scholarly journals Corporate social responsibility and firm performance in South Africa

2014 ◽  
Vol 45 (1) ◽  
pp. 1-12 ◽  
Author(s):  
K. Demetriades ◽  
C. J. Auret
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Social Performance ◽  
Sample Period ◽  
Socially Responsible ◽  
Responsible Investing ◽  
The Individual ◽  
Corporate Social

Corporate Social Responsibility (CSR) can be viewed from two different perspectives: that of the business; and that of the individual investor (Socially Responsible Investing, SRI). In this study regression analysis as well as an event study was used to examine the link between CSR and firm performance. The results suggested that in the short-term there were no significant price effects on the SRI shares. In contrast, the returns of SRI portfolios over the sample period seemed to be superior to those of conventional firms. The regression analysis found that generally the SRI coefficients were insignificant; however using one of the models during the fifteen year sample period, SRI constituents attained a ROE that was 11.18% higher (as well as a ROA that was 1.824% lower) than conventional firms. When the period was restricted to 2004-2009 it was found that social performance was positively - and sometimes significantly - correlated with ROE.

scholarly journals Corporate Social Responsibility & Market Volatility: Relationship and Trading Opportunities

2017 ◽  
Vol 10 (5) ◽  
pp. 1
Author(s):  
Vasiliki A. Basdekidou ◽  
Artemis A. Styliadou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Performance ◽  
Environmental Aspects ◽  
Socially Responsible ◽  
Community Activities ◽  
The Social ◽  
The Usa ◽  
Corporate Social ◽  
The Relationship

This article examines the relationship between corporate social responsibility performance (CSR.P) and market trading volatility (MTV) provoking by the release of the non-farm employment payment-reports (NFP) the first Friday each month in the USA. It also discusses the trading opportunities involved in such as volatile environments. Actually, we consider the interaction between the social performance (for environment, employment and community activities) and the financial and trading performance than would be the case for an accumulated functionality in NFP releases. In general, social performance returns are negatively related to trading returns; so, the relatively poor financial and market trading reward (profit), offered by socially responsible ethical ETFs trading the NFP reports, is in accordance to their good social performance regarding employment and environmental aspects. This could be changed if these ethical ETFs incorporate into their arsenal of trading tools a number of CSR.mtv functions (utilities) discussed in this article. Impressively, we find also that considerable bizarre returns are obtained by funds, holding a portfolio of socially least unethical ETFs, involved in short-term or intraday speculations. In this domain, the complex relationship between social, financial and market trading performance, during the NFP “psychological time”, offers great trading opportunities.

Corporate social responsibility and corporate payout policy: the impact of product market competition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahbaz Sheikh
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Social Performance ◽  
Market Competition ◽  
Global Reporting Initiative ◽  
Product Markets ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this paper is to empirically investigate if and how firm performance in corporate social responsibility (CSR) is related to corporate payouts and how competition in product markets influences this relation.Design/methodology/approachLogit and Tobit regressions are used to estimate the relation between firm performance in CSR and corporate payouts.FindingsThe empirical results show that firm performance in CSR is positively related to the propensity and level of dividends, repurchases and total payouts (dividends plus repurchases). However, the positive relation between CSR performance and corporate payouts is significant only for firms that operate in low competition markets. In high competition markets, CSR performance does not seem to have any significant relation with corporate payouts.Research limitations/implicationsThis study uses MSCI social ratings data to measure net scores on CSR. There is no systematic conceptual reason for measuring social performance using MSCI social ratings. Future research should use other measures of social performance (e.g. Dow Jones Sustainability Index, Accountability Ratings and Global Reporting Initiative to estimate the relation between CSR and corporate payouts).Practical implicationsCSR firms are more likely to choose higher payouts when they operate in low competition markets.Originality/valueThis study contributes to the stream of research that evaluates the payout choices of CSR firms and competition in product markets. To the author's knowledge, this is the first study that documents the impact of market competition on the relation between firm performance in CSR and corporate payouts.

Top Managers as Drivers for Corporate Social Responsibility

2009 ◽  
Author(s):  
Diane L. Swanson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Moral Dilemmas ◽  
Moral Leadership ◽  
Business And Society ◽  
Socially Responsible ◽  
Top Managers ◽  
Corporate Social

This article addresses top managers as drivers for corporate social responsibility (CSR). It summarizes the responsibility roles implied by or assigned to managers in selected models of corporate social performance. Given this backdrop for business and society research, it focuses on the importance of moral leadership in directing the formal and informal organization toward socially responsible goals. In other words, the emphasis is on the focal role of top executive managers in driving social responsibility. This focus is not meant to convey that middle or lower managers are irrelevant to CSR. It is simply that their decision-making discretion is largely circumscribed by top managers, which is why middle and lower managers often face uncomfortable moral dilemmas when their values are incompatible with those established at a higher level of command. Finally, this article points to some contextual factors that impact socially responsible leadership in terms of external and internal controls.

Accounting challenges for sustainability and innovations

2021 ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research And Development ◽  
Financial Reporting ◽  
Socially Responsible Investing ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Socially Responsible Investments ◽  
Corporate Social

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.

The effect of corruption and culture on corporate social performance: an empirical study

2019 ◽  
Vol 15 (8) ◽  
pp. 1071-1086 ◽  
Author(s):  
Ben Kwame Agyei-Mensah ◽  
Samuel Buertey
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Descriptive Analysis ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Content Type ◽  
Corporate Social

PurposeThe study aims to examine the simultaneous influence of corruption and culture on corporate social and environmental performance of selected companies.Design/methodology/approachTheoretical propositions on how corruption and culture influence corporate social responsibility performance were developed and empirically tested. Corruption is measured using Transparency International’s Corruption Perception Index and Schwartz (2008) cultural dimension is used as a measure of culture. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis which forms the main data analysis.FindingsThe multiple regression analysis results indicated that corruption and two of the three cultural dimensions (embeddedness and Mastery) are significantly related to corporate social responsibility performance.Originality/valueThe study contributes to the corporate social responsibility literature by revealing that corruption and culture are key determinants of corporate social responsibility performance.

scholarly journals The Impact of Innovation on the Firm Performance and Corporate Social Responsibility of Vietnamese Manufacturing Firms

2019 ◽  
Vol 11 (13) ◽  
pp. 3666 ◽  
Author(s):  
Nguyen Thi Canh ◽  
Nguyen Thanh Liem ◽  
Phung Anh Thu ◽  
Nguyen Vinh Khuong
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Composite Index ◽  
Well Being ◽  
Manufacturing Firms ◽  
Process Innovations ◽  
The Individual ◽  
Corporate Social ◽  
The Impact

Innovation is a complex process and has been shown to be influential towards different types of stakeholders. From the viewpoint of stakeholder theory, shareholders and creditors are more likely to be concerned about corporate financial performance. However, in the new era an enterprise’s responsibilities have to extend to other stakeholders, including its employees, suppliers and communities. This study aims to extend the literature by examining the individual effects of product and process innovations, and then their interactions with external collaboration, on firm performance and corporate social responsibility (CSR) activities in terms of local contributions for a sample of Vietnamese manufacturing firms during 2011–2013. Research findings suggest that process and product innovations are beneficial to firm performance in terms of market share, but not return on total assets. This implies that investment in innovative activities requires time to make positive changes in profitability, but it may help with winning customer loyalty. We also find evidence suggesting that innovation could make firms more obscure, especially when there are external parties involved. This motivates firms to send signals about their sustainability and goodwill through corporate social responsibility (CSR) activities. With regard to CSR activities, we are the first to provide a breakdown of categories of corporate social contribution towards the local well-being, and elaborate evidence on the effect of innovation on each category, rather than just a composite index of CSR as in some extant studies.

scholarly journals STATE REGULATION OF THE DEVELOPMENT OF CORPORATE SOCIAL RESPONSIBILITY IN THE TRANSFORMATION TYPE COUNTRIES IN EASTERN EUROPE

2020 ◽  
Vol 5 (5) ◽  
pp. 121
Author(s):  
Ivan Parubchak ◽  
Nadiia Radukh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Eastern Europe ◽  
Socially Responsible Investing ◽  
State Regulation ◽  
Socially Responsible ◽  
Responsible Investing ◽  
The World ◽  
Transformation Type ◽  
Corporate Social

The purpose of this research is to investigate the processes of formation of corporate social responsibility in countries of transformation type in Eastern Europe and to study the perspectives of development of socially responsible investing based on studying the world experience in the field of corporate responsibility and the practices of its realization by economic entities in the world. The theoretical and methodological basis of the research is the dialectical method of cognition of the processes of formation of corporate social responsibility in transformation societies, using the experience of the foreign community in similar processes and the possibility of applying individual practices in domestic business. The following scientific methods were used in the research: abstract-logical, in particular, its methods of generalization, analogy, analysis and synthesis, induction and deduction for the formulation of theoretical generalizations of research results, formulation of conclusions and suggestions. Main objects of the study are: theoretical bases of formation and realization of mechanisms of state regulation of corporate social responsibility and socially responsible investing in the world and opportunities to apply their experience in the countries of Eastern Europe; determining the current level of corporate social responsibility at enterprises and organizations and assessing the prospects for their development and influence on socio-economic processes. Practical implications. The stakeholder theory is considered, which reveals the essence of corporate social responsibility in the process of satisfying interests and requirements of various counterparties that may affect the ultimate financial results of the enterprise. It is determined that the main causes of state regulation of corporate social responsibility are a moral obligation, sustainability, and reputation. Corporate social responsibility is an effective tool for enterprise development, as well as for the development of the process of state regulation and constructive dialogue with different social categories that enhances the investment attractiveness of the enterprise and strengthens its reputation, promotes effective labour relations and enhances productivity, supports the marketing policy and trust of the target audience by forming a positive opinion about products, works or services of the enterprise. Modern strategies on the basis of which companies perform the formation of their investment portfolios are considered (sustainable investment strategy, norms-based screening and exclusion of holding from investment universe, integration of ESG factors in financial analysis, impact investments, engagement and voting on sustainability matters). The issue of the undeveloped practice of submitting social reports and difficult public access to them by stakeholders is considered. A model for analysing the prospects of corporate social responsibility development at enterprises is proposed; corporate social responsibility strategy provides for the fulfilment of economic, social, and environmental goals for the successful implementation of corporate social responsibility and socially responsible investment initiatives.

scholarly journals Corporate Social Responsibility and Firm Performance: Evidence from an Emerging Market

2017 ◽  
Vol 6 (4) ◽  
pp. 42 ◽  
Author(s):  
Elif Akben Selcuk ◽  
Halil Kiymaz
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Relationship ◽  
Annual Reports ◽  
Socially Responsible ◽  
Return On Assets ◽  
Corporate Social

This study focuses on the relationship between firm performance and corporate social responsibility (CSR) of firms listed on Borsa Istanbul during the period of 2009-2011. We use content analysis of annual reports/websites of Turkish firms for any socially responsible activities. We find a negative relationship between CSR and financial performance, meaning that firms which disclose more information about CSR initiatives in their annual reports have a lower return on assets. After controlling for debt and size of the firms, we further find that while highly levered firms are less profitable, larger firms have higher profits. Finally, we do not find any significant relationships between research and development expenditures and financial performance.

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