Fundamental Concepts of Corporate Social Responsibility and Sustainability

Social Responsibility ◽

Financial Reporting ◽

Sustainable Growth ◽

Historical Background ◽

Socially Responsible ◽

Recent Developments ◽

Recent Trends ◽

Business Behavior ◽

Social value is created when resources, inputs, processes, or policies are combined to generate improvements in the lives of individuals or society as a whole. It is crucial for any organization to be able to demonstrate the value it creates by its very existence. Corporate social responsibility (CSR) has never been more important. Citizens nowadays demand a responsible business behavior from all kinds of organizations, corporations, and their leaders who have become aware of the crucial role of social responsibility in seeking performance excellence and sustainable growth. This chapter introduces the concept of CSR and explains its importance providing the historical background that made it synonymous to sustainability. The benefits resulting from CSR are briefly presented while the main recent developments in the area of CSR and sustainability are analyzed. Particularly, emphasis is given on the 2030 Agenda, the European Directive (2014/95/EU) on non-financial reporting, and the recent trends for socially responsible investments.

Is Earnings Quality Associated with Corporate Social Responsibility?

The Accounting Review ◽

10.2308/accr-10209 ◽

2012 ◽

Vol 87 (3) ◽

pp. 761-796 ◽

Cited By ~ 584

Author(s):

Yongtae Kim ◽

Myung Seok Park ◽

Benson Wier

Keyword(s):

Social Responsibility ◽

Earnings Management ◽

Financial Reporting ◽

Data Availability ◽

Socially Responsible ◽

Financial Reports ◽

Top Executives ◽

Accruals Quality ◽

ABSTRACT This study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that exhibit corporate social responsibility (CSR) also behave in a responsible manner to constrain earnings management, thereby delivering more transparent and reliable financial information to investors as compared to firms that do not meet the same social criteria. We find that socially responsible firms are less likely (1) to manage earnings through discretionary accruals, (2) to manipulate real operating activities, and (3) to be the subject of SEC investigations, as evidenced by Accounting and Auditing Enforcement Releases against top executives. Our results are robust to (1) controlling for various incentives for CSR and earnings management, (2) considering various CSR dimensions and components, and (3) using alternative proxies for CSR and accruals quality. To the extent that we control for the potential effects of reputation and financial performance, our findings suggest that ethical concerns are likely to drive managers to produce high-quality financial reports. Data Availability: Data used in this study are available from public sources identified in the study.

Accounting challenges for sustainability and innovations

10.18559/978-83-8211-055-5 ◽

2021 ◽

Keyword(s):

Social Responsibility ◽

Research And Development ◽

Financial Reporting ◽

Socially Responsible Investing ◽

Integrated Reporting ◽

Socially Responsible ◽

Responsible Investing ◽

Socially Responsible Investments ◽

The aim of this e-book is to present the most important aspects related to sustainability, corporate social responsibility and innovation from an accounting perspective. The book contains parts that deal with accounting aspects of sustainability and innovations. The book consists of ten chapters devoted to relevant and topical issues of sustainability and innovations. Chapter 1 Sustainability and Corporate Social Responsibility in Accounting is an introduction to further considerations and deals with the essence of sustainable development, corporate social responsibility and their recognition in accounting. Chapter 2 Social Responsibility Reporting Standards presents the most important reporting guidance such as GRI, OECD, United Nations Global Compact, International Organization for Standardization. Chapter 3 Narrative reporting focuses on descriptions and explanations in accounting reports. The chapter presents the links between accounting and language, the development of accounting narratives and the factors determining the use of narratives. Chapter 4 Integrated reporting discusses the motivations, objectives and the process of preparing an integrated report. Integrated reporting can prove to be an effective tool for businesses looking to shift their reporting focus from annual financial performance to long-term shareholder value creation. Chapter 5 Non-financial reporting in selected European countries presents the experience of Croatia, the Czech Republic and Poland in the field of preparing non-financial reports. A significant contribution to promoting the importance of sustainability reporting was made by the Non-Financial Reporting Directive (2014/95/EU). Chapter 6, Socially Responsible Investments discusses the essence of socially responsible investing and socially responsible investment. Socially responsible investing (SRI) is a decision making process concerning the allocation of free financial resources, where the investor aims at maximization of profit and minimization of risk on one part and includes the socio-ethical and environmental-ecological considerations on the other. Chapter 7 External costs – accounting perspective describes costs connected with using goods such as air, soil, water, silence or the aesthetics of the surroundings. One of the biggest problems for accounting in the future will be measuring the volume of using these goods or measuring the size of reduction in the quality of public goods suffered and assigning the decrease to particular companies. Chapter 8 Derivatives in accounting is devoted to financial instruments and presents two different approaches to accounting of derivatives: general model and hedge accounting. Derivatives are used to protect the enterprise against financial risk related to changes in prices on the markets, changes in the exchange rate or changes in interest rates, as well as for commercial purposes. Chapter 9 Costs of Research and Development shows the company's activity in the field of research and development and the related costs. R&D constitute an increasingly important element of the functioning of enterprises. Chapter 10 Cryptoassets – Nature, Valuation and Disclosures in Accounting focuses on cryptocurrencies (e.g. Bitcoin, Ethereum etc.) and digital tokens which are specific rights or values representatives. As a result of the transformation on the financial market, we are currently dealing with cryptoassets, which are a creation of blockchain technologies and the changing habits of the digital society. One of areas that there are a lot of doubts regarding these new technological solutions is accounting.

Historical background: The concept of corporate social responsibility as the theoretical basis for non-financial reporting

Russian Journal of Entrepreneurship ◽

10.18334/rp.16.8.191 ◽

2015 ◽

Vol 16 (8) ◽

pp. 1111 ◽

Cited By ~ 1

Author(s):

Olga A. Vorobieva

Keyword(s):

Social Responsibility ◽

Financial Reporting ◽

Theoretical Basis ◽

Historical Background ◽

Corporate Social Responsibility and Sustainable Development of Modern Russian Companies As A Challenge of Business Globalization

SHS Web of Conferences ◽

10.1051/shsconf/20207406004 ◽

2020 ◽

Vol 74 ◽

pp. 06004

Author(s):

Konstantin Belousov

Keyword(s):

Sustainable Development ◽

Comparative Analysis ◽

Social Responsibility ◽

Financial Reporting ◽

National Standards ◽

Socially Responsible ◽

Basic Ideas ◽

Corporate Social Responsibility Implementation ◽

This paper investigates comparative analysis in order to trace approaches to interpretation of the content and principles of sustainable development due to increasing number of companies, declaring their commitment to the principles of sustainable development. I review a degree of compliance of Russian companies to international and national standards, relevant to practices of leading companies, a degree of involvement of Russian companies in general sustainable development. Particular interest lays in the study of influence of social responsibility of business, socially responsible sustainable development on the company. This line of research is only beginning to emerge in Russia. Interpretation of corporate social responsibility role allows a different look at the phenomenon of social responsibility and its role in sustainable development. Russian companies quickly accepted the concept of sustainable development, as well as the corresponding terminology. It is important to trace now how basic ideas and principles of sustainable development are reflected in the company’s strategy and implemented in practice. By analyzing non-financial reporting I will introduce ways, tendencies and problems of corporate social responsibility implementation by Russian companies.

Doing Good with Creative Accounting? Linking Corporate Social Responsibility to Earnings Management in Market Economy, Country and Business Sector Contexts

Sustainability ◽

10.3390/su11174568 ◽

2019 ◽

Vol 11 (17) ◽

pp. 4568 ◽

Cited By ~ 5

Author(s):

Mutuc ◽

Lee ◽

Tsai

Keyword(s):

Social Responsibility ◽

Earnings Management ◽

Market Economy ◽

Financial Reporting ◽

Corporate Citizenship ◽

Management Strategies ◽

Business Sector ◽

Socially Responsible ◽

The mandate of doing good with earnings management has been a subject of inconclusive findings from the past literature and leave issues on the benefits of socially responsible activities and financial reporting of the company. This study investigates the effects of corporate social responsibility (CSR) on accrual-based (AEM) and real-activities earnings management (REM). This study hypothesized that the trade-off exists between these two earnings management strategies, in light of increasing attention of CSR among Asian firms. In addition, this study examines whether the performance of firms in socially responsible activities exhibit different patterns of effect across the two measures of earnings management under the market economy, country, and business sector contexts. This study contemplates on 3906 firm-year observations from 2011 to 2017 of eleven countries in Asia. Our findings show that CSR conceals AEM while it constrains REM. These effects vary according to the market economy classifications, country, and business sector types. Each market, country and business sector has different standpoints in implementing CSR activities and earnings management relevant to the culture, macroeconomic considerations and demands from the stakeholders. Lastly, the discernment on the relevance of building corporate citizenship on financial reporting transparency is elaborated.

Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance

Sustainability ◽

10.3390/su13179969 ◽

2021 ◽

Vol 13 (17) ◽

pp. 9969 ◽

Cited By ~ 1

Author(s):

Tiago Gonçalves ◽

Cristina Gaio ◽

André Ferro

Keyword(s):

Social Responsibility ◽

Earnings Management ◽

Financial Performance ◽

Financial Reporting ◽

The European Union ◽

Socially Responsible ◽

Economic Cycles ◽

Corporate Social ◽

The Relationship

This study analyses the relationship between earnings management and corporate social responsibility. To this end, we use a sample of 568 listed companies from the European Union between 2010 and 2018. We use discretionary accruals as the measure of earnings management, under the Modified Jones model. Corporate social responsibility is proxied by the Combined Environmental, Social and Governance Score from the ASSET4 database. We find a negative relation between earnings management and corporate social responsibility, suggesting that managers from more socially responsible companies have a more ethical behavior and, thus, financial reporting of higher quality. Additional analysis provides evidence that economic cycles and financial performance play important roles in the relation between earnings management and corporate social responsibility. During periods of crisis or of losses, the relationship is positive, suggesting that under unfavorable economic conditions, management makes opportunistic use of a sustainable company’s status to manage earnings.

CORPORATE SOCIAL RESPONSIBILITY AS A STRATEGIC POINT OF BUSINESS

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.01.02.004 ◽

2021 ◽

Vol 2 (1) ◽

pp. 42-49

Author(s):

L. N. IGNATOVA ◽

◽

P. P. SERGEEV ◽

Е. A. SOBOL’ ◽

◽

...

Keyword(s):

Social Responsibility ◽

Financial Indicators ◽

Socially Responsible ◽

Business Behavior ◽

The features of the implementation of the concept of socially responsible business behavior are considered, and the analysis of the main non-financial indicators of the activities of Russian Railways is carried out. Attention is focused on the need to address key tasks to improve the efficiency of corporate social responsibility.

La legislación tributaria venezolana como promotora de la responsabilidad social empresarial

Oikos ◽

10.29344/07184670.33.1041 ◽

2014 ◽

Vol 16 (33) ◽

pp. 53

Author(s):

Ana Cecilia Chumaceiro Hernández ◽

Judith Josefina Hernández de Velazco

Keyword(s):

Social Responsibility ◽

Tax Law ◽

Socially Responsible ◽

Palabras Clave ◽

Interpretative Approach ◽

aVenezuelan Tax Law as a Promoter of Corporate Social Responsibility RESUMEN El presente artículo tiene por objetivo disertar sobre los dispositivos contenidos en la legislación tributaria venezolana que actúan como promotores de la responsabilidad social empresarial (RSE), para ello se utilizó el paradigma Cualitativo, bajo un enfoque hermenéutico – interpretativo, cuyo método fue análisis de contenido. En tal sentido se han observado los aspectos, elementos y mecanismos que se encuentran en la LISLR, LIVA y LOCTI que fomentan, incentivan o coadyuvan la RSE; finalmente se plantearan lineamientos para la aceptación de una nueva cultura de RSE con dimensión tributaria. Considerando, que dentro de la legislación tributaria no existen dispositivos específicos que promuevan la RSE, y, ello debe ser tomado en cuenta por el legislador para modificar ciertas normas y crear el incentivo necesario para que las empresas sean de forma congruente socialmente responsables. Palabras clave: legislación tributaria, empresa, promoción, responsabilidad social empresarial. ABSTRACT The objective of this study is to explore regulatory provisions from Venezuelan tax law as promoters of corporate social responsibility (CSR). For the methodological analysis of content, the study uses the qualitative paradigm and a hermeneutical-interpretative approach. The research observes different elements and mechanisms from LISLR, LIVA and LOCTI which encourage and contribute to corporate social responsibility. The study also proposes guidelines for the acceptance of a CSR culture from a tax dimension. The fact that there are no regulatory provisions within the Venezuelan tax law needs to be taken into account by legislators in order to amend certain norms and create the necessary incentives for companies to be socially responsible. Keywords: tax law; companies; encouragement; corporate social responsibility. Este trabajo es el resultado de investigaciones que se desarrollan en la línea “Responsabilidad Social, Empresa y Estado” del Centro de Estudios e Investigaciones Socioeconómicas y Políticas (CEISEP-UNERMB).

Does CSR Activity Amount to Socially Responsible Management?

Philosophy of Management ◽

10.1007/s40926-020-00158-6 ◽

2021 ◽

Author(s):

M. John Foster

Keyword(s):

Social Responsibility ◽

Local Community ◽

Annual Reports ◽

Socially Responsible ◽

Responsible Management ◽

Exploratory Investigation ◽

Research Questions ◽

The Uk ◽

AbstractIn essence firms or companies are usually thought to exist to make products for or provide services of some sort to third parties, other companies or individuals. The philosophical question which naturally arises then is ‘to the benefit of whom should a firm’s activities be aimed?’ Possible answers include the owners of the firm, the firm’s employees or wider society, the firm’s local community or their host nation. It is because of firms’ location within a wider society that the issue of corporate social responsibility arises. The issue is do they contribute in a positive way to the fabric of society. In this paper we conduct an exploratory investigation whose research questions, broadly, are whether there is public evidence of corporate social responsibility activity by firms listed in the UK and to what extent, if any, such activities may amount to genuinely socially responsible management by the firms. We examined the most up to date annual reports of a split sample of 36 firms listed in the FTSE 350. The short answers to the two research questions above are: to some degree and no by some margin, based on data from the sample firms.

Analysis of Corporate Social Responsibility Execution Effects on Purchase Intention with the Moderating Role of Customer Awareness

Sustainability ◽

10.3390/su13084548 ◽

2021 ◽

Vol 13 (8) ◽

pp. 4548

Author(s):

Qingyu Zhang ◽

Sohail Ahmad

Keyword(s):

Social Responsibility ◽

Purchase Intention ◽

Structural Equation ◽

Sustainable Growth ◽

Equation Modeling ◽

Future Research ◽

Purchasing Intention ◽

Corporate Social ◽

Moderating Role

Corporate social responsibility (CSR) in management domains is a well-known concept that links corporate interests and environmental/community values. CSR is considered a strategic policy that offers environmental and social competitive advantages. Organizations consider that CSR-based goodwill provides a tactical competitive edge and sustainable growth. The goal of this paper is to show how CSR programs affect consumers’ purchasing intention in the context of Pakistan. In addition, the effect of customer awareness has been studied as a moderator between CSR and purchasing intention. To this end, the study has conducted a survey and gathered Pakistani customers’ responses, and structural equation modeling has been used to evaluate the results. The study concludes that CSR activities favorably affect customer purchasing intentions directly as well as indirectly through improving brand image and trust, and customer awareness of CSR activities plays a moderating role. The implications and future research directions are discussed.