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Corporate social responsibility: Trends in global reporting initiative standards
Abstract
This paper reviews and analyzes the relevant literature concerning corporate social responsibility (CSR). Different aspects are examined in terms of CSR and a firm’s performance, size, disclosure–reporting and communications and other recent trends in reporting. In addition to reviewing these issues we describe the diffusion of the global reporting initiatives worldwide identifying the trends in the period 1999–2017 for each continent. Specifically, we perform a trend analysis for all continents exploring the mean change in all sectors in both large multinational and small medium sized enterprises with global reporting responsibilities for the period 1999–2017. Additionally, a proposed modified national index of CSR is presented and discussed. Europe is shown to have passed from a full-grown to a downturn stage in recent years. A similar but less pronounced trend is evident in the cases of Oceania and Northern America, while Asia is shown to be in a spreading out stage with a steady expansion. Latin America, the Caribbean and Africa have reached a full grown stage. These realizations of (spreading out, full grown and downturn) global reporting diffusion together with the proposed national index of CSR may help decision makers to recognize companies’ understanding of their activities on the economy, environment and society and thereby potentially link it with the UN’s Sustainable Development Goals.
... Regarding environmental responsibility standards, financial firms report 100% on this dimension, while firms (national and international) only report 77%. Usually, the environmental responsibility dimension is the most worked on in CSR in Latin America (Halkos and Nomikos, 2021). However, this report has begun to generate distrust as it hides or camouflages possible violations (Ordóñez-Castaño et al., 2021;Moneva et al., 2006). ...
... According to the data on the standard of societal responsibility, we can see that again, the financial and national firms are the ones that report the highest appearance with an average of 90%, while international firms only show 69%. According to Halkos and Nomikos (2021), ...
... Whereas, according to Perello-Marin et al. (2022), adopting the report of human rights standards in Europe tends to require more analysis, where only pending gaps are considered. Hence, developed countries present compliance standards related to a few pending problems to work on, while Latin America is reporting significant gaps (Halkos and Nomikos, 2021). ...
Bolivia is now going through significant social and economic transformations. Due to rapid economic growth and significant political reforms, Bolivian society has great aspirations for a brighter future. Thus, different private and public firms have introduced social practices as part of their vision and engaging in CSR practices to benefit society. However, nowadays, due to government regulations, only certain types of firms are forced by the law to report their practices. Hence, most firms do not engage in CSR reporting. The available literature does not show any study of CSR reporting in Bolivia. Therefore, our study is the first to collect CSR reports from public and private Bolivian firms to determine the main factors used to report CSR practices in Bolivia. Based on this information, we suggest recommendations for Bolivian firms.
... The main concern of organizations was to maintain a good global reputation, visualizing themselves as socially responsible enterprises [18]. The creation of the Global Reporting Initiative (GRI) ( Figure 2) enabled establishing transparent, orienting guidelines, written in a common language for the enterprises to measure their economic, social, and environmental performance, i.e., to measure their CSR [21], [22]. ...
... In 2010, the International Organization for Standardization (ISO) publishes the standard ISO 26000: 2010 (guidance on social responsibility), which is of voluntary character, aimed at orienting all types of organizations in the development and communication of social responsibility practices [22], [26]. ...
... Organizations use considerably varied communication media (web sites, social networks, press magazines, sponsorship) to disclose their CSR activities [42], [43]. Each medium has characteristics that facilitate obtaining information about a product, exchange of opinions, postsale assistance, or feedback on topics of common interest like the environment [22], [44]. In the communication process, the content of the message has a particular bearing on the reaction of the consumer as it visualizes the commitment of the enterprise with the causes of interest [42]. ...
Corporate social responsibility (CSR) has been seen as an opportunity to increase reputation, cost savings, business and financial opportunities, and create economic and sustainable value. The purpose of this review is twofold: first to draw attention to the complex relationship between common CSR practices used to deal with critical issues for our society and the impact they have on the trust and loyalty of stakeholders. Second, based on a study of 91 documents, to identify the advantages/weaknesses of implementing recognized standards (ISO 14001, ISO 26000, GRI, SA8000, AA1000) in different sectors of the economy. The standards provide a guideline for the elaboration, disclosure, and evaluation of the transparency reports of CSR. Some indicators used to measure CSR are more focused on environmental topics but recognizing social justice as a priority is critical to promoting the well-being of internal and external stakeholders. Furthermore, CSR standards play a crucial role in our world because they encourage ethical behaviors that reinforce the values and integrity of our society. The future research agenda should be oriented to monitor the impact of CSR initiatives in complex scenarios, consider the voices of non-specialized stakeholders, and integrate approaches that make visible the consequences of these practices.
... Deloitte, PwC, and BDO have invested in programs related to the environment or society, indicating efforts to expand their focus (Durocher et al., 2016;Elemes et al., 2021). The surge in global attention towards CSR is accompanied by increasing pressure from clients and investors alike for ethical practice and transparency (Halkos & Nomikos, 2021;Shafiq et al., 2020). For instance, in China regulatory bodies such as the Chinese Institute of Certified Public Accountants (CICPA) have highlighted the significance of CSR in party to the publicity of audit firms' CSR practices (Chua et al., 2024;Lennox & Wu, 2022). ...
... For instance, in China regulatory bodies such as the Chinese Institute of Certified Public Accountants (CICPA) have highlighted the significance of CSR in party to the publicity of audit firms' CSR practices (Chua et al., 2024;Lennox & Wu, 2022). This trend is in line with research showing the reputational and economic benefits associated with CSR engagement (Chu et al., 2020;Halkos & Nomikos, 2021;Lee et al., 2019). Audit firms implement CSR initiatives as a strategy to distinguish themselves in the competitive market and appeal to a socialsensitive market (Horen, 2019). ...
Purpose: This study aims to investigate the relationship between audit firms’ corporate social responsibility (CSR) activities and their reputations, as well as the impact of this on the audit firms’ abilities to gain and keep clients. The article examines the need for corporates to engage in corporate social responsibility (CSR) in order to enhance their reputations, potentially extending the same rationale to audit firms, as CSR engagement for corporates and audit firms are likely to have different implications on their client base.Method: Using a quantitative approach, a sample of audit firms was analyzed for a three years’ period. Using regression analysis, the study examined whether CSR involvement and intensity influence client acquisition and whether firm size and profitability moderate this relationship.Findings: Audit firms with higher CSR engagement are shown to have a significant increase in their client base. CSR activities build firm reputation, wherein the stakeholders are able to trust the company and also manage to stand out in the competitive market. Furthermore, this relationship is positively moderated by both firm size and profitability.Novelty: CSR impacts on marketing have been studied for other industries, but its importance within the audit industry is unique.Implications: The results indicate that audit firms may strategically allocate their resources towards CSR activities to align themselves with the competitive advantage and gain client advantage in the market. In addition, it underlines the need for alignment between CSR strategies and firm resources for the long-term growth and sustainability of the competitive advantage
... Regulatory Gaps: A key challenge for integrating ESG principles is the lack of standardized regulatory frameworks across regions. This inconsistency in regulations often leads to confusion and hinders the effective implementation of ESG strategies (Halkos & Nomikos 2021, Factor & Ulhøi 2021. ...
... The absence of clear guidelines on what constitutes effective ESG practices complicates the process of evaluating a company's sustainability efforts and impedes the widespread adoption of ESG principles in financial planning (Luo et al. 2024). This issue is exacerbated by the regulatory gaps identified in the studies, particularly in the U.S. context, where varying state and federal regulations create inconsistencies in ESG reporting requirements (Halkos & Nomikos 2021). ...
Aim: To assess the integration of ESG principles into financial planning to achieve sustainable corporate growth by focusing on recent studies which have proposed various strategies and frameworks. Study Design: This review covers research work between the period of 2019 and 2024 that discusses how the integration of ESG into financial decision-making and planning foster corporate sustainability and growth. Methodology: The peer-reviewed articles were systematically sourced from Google Scholar, Scopus, ProQuest, and EconLit. The eligibility criteria for article selection were those that discussed the issues of ESG principles, integration in financial planning, and practical application in fostering sustainable corporate growth. Results: From the 15 identified studies, the main finding is that the integration of ESG principles leads to improved corporate performance, stakeholder trust and long-term resilience. Most successful approaches adopted relate to embedding ESG metrics into financial reporting, leveraging sustainable investment portfolios, and seeking alignment of corporate goals with global sustainability frameworks. Identified challenges include regulatory gaps, limited ESG data standardization, and different levels of organizational readiness. Conclusions: The integration of ESG principles into financial planning considerably contributes to sustainable corporate growth, combining it with profitability, social, and environmental responsibility. Further research is required on the standardization of ESG metrics, regulatory challenges, and the role of emerging technologies in improving ESG-based financial strategies.
... It spurs innovation in clean technologies, creates new jobs in renewable energy, energy storage, and carbon capture sectors, and enhances energy independence and security [9]. Moreover, there is increasing pressure from the international community and public opinion demanding responsible environmental stewardship from major economies [10]. Consumers are becoming more environmentally conscious, influencing corporate behavior and government policies [11]. ...
... lnco it = ϕ 0 + ϕ 1 lncc it + ϕ 2 lnren it + ϕ 3 lngdp it + ϕ 4 lnfdi it + ϕ 5 lntrd it + ε it (9) lnren it = ϕ 0 + ϕ 1 lncc it + ϕ 2 lngdp it + ϕ 3 lnfdi it + ϕ 4 lntrd it + ε it (10) Rule of law is where people have confidence in the rules and respect them. Eqs. ...
... The level of success of a company is determined by the actions they carry out. In the past, investors only determined the success of a company from an economic perspective, but over time, with an increase in corporate activities that can change the environment, investors began to prioritize corporate responsibility from a social and environmental perspective [1]. Environmental problems can affect financial statements in many ways, such as recognizing asset impairments and redressing costs, compensation, or legal costs. ...
... Based on those explanations, companies should consider not only the economic aspect but also the social and environmental aspects, which relate to various types of stakeholders' concerns. Nowadays, a company's level of success was not only seen from the economic aspect, as investors are also prioritizing the social and environmental aspects [1]. In that regard, companies must deliver the demands and expectations of those stakeholder groups, as it may help them in increasing their firm value [16]. ...
Green accounting implementation has a positive impact on society because it relates to environmental management carried out by companies in the community. The purpose of this study is to examine green accounting implementation's effect on the firm value of Indonesian food manufacturing companies which has been disclosed using the Global Reporting Initiative Standards 2016 Environmental. This study is a quantitative research that uses secondary data which were obtained from the annual report of food manufacturing companies that are listed in the Indonesia Stock Exchange from 2017-2021. Testing of the data obtained in this research was carried out using EViews. This study shows that the green accounting disclosure index has a significant and positive effect on firm value. for the control variable like Property, Plant, and Equipment has a negative relationship with firm value, firm size has a positive relationship with firm value, and growth did not have any effect on firm value.
... Sustainable Cities and Communities: Make human settlements and cities robust, safe, inclusive, and sustainable 12. Responsible Consumption and Production: Make sure that patterns of consumption and production are sustainable. 13. Climate Action: Act quickly to mitigate the effects of climate change. ...
... Industries must embrace innovative approaches to eco-friendly operations to maintain their market presence amid increasing regulatory pressures. 12,13 The challenges of increasing industrialization, population growth, and environmental degradation of air, water, and land are alarming. Many developed countries struggle to enact effective environmental regulations to combat escalating pollution, while developing countries face significant hurdles in enforcement. ...
Sustainable materials development is becoming crucial in the pharmaceutical industry due to the significant environmental impacts of medications across their life cycle. While early production stages have seen efforts to minimize these effects, reducing environmental impacts from drug consumption and disposal remains challenging. Growing environmental concerns and regulatory requirements are pressuring the industry to adopt sustainable practices. Material sustainability, which emphasizes responsible resource use and minimal environmental impact, is a key focus. Strategies include green chemistry principles to reduce hazardous substances and waste during drug development and manufacturing. Additionally, biodegradable materials and eco-friendly packaging designs are gaining traction to lessen landfill and ecosystem impacts. Despite progress, challenges such as complex regulatory frameworks and the need for stakeholder collaboration persist. This review examines materials sustainability in the pharmaceutical industry, highlighting its shift toward environmentally responsible practices driven by innovation and regulation. It investigates current environmental initiatives, perspectives, and strategies to address environmental challenges. Achieving sustainability requires a holistic, integrated approach involving all aspects of the business, from supply chain management to product development. By prioritizing sustainability, the pharmaceutical industry can contribute to global climate goals, ensuring its resilience and long-term success.
... Tauringana [27] documented limited interest in sustainability reporting in developing regions like Africa, parts of Asia, and Latin America. Moreover, as Halkos and Nomikos [28] argue, government policy plays a role, with coun-tries where governments place less emphasis on sustainability reporting showing lower adoption rates. ...
The Global Reporting Initiative (GRI) has maintained the world’s most comprehensive and dominant sustainability reporting standards. While primarily voluntary, they were widely used by energy companies, especially in the environmental disclosure area. With the recent introduction of the mandatory European Sustainability Reporting Standards (ESRS), companies may face challenges transitioning from GRI to ESRS. In this context, this study provides a comprehensive analysis of the GRI Standards and the ESRS, focusing on their environmental disclosure requirements (‘E’). The purpose of our study is to evaluate the current level of environmental reporting by Polish energy companies based on GRI Standards, assess their compliance with the ESRS requirements under the ‘E’ pillar, and determine the role of GRI disclosures in facilitating the transition to the new standards. A case study approach was employed, using data manually collected from 2023 reports prepared according to GRI Standards by Polish energy companies. Content analysis and the GRI-ESRS Interoperability Index were applied. The findings reveal notable differences in the application of GRI Standards among the companies. The level of environmental disclosures based on GRI Standards is relatively low compared to ESRS requirements, suggesting that companies will face challenges in setting up systems to meet future reporting requirements. This study provides insights into current and emerging practices in environmental reporting, offering valuable implications for EU energy companies preparing their environmental reports in accordance with ESRS requirements.
... Moreover, the importance of social responsibility has grown exponentially due to globalisation, increased environmental awareness, and rising demands for ethical and sustainable corporate behaviour (Halkos & Nomikos, 2021). Organisations incorporating social responsibility into their strategies enhance their reputation and strengthen relationships with employees, customers, and society, yielding tangible economic and social benefits and solidifying their commitment to collective well-being (Islam et al., 2020). ...
Introduction/Objective: this paper examines the influence of personal and social ethics, innovative behaviour, business training, and corporate social responsibility (CSR) on workplace and personal happiness. By exploring how these interconnected variables shape well-being in professional settings and extend into personal life, the research contributes to the broader understanding of happiness management within organisations.
Methodology: a quantitative approach was adopted, utilising covariance-based structural equation modelling (CB-SEM). The study analysed a sample of 323 employees from the industrial sector in Baja California, Mexico. Data were collected using validated scales to measure personal and social ethics, innovative behaviour, business training, CSR, workplace happiness, and personal happiness. The ethodology included exploratory factor analysis (EFA) and structural equation modelling (SEM) to evaluate the relationships between the variables.
Results: the findings reveal that personal ethics, business training, and CSR significantly predict workplace happiness, which subsequently enhances personal happiness. In contrast, social ethics and innovative behaviour did not demonstrate a significant impact on workplace happiness, suggesting that cultural or contextual factors may mediate these relationships.
Conclusions: the study underscores the importance of fostering ethical practices and investing in professional development to boost employee well-being. Organisations that prioritise ethical growth and professional training can enhance both workplace and overall happiness. Future research should investigate these dynamics across diverse cultural contexts and industries to further elucidate the nuanced relationships identified.
... There is a growing emphasis on sustainable practices and CSR, driven by heightened environmental concerns and societal expectations (Halkos & Nomikos, 2021). Companies are integrating sustainability into their core strategies, focusing on long-term environmental stewardship and social impact alongside financial performance. ...
State-owned corporations (SOCs) have historically faced criticism for inefficiencies, lack of innovation, and poor performance, primarily due to political interference, misaligned strategies, and weak management structures. This study highlights the need for effective institutionalization of strategic management to address these issues. By embedding strategic objectives into daily operations, aligning organizational structures with strategic goals, and ensuring leadership commitment, SOCs can significantly enhance their operational efficiency, effectiveness, and overall performance. The research is grounded in Selznick's Institutional-Based Theory and Penrose's Resource-Based Theory, which explore how external pressures, such as regulatory frameworks and political dynamics, interact with internal resource management to shape strategic management practices. This theoretical framework provides insights into how SOCs can leverage their internal resources, such as leadership and organizational culture, while responding to external institutional demands. A desktop research design was adopted, analysing existing literature and case studies related to strategic management and organizational performance in SOCs.
... In order for consumers of financial statements to assess the quality of corporate governance, MSMEs in Indonesia are required to provide reports on operational governance. Moreover, businesses are required to provide reports on their corporate social responsibility (Halkos & Nomikos, 2021;Rashid, 2018). A substantial body of literature exists on the reporting of social issues and the environment (Guthrie & Parker, 1989;Hogner, 1982). ...
Purpose: This study aims to determine the factors that influence the adoption process of integrated reporting. The authors used the Natural Resource-Based View (RBV) theory as the main framework and developed its extension factors based on a literature review from various sources. Methodology: This study employs a correlational quantitative method and regression analysis tests using SPSS version 26.0 software. Research population consists of managers of micro, small, and medium enterprises (MSMEs) in Indonesia, with a sample size of 399 MSMEs managers selected through purposive sampling. Result: (1) green innovation variable has a significant influence on the adoption of integrated reporting by MSMEs, (2) green intellectual capital variable has a significant influence on the adoption of integrated reporting by MSMEs, (3) green supply chain management variable has a significant influence on the adoption of integrated reporting by MSMEs, (4) organizational capital variable has no influence on the adoption of integrated reporting by MSMEs, (5) regulatory pressure has no influence on the adoption of integrated reporting by MSMEs, (6) stakeholder pressure has a significant influence on the adoption of integrated reporting by MSMEs, (7) adoption of integrated reporting has a significant influence on the accountability of financial statements by MSMEs. Application/Originality/Novelty: The novelty of this study is in that it not only applies the Natural RBV theory to analysis, but also develops and directly tests the Natural RBV theory as a whole for MSMEs in Indonesia. Implication of this study can aid practitioners and managers in comprehending the significance of integrated reporting in business due to its numerous benefits. This study's implications are also valuable for experts, policymakers, and stakeholders who aim to maximize business operations, resulting in increased capital efficiency. In addition, these findings are beneficial not only for practitioners but also for academics and the development of science regarding business efficiency in the current industrial 4.0 era. Last, this study concludes by listing its limitations, recommendations, and acknowledgements.
... The growing interest in corporate social responsibility evidenced by the increase in practices, standards, reports, and indices (Batista and Francisco 2018;Busch et al. 2024;Halkos and Nomikos 2021;Jan et al. 2023;Lambin and Thorlakson 2018;Velte 2023;Xu et al. 2024) is a clear indication that this significant trend in corporate management is currently strongly influencing managerial thinking and practice around the world, however, it is not clear whether those practices that promise improvements in the social, environmental and governance performance of the organizations that implement them, actually do so (Ali and Kaur 2021;Busch et al. 2024;Halme et al. 2020;Moon 2007;Taran and Mirkin 2020;Wijesundara et al. 2024) or if they are simply communication strategies that seek to improve the image and reputation of companies with light or misleading information (Balluchi et al. 2020;Gatti et al. 2019;Huynh et al. 2024;Oppong-Tawiah and Webster 2023;Šimunović et al. 2024;Skarmeas and Leonidou 2013;Stoeckl and Luedicke 2015). ...
It is theorized that corporate social responsibility contributes to sustainable development to the extent that it favors social inclusion, reduces environmental impact, and reinforces governance while at the same time strengthening the economic viability of the company; however, not all corporate social responsibility practices are equal or contribute in the same way to sustainable development. This is because many of these, on the one hand, do not reduce the impacts of the operation of companies. On the other hand, they do not directly assume the associated costs, which is why this article aims to characterize the practice of corporate responsibility in Colombia in terms of its contribution to sustainable development, identifying whether the company itself assumes CSR practices. To achieve this objective, data from 7,233 Colombian companies are examined, performing a two-stage cluster analysis (hierarchical and K-means), resulting in an empirical model of characterization of modalities of social responsibility versus CSR cost externalization, where diverse behaviors were found, which were grouped into five profiles—externalizers, conservatives, politically correct, undecided and pioneers—that account for the different perspectives with which Colombian companies approach their corporate responsibility and their contribution to sustainable development.
... However, the issue of industrial pollution has garnered significant attention from society, both in developed and developing economies. Society's ideals have recently shifted towards emphasizing corporate social responsibility and environmental sustainability (Halkos & Nomikos, 2021). As a result of the globalization process, businesses worldwide are increasingly expected to adhere to corporate social responsibility and sustainable practices for the benefit of their stakeholders and society at large. ...
This paper analyzes the correlation between McDonald's sustainability achievements and its public image. Despite receiving criticism for its environmental and social impact, McDonald's has recently made notable progress in sustainability by setting targets to source sustainable coffee, palm oil, and fish, as well as reducing greenhouse gas emissions. By utilizing a quantitative approach involving 108 customer surveys, this study investigates the influence of McDonald's sustainability achievements on its public image. The survey results reveal that respondents who were aware of McDonald's sustainability efforts exhibited a more favorable perception of the company. This study concludes that McDonald's sustainability endeavors have contributed to its environmental and social responsibility objectives while enhancing its reputation among stakeholders. Moreover, the research findings shed light on the factors that affect sustainability perception and the public image of fast-food brands. Furthermore, it calls for future research to explore the impact of cultural factors and stakeholder perspectives on the public image of fast-food chains. The findings offer valuable insights into the potential advantages of sustainability initiatives for companies aiming to improve their public image and foster consumer trust
... Notably, 70-80% of climate-related disclosures were associated with 'Opportunity' , emphasizing companies' tendency to frame climate-related initiatives as strategic growth opportunities. This finding aligns with Halkos and Nomikos [106], who highlight that firms often use sustainability reporting to portray themselves as proactive and innovative, thereby enhancing their reputation among environmentally conscious stakeholders. ...
Background
A debate exists about the effects of environmental disclosure becoming mandatory on the quality and the actual commitment of such reporting. This study seeks to assess whether differences exist when comparing the disclosure quality and comprehensiveness of Spanish companies’ non-financial reports under voluntary and mandatory reporting regimes spanning the period 2015–2022.
Methods
We present a novel approach by utilizing cutting-edge Natural Language Processing (NLP) techniques, chiefly ClimateBERT (a transformer-LLM—Large Language Model) and ClimateBERT fine-tuned on ClimaText (a public database for climate change topic detection), to scrutinize and compare 729 voluntary and mandatory non-financial corporate reports from 96 Spanish companies spanning multiple sectors. Since transformers can only be accurately estimated by organizations with lots of computing power, but not by small organizations, we have also fine-tuned the transformer, something cheaper in computational terms, thus making it affordable to all companies, investors, regulators, policymakers, and other stakeholders.
Results
Our results document interesting patterns and strong trends of enhancement in specificity and commitment, particularly in risk-related texts, spanning the period 2015–2022. We provide descriptive evidence and an explorative appeal that underscores the regulations' influence, among many other factors also identified by prior literature (other stakeholders’ requirements and expectations from companies, aside from the regulatory stakeholders), in fostering a higher quality and more comprehensive approach to climate risk reporting by Spanish companies, with enhanced alignment to internationally recognized reporting guidelines. In addition, the comparative analysis between the transformer model and the fine-tuned transformer model revealed subtle yet insightful differences in how climate disclosures are interpreted. The fine-tuned model exhibited an increased sensitivity to elements of commitment, specificity, and neutrality in climate texts.
Conclusions
Our findings highlight the potential of cutting-edge NLP techniques, like fine-tuned transformers, in the quantitative assessment of the evolution and quality of environmental disclosures, either mandatory or voluntary. It is the first paper applying a fine-tuned transformer-LLM to compare the currently in force European mandatory environmental disclosure regulation’s impact on Spanish companies' environmental disclosure versus previous voluntary reporting.
... Numerous standards for sustainability accounting are available for social, circular, and linear businesses (Scarpellini et al., 2020). The "GRI Standards," which have become the leading guideline for voluntary reporting (Halkos & Nomikos, 2021), are built on the triple bottom-line framework, requiring disclosure of economic, social (e.g., safety, diversity), and environmental (e.g., waste, emissions) aspects. These standards are widely adopted by CBMs . ...
The crucial role of circular economy business models (CEBMs) in mitigating environmental degradation and decoupling economic growth from material use has been globally recognized in the literature across every economic sector. However, while the environmental benefits of circular economy (CE) are well documented, its social value has only recently begun to receive scholarly attention. Indeed, the question how organizations with a circular business model and an integrated social mission minimize negative environmental impacts while amplifying positive social outcomes remains unclear. This chapter aims to theorize the emergent social circular economy (SCE) by analyzing a case study focused on Atelier Riforma, an Italian innovative start-up with a social vocation in the apparel sector, and modeling novel integrated CEBMs. Employing semi-structured interviews, direct observations, and internal documents, this study sheds light on the operationalization of CE principles intertwined with a social mission. It discusses, in terms of material, financial, and impact flows, how SCE strategies in a sector currently highly unsustainable as the fashion industry may create (financial) value by recovering garments and simultaneously creating both social (i.e., labor value) and environmental (e.g., the reduction of material) value. This chapter, hence, enriches the discourse on CE and the social and solidarity economy (SSE) by illustrating how innovative platform business models may address and assess the dual objectives of environmental sustainability and social equity.
... In order to measure and describe the impact of companies on the environment in terms of ESG factors, a number of different indicators have been developed along with regulations related to reporting and adapting to subsequent changes. To date, the most popular standard used worldwide for the preparation of sustainability reports to date is the GRI Standard, introduced by the Global Reporting Initiative [Halkos, Nomikos, 2021]. This situation will change in the next 2-3 years among European Union countries, where the CSRD (Corporate Sustainability Reporting Directive), aimed at strengthening the legal framework for sustainability reporting, has already started to take effect. ...
The concept of sustainable development includes a set of activities that constitute a holistic vision of development, which is a balance of environmental, social and economic dimensions. Business excellence models are tools that can support organizations in implementing the principles of sustainable development and serve to evaluate this process. However, these models are not always characterized by an integral approach, i.e. taking into account all three aspects mentioned. The aim of the article is to analyze the EFQM (2020) model in terms of its reflection of ESG sustainable development factors included in the European reporting standards (ESRS) and to propose possible modifications to the model. These changes should make it easier for organizations to orient themselves towards implementing sustainable practices in their operations.
... Sustainability reporting has become a rapidly growing area within corporate reporting, with its importance acknowledged in developed nations and emerging economies (Darshi et al., 2023). In South Africa, an emerging economy, entities face mounting pressure from stakeholders to disclose their ESG performance, even though sustainability reporting is not mandatory (Halkos and Nomikos, 2021). ...
Climate change and its severe economic effects have become a critical issue in South Africa and globally. Both public and private entities are now actively promoting a greener environment, urging individuals and organisations to transition towards a lower-carbon economy. As climate change affects business operations, organisations have begun to assess and disclose the associated risks and opportunities to their stakeholders. While much of the focus in the literature has been on sectors with high greenhouse gas (GHG) emissions, research has shown that many other sectors also contribute to and are affected by climate change. One such sector is banking. The banking sector is both influenced by climate change and contributes to it, particularly through the operations it supports by extending funding. Banks are viewed as key players in driving the shift towards a lower-carbon economy by committing more to sustainable finance. Despite this, there is a lack of literature specifically addressing climate change in the banking sector. This study aims to fill that gap by exploring climate change's impact on banks in an emerging economy – South Africa. Using thematic content analysis, the research draws on reports of six banks prepared using the Task Force on Climate-related Financial Disclosures (TCFD) framework, revealing that banks face multiple risks due to climate change and play a crucial role in promoting sustainability through financing and risk management strategies. This study contributed to the literature by highlighting the intricate relationship between climate change and the banking sector in South Africa. The study also highlights areas that banks should focus on in the future to mitigate climate-related risks.
... Standardization in Corporate Social Responsibility (CSR) reporting has become a critical issue for businesses globally, as inconsistent frameworks lead to challenges in effectively measuring and communicating CSR activities. A lack of standardized reporting systems makes it difficult for stakeholders, including investors and consumers, to evaluate the true impact of CSR initiatives (Halkos & Nomikos, 2021). Companies often use different methods to assess and report on their CSR efforts, which results in discrepancies that hinder transparency and comparability across industries. ...
Purpose: This study examines the integration of Corporate Social Responsibility (CSR) into environmental social accounting to promote corporate sustainability and community welfare. The goal is to assess how CSR practices contribute to long-term corporate value while ensuring transparency in reporting social and environmental impacts. Research Design and Methodology: The research employs systematic literature review methodology, analyzing academic papers, reports, and case studies on CSR and environmental social accounting. The review identifies frameworks and practices that help companies measure and report CSR outcomes effectively. Findings and Discussion: The study highlights the effectiveness of CSR integration in enhancing corporate reputation, stakeholder trust, and sustainability efforts. It also identifies challenges in reporting consistency, mainly due to the lack of standardized frameworks, which can lead to discrepancies in evaluating CSR performance. The role of technology in improving CSR reporting accuracy and transparency is emphasized. Implications: The research offers practical insights for businesses integrating CSR into their operations. It suggests adopting standardized reporting frameworks and digital tools for better data collection. These steps will enhance CSR’s impact on corporate performance and community welfare, fostering long-term sustainability.
... Indeed, transparency about the company's impacts on sustainable development is crucial to maintaining the social license to operate and achieve long-term business success (Băndoi et al., 2021;Calabrese et al., 2020). Although the proposed framework is designed to be applicable to companies of any size and sector, as it is based on the GRI Standards (Halkos & Nomikos, 2021), the application in this study is specifically focused on the electronics sector and AI technologies. Another limitation of this study consists of the framework based on contributions from the existing scientific literature, which means not all potential applications and case studies may have been captured, as some opportunities related to achieving the SDGs might not yet have been explored by researchers. ...
Digital technologies of Industry 4.0 (I4.0) are key drivers of sustainable development. However, addressing the impact of I4.0 on Sustainable Development Goals (SDGs) requires overcoming the challenge of lacking suitable assessment tools. Despite sustainability reporting serves to assess how companies face sustainability challenges, communicate efforts, and promote a sustainable corporate culture, a critical need arises for a comprehensive tool that clarifies the impact of I4.0 technologies on the economic, environmental, and social dimensions of sustainability. This paper proposes a conceptual framework that builds on existing literature regarding how I4.0 technologies contribute to SDGs and leverages the recognized linking between SDGs and Global Reporting Initiative (GRI) Standards to improve the reporting of SDG progress. Thus, the proposed framework identifies the GRI-based Key Performance Indicators necessary for a thorough understanding of how innovation stemming from I4.0, significantly impacts SDGs. Through a content analysis of sustainability reports of innovative companies in the electronic field, the study shows how the proposed framework can be applied in practice. Focusing on Artificial Intelligence (AI), the application case allows a comprehensive understanding of the transformative potential of AI solutions towards sustainable development.
... The final sample consists primarily of Large companies, with only one SME. European companies qualify as Large if they have more than 250 employees and either a turnover exceeding €50 million or a total balance sheet exceeding €43 million; otherwise, they are considered SMEs (Halkos and Nomikos, 2021). ...
The agri-food sector is a key actor in the Italian economy and plays a crucial role in rescuing and accelerating progress towards the Sustainable Development Goals (SDGs). However, diverse sustainability challenges including environmental conservation, economic volatility, political changes and regulatory constraints affect the agri-food company’s competitiveness and their ability to face global sustainability challenges. Exploiting digital innovation is then essential. By facilitating more efficient management of resources, reducing waste and improving supply chain transparency, digital innovations contribute to more sustainable, inclusive and resilient agri-food systems. This paper aims to understand the ongoing digital transformation of the Italian agri-food sector through a comparative analysis of innovative practices by Italian agri-food companies that are recognized as sustainability leaders. Among the Industry 4.0 (I4.0) technologies, sensors, blockchain, cyber security, and artificial intelligence appear to be the most adopted I4.0 solutions to help companies influence the social, economic and environmental dimensions of sustainable development.
... In examining how companies integrate sustainability into their strategic priorities, a critical question arises: Is sustainability merely a component of broader corporate strategies or does it stand as a key strategic priority in its own right? Research [42,43] suggests two dominant trends in corporate strategic orientation towards sustainability: the instrumental or agency approach and the stewardship approach. The instrumental approach views sustainability as a means to achieve economic goals, while the stewardship approach emphasizes the intrinsic value of sustainability and its role in fostering long-term societal and environmental well-being [17]. ...
Food and beverage in Europe represents a central sector in terms of contribution to GDP, employment, and the trade balance. At the same time, it has significant environmental, economic, and social implications, making the adoption of sustainable strategies of vital importance for companies in the sector. This study explores how sustainable business practices can create long-term strategic value, with a particular focus on the food and beverage sector. The research analyzes the relationship between sustainability and business strategy, focusing on how companies can thrive in the context of environmental uncertainties, social fluctuations, and economic interconnectedness. Specifically, the study aims to identify the key sustainability practices and strategies adopted by leading food and beverage companies and determine how these practices affect their ESG performance (environmental, social, and governance) results. The study uses a reasoned selection of case studies from one of the primary CSR regulatory categories—listed companies with considerable size (excluding tobacco companies and those with a capitalization of less than EUR 10 billion)—comparing companies’ sustainability reports and the latest 2023 integrated annual report to assess every aspect of each company, from market position to sustainability policies and sustainable reporting.
... Small and medium enterprises (SMEs) of manufacturing sector were selected for investigation that are currently operating on famous online platforms, including Taobao, JD, and Pinduoduo. The reason behind selecting SMEs is that large organizations already focus on sustainability as their CSR policies (Halkos & Nomikos, 2021); therefore, SMEs need to contribute more towards protecting the environment. The SMEs belong to Jiangsu province of China as this province's gross domestic product (GDP) accounts for 11.74 trillion CNY in 2022 and is ranked as one of the largest economies of China (Statista, 2023). ...
E-commerce is transforming business experiences for both sellers and buyers equally at a fast pace. This study investigates the complex relationship between green entrepreneurship, environmental strategy, digital transformation, and environmental knowledge within the Chinese e-commerce industry. The data were collected from 283 small and medium-sized enterprises indulged in online businesses within Jiangsu Province. The data was analyzed using SmartPLS (4.0). Findings show that green entrepreneurship significantly affects eco-efficient E-commerce. While digital transformation and environmental strategy positively and significantly to eco-efficient E-commerce both directly and through the mediation path from green entrepreneurship. Likewise, the findings revealed a positive and significant moderating role of environmental knowledge on the relationship between green entrepreneurship and eco-efficient E-commerce. Considering the pressure from domestic and global legislative bodies to maintain and report environmental sustainability activities by e-businesses, this study offers values theoretical and practical insights. Several theoretical and practical implications are explained in this study to add into the existing literature, assist e-businesses, policymakers, and future studies.
... Moreover, sustainability reporting influences market behavior, including financial and capital markets [7]. Consequently, the positive reputation and credibility derived from such reporting are expected to enhance financial accessibility and increase the Earnings Response Coefficient for these companies. ...
This study examines the impact of sustainability reporting on the Earnings Response Coefficient (ERC) of companies listed on the Iraq Stock Exchange. The ERC reflects the effect of unexpected earnings on stock returns, and sustainability reporting is expected to enhance company legitimacy and trust, potentially increasing the ERC. Despite the growing importance of sustainability practices, there is limited research on their influence on the ERC in emerging markets like Iraq. Using data from 33 firms from 2012-2022 and employing multiple linear regression with panel data analysis, the results indicate that Iraqi companies experience only slight improvements in ERC through sustainability reporting. These findings suggest that sustainability reporting can enhance a company's reputation and legitimacy, contributing to increased ERC. The study highlights the need for policymakers to strengthen sustainability reporting requirements and provides insights for investors seeking to optimize portfolios based on corporate sustainability compliance.
... These findings transpire the integration of CSR with sustainability objectives as a competitive advantage for enhancing sustainable performance, especially in the light of business context in emerging markets (Somachandra et al., 2022;Cezarino et al., 2022). In addition, Global Reporting Initiatives (GRI) helps companies to simplify or compress all their impact in finance, environment, and society allowing them to show what they have given back along with showcasing progress in social welfare and sustainability (Singh et al., 2018;Halkos & Nomikos, 2021;Perkiss et al., 2020). ...
Microfinance Institutions (MFIs) often grapple with allocating adequate resources toward Corporate Social Responsibility (CSR), despite their crucial societal impact. This research investigates CSR assessment and CSR sustainability in the context of strategic CSR-related activities of MFIs, aiming to optimize resource allocation and enhance their CSR initiatives. Data was collected from 875 employees and clients of large MFIs in the Philippines and analyzed using structural equation modeling in AMOS. The findings revealed that CSR assessment and CSR sustainability were significantly linked to strategic CSR-related activities, and CSR assessment
had a significant link with CSR sustainability. These findings emphasize the importance of strategic orientation in CSR-related activities and support the logical precedence of Carroll's CSR Pyramid and Battal's CSR Train Theories, which advocate for a balanced approach encompassing economic, legal, ethical, environmental, and philanthropic responsibilities. This study contributes
to the literature by exploring strategic and sustainable CSR in MFIs in developing countries, where the topic has not been broadly studied. The results can serve as a reliable basis for ensuring transparency, assessment effectiveness, and the creation of an integrative CSR framework for MFIs.
... CSR has gradually been adopted by governments, especially in Europe and many other regions worldwide, as cooperation between national governments and corporations expands to safeguard and advance public goals (Halkos & Nomikos, 2021;Sadiq et al., 2022;Singh & Misra, 2021). The rise of CSR in developing nations, including Nigeria, requires exploration through empirical studies. ...
... Companies are increasingly adopting CSR innovation to not only comply with regulatory requirements but also to drive competitive advantage, foster innovation, and build strong stakeholder relationships. The focus has shifted to creating shared value, where both business and society benefit (Halkos & Nomikos, 2021). ...
Corporate Social Responsibility (CSR) innovation policy has become a pivotal feature of modern industry, integrating social, environmental, and economic responsibilities into corporate strategies. This paper explores multifaceted role of CSR innovation in enhancing company reputation, driving sustainable development, fostering innovation, ensuring compliance, and improving risk management. Additionally, it highlights how CSR practices attract and retain talent, deliver economic benefits, and strengthen stakeholder relations. By setting industry standards and encouraging collaboration, CSR policies not only benefit individual companies but also contribute to broader societal and environmental goals. Through case studies of companies like Unilever, Tesla, and Patagonia, this paper demonstrates the tangible impacts of CSR innovation on industry performance and sustainability. Overall, CSR innovation policy is essential for achieving long-term profitability, competitive advantage, and ethical stewardship in the corporate world.
... Early scholars in corporate sustainability tried to distinguish between corporate social responsibility and corporate citizenship. Nowadays, most big corporations participate in sustainability programmes, publish sustainability reports on ecological and social issues (Chamola et al., 2017;Halkos & Nomikos, 2021), and are assessed in light of corporate sustainability indices (Meuer et al., 2020). Generally, the ability of businesses to implement the three-bottom lines perspectives into their production systems is referred to as corporate sustainability (Hoevenagel, 2022). ...
Previous corporate sustainability research studies have highlighted the relevance and need of sustainability practices that corporations need to undertake. Nevertheless, the scholars have unclarified thoughts on the concept and practice of corporate sustainability. By investigating the theoretical concepts that have arisen in the academic literature and thoroughly assessing the research trends on corporate sustainability by completing a bibliometric analysis, this study intends to document the current literature on corporate sustainability. Data for the bibliometric analysis was identified from the Web of Science database. The researchers used VOSviewer software to visualize the collaboration network among authors, countries, and various institutions. Performance analysis and content mapping have been employed for this study. A total of 1600 research articles published in English were finally selected for detailed analysis. The journal Sustainability has been at the top in publishing research articles on corporate sustainability. The key takeaways from this study will support future scholars in understanding better the conceptual emergence of corporate sustainability and the research trends in corporate sustainability.
This study investigates how various ESG disclosure configurations affect credit access for European firms listed on the STOXX Europe 600 Index during 2021–2022. Employing fuzzy‐set qualitative comparative analysis and ESG disclosures standardised under the Global Reporting Initiative (GRI), the findings demonstrate that disclosure patterns associated with enhanced credit access vary between short‐ and long‐term financing. Notably, climate change‐related disclosure consistently improves credit access across financing types. The study emphasises the significance of aligning ESG disclosure with financing objectives and provides practical insights for firms, lenders and policymakers. Firms can strategically concentrate on disclosures that best support their financing requirements, whereas lenders gain from standardised frameworks like GRI for more dependable credit evaluations. Policymakers, in turn, can leverage the role of ESG disclosure in credit markets to promote sustainability transitions.
This study aims to dissect and understand the Corporate Social Responsibility (CSR) endeavours of organisations within Malaysia’s telecommunications, broadcasting, postal and courier services sectors, particularly those holding licenses from the Malaysian Communications and Multimedia Commission (MCMC). These sectors were chosen for this study due to their crucial role in Malaysia’s economy and society, their notable environmental influence, the regulatory and public attention they receive as well as the distinct challenges and opportunities they face in implementing CSR. Employing a qualitative methodology, the study utilises a semi-structured interview protocol to gather rich, detailed insights from top management across eight listed and non-listed companies. This approach ensures a comprehensive exploration of CSR types, practices and their implementation within the target sectors. Purposive sampling was adopted to select informants with specific expertise, ensuring that the data collected was relevant and insightful. The findings of this study underscore that while telecommunications firms actively participate in Corporate Social Responsibility (CSR) initiatives, their efforts predominantly benefit the broader society, with less emphasis placed on shareholders. Additionally, it was observed that environmental issues receive relatively minimal attention from these organisations. This diversity highlights the necessity for a more equitable CSR approach that caters equally to the needs of all stakeholders, including the environment. Such a strategy is crucial for cultivating a sustainable and ethically sound business environment. The implications of this research are manifold. For companies, it emphasises the critical nature of adopting an all-encompassing CSR strategy that fosters competitive advantage while promoting sustainable development. The study advocates for a paradigm shift towards CSR practices that are not only philanthropic but also prioritise environmental stewardship and value creation.
While several studies suggest that Corporate Social Responsibility (CSR) enhances transparency and firms’ reputation, contributing to increasing accounting information quality, others find a negative relationship due to hiding earnings management practices. Then, we aim to investigate (1) sustainability reporting and its evolution from 2010 to 2021, (2) the United Nations Sustainable Development Goals (SDGs) more disclosed, and (3) whether sustainability reporting is positively associated with accounting information quality (earnings persistence). An additional goal is to analyse the individual impact of environmental and social dimensions on earnings persistence. For that purpose, we combine the literature review with content analysis to compute indices of SDG reporting and panel data regression analysis to investigate the association between earnings persistence and sustainability reporting for Portuguese-listed firms, from 2010 to 2021. We find low sustainability reporting, however, with an increasing trend. Furthermore, we show that firms report more environmental than social activities. In the former, the most disclosed are the SDG 3, 13, 14, and 7. The latter concerns SDGs 4, 5, 8, and 10. In addition, our results suggest that earnings persistence increases with sustainability reporting, both for environmental and social dimensions. We provide evidence regarding sustainability and SDGs reporting, where regulation is in progress and literature is still scarce. In addition, we contribute by showing that firms engaged with non-financial reporting tend to enhance their information transparency, allowing them to improve stakeholders’ decision-making and achieve firms’ legitimacy.
Global challenges have created problems for export companies due to the growing threats of the market environment, which requires such companies to adopt a survival strategy and apply appropriate strategic methods to successfully counteract emerging global challenges. The purpose of the article is to update knowledge on how global challenges affect the sustainability of export companies and how strategies adopted by companies counteract the negative impact of global challenges. The methodological basis for obtaining the results of the study was factual analysis, logical and structural analysis, strategic analysis, analysis of cause and effect, and generalisation. The article critically analyses the existing theoretical concepts for explaining the impact of modern global challenges on export companies in order to reveal strategies for their survival in the face of uncertainty in the current market environment. Their further review revealed critical global challenges for export companies, which were classified according to the signs of their typification. Namely basic elements, sources of formation, thematic areas of influence, duration of influence, degree of implementation and nature of influence. The application of a strategic analysis of global challenges of export companies by thematic areas revealed possible causes of their emergence and consequences of their impact on the activities of export companies. In particular, it was found that export companies have the potential for negative impact of political and economic challenges, positive impact of technological and socio-cultural challenges, as well as neutral potential for legal and environmental challenges. The author proposes strategies for the survival of export companies under the influence of modern challenges, which should be focused on to obtain results that will ensure the sustainability of such companies in the future. The practical significance of the results lies in the fact that the main scientific provisions have been brought to the level of recommendations that can be used by managers of export companies to clarify the problems and promising areas of development of export activities.
Purpose
With the rise of stakeholders' activism, integrating sustainability into business practices has become increasingly crucial for businesses. For such stakeholders, recognition from global sustainability indexes such as Dow Jones Sustainability Indexes (DJSI) allows them to evaluate organizations based on sustainable integration. Further, it helps companies influence their investors' opinions and investment decisions. In this light, this study examines the stock market response to the inclusion and exclusion of Asian companies in the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Index Emerging Markets (DJSI EM).
Design/methodology/approach
The study has employed the event study methodology to understand the intermediate and immediate abnormal reaction of the inclusion and exclusion event from the DJSI World and DJSI EM indexes from September 30, 2012, to November 30, 2023.
Findings
Findings show that changes in the DJSI indexes have asymmetric reactions in different markets. The reaction to changes in DJSI indexes is more pronounced for DJSI EM than DJSI World. Inclusion in DJSI World showed mixed reactions, while exclusion typically resulted in adverse reactions around the event day. Inclusion in DJSI EM generated a positive reaction, while exclusion had a mixed reaction. The study found no significant difference in the intermediate reaction of inclusion/exclusion between DJSI World and DJSI EM. Additionally, investors' immediate reactions from developing versus developed countries differed, but the reaction variation disappeared in the whole event window.
Originality/value
With a considerable increase in sustainable practices in Asia, companies must determine whether investors recognize and reward the company’s sustainability efforts. No other study has previously investigated the impact on Asian companies that are rapidly rising in global sustainability rankings. Furthermore, no study has examined the comparative reaction of inclusion or exclusion in two independent sustainability indices – DJSI WORLD and DJSI EM.
Purpose
This conceptual paper aims to contribute to prior corporate social responsibility (CSR) studies by examining CSR issues through the lens of the behavioral theory of the firm, which emphasizes the bounded rationality and limited cognition of firms’ decision-makers. The authors suggest that social aspiration may be a more important benchmark since stakeholders tend to evaluate a firm’s corporate social performance (CSP) against other comparable firms.
Design/methodology/approach
After reviewing various theoretical perspectives that have been applied to CSR studies spanning from 1985 to 2023, the authors summarize their limitations on examining executives’ decisions toward CSR initiatives. By drawing on the behavioral theory of the firm, a conceptual model was developed to explain how firm executives increase subsequent CSR initiatives when their firms’ CSP is below social aspiration.
Findings
This study suggests that firms increase their subsequent CSR initiatives when their CSP is below the performance of their peers. Furthermore, the authors propose three important characteristics of chief executive officers, including tenure, hubris and international experience, as boundary conditions that can impact the extent of firms’ subsequent CSR initiatives when CSP is below social aspiration.
Originality/value
The paper contributes to the CSR literature by emphasizing the influence of decision-makers’ bounded rationality on firms’ CSR initiatives.
With signaling lens, this study aims to analyze whether the environmental, social, and governance (ESG) performance disclosure is influenced by sustainability strategies and global reporting initiative (GRI) standards adoption. The data obtained from the Refinitiv Eikon database, for Chinese listed companies, are subject to correlation and regression analysis for panel data. The findings reveal that the presence of business ethics and human rights policies have a positive impact on ESG performance disclosure. Additionally, stakeholder engagement level and GRI standards adoption are predictive variables for ESG performance disclosure. Exclusive analysis in the China's industrial sector restricts the results generalization. This study explores the effect of sustainability strategies on ESG performance disclosure.
Purpose: the Earnings Response Coefficient is the effect of each dollar of unexpected earnings on stock returns and Also response to the profits of the business. Sustainability reporting are documents provided by companies and organizations to demonstrate their performance and efforts in contributing to environmental, economic and social sustainability to companies. Therefore, it is expected that sustainability reporting can influence company legitimacy with enhancing trust of companies, and Increase (ERC). Based on this premise, the objective of this research is to investigate the impact of sustainability reporting on the Earnings Response Coefficient of companies listed on the Iraq Stock Exchange. Method: for testing of hypothesis Data from 33 listed companies on the Iraq Stock Exchange during period of 2012-2022 was collected and analyzed using a multiple linear regression approach with a combination of panel data analysis. Result: Our findings indicate that Iraqi firms suffer from slight levels through adopting increasing (ERC) of sustainability reporting. Conclusion: reporting on corporate sustainability activities can enhance reputation of companies and, by gaining legitimacy for the companies, their Earnings Response Coefficient is increasing. Implication: These findings can inform policymakers about the need to strengthen requirements for sustainability reporting. Also help investor to form an optimal portfolio based on the policy of companies in compliance with the sustainability reporting.
We examine the effect of female board members and foreign institutional investors on corporate social responsibility (sustainability) disclosure in Indonesian listed firms from 2015 to 2017. Our final sample comprised 1192 firm‐year observations. We apply ordinary least squares pool regression to estimate the associations and address the endogeneity problem using the two‐stage least squares model, generalized method of moments, and lagged variables. While previous studies have focused on the impact of female board members and foreign institutional investors on financial outcomes, we extend the literature by investigating the association between both female board members and foreign investors and sustainable disclosure in Indonesia, where the participation of women is nominal, especially at the top management level, and the level of foreign ownership is high. Our findings propose a proportion of women as board members for listed firms and promote attractive policies to increase the number of foreign investors investing in Indonesia. It also contributes to conflicting results regarding the relationship between corporate governance and corporate social responsibility (CSR) commitment. Our results were robust after testing for endogeneity and adding more control variables. Overall, the findings have practical implications for policymakers and investors regarding corporate disclosure and governance in Indonesia.
Rad analizira izazove s kojima se suočavaju institucionalni investitori prilikom procjene kvaliteta ESG (Environmental, Social, Governance) informacija koje objavljuju preduzeća, vlade i drugi entiteti. Kroz sistematski pregled literature, rad analizira ulogu eksterne revizije u osiguranju kvalitete ESG izvještaja i borbi protiv greenwashinga. Takođe, istražuje se potencijal tehnologije u unapređenju prikupljanja, analize i interpretacije ESG podataka. Rezultati istraživanja ukazuju na to da institucionalni investitori hitno trebaju pouzdane i sporedive ESG informacije kako bi mogli donositi pravilne investicione odluke i smanjiti rizike. Rad identifikuje nekoliko ključnih izazova, uključujući nedostatak jasnih standarda, subjektivnost u procjeni ESG faktora i ograničenu dostupnost podataka. Osim toga, analiza uloge eksterne revizije pokazuje da, iako revizija pruža određeni nivo pouzdanosti i sigurnosti, postoje ograničenja u pogledu procjene ESG pokazatelja. Rad daje nekoliko preporuka za poboljšanje stanja i pozicije svih učesnika, uključujući jačanje regulatornog okvira, razvoj novih tehnoloških rješenja i uspostavu bliske saradnje između svih učesnika na tržištu. Zaključak rada naglašava važnost zajedničkih napora u cilju stvaranja transparentnijeg i održivijeg finansijskog tržišta, te ističe da je poboljšanje kvaliteta ESG informacija ključno za uspjeh održivog ulaganja i za ostvarenje ciljeva održivog razvoja.
Research background: Recently, companies have been increasingly focusing on social responsibility and disclosure. They use a variety of standards to disclose their social responsibility. The prevalence of these practices varies between companies in different countries. In addition, some companies declare CSR reporting standards, while others do not. Stakeholders need to know the characteristics of companies that declare CSR reporting standards. Purpose of the article: This study aims to reveal the factors influencing the choice to declare CSR reporting standards in Baltic public companies. Methods: The choice to declare CSR reporting standards is measured by the fact of CSR reporting standards’ declaration and the choice of GRI. The data for dependent variables are collected from non-financial reporting of Baltic public companies by making the content analysis. Company visibility, financial performance, and market expectations are chosen as independent variables. Their data is obtained from the Bloomberg database. Logistic regression models are applied. Findings & value added: Only half of the companies surveyed disclosed the CSR reporting standards used. Estonian public companies prefer GRI standards, and Lithuanian public companies prefer GRI plus UNGC. CSR reporting standards tend to be declared by those public companies that are larger and operate in the “heavy industry” as well as have higher EPS and lower ROA and CAPI. Market expectations are irrelevant to the disclosure of CSR reporting standards. By contrast, GRI standards are used and disclosed by public companies with the same characteristics as those declaring the standards. Still, in this case, age and market expectations are also important factors. Younger and higher market-value companies tend to choose GRI standards. These results reflect managerial behavior based on legitimacy, stakeholder, and signaling theories. Our findings are important to investors, market regulators, policymakers, managers and shareholders.
La divulgación de medidas contra la corrupción en las empresas es una parte importante del reporte de la información no-financiera, la responsabilidad empresarial y los temas Ambientales, Sociales y Gobernanza (ASG). El presente trabajo evalúa el grado de divulgación de los impactos de la corrupción en una muestra de las 26 más grandes empresas chilenas agrupadas en el IPSA.Para ello, se evaluaron 117 memorias integradas o reportes de sostenibilidad emitidos en el periodo 2018-2022 con un Puntaje de Divulgación Anticorrupción (PDA) creado a raíz de los contenidos del Estándar 205: Anticorrupción de Global Reporting Initiative (GRI). Entre los principales resultados, se destaca que, en promedio, la divulgación de la corrupción es baja y el mejor contenido evaluado es la divulgación de confirmación de casos de corrupción, que suelen no haber. El estudio identifica las oportunidades de mejora de divulgación de la corrupción y sugiere la necesidad de aumentar la transparencia de las políticas anticorrupción en las empresas chilenas.
This book chapter constitutes a securing examination of the subject of corporate social responsibility (CSR), getting into the complicated circumstances surrounding company conduct. It carefully evaluates CSR's converting route, establishing its historical foundations and establishing available changes. All living things on the earth are directly or indirectly bound to the community, and the single most essential thing is the human being, who bears the greatest duty to the community to which the individual is a citizen. The objective of the study is to explain in thoroughly the growth of CSR in India, and to evaluate the changing shift of CSR, which will offer information into how businesses have evolved their tactics and targets. The chapter offers to serve as an informative manual, creating an extremely prepared road for users who seek to recognize and effectively operate in the rapidly evolving field of sustainability.
This research delves into the complex factors that affect how ready a community is to embrace new environmental development strategies, which could significantly change the region's social and economic fabric. Using a structured questionnaire, exploratory factor analysis and logistic regression analysis, the study assesses how corporate practices in resource management, environmental governance, efforts to enhance community capabilities, and various demographic factors influence the community's willingness to adapt to change. Despite its intentions to benefit both the mining operations and the community, corporate resource management appears to have a paradoxical impact on the community's willingness to pursue new environmental paths. This negative impact can be attributed to the dependency it creates. Effective corporate resource management can lead to a community becoming heavily reliant on the stability and benefits provided by the mining company. This dependency fosters a sense of security and satisfaction with the status quo, making community members less inclined to explore or support new and potentially disruptive environmental strategies. The stability provided by the mine's resource management practices may inadvertently anchor the community to existing economic structures, reducing their impetus to seek alternative livelihoods or adapt to new socioeconomic conditions. However, it is essential to consider the limitations of this finding. One limitation is the potential bias in community perceptions, where immediate benefits from corporate resource management overshadow long-term considerations for sustainable development. Additionally, the context-specific nature of this study means that these findings may not be universally applicable to all mining communities.
Due to climate change concerns, academics and practitioners focus more on environmental management and sustainability. Accounting researchers have focused on corporate environmental disclosure and sustainability reporting in response to stakeholder demand for openness and accountability. Thus, scholarly studies on sustainability reporting have gained momentum with the frequent use of qualitative text analysis to assess company disclosures' completeness and quality. However, sustainability reporting research has major limitations wherein past studies have focused on certain sectors or qualitative content analysis. Coherently with the abovementioned gap, our study intends to examine sustainability reports of companies in agriculture, conventional energy, heavy industry and manufacturing, transport and automotive, and construction, the highly carbon‐intensive industries most vulnerable to physical climate damage and net‐zero transition risk. In doing so, the goal of the present research is to investigate sustainability reporting practice on a larger, cross‐sectoral scale by using automated, machine learning‐powered text analysis methods to complement and strengthen qualitative research results that scholars have previously obtained. The latent Dirichlet allocation topic modelling technique has been used to examine companies' sustainability efforts and identify industry‐specific subtopics based on quantitative distribution. The originality of our analysis lies in determining how companies prioritise issues in sustainability reports. By comparing reports from different industries, we also identify sector‐specific patterns and how organisations in highly carbon‐intensive industries that are most exposed to physical climate damage and net‐zero transition risk prioritise certain themes over others, as well as identifying what type of content is overall more prominently featured in reports, regardless of the industry. Our study adds to sustainability reporting literature by investigating a previously unstudied sample of sectors. Moreover, our study informs practitioners of existing sustainability reporting procedures. The subject model and a cross‐industry view can advise policymakers and industry of which themes are under‐disclosed and what industry‐specific rules may be desirable to suit sector‐specific needs.
This study highlights the influence of sustainability reporting on investor sentiments in the China Stock Exchange. The study starts by utilizing an Ordinary Least Squares regression model to test the hypotheses. Advanced econometric techniques are then applied to identify the existence of heteroskedasticity. To address potential endogeneity concerns, the analysis incorporates fixed-effect, two-stage least squares, and two-step generalized method of moments regression models. Findings suggest that sustainability reporting has a positive influence on investor sentiments. Conversely, environmental, social, and governance sustainability reporting also positively associations with investor sentiment in fixed-effect, two-stage least squares, and two-step generalized method of moments results. The findings suggest that companies prioritizing transparent and responsible practices enhance their market standing and contribute significantly to sustainable and ethical investing. The research indicates the importance of context-specific sustainability reporting. It provides insights into sustainability's impact on investor sentiments, promoting responsible practices for a sustainable global economy.
Purpose- Having started of climate change’s impact shaped businesses’ production process directly in 21st century. After consumers’ attitudes and behaviours had affected marketplace, businesses started to show themselves in aspect of corporate social responsibility. Since 1970s, sustainability has been highlighted as a topic reflected to corporate’s politics. Environmental sustainability is a variety of sustainability takes environment on center and keep providing products or services for this perspective. By using of green marketing mix, aim of a lot of brands to get profit take environment on center. From producing of packets to types of electric energy that use in factories, many effects started turning to metaphorses with corporates’ environmental sustainability politics. In context of ethical production and environmental sustainability, while animal testing is being removed vegan product production is tried to develop. Aim of this research is to understand on how environmental sustainability affects firms’/brands’ production process. Methodology- In this research, case study is applied as a types of qualitative research designs. By Turkey’s representative of an eco-friendly cleaning firm that from Denmark, semi-structured in depth interview were conducted. Then, the semi-structure in depth interview transcripted and highlighted to topic which turned into codes. The codes were got together and tied to themes. Findings- In result of the analysis reveals that 4 main themes which are 1) Scandinavian Morality and Ethical Production; 2) Green Sustainability; 3) Vegan Product; 4) Organic Product. To the analysis, Scandinavian morality has a big impact on ethical production. The firm’s practices are related to green sustainability; almost all production processes become “green”. In context of climate change, vegan perspective is rising day by day in the marketplace; producing animal-derived resources evaluate a part of climate change. Organic production is assessing an aspect of ecological life which is related to environmental sustainability. Conclusion- In green marketing perspective, environmental sustainability is one of the most indispensable issue, especially, while climate change gaining visibility. Basic marketing mix turning to “green marketing mix”. When brands and firms go green by politically, their production process goes directly green, as well. Climate change could be assessed like ethical issue in marketplace in context of environmental degradation. In addition, firms and brands caring about vegan and organic products, due to green conditions, are being positioned in environmental sustainability can be evaluated as a method of differentiation.
This study examines empirically (1) the evolution of corporate compliance with the eighth Company Law Directive (CLD) over time, (2) the relationship between the degree of compliance with the eighth CLD and corporate governance quality (CGQ), and (3) the relative effect of compliance with the eighth CLD and Sarbanes-Oxley Act (SOX) on CGQ.
Our hypotheses are tested on a sample of EU firms that are cross listed in the EU and the US and thus subject to both EU and US legislation, using fixed effects panel regression analysis. We find that compliance levels with the eighth CLD are increasing over time, yet compliance levels vary considerably across constituent provisions. We find also that higher compliance is positively related to CGQ, although the effect size is higher for compliance with the eighth CLD than for compliance with SOX. This study is original from many perspectives. Unlike most prior studies, which rely on binary variables to represent the constructs appraised in this study, novel and advanced measures of compliance and CGQ are constructed. Next, this study examines EU firms that have received very little research interest compared to US firms. Third, in an innovative approach, we appraise the relationship between the degree of compliance and CGQ longitudinally at both the aggregate and the constituent provisions level
This paper aims at developing the theoretical framework for linking the CSR of energy utilities with sustainable energy development achievements and at applying this framework in selected countries. The main issues of CSR relevant to the energy sector are discussed, and a comparative analysis of CSR reports of energy utilities and sustainable energy development trends in the Baltic States (Lithuania, Latvia, and Estonia) is performed based on the developed framework. There are three main interlinked sustainable energy development targets: increase in energy efficiency, the use of renewable energy sources, and GHG emission reduction. The significance of CSR in the energy sector is underlined based on the literature review, and the state policies to promote CSR in the energy sector are discussed and critically assessed based on the case studies of three Baltic States. The CSR practices of energy utilities of the Baltic States were assessed and compared with sustainable energy development achievements in these countries, based on the analysis of sustainable energy development trends. Estonia achieved the best results in approaching all sustainable energy development targets and was ranked with the highest scores in CSR ranking among the Baltic States, followed by Lithuania. The results of the case studies demonstrate that the Baltic countries have achieved different results in sustainable energy development progress, and the role of energy utilities and their corporate sustainability practices may have huge impacts on the achievement of sustainable energy development targets.
Purpose
The purpose of this paper is to answer the call for CSR communication research to develop and substantiate outcomes that may better explain CSR communication strategies and practices. The paper takes the research a step further, exploring the role of legitimacy in CSR communication research.
Design/methodology/approach
A literature collection methodology, combined with directed content analysis, was used to identify central themes in the literature.
Findings
The following categories of studies were identified: perception, impact and promotion studies; image and reputation studies; performance studies; and conceptual/rhetorical studies. Addressed from a legitimacy perspective, the study found that the most important types of legitimizing communicative practices articulated in the four types of studies were related to: seeking knowledge about stakeholders through perception, impact and promotion activities; monitoring and controlling the environment through image and reputation activities; creating stakeholder value through collaboration and engagement; and persuading and convincing stakeholders through rhetorics, CSR models and concepts. The study also found that practices and activities related to perceiving stakeholders’ expectations, needs and requirements are assumed to be most effective for corporations aiming at building or maintaining legitimacy.
Originality/value
The key contribution of the paper lies in exploring how corporate legitimacy is anticipated and extrapolated in the CSR communication literature, including which pinpointed CSR communication strategies and practices are assumed to be more effective than others in bridging stakeholders’ perceptions of corporations’ social and environmental actions. Until date, no reviews exist of the role of legitimacy in CSR communication research.
This paper presents an analysis of the literature concerning the impact of corporate sustainability on corporate financial performance. The relationship between corporate sustainable practices and financial performance has received growing attention in research, yet a consensus remains elusive. This paper identifies developing trends and the issues that hinder conclusive consensus on that relationship. We used content analysis to examine the literature and establish the current state of research. A total of 132 papers from top-tier journals are shortlisted. We find that 78% of publications report a positive relationship between corporate sustainability and financial performance. Variations in research methodology and measurement of variables lead to the divergent views on the relationship. Furthermore, literature is slowly replacing total sustainability with narrower corporate social responsibility (CSR), which is dominated by the social dimension of sustainability, while encompassing little to nothing of environmental and economic dimensions. Studies from developing countries remain scarce. More research is needed to facilitate convergence in the understanding of the relationship between corporate sustainable practices and financial performance.
In the analysis, we integrated stakeholder and agency theories to explore the connection between corporate social responsibility (CSR) and sustainable financial development by considering the moderating effect of ownership structure. After empirical analysis, we found the following conclusions. First, the short-term and long-term economic performance is positively affected by CSR, which leads to sustainable financial development. Second, ownership circulation has a positive relationship with economic performance in the short run, which short-term profit increases as ownership circulation strengthens. Third, the effect of CSR on short-term economic performance is moderated by ownership structure. Excessive concentrated ownership may lead to decisions that do not satisfy all key stakeholders and may reduce the positive effect of CSR on economic performance. Finally, we suggest that Chinese energy companies should pay more attention to improving corporate social responsibility to maintain good economic performance and develop sustainable competitive advantage. Meanwhile, companies should optimize ownership concentration to avoid weakening the positive effects of social responsibility on short-term economic performance.
The relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been subject to extensive empirical enquiry. Yet the body of evidence that has accumulated about the nature of the relationship is equivocal. A commonly identified reason for the diverse and contradictory results is measurement issues pertaining to both concepts of interest. This article aims to review alternative operationalisations and measurement approaches for the CSR and CFP concepts that have been deployed in empirical literature concerned with the CSR–CFP relationship. Several findings emanate from our study. First, CSR operationalisations in empirical literature range from multidimensional to one-dimensional. Second, CSR measurement approaches include reputation indices, content analyses, questionnaire-based surveys and one-dimensional measures, whereas CFP measurement approaches include accounting-based measures, market-based measures and combined measures. Third, no CSR measurement approach is without drawbacks. In addition to approach specific drawbacks, two problems inherent in most approaches are researcher subjectivity and selection bias that may influence the nature of CSR–CFP relationship detected in empirical literature. Finally, potential pathways to remedy these drawbacks are suggested.
Purpose
The purpose of this paper is to identify and synthesize the current academic literature on emerging trends to increase CSR reporting credibility.
Design/methodology/approach
This paper synthesizes literature on emerging trends to increase CSR reporting credibility from the past ten years, focusing mainly on the most recent five years, by searching ABI/Inform and Business Source Premier for academic papers containing the following keywords: Corporate Social Responsibility (CSR) Reporting, CSR, Sustainability, and Social Responsibility.
Findings
This paper identifies four relatively unexplored trends to improve CSR credibility: CSR assurance, integrated reporting, CSR reporting standards, and CSR regulation.
Research limitations/implications
This study will be of use to academic researchers to facilitate research and discussion on the credibility of CSR disclosure.
Practical implications
Regulatory agencies, boards of directors, customers, suppliers, and investors are increasingly using CSR information for decision making; therefore the credibility of the information is important.
Originality/value
Much of the extant research investigating CSR has focused on financial performance metrics. The study synthesizes the recent CSR literature, including some interdisciplinary research focusing on emerging accountability trends in reporting. The authors identify several research opportunities that will enhance the authors’ understanding of CSR reporting.
This paper uses Shanghai and Shenzhen 300 index constituent stocks to analyze the effect of the degree of voluntary information disclosure on Chinese stock price synchronicity from two dimensions: quantity and quality. Meanwhile, this paper discusses how the changes in accounting rules influence the relationship between voluntary information disclosure and stock price synchronicity. The result shows that voluntary information disclosure is negatively related to stock price synchronicity. Moreover, the improvement of accounting standards, on the one hand, is likely to decrease stock price synchronicity; and on the other hand, increases the negative relationship between voluntary information disclosure and stock price synchronicity.
The study empirically investigates the relationship between corporate governance and the triple bottom line sustainability performance through the lens of agency theory and stakeholder theory. We claim, in fact, that no single theory fully accounts for all the hypothesised relationships. We measure sustainability performance through manual content analysis on sustainability reports of the US-based companies. The study extends the existing literature by investigating the impact of selected corporate governance mechanisms on each dimension of sustainability performance, as defined by the GRI framework. Our approach allows to identify which governance mechanisms foster triple bottom line performance, also revealing that some mechanisms fit only specific dimension(s) of sustainability. The fact-based findings provide support for a new beginning in the theorising process in which the theories must try not only to provide rationale for the impact of corporate governance on sustainability, but also to explain which dimension of sustainability might be more affected. The most important implication for practitioners is the support for sustainability practices, which may be gained through implementation of particular corporate governance mechanisms. The findings contribute also to the improvement of the ongoing standard setting process, in particular as it concerns the in-depth revision of the economic dimension of sustainability carried out under the new GRI framework.
Although existing research evaluates the growth and motivations behind global corporate social responsibility (CSR) activity, there is little understanding whether these growing commitments generate strategic benefits to their adherents. In this article, we analyze the organizational attributes that underlie the firm’s ability to generate competitive advantage from the adoption of a global CSR framework. We develop hypotheses on economic and reputational benefits and test whether firm performance, organizational resources, and access to business and CSR networks determine these benefits in CSR frameworks. Results from a survey of 213 Spanish global compact business participants strongly support our arguments.
Corporate social responsibility (CSR) discourse, academic research, public policy and media commentaries, which have burgeoned in the past few decades in response to the desire to define the nexus between business and society tended to focus mainly on large corporate organizations which are expected to behave responsibly. The big businesses have for years attracted large volume of literature on CSR. Very little literature is currently available to enhance our understanding about the engagement of small- and medium-sized enterprises (SMEs) in CSR. The SMEs, often defined variously, in terms of turnover, gross asset value, ownership structure and the number of employees, is a significant sector worldwide in terms of economic, environmental and the social impact they make. This paper attempted to bridge this apparent research gulf, defined the nature of SMEs, the aggregate contributions of the sector to economies of both developed and developing nations and their role engagement in CSR. The study adopted qualitative literature survey method. A review of the paltry literature provided insight and defined the direction of research in this important and underexplored area of study. SMEs were found to perform roles associated with community development, employee initiatives, consumerism, environmental actions and supply chain requirements. To overcome the constraints confronting SMEs engagement in CSR initiatives the paper recommended increased resources, training programmes, development of SMEs-oriented tools and standards to guide adoption and implementation, and government intervention strategies to create the necessary incentives and support services for effective engagement.
Since its conception in 1999, the Global Reporting Initiative (GRI) has become a leading template for voluntary sustainability reporting by companies. Emerging on the crest of the debate about corporate social responsibility, appropriate roles for business, government, and civil society in the sustainability transition, and private forms of global governance, it is also a descendant of 1970s social movements. Drawing on extensive empirical data collected through interviews and documentary analysis in four countries, the institutional entrepreneurship framework is used to analyse three types of tactics deployed by GRI champions: discursive, material and charismatic. Central to GRI entrepreneurs' success was maintaining balance between the individual and collective interests of their diverse constituencies, between inclusiveness and efficient pursuit of technical objectives, and between building a new institution and not challenging existing institutions and power relations. This strategy, though perhaps appropriate under the circumstances, left a legacy of unresolved tensions. How these are resolved will determine GRI's future shape and function.
Management system standards, also called meta‐standards, have been adopted by an increasing number of organizations across the world. Although these management system standards are based on the same type of management principles and institutional arrangements, the literature remains scattered, with diverse studies focused on specific standards and published in various journals. The main objective of this paper is to analyse the academic research on meta‐standards through an integrative review intended to shed light on the main conclusions and substantial advances made in this area. This integrative review focuses more specifically on the two main meta‐standards which have been adopted by more than 1.3 million organizations worldwide: ISO 14001 and ISO 9001. The paper contributes insights into the main streams of the literature and current knowledge gaps to be addressed in future research on the various issues related to meta‐standards: global governance, diffusion processes, motivations, benefits of adoption and impacts on performance, internalization, integration, consultancy and auditing.
This paper defines corporate social responsibility (CSR) and sets up a framework to measure it. To date, the measurement systems used and the various concepts of CSR have no systematic basis. Indicators seem to be chosen on the whim of the moment. However, at least some data now exist to measure progress on social aspects of corporate behaviour. In fact, it is even possible to use some of the available data that companies now make available in order to hazard a guess at to whether CSR is getting better or worse. Yet, the power of the ''average'' seems to hide a variety of sins, as seen in the short review and comparison of how CSR is measured in six well-known measurement frameworks.
Offered here is a conceptual model that comprehensively describes essential aspects of corporate social performance. The three aspects of the model address major questions of concern to academics and managers alike: (1) What is included in corporate social responsibility? (2) What are the social issues the organization must address? and (3) What is the organization's philosophy or mode of social responsiveness?
As quality management has become more important in the tourist sector, the implementation of standardised quality management systems has become more common in this industry. A forerunner in this development has been the Spanish tourist sector, in which 17 specific quality management standards have been developed over several years in various tourist sub-sectors, including hotels, rural accommodation, restaurants, spas, and travel agencies. The present study, which is exploratory in nature, analyses the diffusion of these standards using a model that has been well attested in the specialised literature, together with a qualitative analysis of three practical cases. The study concludes that the standardisation of quality management in tourism will increase in coming years. The worldwide diffusion of ISO 9001 and ISO 14001 in many service sectors and the findings of the present study with respect to the increasing implementation of the Spanish standards provide an indication of what is likely to happen in the service sector as a whole in most countries.
Purpose
The purpose of this paper is to systematise the current state of research on the association between companies’ corporate social responsibility (CSR) engagement and financial analysts’ company assessment. Additionally, it aims to identify fruitful directions for future research that contribute to a further exploration of the link between CSR and financial analysts.
Design/methodology/approach
This study reviews and synthesises existing research on CSR and financial analysts. Based on the research question, “What is the relationship between CSR engagement and financial analysts’ metrics?,” the authors conduct a systematic literature review. The authors search three major databases and use an extensive search term to ensure exhaustive coverage of the field. The paper then systemises the current state of research and identifies knowledge gaps and potential directions for future research.
Findings
The review of existing research shows that several studies confirm a positive link between CSR performance and analyst coverage, suggesting that external monitoring through analysts incentivises companies to enhance their CSR engagement. Further, results indicate that a company’s involvement in “sin” industries is linked to lower analyst coverage. Besides, a higher level of CSR disclosure is positively associated with analyst forecast accuracy, thus indicating that the provision of CSR-related information is linked to an enhanced information environment. High levels of CSR performance are associated with more positive recommendations from analysts. However, recent surveys and interview studies on analysts’ perceptions of CSR fail to uniformly support an increasing interest in CSR.
Research limitations/implications
For a better understanding of the link between CSR engagement and financial analysts, two fruitful directions for future research are observed. First, future research designs should clearly differentiate between CSR disclosure and CSR performance and take account of interdependencies between them. Second, studies should address behavioural insights into how analysts process information and the influence of individual analyst characteristics on the link between CSR engagement and an analyst’s assessment of a company.
Originality/value
This study is the first to review the literature on the relationship between CSR and financial analysts. The association between CSR and financial analysts is particularly interesting given the pivotal role financial analysts play as information intermediaries in financial markets. This study delivers an in-depth understanding of existing studies and their theoretical underpinnings. Based on the existing literature, this paper develops innovative directions for future research.
Drawing on institutional and organizational learning theories, this study empirically investigates the imitation of corporate social responsibility (CSR) between firms tied by board interlocks, an important type of corporate social network tie. We propose a positive relationship between the CSR engagement of a focal firm and that of its tied‐to partners and examine how this relationship is moderated by the characteristics of both the focal and tied‐to firms. Using a sample of Chinese‐listed companies, empirical evidence is provided to show that a firm's engagement in symbolic CSR is in a positive relationship with that of its tied‐to partners; this relationship becomes stronger for smaller firms and those facing high uncertainty. Furthermore, when firms are linked to smaller firms, this relationship becomes more prominent. Our findings contribute to the CSR and social network literature, as well as the research on strategic imitation. Finally, implications for business management and government policy are discussed.
Using a sample of Corporate Social Responsibility (CSR)‐awarded firms in Taiwan during 2007–2016, this paper examines the impacts of various dimensions of CSR activities on firm financial performance, and investigates how the controlling shareholders' excess control right affects the relationship between CSR and firm financial performance. The empirical results show that the various dimensions of CSR activities affect firm financial performance differently. Moreover, the excess control right negatively affects the relationship between CSR activities and firm financial performance. CSR activities which are related to customers and employees have a significant positive impact on accounting‐based and market‐based performance for high and low excess control right firms. CSR activities which are related with environmental policy harm the accounting‐based financial performance of firms with a high degree of excess control right. Finally, the positive impact of community‐related CSR activities on the accounting‐based financial performance of firms is limited to firms with a low degree of excess control right.
We investigate the effects of national culture and corporate governance on corporate social responsibility reporting and the extent to which corporate governance has a moderating effect on the cultural influences on corporate social responsibility reporting. A total of 403 annual reports, corporate websites and corporate sustainability stand-alone reports pertaining to 203 companies in China, Malaysia, India and the United Kingdom were evaluated. Corporate social responsibility reporting is more prevalent in companies in countries in which the society is individualistic and also in societies where there is low power distance. Corporate social responsibility reporting is enhanced by corporate governance in the form of social responsibility board committees, while government ownership influences the reporting quality of corporate social responsibility reporting. Corporate governance moderates some of the detrimental cultural influences on corporate social responsibility reporting. These findings have implications for the development of guidelines for corporate social responsibility and sustainability reporting across countries. A further contribution is to show that national culture is associated with resistance to reporting corporate social responsibility, but that corporate governance can help to mitigate the influence of national culture.
Environmental degradation caused by human activities is of concern to society, government, industry, companies, and the people who are able to enjoy improved lifestyles because of industrial activities. However, all of these parties also have a responsibility to support and conserve the environment and act responsibly toward the earth. This article, which includes a systematic literature review and draws upon the authors’ practical experience, summarizes the benefits, motives, and difficulties in implementing environmental management systems using the International Organization for Standardization's (ISO) 14001 framework.
The corporate governance structures of firms differ among countries for cultural, political or social reasons, among others, which may affect the environmental reporting policies of firms. In this regard, institutional contexts where firms are domiciled vary among regions, and consequently environmental reporting policies of firms will depend on the institutional factors where companies operate. The aim of this paper is to examine how institutional features such as investor protection, ownership dispersion and market-oriented financial systems impact on environmental reporting policies of firms in different countries. The sample is composed of 5293 international companies, whose information was obtained from the Thomson Reuters Eikon database for the year 2015. The theoretical framework is based on institutional and stakeholder theories. Institutional theory argues that companies localized in the same institutional setting tend to behave in similar ways, and therefore the stakeholders’ attitudes toward environmental reporting will be similar. The findings report that companies operating in countries with high ownership dispersion and where the most important capital providers are capital markets are most likely to disclose environmental issues, while firms domiciled in countries with strong investor protection are not associated with environmental disclosure policies.
This paper examines the impact of environmental, social, governance (ESG) and sustainability initiatives on stock value of listed companies in Hong Kong. Event methodology is used to examine whether the market responses significantly to the implementation of these initiatives. Our result shows that the market reacts more positively to ESG initiatives than sustainability initiatives. This brings several implications to corporates' strategy as well as development of socially responsible investments (SRI). To facilitate the development of SRI, companies should communicate the value and returns of these initiatives clearly with investors; financial institutions should also equip investors with knowledge to understand non-financial information. Enhancing the transparency of sustainability index will also give investors more credible information to relate firms' CSR performance with firm value. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
Leading enterprises worldwide are proactively fulfilling environmental protection. This trend has elicited international attention. The corporate environmental responsibility (CER) framework was constructed based on the strategy these enterprises executed. This conceptual framework precisely determined current international advanced CER content. However, understanding the true intention of businesses that practice environmental management and protection through the CER framework is difficult, thereby making CER performance measurement indicators crucial. However, the lack of active CER performance measurement indicators resulted in the inability to reflect fully the effects of industry situation and business development on the living environment. Hence, this situation signals the urgency to construct CER performance measurement indicators that reflect fully industry situation and social needs. This study aims to address the deficiencies of CER performance measurement indicators in the academic circle, and construct a set of active CER performance measurement indicators that fully reflect the effects of industry situation and business development on the living environment. For this reason, this study employs content analysis method to establish CER performance measurement indicators based on the CER framework. This indicator provides an effective and applied CER performance measurement tool and offers the government with foresighted concepts of environmental protection.
Purpose
The purpose of this paper is to explore the relationship between corporate social responsibility (CSR) at the macro-level and well-established dimensions of national culture offered by Hofstede’s framework.
Design/methodology/approach
The authors employ a composite index for quantifying CSR proliferation and present new findings on the role of cultural specificity – proxied by Hofstede’s dimensions – on CSR endorsement among national business sectors.
Findings
Results indicate that cultural perspectives pertaining to “long-term vs short-term orientation” as well as “indulgence vs restraint” affect positively the composite CSR index, while “uncertainty avoidance” has a negative impact. In contrast, the effect of “power distance,” “individualism” and “masculinity” is found to be insignificant.
Originality/value
The study offers new insights to institutional theorists as well as political economy researchers for a deeper investigation of informal institutions, such as culture, which shape national or regional specificities of CSR and retain a moderating effect on the voluntary/self-regulation activities of business entities.
Based on a survey and content analysis of 76 empirical research articles, this article reviews the factors driving Corporate Social Responsibility (CSR) disclosure in both developed and developing countries. We find that firm characteristics such as company size, industry sector, profitability, and corporate governance mechanisms predominantly appear to drive the CSR reporting agenda. Furthermore, political, social, and cultural factors influence the CSR disclosure agenda. We find crucial differences between the determinants of CSR disclosure in developed and developing countries. In developed countries, the concerns of specific stakeholders, for example, regulators, shareholders, creditors, investors, environmentalists and the media are considered very important in disclosing CSR information. In developing countries, CSR reporting is more heavily influenced by the external forces/powerful stakeholders such as international buyers, foreign investors, international media and international regulatory bodies (e.g. the World Bank). Furthermore, in contrast to developed countries, firms in developing countries perceive relatively little pressure from the public with regards to CSR disclosure. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
Even as ethical branding gains increasing prominence, the effectiveness of specific communication and branding strategies remain somewhat unexplored. A content analysis was conducted to examine Fortune 500 companies' corporate social responsibility (CSR) advertisements and user comments on YouTube. The results showcase that involvement strategy of CSR communication is considered to be the most effective on social media, because social media as a communication platform is conversational and consumers expect to engage in more integrative and personalized relationship with the brands on such platforms. CSR messages on social media should demonstrate brand personality through brand anthropomorphism. Using more first-person pronouns to refer to the brand, incorporating more human representations, and using more imperative verbs will achieve more positive user comments. The findings further suggest that the success of ethical branding on social media lies in more interactive and engaging communications as well as branding strategies.
A very extensive academic debate is currently ongoing regarding the managerial decision to adopt an environmental management system compliant with ISO 14001 or Eco Management and Audit Scheme (EMAS), and the respective effectiveness of the two metastandards. According to the institutional theory, the adoption of metastandards is driven by the need for social legitimacy, thus generating isomorphism among firms. The few existing studies on the internalization of these standards requirements have considered only specific aspects of the management system, such as the use of operational procedures in daily practices or employee involvement. To fill this gap, we investigated the level of internalization of EMAS requirements, taking into account all the key elements of the Deming Cycle. Using data from 224 questionnaires from EMAS organizations, we tested whether EMAS adopters with a higher internalization of its requirements (a) have better environmental performance and (b) are more motivated to make environmental investments. Our results clearly show that opting for a metastandard does not necessarily lead to homogenous behaviors among adopters. However, the level of internalization of its requirements both in terms of the strategies and daily operational procedures is a key determinant in achieving a real improvement in performance.
This study outlines and tests two corporate social responsibility (CSR) views of dividends. The first view argues that firms are likely to pay fewer dividends because CSR activities lower the cost of equity, encouraging firms to invest or hoard cash rather than to pay dividends. The second view suggests that CSR activities are positive NPV projects that increases earnings and hence dividend payouts. The first (second) view predicts that firms with a stronger involvement in CSR activities should be associated with a lower (higher) dividend payouts. The finding supports the second view and is robust.
Corporate social responsibility (CSR) expresses a fundamental morality in the way a company behaves toward society. It follows ethical behavior toward stakeholders and recognizes the spirit of the legal and regulatory environment. The idea of CSR gained momentum in the late 1950s and 1960s with the expansion of large conglomerate corporations and became a popular subject in the 1980s with R. Edward Freeman’s Strategic Management: A Stakeholder Approach and the many key works of Archie B. Carroll, Peter F. Drucker, and others. In the wake of the financial crisis of 2008–2010, CSR has again become a focus for evaluating corporate behavior. First published in 1953, Howard R. Bowen’s Social Responsibilities of the Businessman was the first comprehensive discussion of business ethics and social responsibility. It created a foundation by which business executives and academics could consider the subjects as part of strategic planning and managerial decision–making. Though written in another era, it is regularly and increasingly cited because of its relevance to the current ethical issues of business operations in the United States. Many experts believe it to be the seminal book on corporate social responsibility. This new edition of the book includes an introduction by Jean–Pascal Gond, Professor of Corporate Social Responsibility at Cass Business School, City University of London, and a foreword by Peter Geoffrey Bowen, Daniels College of Business, University of Denver, who is Howard R. Bowen’s eldest son. © 2013 by the Estate of Howard R. Bowen and 1953 by the Federal Council of the Churches of Christ in America.
This paper relies on Gjølberg’s national corporate social responsibility (CSR) index while its purpose is twofold. First, it seeks to extend the methodological instrument for assessing national CSR and, second, it applies the new approach to a much larger pool of countries (n = 86) in an attempt to provide a global CSR outlook. The emergent picture from the study is one of deficient CSR penetration and wide variation among countries where most of the assessed countries are still lagging in the endorsement of international CSR initiatives and schemes. Findings offer fertile ground to theorists and researchers for a deeper investigation of the national specificity of CSR and to further identify institutional determinants that shape the social responsiveness and self-regulation of business entities. The study has also implications for managers and top executives to consider as it infers that the national background can be influential in the development of a CSR agenda and can condition the level of CSR penetration.
The values that determined business responsibility in the past are gone. Somehow, we must set up a new standard by which businessmen can evaluate their obligations to their company and to society. This article sets forth the basis for the new standard.
This paper traces the evolution of the corporate social performance model by focusing on three challenges to the concept of corporate social responsibility: economic responsibility, public responsibility, and social responsiveness. It also examines social issues management as a dimension of corporate social performance. It concludes that the corporate social performance model is valuable for business and society study and that it provides the beginnings of a paradigm for the field.
This study analyzes the worldwide diffusion of the Global Reporting Initiative (GRI) from the viewpoint of both a macro- and a microanalysis using data from the first decade of this century. For the macroanalysis, logistic curves were used to demonstrate the different stages and patterns in the dissemination of GRI in the different regions of the world that were examined. For the microanalysis, two indices—instability and concentration—were used to analyze and assess GRI diffusion across different sectors of activity. The findings are thus of considerable importance to the understanding of sustainability reporting worldwide. Moreover, they point to probable trends in sustainability reporting over the next few years.
The authors of the article analyze stakeholder-company relationship as factor enhancing competitiveness of companies. The building stakeholder-company relationship is described as a strategic business investment, opens new possibilities for companies and contributes to the attainment of competitiveness of companies. By emphasize the importance of stakeholder-company relationship the article treats of socially responsible policies, which implementation determines the building long-term stakeholders' trust as a basis for strong and enduring stakeholder-company relationship. The paper deals with the development of strategic policies of socially responsible Lithuanian companies. Companies in Lithuania in their relations with the stakeholders focus on realizing policies of transparent business, anti-discrimination and anti-corruption. Researched the impact of stakeholder-company relationship on enhancing competitiveness of company, the authors found that an active development of socially responsible policies positively influences business relationships with stakeholder groups and increases competitiveness of company in the global market.
It is impossible to consider enterprises apart from the society in which they exist. The concept of corporate social responsibility, prescribing that organizations engage in responsible behavior towards each of their shareholders in the society, has become a necessity today for all businesses although not at the same level for all. Despite the important benefits corporate social responsibility practices have for businesses such as gaining competitive advantage by increasing brand awareness and thus increasing profitability in the long-term, they also require additional financial resources. Similarly, since periods of crisis bring along certain dangers and opportunities, their effects on corporate social responsibility may be in different directions. In this study, the effects of the crisis on corporate social responsibility activities have been evaluated in the light of the developments following the 2008 global financial crisis and a model is proposed. As a result of the identifications regarding the theoretical background for perception of the crisis as a threat or opportunity for corporate social responsibility activities, both two situations are presented together in the proposed model.
This paper maps out 20 elements of corporate social responsibility (CSR) that businesses can adopt. The elements are based on international conventions, codes of conduct and industry best practice. The usefulness of the elements is tested in a survey of the written policies of companies in 12 countries in Europe and Asia. Results point to an emphasis on internal aspects of CSR and supply chain management. However, wider ethical, accountability and citizenship aspects of CSR are less well developed, and the paper points to a need for more action from the business community in this respect. With respect to many elements, Asian companies seem to be doing less than are European companies. However, there are some notable exceptions to this when it comes to elements associated with trade. Moreover, some significant differences in priorities can, in part, reflect issues that are identified as more important in specific countries. Although European companies are usually ahead of Asian companies with respect to their CSR agendas, there is great scope for companies to learn from each other.
This paper outlines and tests two corporate social responsbility (CSR) views of dividends. According to the "CSR as a cost” view, firms are likely to pay fewer dividends because of the crowding out effect of their involvement in costly CSR activities. According to the "CSR as an investment” view, CSR activities are positive NPV investment projects because marginal benefits they generate are far greater than marginal costs. The first view predicts that firms with stronger involvement in CSR activities should be associated with lower propensity to pay dividends and/or dividend payouts; the second view predicts the opposite. After accounting for zero-inflation problems, tests on a panel data of 3,459 U.S. companies over the period 1991-2010 support the "CSR as an investment” view of dividends because firms with higher aggregate CSR scores are more likely to pay dividends.
This article defines corporate social performance (CSP) and reformulates the CSP model to build a coherent, integrative framework for business and society research. Principles of social responsibility are framed at the institutional, organizational, and individual levels; processes of social responsiveness are shown to be environmental assessment, stakeholder management, and issues management; and outcomes of CSP are posed as social impacts, programs, and policies. Rethinking CSP in this manner points to vital research questions that have not yet been addressed.