Is Corporate Social Responsibility Really Able to Create Long-Term Sustainability Value?

2022 ◽  
pp. 194-216
Author(s):  
Manuel Moreno ◽  
Elena Mañas-Alcón ◽  
Oscar Montes-Pineda ◽  
Beatriz Fernández-Olit

This chapter analyzes the academic debate regarding the need to adopt a long-term vision of CSR strategies. It's based on the premise that short run is the dominant approach in financial markets, and this situation could be negatively conditioning the long-term sustainability value creation. New social values may be requesting different management decisions from companies, prioritizing long-term over short term results. A thorough literature review has been done across specialized journals, international reports, and key legislation, trying to determine and model the elements facilitating this sustainable value creation. It shows the alignment needed between CEO and their shareholders within the framework of corporate governance to create long-term value within CSR. There are signs of a possible financial over-performance of companies that strategically create a shared value with stakeholders based on environmental, social, and governance objectives, selected due to their materiality. A model is proposed to consider a long-term approach creating sustainable value in organizations.

2020 ◽  
Vol 12 (4) ◽  
pp. 1680 ◽  
Author(s):  
Daeheon Choi ◽  
Paul Moon Sub Choi ◽  
Joung Hwa Choi ◽  
Chune Young Chung

This study investigates the monitoring effectiveness of the largest institutional blockholder in Korea, the Korean National Pension Service (KNPS), on firms’ engagement in corporate social responsibility (CSR). We use a large, unique sample from Korea, where the financial market is primarily characterized by chaebols. We show that lagged KNPS blockholdings do not significantly influence investee firms’ concurrent CSR indexes. This result indicates that even the largest institutional blockholder in Korea does not actively engage in firms’ CSR initiatives to enhance their long-term performance and prosperity. Overall, our results suggest that institutional investors should more actively serve as an effective corporate governance mechanism in emerging Asian markets, where companies aim to be profitable and long-term corporate governance is very important.


2011 ◽  
Vol 21 (3) ◽  
pp. 59-72
Author(s):  
Marzena Syper-Jędrzejak

Regulations on corporate social responsibility, are instruments that fill the space between the codes of law and tradition, and morality. In this way the ethics of the company builds customer confidence, investor interest and pride in employees. Business activities in a global world result in many threats associated with loss of reputation of the company, exposure to the accusation of unethical actions. In this situation, conducting a long-term CSR strategy can become a tool for prevention and building competitive advantage. Among the tools used by organizations, to build socially responsible business the most popular are: eco-labelling, social marketing programs, including the ethics programs for staff and corporate governance. It should be noted that a huge responsibility for the effectiveness of programs and tools for CSR rests with the managers.


2019 ◽  
pp. 1549-1574
Author(s):  
Francesco Rattalino

Sustainability and Corporate Social Responsibility have been perceived for many years by companies only as an annoyance, involving regulations and extra cost. The recent economic downturn and increasing stakeholder pressure have forced businesses to embrace the complexity and interdependencies between shareholder value and sustainable value. Sustainability-driven innovation is the key to overcoming the old conflict between economic and social objectives and, as in the case of Patagonia Inc., is paying off for a growing number of companies as it generates a sustainable competitive advantage. This chapter explores ways in which corporations can pursue economic, social, and environmental objectives simultaneously while creating shared values. It also looks into the very complex issue of measuring both the business and social impacts of shared-value strategies.


2019 ◽  
Vol 16 (2) ◽  
pp. 270-280 ◽  
Author(s):  
Josua Tarigan ◽  
Saarce Elsye Hatane ◽  
Linneke Stacia ◽  
Deborah Christine Widjaja

With a purpose to give a deep understanding relating to the manifestation of social responsibilities practices among Indonesian companies, this paper reflects the relationship of corporate social responsibility (CSR), corporate profitability (CP), value creation (VC) and good corporate governance (GCG). Kinder, Lydenberg, and Domini’s (KLD) measurement approach is used in this study to measure the social responsibility practices, as this gives cross-border analysis of social responsibility. Corporate profitability captures return on assets, which is accounting-based measurement, whereas value creation explains the economic value added, which is shareholder-based measurement. Structural Equation Model (SEM) analysis is conducted for Indonesian listed companies, which appeared in Corporate Governance Perception Index (CGPI). The empirical result suggests that CSR serves as a tool in assisting shareholders value and performance. Accordingly, firms should incorporate CSR practices to enhance its strategic investment and sustain a strong relationship with its stakeholders. Subsequently, management should also take concern of having good corporate governance in order to improve company’s performance by supervising and monitoring of the company’s operation, ensure the fulfillment to the stakeholder’s interest. This paper presents fresh insights into applications of corporate social responsibility principles and corporate governance in Indonesian context that has not received systematic attention and consideration in the literature.


GIS Business ◽  
2019 ◽  
Vol 14 (6) ◽  
pp. 330-340
Author(s):  
Yogesh Hole ◽  
Snehal Pawar-Hole ◽  
Shilpa Bendale

CSR is something that is very important to pertain to today’s business environment. The CSR activities in India are given innate importance because of its long-term effectivity in context to the organizations. Several Indian organizations have adopted CSR strategies to incorporate sustainability in context to their organization. Recognizing that CSR plays a key role in creating jobs and resources in the business community, CSR is generally understood as a means of balancing or consolidating economic, environmental and social barriers when a company fulfills expectations. For this research, the use of persuasive methods to create effective frameworks has been considered. Concerning the current study about CSR, the researcher has applied persuasive approaches to achieve better results. This research study is based on qualitative assumptions, the researcher has used secondary resources to collect potential data from past studies and published journals. This study is subjected to the significance of CSR in the context of India. This study will define CSR and its importance in India. Further, it will analyze CSR related challenges in India. The main focus of the study will consider why CSR was adopted in the country.


2019 ◽  
Vol 35 (7) ◽  
pp. 5-8 ◽  
Author(s):  
Tashfeen Ahmad

Purpose The purpose of this short piece is to share ideas on value creation strategies to engage millennials at work. This is in the context of changing requirements and expectations of younger workforce. Design/methodology/approach The paper offers the viewpoint of this author which is backed by recent findings and surveys. Findings Corporate social responsibility (CSR) has been instrumental in creating value and growth for businesses; however, Deloitte’s recent survey (2018) indicates that the younger generation of millennials are expressing grave misgivings about the true intentions and motivations surrounding a company’s CSR policy and ethical conduct. This piece offers three perspectives on CSR implementation strategies which are useful guidelines to generate enhanced value in the changing times. Originality/value Businesses have to be flexible and responsive by adopting appropriate CSR strategies in order to remain relevant and competitive. The three models in this viewpoint will help business managers to enhance engagement, create value, and build their businesses for stakeholders and wider society. Most importantly, these strategies will help in gaining millennials’ losing trust on businesses and streamlining strategic direction.


2019 ◽  
Vol 8 (2) ◽  
pp. 146
Author(s):  
Yenni Mangoting ◽  
Jennifer Priscilla Badalu ◽  
Venny Agustine Gozal ◽  
Stephen Widjaya Pranata

<p>ABSTRAK</p><p>Penelitian bertujuan untuk menguji apakah tanggung jawab sosial perusahaan dan penghindaran pajak dapat memediasi hubungan tata kelola perusahaan dengan penciptaan nilai. Teknik analisis data yang digunakan adalah regresi linear berganda dengan sampel 573 perusahaan multi-sektor yang terdaftar di BEI. Hasil penelitian menunjukkan bahwa kegiatan tanggung jawab sosial perusahaan, penghindaran pajak, dan tata kelola perusahaan berpengaruh pada penciptaan nilai. Selain itu, penghindaran pajak dapat memediasi hubungan antara tata kelola perusahaan terhadap penciptaan nilai. Di sisi lain, penelitian ini membuktikan bahwa penerapan tanggung jawab sosial perusahaan tidak berdampak pada hubungan antara tata kelola perusahaan yang baik dan penciptaan nilai.</p><em>ABSTRACT</em><br /><p><em>This study aims to examine whether corporate social responsibility and tax avoidance can mediate the relationship between corporate governance and value creation. The data analysis technique used is multiple linear regression with a study sample of 573 multi-sector companies </em>that listed<em> on the Indonesia Stock Exchange. The results of the study show that corporate social responsibility activities, tax avoidance, and corporate governance have an effect on value creation. Furthermore, tax avoidance can mediate the relationship between corporate governance and the proportion of value. On the other hand, this research shows that corporate social responsibility does not affect the relationship between good corporate governance and value creation.</em></p>


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