scholarly journals The Complementary Effects of Islam and CSR: Some Empirical Evidence

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Calvin W. H. Cheong ◽  
Nurul Ilma Salleh ◽  
Chorng Yuan Fung

This paper empirically investigates what has been claimed in the literature; that there are no significant differences between the Islamic and Western schools of business ethics. A proxy for the Western school is corporate social responsibility (CSR) while in the Islamic school, a reasonable approximation would be Shariah-compliance (SC). But because financial performance is not the main priority in CSR and SC, this study examines the effects CSR and SC has on firm resilience and firm risk. The regression estimates using an emerging market sample show that both CSR and SC improves firm resilience besides reducing firm risk in the following year. The findings empirically validate the claims made in the literature; that business ethics, Islamic or otherwise, are similar in substance and form. By empirically examining this claim, this study paves the way for a convergence of values and practices besides fostering greater unity between cultures.

2021 ◽  
Vol 13 (22) ◽  
pp. 12933
Author(s):  
Cao Thi Mien Thuy ◽  
Nguyen Vinh Khuong ◽  
Nguyen Thanh Liem

The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.


2018 ◽  
Vol 13 (3) ◽  
pp. 351-371 ◽  
Author(s):  
Mahdi Salehi ◽  
Mahmoud Lari DashtBayaz ◽  
Sohila Khorashadizadeh

Purpose The purpose of this paper is to investigate the relationship between corporate social responsibility (CSR) expenditures and firm financial performance in an emerging market. Design/methodology/approach The authors examine the hypotheses by performing panel data analysis on a sample of 159 companies listed on the Tehran Stock Exchange during 2010–2015. Findings The findings suggest that the investment in CSR initiatives is significantly and positively associated with firm financial performance as proxied by changes in return on assets. Moreover, the findings confirm a positive and significant association between CSR expenditures and firm financial performance as proxied by both the future changes in return on assets and the future changes in operating cash flows scaled by total assets. Originality/value The present study has examined the relationship between CSR and firm financial performance in a country where, to the authors’ knowledge as in most other developing markets, such a relationship has not been a subject of empirical research. Besides, the use of a three-dimensional measure of financial performance, primarily considering research undertaken in an emerging market, as a valuable contribution may be observed.


2011 ◽  
Vol 7 (2) ◽  
pp. 295-309 ◽  
Author(s):  
Vicente Lima Crisóstomo ◽  
Fátima de Souza Freire ◽  
Felipe Cortes de Vasconcellos

PurposeThe purpose of the paper is to examine the relationship between corporate social responsibility (CSR) and firm performance, taking into account firm value and financial accounting performance, in an emerging market – Brazil.Design/methodology/approachContent analysis was conducted to extract data from two different sources, one relative to CSR data and another that provided financial data. CSR indexes and financial performance measures were calculated to allow the estimation of regression analysis conducted to examine the relationship between CSR and performance.FindingsThe results indicate that CSR is value destroying in Brazil since a significant negative correlation between CSR and firm value was found. Additionally, a neutral relationship characterises the mutual effect between CSR and financial accounting performance.Originality/valueThe study has examined the relationship between CSR and firm performance in a country where, as in most other non‐developed markets, such a relationship has not been an object of research. Besides, the use of a three dimensional measure of CSR, mainly considering research undertaken in an emerging market, as a valuable contribution may be observed.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-10 ◽  
Author(s):  
Peter Jones ◽  
David Hillier ◽  
Daphne Comfort

Subject areaCorporate social responsibility, sustainability and business ethics.Study level/applicabilityThis case has been designed for undergraduate students, with two target audiences. The first is business and management students following modules in corporate social responsibility (CSR), sustainability and business ethics. Here the accent is on allowing the students to explore and debate how CSR agendas are emerging within a specific sector of the retail economy. The second is students pursuing fashion, clothing, textile, retailing and consumer studies degrees and here the focus is on how some of the leading fashion goods retailers are addressing CSR. More generally the case can also be used on “Contemporary Issues” modules within general business and management programmes.Case overviewThis small case offers an exploratory review of the emerging CSR issues currently being publicly addressed by the world's leading fashion goods retailers. It includes a brief introduction to CSR; a brief thumbnail sketch of the fashion goods industry; details of the method of enquiry; a description of the CSR issues currently being publicly addressed by the top ten fashion good retailers on their corporate web sites; and some critical reflections on the CSR agendas being pursued by these retailers. The case study is novel in two ways. First, it focuses upon what is an emerging market issue rather than on emerging markets per se though a number of the issues raised in the case have major implications for emerging economies. Second, it addresses the CSR issues being addressed by a number of the leading fashion goods retailers and as such it a not a case which relates to individual decision making. While the case is principally focussed upon the retail sector it ranges across the whole of the supply chain.Expected learning outcomesThe paper provides an accessible review of the CSR issues and agendas currently being pursued by the leading fashion goods retailers and as such it will be of interest to academics, students and practitioners who are interested in both the fashion industry and corporate sustainability.Supplementary materialsTeaching notes are available, please consult your librarian for access.


2017 ◽  
Vol 6 (4) ◽  
pp. 42 ◽  
Author(s):  
Elif Akben Selcuk ◽  
Halil Kiymaz

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.


Author(s):  
Le Thi Thanh Xuan ◽  
Tran Tien Khoa ◽  
Nguyen Thi Thanh Lieu

Based on the fact that most of factories/manufacturers failed to comply with foreign customers’ requirements for Corporate Social Responsibility (CSR) practices from the first audits, the present study aims to explore SME exporters’ understanding of CSR requirements from foreign clients, motivations and obstacles for them to practice and implement CSR. In order to tackle the research objectives, qualitative approach is chosen and in-depth interview with owners, HR/CSR managers and production managers is employed to collect data. The research scope is firms/suppliers in hardlines (non-furniture and non-apparel) section. Thematic analysis is used to analyse and categorise data from interviews. The research findings show some crucial points. Firstly, CSR requirements from clients are not correctly understood. Secondly, there are seven drivers for CSR practices which match with previous studies. Lastly, six per ten obstacles to implement CSR are new findings in the present research context. From these findings, some recommendations are proposed to improve CSR practices in SMEs. Keywords Corporate social responsibility (CSR), motivations (motives), obstacles, SMEs References   Albareda, L., Lozano, J. M., Tencati, A., Midtun, A., & Perrini, F. (2008). The changing roles of governments in corporate social responsibility: drivers and responses. Business Ethics: A European Review, 17(4), 347-363. Arevalo, J. A., & Aravind, D. (2011). Corporate Social Responsibility practices in India: approaches, drivers and barriers. Corporate Governance, 11(4), 399-414. Baden, D. A., Harwood, I. A., & Woodward, D. G. (2009). The effect of buyer pressure on suppliers in SMEs to demonstrate CSR practices: An added incentive or counter productive? European Management Journal, 27(6), 429-441. doi:https://doi.org/10.1016/j.emj.2008.10.004Bondy, K., Matten, D., & Moon, J. (2008). Multinational Corporation Codes of Conduct: Governance Tools for Corporate Social Responsibility? Corporate Governance: An International Review, 16(4), 294-311. doi:10.1111/j.1467-8683.2008.00694.xCambra-Fierro, J., Wilson, A., Polo-Redondo, Y., Fuster-Mur, A., & Lopez-Perez, M. E. (2013). When do firms implement corporate social responsibility? A study of the Spanish construction and real-estate sector. Journal of Management & Organization, 19(02), 150-166. doi:doi:10.1017/jmo.2013.12Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34, 39-48. Carroll, A. B. (1999). Corporate social responsibility: evolution of a definitional construct. Business & Society, 38(3), 268-295. Cochran, P. L., & Wood, R. A. (1984). Corporate Social Responsibility and Financial Performance. Academy of Management Journal, 27(1), 42-56. Creswell, J. W. (2007). Qualitative inquiry & research design - choosing among five approaches (2nd ed.). the U.S: Sage Publications, Inc.Faisal, M. N. (2010). Analysing the barriers to corporate social responsibility in supply chains: an interpretive structural modelling approach. International Journal of Logistics Research and Applications, 13(3), 179-195. doi:10.1080/13675560903264968Ghasemi, S., & Nejati, M. (2013). Corporate Social Responsibility: Opportunities, Drivers and Barriers. International Journal of Entrepreuneurial Knowledge, 1(1), 33-37. Gibson, W. J., & Andrew, B. (2009). Working with qualitative data London: SAGE.Graafland, J., & Mazereeuw-Van der Duijn Schouten, C. (2012). Motives for Corporate Social Responsibility. De Economist, 160(4), 377-396. doi:10.1007/s10645-012-9198-5Hamm, B. (2012). Corporate Social Responsibility in Vietnam: Integration or Mere Adaptation? Pacific News, 38, 4-8. Hemingway, C. A., & Maclagan, P. W. (2004). Managers' Personal Values as Drivers of Corporate Social Responsibility. Journal of Business Ethics, 50(1), 33-44. Kang, B. (2014). Corporate Social Responsibility Perceptions and Corporate Performances. Journal of Applied Sciences, 14(21), 2662-2673. Lantos, G. P. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18(7), 595-630. Lin, C.-H., Yang, H.-L., & Liou, D.-Y. (2009). The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan. Technology in Society, 31, 56-63. McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117-127. Mishra, S., & Suar, D. (2010). Does Corporate Social Responsibility influence firm performance of Indian companies? Journal of Business Ethics, 95, 571-601. Moon, J. (2004). Government as Driver of CSR. ICCSR Research Series Papers, 24. Pedersen, E. R., & Neergaard, P. (2009). What matters to managers? The whats, whys and hows of corporate social responsibility in a multinational corporation. Management Decision, 47(8), 1261-1280. Visser, W. (2008). Corporate social responsibility in developing countries. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. Siegel (Eds.), The Oxford Handbook of Corporate Social Responsibility (pp. 473-499). Oxford: Oxford University Press.Xuan, L. T. T. (2013). Managers' preceptions of Corporate Social Responsibility: The construction industry in Vietnam. (Doctoral), Western Sydney University, Xuan, L. T. T., & Khoa, T. T. (2015). Drivers of Corporate Social Respobsibility Practices-A comparative analysis between Spanish and Vietnamese Construction Industry. Paper presented at the The International Conference on Business 2015, Hochiminh city.Xuan, L. T. T., & Teal, G. (2011). A development in defining Corporate Social Responsibility. Journal of Science and Technology Development, 14(2), 106-115. http://baocongthuong.com.vn/viet-nam-sau-10-nam-gia-nhap-wto-nhung-thanh-tuu-kha-quan.htmlhttp://www.unido.org/en/what-we-do/trade/csr/what-is-csr.html#pp1[g1]/0/


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duc Hong Vo ◽  
Ngoc Phu Tran ◽  
Hien Thi-Thu Hoang ◽  
Loan Thi-Hong Van

Purpose This paper aims to provide empirical evidence and policy implications on the link between corporate social responsibility, financial inclusion and financial performance of the banking sector in an emerging market. Design/methodology/approach This study uses data collected from the annual reports of 13 listed banks in Vietnam from 2011 to 2019. CSR is proxied by the ratio between charitable contributions and bank profits. Besides, this study uses the number of branches and the number of agents as the proxies for a level of financial inclusion. The generalized method of moments and various tests are used to ensure the robustness of the findings. Findings Findings in this study indicate that CSR activities do matter, and they contribute positively to financial inclusion. In addition, the bank’s size is also associated with an increased level of financial inclusion. Practical implications Findings from this study provide important implications for bank executives and policymakers in Vietnam in managing and extending CSR activities with the view of supporting and enhancing financial inclusion. Originality/value To the best of the author’s knowledge, this is the first empirical study in the context of the banking sector in Vietnam in which the impact of CSR activities and financial performance of the banking sector on financial inclusion at the bank level is examined.


2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV


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