaceutical companies have to try their best to promote and facilitate internal corporate social responsibility among their employees in an effort to improve their job satisfaction, which will eventually yield positive results for the company as a whole. In light of these results, the research presented many recommendations for future research; the most important ones were the application of this study in other sectors, cultures, and countries, and using of multi method for collecting data.

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