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Does it pay to be good? Social responsibility and financial performance
Abstract
Corporate social responsibility can be viewed as a continuum ranging from companies engaged in illegal activities to those striving for social change. The data suggest that companies behaving in an illegal or irresponsible manner are hurt financially by such actions. However, being socially responsible offers no fiscal advantage to companies that merely comply with the legal mandates, or that engage in fragmented social responsibility activities, or that use the firm as an agent for social change. In contrast, it does help boost financial performance for companies that strategically target employee development and satisfaction as well as customer service.
... Thus, because of the variable study time, sample size, and sample type, the results were ambiguous. The use of diverse techniques for assessing CSR or using restrictive financial indices to measure FP could be the major reason of discrepancies in the outcomes (Koo, 2016;Jitaree, 2015;Nasieku et al., 2014;Ducassy, 2013;Weshah et al., 2012;Palmer, 2012). Furthermore, most previous literature applied CSR disclosure to assess CSR practices. ...
... CSR was employed as a dependent variable in certain research, whereas FP was used as an independent variable in others (Koo, 2016). Studies of (Lin et al., 2019;Jitaree, 2015;Santoso & Feliana, 2014;and Palmer, 2012) looked into the two directions for the link and found varied results. Some research found a favorable association between CSR and FP (Adiputra & Hermawan, 2020; Ahamed et al., 2014;and Palmer, 2012;), a passive linkage (Hashim et al., 2019;Karlsson et al., 2015;Iqbal et al., 2012;), or without relationship (Fernite et al., 2014 andFauzi et al., 2007). ...
... Studies of (Lin et al., 2019;Jitaree, 2015;Santoso & Feliana, 2014;and Palmer, 2012) looked into the two directions for the link and found varied results. Some research found a favorable association between CSR and FP (Adiputra & Hermawan, 2020; Ahamed et al., 2014;and Palmer, 2012;), a passive linkage (Hashim et al., 2019;Karlsson et al., 2015;Iqbal et al., 2012;), or without relationship (Fernite et al., 2014 andFauzi et al., 2007). ...
This paper examines the dynamic relationship between financial performance FP and corporate social responsibility spending CSRS in Jordan. The dynamic panel system GMM measurement was utilized for 164 listed companies in Amman stock Exchange. The results demonstrate that CSRS and accounting-based measurement have a beneficial association. There are no correlations between CSRS and market-based measurement, on the other hand. The findings indicated that Jordanian listed companies have a lot of room for improvement when it comes to exposing their CSR efforts across multiple dimensions, which might help the Jordanian government with its ongoing initiatives of social and economic transformation.
... Scholars also developed various scales to measure the stages of CSR practice. Johnson (2003) provided a model that helps us to understand the level of CSR practices in a given company. According to him, the first level of CSR is called illegal or irresponsible, where companies do not comply with society's norms and standards and the state's legal requirements. ...
... As discussed earlier in the literature review section, different models are used to understand the stage of CSR practices. Johnson's (2003) model of CSR stages is employed for this analysis. According to him, there are five stages of CSR. ...
This paper examines CSR approaches and practices of local firms in Ethiopia, where the state is still a key player in business life. Moreover, it assesses at which stage Ethiopian CSR is. This mixed-method study includes quantitative analysis through SPSS and qualitative content analysis. A revised CSR practices scale has been conducted on owners/managers and employees of 100 local companies in Ethiopia. Besides, the companies' official websites have been thoroughly reviewed using five variables to understand their CSR approaches and practices better. The findings reveal that Ethiopian companies practice CSR though it is at the stage of fragmented CSR and the priorities differ from the global trend. Most respondent companies generally have excellent legal practices and CSR practices toward employees and customers. However, philanthropy, social sustainability, and management of CSR are remarkably at a mediocre level. Content analysis shows similarity with the results of quantitative study, to the exclusion of philanthropy. Notably, the hierarchy derived from our research varies also with Visser's CSR model.
... The theoretical background of CS includes: a stakeholder and institutional theory, a resourceoriented concept, a new theory of "sustaincentrism". A stakeholder theory explains CS drivers by satisfied respective interests of stakeholders; an institutional theory explains evolution and diffusion of institutions into various areas of CS; a resource approach identifies what resources a company needs for an effective CS strategy; while the new CS theory formulates a detailed definition of CS and focuses on a shift from anthropocentric to a "sustainable centric" approach (Drucker 1984;Berman et al. 1999;Margolis and Walsh 2003;Johnson 2003;Halme and Laurila 2009;Blagov 2011;Nedosekin et al. 2019). ...
... (2) methods focused on assessment of social welfare, calculation of social indicators and indicators of social efficiency; (3) methods based on a comprehensive assessment of CSR; (4) methods of assessing corporate sustainability with a comprehensive assessment of corporate activities in environmental, social and economic areas (Table 1). (Ponomarenko et al. 2020;Szewrański and Kazak 2020;Smol et al. 2020;Tulaeva et al. 2019;Novikova 2020;Montiel and Delgado-Ceballos 2014;Freeman 1984;Drucker 1984;Berman et al. 1999;Margolis and Walsh 2003;Johnson 2003;Halme and Laurila 2009;Blagov 2011;Nedosekin et al. 2019;Endovickij et al. 2017;Epstein and Roy 2003;Klimova et al. 2018;Ivashkovskaya 2009). ...
As it is predicted that there will be a decrease in production at the oil and gas facilities that are currently operating, it becomes necessary to start developing new oil and gas fields. This results in changes to the state’s policy regarding the participation of private companies in the development and implementation of oil and gas offshore exploration and production new projects. Access to unique fields can be provided to the most socially responsible companies. The purpose of this study is to present the author’s methodology for assessing the dynamics of corporate sustainability. The methodology is based on the assessment of individual, well-founded indicators of sustainable development of companies. The proposed methodology takes into account factors in areas such as occupational health and safety, environmental protection and economic efficiency and identifies two performance indicators. The first indicator is an aggregated index for three groups of factors to assess company ratings relative to the performance of the best company. The second indicator is an assessment of the dynamics within the company relative to the previous values of indicators of corporate social responsibility. The research results obtained using the proposed methodology show that oil and gas companies differ significantly in terms of corporate sustainability. The developed methodology for assessing corporate sustainability is of practical importance and can be used by companies in the analysis and planning of operating and investment activities that ensure the achievement of goals of corporate social responsibility.
... The benefits of an enhanced reputation include increased customer and investor loyalty, less scrutiny from society, and increased intangible assets (Palmer, 2012). Globally, organizations invest huge amounts in CSR to improve their financial performance through the retention of current employees, encouraging new employees to join, and attracting new shareholders, based on due to the organization's positive image. ...
... With the enhancements in corporate reputation due to CSR programs, companies can achieve a competitive advantage by attracting more prospective employees. This both helps companies to attract higher-quality employees and to improve employee relations, which boosts productivity in the long term (Palmer, 2012). Organizations that are socially responsible make strenuous efforts to create a work environment that is meaningful and conducive for their employees, thus enabling them to achieve their full potential. ...
This paper aims to explore the impact of corporate social responsibility (CSR) activities on non-financial performance of manufacturing firms in eastern India. It also attempts to assess the mediation effect of reputation and trust on the association of CSR and non-financial performance. Data were collected from employees in public-sector organizations in Eastern India (Jharkhand and West Bengal states) using an online structured questionnaire. Confirmatory factor analysis was used to test the proposed model’s overall fit, validity, and reliability. Further analysis was conducted using structural equation modelling with AMOS. Findings suggest that the CSR activities enhance trust and reputation, which further enhance non-financial performance. Also, CSR activities directly influence non-financial performance. The mediation effect of trust and reputation was also established on the association of CSR and non-financial performance. Organizations need to focus further on their CSR activities to enhance trust and reputation within the organization and increase non-financial performance. Theoretical and practical implications are discussed. This paper adds to the body of knowledge in terms of the mediating role of reputation and trust on the association of CSR and non-financial performance.
... Te mainstream literature examines the relationship between CSR and frm value empirically using panel data. Most studies assume a linear or nonlinear relationship between these constructs and that a signifcant positive correlation exists between them [1]. In fact, most studies conclude that engagement in CSR activities is conducive to the improvement of frm value [2]. ...
The purpose of this paper is to explore the relationship between corporate social responsibility (CSR) and firm value in the Chinese market and identify factors that may influence it. We discuss the relationship between CSR engagement in Chinese firms and firm value from a nonlinear perspective. In addition, we examine how the degree of internationalization in a firm may affect the relationship between CSR and firm value. We employ the Hausman test to compare a random-effects and a fixed-effects model, and after testing and comparison, the fixed-effects model was chosen in our paper. Using data from 314 firms listed in China’s A-shares market from 2010 to 2017, we verify the U-shaped relationship between CSR and firm value. Meanwhile, the degree of internationalization will affect firm value but cannot positively regulate the relationship between corporate social responsibility and firm value.
... Its fundamentals, such as aqidah (creed), ibadah (worship) and akhlaq (practice of virtue), are not subject to change; however, their implementation in other areas, such as economics, business and others, may require flexibility and improvement (Khurshid et al., 2014;Kamali, 1989). CSR does not simply involve strategic or instrumental actions conducted by corporations to develop goodwill or long-term financial performance (Burke, Logsdon, 1996;Lantos, 2001;Johnson, 2003;Husted, 2003;Greenfield, 2004;Garriga, Mele, 2004). Some scholars claim that, in legitimacy theory or social contract theory, CSR consists of actions to legitimize corporations' existence and survival in society (Tomer, 1994;Suchman, 1995;Deegan, 2002;Dusuki, 2008). ...
Purpose: The aim of the article is to present the role played by ethics and religion in shaping the concept of corporate social responsibility (CSR) on the example of Islam. Therefore, this paper focuses on CSR in Islamic companies and attempts to discover whether Islamic countries are a cultural circle where culture and religion are advantageous when developing CSR.
Methodology/approach: A case study was used to determine CSR disclosure in airlines.
Findings: The results showed that ethics and philanthropy were important to CSR disclosure in Islamic companies. Religion in Islamic countries has a huge impact on companies disclosing their philanthropical and ethical activities.
Practical implications: This paper will better enable academics and practitioners to understand CSR problems in Islamic countries. Our research underlines the role of ethics and religion in the context of CSR.
Originality/value: This paper makes an important contribution by highlighting the importance of ethics to CSR in Islam countries and raises the possibility of CSR reporting being adopted in Islamic companies.
... According to Johnson (2003), CSR is a form of the company's efforts and commitment to positively impact the community and other stakeholders in its business activities. The company is expected to be able to generate products that provide benefits not only for the community but also for the environment. ...
Purpose
The authors analyzed the relationship between chief executive officer (CEO) facial masculinity and the level of corporate social responsibility disclosure (CSRD).
Design/methodology/approach
The authors conducted research for 2011–2019, covering companies listed on the Indonesian Stock Exchange. This study used an ordinary least squares regression, the coarsened exact matching (CEM) and propensity score matching (PSM) procedure in testing the hypothesis.
Findings
Based on the results of analysis, it is known that CEO facial masculinity is negatively related to corporate CSR disclosure levels. However, this negative relationship can be mitigated through governance mechanisms: the audit committee.
Research limitations/implications
This paper provides implications in the field of research, especially regarding the biological attributes of CEOs in relation to CSR.
Originality/value
As many previous studies focused on the managerial aspect of the CEO, this study focused on the biological aspect of CEO. To the authors’ knowledge, this study is among the first to attempt to investigate this issue in an emerging market.
... This was an upsurge from 35 percent in 1999. (Palmer, 2012) As per Friedman (1970), he has mentioned that each firm is different to each other when implementing the corporate social responsibility and its activities. The differences are depending on some unique factors such as the size of the specific firm, the involved industry, the firm's business culture, stakeholder demands, and so on. ...
... The CSR concept has considerably developed since the 50s, when Bowen (1953) pointed out that enterprises have the obligation to implement policies reflecting social expectations. Since then, various definitions of CSR have been developed, including, inter alia, the conceptualizations proposed by Frederick (1960), Carroll (1979), Clarkson (1995), and Johnson (2003). Carroll (1991) argued that the responsibility of the company involves several aspects, such as economic, legal, ethical, and philanthropic, which need to be fulfilled in the given order. ...
Purpose
CSR strategy during the COVID-19 pandemic crisis and the recovery process emerges as a new research area in tourism and hospitality. Hence, the purpose of this study is to assess adaptations of CSR strategy during the crisis.
Design/methodology/approach
Research aims concentrate on identification of a CSR strategy framework and its adaptations during the pandemic in a selected hotel chain. A single case study, based on a content analysis of such documents as ESG strategy and reports, annual and quarterly reports, and other data, has been employed.
Findings
CSR strategy has been embedded in the corporate strategy and has been strengthened during the pandemic as the crisis has affected the company and its stakeholders. CSR strategy has been adapted to meet stakeholders’ needs, including employees, customers, communities, and environment.
Practical implications
During crisis, it is important to highlight and strengthen the company's commitment to sustainability; redirect strategy towards supporting businesses, employees, and communities; adjust the strategy to the evolving environment; provide safe tourism products; implement own sustainable and innovative programs and solutions; and prepare for recovery.
Social implications
CSR strategy contributes to sustainable tourism and is especially beneficial in a time of crisis due to the companies’ ongoing commitment towards stakeholders.
Originality/value
The value of the study lies in practical implications regarding CSR strategy in the pandemic, its adaptability potential in the crisis circumstances, and preparation for recovery. The study contributes to crisis management in the hospitality industry, and its novelty is linked to the specific context of the pandemic.
... Increasing public interest in the activity of the companies on their environmental responsibility encourages socially responsible companies in a new way to look at this problem, because it is directly related to the quality of life of people living now and for future generations (Johnson, 2003). ...
... Financial Performance Palmer (2012) defined the term performance as the output results from processes, products and services that permit evaluation and comparison relative to goals, standards, past results and other organizations. Performance can either be financial or non-financial. ...
This study was based on the manipulation of accounting figures and the financial performance of listed firms in Nigeria between the periods of 2007-2019 (Thirteen years). Ninety (90) firms were drawn as research samples among one hundred and nine (109) listed non-financial firms in Nigeria. The study was done quantitatively and conducted from secondary data obtained from the annual reports of various firms. Descriptive statistics and correlation analysis were used to determine the nature of the relationship between the independent and dependent variables. Given the hypothesis formulated for this research, the method of model estimation employed was a panel regression analysis with the aid of Stata 14 software. The findings revealed that some manipulation techniques such as incorrect asset valuation and timing of assets transaction impact positively on return on assets, thereby justifying the act, albeit unethical. Other techniques such as revenue falsification and understatement of liabilities were seen to negatively impact the return on assets. The study recommends among others, that investors should employ the services of competent financial analysts to scrutinize financial statements of firms they want to invest in.
... The study of Palmer (2012) showed that CSR programmes have positive impacts on the bottom-line and that it also leads to increases in gross margin, indicating that some customers are willing to pay a premium for the products and/or services of a company with CSR initiatives. Mittal, Sinha & Singh (2008) investigated the relationship between CSR and organisational profitability in terms of economic value added (EVA) and market value added (MVA). ...
This publication adds to a growing body of scholarly
work currently being undertaken in the field of
corporate social responsibility. There are many parts to
the book, each providing a roadmap to understanding
critical issues in corporate social responsibility. The
book treats key areas in corporate social responsibility.
The book is in fourteen chapters. The breadth of the
book is deep and the approach is diagnostic and
prognostic; the book is, therefore, a rich resource
communication book for students and lecturers in
tertiary institutions; advertising practitioners and public
relations practitioners and multinational corporations.
... In the similar context, these findings were consistent with the study of Waddock and Graves (1997). Likewise, Palmer (2012) examined the association between social performance and firm performance in the context of S&P 500 firms. Using a time series analysis, the results indicated that there is a significant positive association between CSR and firm performance. ...
Days are gone when the corporates use to be responsible for the goals of the
organization, now it has to equally think about the society which is directly or
indirectly getting affected with the policies, taken such care of the society is termed
as Corporate social responsibility (CSR) it is being the way through which a
company achieves a balance of economic, environmental and social imperatives
(“Triple-Bottom-Line- Approach”), focusing on people ,planet and profit. While at
the same time addressing the expectations of shareholders and stakeholders, as
explained by United Nations Industrial Development Organization (UNIDO). It is a
corporate initiative to assess and take responsibility for the company’s effects on
the environment and impact on social welfare, became noticeable over the last two
decades as the policies and the practices where not upto the codes and standards.
CSR is a tool used to integrate societal objectives with the company’s operations
and growth. It has become mandatory now for the companies and have its policies.
Keywords: Corporate Governance, Corporate Social Responsibility, Mandates,
Sustainable Development,Transparency
... Thus, organizations that are defined as 'legitimate' have to deal with a gap between their interests and those of stakeholders (Kiliç et al., 2015;Pucheta-Martínez & Gallego-Alvarez, 2019). As this gap widens, organizations lose their legitimacy for three reasons: first, the worsening of their ESG performance; second, the irresponsible environmental and social behaviour linked to illegal CSR activities (Johnson, 2003) and, third, a change in the stakeholders' belief (Laidroo & Ööbik, 2014). ...
This study investigates how environmental, social, and governance controversies affect bank risk taking. By estimating a dynamic panel data model from 2011 to 2020, we find evidence that banks with fewer ESG controversies take less risk. Banks with a lower number of ESG controversies show their compliance with the implementation of ESG strategies to reduce risk, as evidenced by lower risk‐weighted assets and higher Z‐scores. The present study supports the recent guidelines on climate‐related and environmental risks published by the Basel Committee on Banking Supervision and the European Central Bank. Therefore, the main results strengthen the need for the integration not only of social and governance risks but also of climate‐related and environmental risks in banks' risk management framework.
... The number of empirical studies focusing on the impacts of CSR has grown substantially since the 1980s. Some of these studies have attempted to identify how CSR affects business performance and provided empirical evidence on the relationship between corporate behaviors and organizational reputation, competitiveness, and sustainability (Burke and Logsdon, 1996;Porter and Kramer, 2002;Johnson, 2003;Snider et al., 2003). Numerous studies identified that CSR is often an antecedent of financial performance (Margolis and Walsh, 2003;Orlitzky et al., 2003;Allouche and Laroche, 2005;Van Beurden and Gossling, 2008;Moser and Martin, 2012;Velte, 2021). ...
Although the impact of entrepreneurs’ social identity on successful entrepreneurship has attracted much scholarly attention, it is often to evaluate successful entrepreneurship through direct channel to financial performance. Recently, there is a growing body of researches beginning to pay attention to the impact of entrepreneurs’ social identity on corporate social responsibility (CSR) regarded as indirect social aspect channel to successful entrepreneurship. However, little is known regarding how entrepreneurs’ Darwinian social identity affects CSR, which in turn, affects business performance. This study addresses this issue by combining stakeholder theory with social identity theory, to investigate the relationship between entrepreneurs’ Darwinian social identity and business performance via CSR. In addition, the moderating effect of entrepreneur’s well-being is further examined to uncover the interaction effect of the individual psychological resource on business performance. The empirical results indicate that entrepreneurs’ Darwinian social identity contributes positively to CSR, so as further to business performance. In addition, this relationship is further found to be significantly moderated by entrepreneurs’ well-being. The results indicate that entrepreneurs can achieve business success via CSR, by which entrepreneurs can further acquire successful entrepreneurship through caring more about their well-being.
... However, SMEs in China are confronted with some issues, such as environmental pollution, over-utilization of resources and lack of social responsibilities such as employment relations problems driven by economic interests in recent years, which have affected the sustainable growth of enterprises and the harmonious development of society to a certain extent. In terms of external stakeholders, some scholars have explored the influence mechanism of corporate social responsibility on corporate financial performance (Waddock and Graves, 1997), consumers (Luo and Bhattacharya, 2006) and corporate reputation (Johnson, 2003). Although some scholars have initially explored the positive correlation between corporate social responsibility and employee turnover rate based on the social identity theory (Ng et al., 2019), they have not explored the impact path of corporate social responsibility on employee turnover intention based on the level of employees as an internal interest group (Chen and Donna, 2020;Fang et al., 2021). ...
As an important organizational strategy and action that affects employee perception and attitude, corporate social responsibility is essential for small and medium-sized enterprises (SMEs) to reduce turnover rate and achieve sustainable growth. This paper integrates social identity theory and social exchange theory to construct an external reputation mechanism and internal trust mechanism to explore the influence mechanism of corporate social responsibility on employee turnover intention and the intermediate transmission mechanism of psychological contract. The research results show that corporate social responsibility has a significant negative impact on employee turnover intention. Compared with external corporate social responsibility, internal corporate social responsibility has a stronger negative impact on employee turnover intention; corporate social responsibility has a significant negative impact on employee transactional psychological contract, while corporate social responsibility has a significant positive impact on employee relational psychological contracts; transactional psychological contract has a significant positive effect on employee turnover intention, while relational psychological contract has a significant negative effect on employee turnover intention; psychological contract has a significant and complete mediating effect on the relationship between external corporate social responsibility and employee turnover intention, and the psychological contract plays a significant part of the intermediary role between the internal corporate social responsibility and the employee turnover intention. The conclusions enriches the complex relationship between corporate social responsibility and employee turnover intentions, and provides a reference for SMEs to effectively perform internal and external social responsibilities and reduce employee turnover rates.
... Richardson and Welker used a sample of Canadian companies from 1990-1992, found a significant positive relationship between social disclosure and the cost of equity capital, a positive relationship that was mitigated among companies with better financial performance, where companies may will be financially penalized to some extent for having disclosed socially responsible information [54]. The findings of Johnson suggested that a firm's illegal or irresponsible attitude will hurt it financially and have a negative impact on the firm's financial performance, however, merely complying with legal requirements or undertaking sporadic social responsibility will not bring any financial advantage to the firm [55]. Stanny and Ely found that there was no significant correlation between carbon disclosure and investment, and carbon disclosure did not promote company performance [56]. ...
In the context of low-carbon constrained development, in order to avoid the risk brought by climate change, more and more companies choose to disclose carbon information, respond to the national policy of carbon emission reduction and focus on the sustainable development of enterprises. This paper will investigate the impact of carbon disclosure on financial performance based on the 2011–2018 CDP report, taking the Fortune 500 companies as a sample. The study finds that for carbon-intensive industries, carbon disclosure cannot significantly contribute to the improvement of financial performance in the current period, but for carbon-non-intensive industries, carbon disclosure can significantly contribute to the improvement of financial performance in the current period, and the positive impact of carbon disclosure on financial performance in the current period can be extended to the next period. Finally, based on the findings of the empirical study, this paper puts forward policy recommendations for the construction of China’s carbon disclosure system.
... The requirements of sustainable development and the effects of including it in the enterprise's strategy turn out to be varied in different sectors [41,42]. Individual enterprises can improve the effectiveness of their CSR initiatives, adapting them to the specific nature of the sector, which is reflected in their financial results [43]. ...
The article refers to the issues of financial profitability of undertaking CSR activities, which is widely reported in literature. The four largest electricity producing companies in Poland were selected for the analysis. The research period covers the years 2009–2019, when the index of socially responsible companies was operating on the Warsaw Stock Exchange. The main purpose of the article is to compare the profitability ratios and quotations of energy companies in Poland declaring themselves socially responsible with companies of the same sector that have not expressed such a declaration. The results obtained on the basis of descriptive statistics, concerning profitability ratios and stock market quotations, indicate no relationship between their level and stability and the companies’ declarations of compliance with social responsibility. Companies declaring themselves socially responsible were placed in the ranking between the results of companies that did not belong to the indicated index. This may be the result of the specific situation of energy companies in Poland.
... En cuanto a la relación entre las prácticas de RSE y el desempeño económico, son muchos los autores que abordaron esta temática en otros países; algunos de los principales hallazgos están asociados a una relación positiva entre la RSE y la rentabilidad positiva (Alonso-Almeida et al., 2012;Charlo Molina & Moya Clemente, 2010;Chivite & Enciso, 2015;Valenzuela Fernández et al., 2015; entre otros), así como, la relación positiva entre la RSE y el desempeño empresario (Weber et al.,2008;Ríos Manríquez et al.,2015;Palmer, 2012). Por otra parte, también se destaca la relación positiva entre la RSE y el éxito competitivo (Marín Rives & Rubio Bañón, 2008;Larrán, et al., 2013;Gallardo Vázquez et al.,2013). ...
El objetivo de esta investigación es analizar el efecto de la Responsabilidad Social Empresarial (RSE) y sus dimensiones en el desempeño económico de las empresas argentinas que -adheridas a la Global Reporting Initiative, cotizan en la Comisión Nacional de Valores (CNV). Los resultados obtenidos confirman la “hipótesis de las variables moderadoras”, al evidenciar que entre la RSE y el desempeño económico no existe ninguna correlación.
... CSR is an effort and commitment from the company to positively impact society and other stakeholders over its business processes [42]. Companies must be able to produce products that can provide value-added to society and the environment. ...
This study aimed to analyze the relationship between busyness, tenure, and the frequency of CEO meetings and corporate social responsibility (CSR) disclosure. This study used 624 observations from 78 companies listed on the Indonesia Stock Exchange and the Global Reporting Initiative (GRI) database for the 2010–2018 period. This study indicated that companies with busy CEOs or CEOs with long tenure produce fewer CSR disclosures. On the other hand, companies with CEOs who frequently attend board meetings generate more CSR disclosures because they can absorb a lot of useful information to address the changing social and environmental issues. Companies can limit the activities and tenure of the CEO and increase the awareness of the CEO to attend board meetings to encourage the firm’s sustainability. Companies with busy CEOs and long tenure result in less CSR disclosure. Furthermore, the frequency of CEO meetings can enhance CSR disclosure.
... The impact of CSP on CSR and of CSR on CSP both has tested and verified. (Palmer, 2012).There is a positive relationship between CFP and CSP under the slack resource theory and under good management theory. Slack resource theory is developed based on the view that a company is able to carry out its activities because of the resources owned by the company, which have normally been dedicated to the predefined activities. ...
The increasing expectations of people from the corporate world to fulfill their social responsibility, has been one of the causes of businesses being so responsible towards environment and society. The need to study the impact of company's financials on CSR emerges due to the fact that better performance of companies will lead to more expenditure on CSR. The aim of this study is to understand the effect that, financial performance has on the company's CSR. We have taken financial data of companies that are part of one of the largest indexes, i.e. NIFTY 50 and tried to analyze the implication of variation in profits, turnover and EPS on the amount that companies spend on their CSR activity. Though it is mandatory for prescribed companies to spend certain money on CSR, we are trying to capture their will to go an extra mile if they are capable of doing it. All the companies are compliant, but is the nature of compliance in the letter of law or spirit of the law. The study shows that a company with higher net profit and turnover is likely to spend more on CSR activities. As the CSR expenditure increases the EPS of the company decreases.
... The firms lose market share if they experience negative CSR news coverage (Kang and Kim, 2014). Illegal and irresponsive behaviour of firms hurt their financial performance (Johnson, 2003) and inject negativity in the stakeholders' mind. To recover the public image, sensitive industries disclose more information in sustainability report and their ESG performance is higher than other sectors (Garcia, Mendes-Da-Silva and Orsato, 2017). ...
This study examines the consequence of environmental, social, and governance (ESG) performance on oil and gas firms' financial risk. This study uses an international sample of 70 oil and gas firms from 2010 to 2018 and applies two-stage least squares panel regression analysis to defaecate the endogeneity issue. This study finds an adverse effect of ESG performance on total risk. Board gender diversity adversely influences the total and systematic risk. Also, board gender diversity and ESG controversy have a substantial moderating effect on ESG and financial risk connection. The findings are consistent with the stakeholder, risk management and legitimacy theory. The firms that perform reasonably on ESG have lower total risk. However, the firm's negligence on ESG and involvement in ESG controversies moderates ESG-total risk nexus. Similarly, women's weak participation on board considerably moderates and escalates the association between ESG and financial risk. The findings will help investors and portfolio managers evaluate how ESG, ESG controversy, and board gender diversity influence firms' financial risk and help them make better investment decisions. Additionally, regulators can revise the ESG and ESG controversy disclosure criteria and make them accessible to all stakeholders for better decision making.
... The concept of corporate social responsibility (CSR) has a long history that goes back two centuries ago; Bowen is the father of CSR for his work Social Responsibilities of the Entrepreneur, published in 1953 [1]. Concerns about CSR have grown rapidly over the past two decades; in fact, from the beginning of the Industrial Revolution and until relatively recently, some authors assumed that the responsibility of companies was solely to maximise profits [2][3][4][5][6][7][8][9]. However, although the character of the organisation or company is aimed towards obtaining a surplus, its activity is ultimately subordinate to the objectives of the community in which it is developed [10] and its balance with the environment [11]. ...
Corporate social responsibility (CSR) has been the subject of extensive research, especially during the past two decades; however, few academic studies investigated the relationship between CSR and employee behaviour. This study reduces this gap by identifying the degree of association between CSR and the proenvironmental behaviour (PEB) of workers. These concepts were analysed among companies that are recognised as being socially responsible and others that are not; not enough empirical evidence was found to determine if these are positively affecting employee PEB in the Mexican context. The methodology was quantitative through questionnaires addressed to workers from renowned companies in Mexico, and analysed by using structural equation modelling (SEM) in AMOS software. Results showed that the CSR practices of the companies with a badge and the PEB of their workers are poorly related. The average of compliance with global CSR practices for companies that have a badge is less than or equal to that of those that do not. Conclusions indicate that CSR could occur only in declarative terms from the workers’ perception.
... Farhan (2016) found that some banks, despite their low profits during some years, were committed to their social responsibility to the local community and as it relates to their human resource management, such as developing their capabilities through training and education. Many of the studies agree the relationship between corporate social responsibility and financial performance is positive (Hull & Rothenberg, 2008;Palmer, 2012;Uadiale & Fagbemi, 2012). ...
The paper examines the impacts of the various sustainability dimensions on the financial performance of commercial banks in three Arab countries. Three dimensions have been considered as constitutive of the term sustainable development (social, economic, and environmental). The relationship between the sustainability dimensions of companies and accounting indicators was analyzed. The main hypothesis posits that the dimensions of sustainability do not have a significant and positive effect on the financial performance of the commercial banks. The study population consisted of commercial banks operating in three Arab countries (Oman, United Arab Emirates, and Jordan); the period of the study is from 2007 to 2018. The data were collected from the financial reports and sustainability reports of each bank through the Internet. The overall results of the study showed a moderately positive relationship between all sustainability dimensions and the banks' financial performance. The main contribution of the research is to study the dimensions of sustainability reports as contained in the Global Reporting Initiative (GRI-G4) and their impacts on the financial performance of commercial banks. Thus, this research will contribute to increasing the interest of the banks in sustainable development in a context where this research in Arab countries is scarce.
... Investors preferences with regards to CSR[4] Source: Statista.com ...
Corporate social responsibility (CSR) is an extension of the corporate role which encompasses
the economic, legal, ethical, and philanthropic responsibilities that a company must fulfill,
such that it improves the overall quality of life of the community around it. Sustainable
development (SD) on the other hand involves operations that have a minimal impact on the
environment. However, in today’s global environment, governments around the world are
implementing stricter environmental regulations and supporting higher standards of living
for their citizens. This socially and environmentally conscious undertone has made it
imperative for organizations to address issues related to CSR and SD seriously and in many
cases with the highest urgency. Successful implementation CSR and CS strategies are very
vital for oil and gas industries due to fact that these industries are very responsible for the
global environment as well as these companies represent the top wealthy industries of the
world. The three oil and gas industries (Shell, BP, and Total S.A.) that have been analyzed in
this project work, demonstrate that their CS and CSR strategies are not the same and there
is scope of improvement. From the comparative analysis, BP’s investment (0.8% of the net
annual profit) in community development is very low compared to the investment in
community development of Shell (5.5% of Net annual profit) and Total S.A. (4.77% of Net
annual profit) which clearly indicates that BP’s CSR strategies are not sustainable also BP’s
TBL aspects are not balanced in this case.
... Farhan (2016) found that some banks, despite their low profits during some years, were committed to their social responsibility to the local community and as it relates to their human resource management, such as developing their capabilities through training and education. Many of the studies agree the relationship between corporate social responsibility and financial performance is positive (Hull & Rothenberg, 2008;Palmer, 2012;Uadiale & Fagbemi, 2012). ...
... CSR has become more popular due to the current phase of globalization which insists every organization to invest in CSR for the sake of verally development of the society and imprving the environmental performance too (Grewal & Dutt, 2019). According to Johnson (2003) CSR is doing the primary goal of business entity like; profit earning and safeguarding the interst of the stakeholder, also considering the interst of society and the community in which they are operating. According to Hopkins(2003) this is the ethical responisbility of every busness firm to behave in a socially responsibe manner towards all stakeholders. ...
The main purpose of the study is to analyze the impact of corporate social responsibility awareness of employees on their satisfaction level. Employee satisfaction simply means how much satisfied the employee is with his or her job. This satisfaction is attributed to a variety of factors like workload, teamwork, compensation, flexibility, recognition etc. It is the social responsibility of the organization towards its employees to keep them satisfied and motivated. A happy and satisfied employee remains loyal towards the organization and keeps his job on his priority. CSR deals with the relationship of any organization with its; stakeholders. These stakeholders are society, government, buyers, suppliers, customers and employees. This study is focused towards the employees only. Only a few researchers have given importance to the concept of CSR in employee satisfaction in retail banking sector and the number of researches on comparative study on retail banking are very less. Linear Regression analysis and independent sample t-test has been used to compute the results on SPSS 20. It has been found that both the banks whether it is public or private, are conducting CSR activities. The employees of both the sectors are pretty much aware about the CSR policies and activities running by their respective banks. No significant difference has been found in the awareness level about CSR of the employees of select public and private sector banks. A significant impact of employee CSR awareness on the employee satisfaction level has been found in the study. Somewhere the employees feel motivated and loyal towards their banks because their banks are indulged into a number of CSR activities.
... The results also reveal a negative relationship between environmental disclosure and CFP, which indicates that disclosure of environmental impact information could be value destroying in Nigeria. (Palmer 2012) explored and tested the relationship between CSP and corporate financial performance (CFP). Unlike prior research, this study additionally tests the impact of CSP on sales and gross margin. ...
The paper describes the relationship between CSR and financial performance. The purpose of this paper is to sum up the measures used to proxies these constructs. For this purpose, a storyline review of related articles is done and relevant measures have been summarized. In the extensive literature, CSR is measured by using the following methods like content analysis, reputational indices by rating agencies, and questionnaire methods. The measures used for financial performance are accounting-based measures (i.e., Return on Assets, Return on sales, capital employed), market-based measures (i.e., stock returns and market value of the company), and common indicators (i.e., Tobins’ Q and market value-added). Each of the measures discussed above has its own pros and cons.
... The proponents of this theory argue that businesses can choose several social programs for good public relations reasons, such as competitive advantage or other strategic reasons without leaving the interests of the main stakeholders, i.e. shareholders. The maintenance of a good corporate reputation through CSR initiatives can add reputational capital, where the company may be profitable in the long run because market forces provide financial incentives for socially responsible behaviour (Burke & Logsdon, 1996;Fombrun et al., 2000;Garriga & Melé, 2004;Greenfield, 2004;Husted, 2003;Johnson, 2003;Lantos, 2001Lantos, , 2002Quester & Thompson, 2001;Windsor, 2001). ...
This study aims to determine whether or not there is a discrepancy in Corporate Social Responsibility (CSR) disclosure between sharia and conventional banks in Indonesia, and which CSR aspects are better between those two types of the banks. This study applied a quantitative approach. The analysis method used in this study to test the hypothesis was independent sample t-test. The method was applied to determine whether there is a significant difference in the average value between sharia and conventional banks. The number of samples in this study were 40 consisting of 20 Islamic banks and 20 conventional banks. The data taken were those between 2011 and 2014 which contained the information related to CSR. The results of this study indicated that there were significant differences in CSR disclosure between sharia and conventional banks. On average, CSR disclosure rate of sharia banks was higher than that of conventional banks. The weaknesses of CSR disclosure of sharia banks were in the aspects of environment and general information, while the weaknesses of CSR disclosure of conventional banks were in the aspects of energy, health and safety of the employee, product, and society involvement. Due to the limitation of this study in compiling the aspects of variables presented in Global Reporting Initiative (GRI) and Islamic Social Reporting (ISR), it is suggested for the future study to do further detail analysis to compile and to combine with the primary data in order to get the precise quality of the data disclosed by each bank.
... Respecto a los resultados, se concluyó por una parte que un mejor desempeño en RSE genera un aumento en el margen bruto de ventas. Este resultado sugiere según Palmer, H (2012) que algunos clientes están dispuestos a pagar un precio más alto por los productos y/o servicios de empresas con programas de RSE efectivos. Muchas firmas acompañan aumentos en las inversiones de RSE con aumentos en su precio de productos/servicios. ...
Si bien el tema sobre Responsabilidad Social Empresaria (RSE) ha sido ampliamente estudiado, no hay investigaciones que se centren en analizar las prácticas de RSE que están implementando las empresas argentinas, así como que indaguen si las mencionadas prácticas guardan algún tipo de relación con la rentabilidad y la reputación corporativa. La ausencia de conocimiento sobre el comportamiento de las empresas argentinas sobre esta temática se considera de interés y un desafío que implica reflexionar acerca de un problema organizacional de actualidad, puesto que no se cuenta con esta información que es clave para la gestión empresarial.
El planteo general del problema de la investigación genera un conjunto de interrogantes que pueden agruparse en dos categorías: 1) implementación y medición de prácticas de RSE de las empresas argentinas y 2) relación entre la implementación de prácticas de RSE con el desempeño económico y la reputación corporativa.
El objetivo general es:
• Desarrollar una metodología integral para la medición de prácticas de RSE.
Los objetivos específicos son:
1. Identificar indicadores relevantes para la medición integral de prácticas de RSE.
2. Diseñar la metodología para la medición integral de prácticas de RSE.
3. Validar la metodología para determinar el nivel de aplicación de prácticas de RSE en las empresas argentinas.
Respecto a la metodología, en una primera parte tiene un carácter exploratorio y cualitativo, luego para el diseño y validación de la metodología desarrollada, se efectúan análisis de tipo cuantitativo.
La población objeto de la validación son las 37 empresas argentinas adheridas a la Global Reporting Initiative (GRI) que cotizan en la Comisión Nacional de Valores (CNV), durante el periodo 2012-2016.
Algunas de las principales conclusiones a las que se arribaron:
- Las empresas que elaboraron las memorias de sustentabilidad presentaron mayor divulgación de prácticas de RSE respecto a las dimensiones Medioambiental, Prácticas sociales, Derechos humanos y Prácticas laborales y trabajo decente.
- Cuanto menor sea el tamaño de la empresa, tanto mayor será la aplicación de prácticas de RSE de manera integral.
- “Hipótesis de las variables moderadoras” la que establece que entre la RSE y el desempeño económico no existe ninguna correlación, en cuanto la variable de RSE no puede alterar la variable desempeño económico, ni viceversa, la relación no es clara, ni significativa.
El esfuerzo por seguir estudiando este tema bien vale la pena, pues a través de la RSE es posible construir una sociedad mejor en la que se obtenga un progreso sustentable dentro de la ética hacia todos, en un camino hacia el bien común.
... The concept could be used in practice as an example by criticizing Shell's oil company for its drilling practices in Nigeria in the 1990s. The organization retained consultants that used the TBL system to turn Shell's derogatory picture into a more optimistic one to boost its corporate profile [21]. The 3Ps also have a social, environmental, and financial dimension to a CSR [22]. ...
While it is a challenge to quantify its effect, corporate social responsibility (CSR) activities have dramatically evolved as a value-building business practice. The measuring challenge is, in part, explained by the unclear and variable meaning of the CSR principle. Despite thorough work on this issue, strong supporters and opponents are still firmly committed to CSR (ibid.). Some schools claim CSR involvement constitutes a misuse of money. In contrast, other schools suggest that businesses have responsibilities towards a greater range of participants and can also carry on social accountability. They also claim they utilize business assets for creating value, mainly towards shareholders. Valuable kits did stratification for a minimum of 10 percent of employees in all Lebanese retail divisions. Each stratum 10% of the overall number of workers analyzed participates. The final respondents have been selected randomly by stratum. Such services are chosen as they are grouped under many judicial branches, with all judicial authorities. This research's practical implications outline the nature of the CSR-financial performance relationship between Lebanese companies during 2006-2009. In the light of Lebanese businesses publicly traded, this information may allow additional companies and practitioners to understand the CSR and financial performance.
The social responsibility of the phenomenon of subject to the views of the multi-form the framework for the development of this concept, which means social responsibility and moral obligation to companies toward the community in which it operates to handle the damage resulting from the implementation of its activities, as well as contributing to environmental protection and development and raise the standard of living for workers and their families , and to improve the quality of the products that provide for clients. Reflects the financial performance for the performance of companies in the short term, as the basic foundation for the activities of the company, which means the financial performance of an instrument through which to identify the financial situation prevailing in the company during the however a certain period of time, and as a means to stimulate the workers and management to exert more effort in order to achieve results and financial standards better than previous periods.
The research aims at measuring the impact of employee development activities on companies' performance in the short term, identifying the type of relationship between environmental protection activities and companies' financial performance, and indicating the extent to which companies' interaction with society reflects on companies' financial performance. This study was conducted in one of the most important industrial companies affiliated to the Iraqi Ministry of Industry and Minerals, the General Company for Southern Cement, and the study aimed to measure the impact of the areas of social responsibility (employee development, environmental protection, public contributions, and product quality) on the company's financial performance in the short term. The research found that all social responsibility activities lead to improving the company's performance in the short term, and that activities related to employee development are the most influential social responsibility activities on the company's financial performance, followed by the public contributions activity, then the environmental protection activity, and the last product quality activity. The study recommended that the company should pay attention to activities related to the development of workers by providing housing and transportation for them and increasing the number of training courses, as attention to the development and protection of workers improves the performance of the company.
We apply the impression management theory and propose that firms located in more polluted areas have strong incentives to offset the negative perceptions of their local area pollution due to shareholders’ environmental concerns. In terms of dividend policy, we predict and find that location greenness (LG), a proxy for environmental image, negatively affects firms’ dividend payouts. The effect is more pronounced for firms with high information asymmetry and agency costs. The dividend payouts due to LG have a larger impact on agency cost reductions than regular dividends. Firms use dividends and social engagements as substitutes to enhance their reputation.
The problem of establishing and maintaining the relationship between corporate social responsibility and personnel management systems is becoming increasingly important for businesses, as it is associated with significant economic and social benefits. They include growth of motivation and loyalty of employees, which leads to increased income, increased competitiveness of enterprises, improving their image. Special attention should be paid to the research problems of theoretical and methodological base and practical issues related to the specifics of implementing the concept of corporate social responsibility in corporate human resource management systems.The article shows that the concept of corporate social responsibility is the basis for defining and means of coordinating the strategic goals of modern enterprises and their employees.Five levels for implementing human resource management practices by enterprises are proposed.Theyshow that achieving the strategic level and the level of society’s support is the goal to which all enterprises should strive, implementing the concept of corporate social responsibility in theirpersonnel management strategy. The research by interviewing representatives of Ukrainian business on the current state of implementation of the concept of corporate social responsibility in enterprise management systems and the personnel management subsystem in particular has been conducted. It shows that Ukrainian business entities in general adhere to the main principles of social responsibility in labor relations. The main areas of internal socially responsible practices used in Ukrainian enterprises are wages, safety and working conditions, social protection of employees, staff development, and corporate culture. To increase the effectiveness of corporate social responsibility management, the human resource departmentneeds to involve employees in developing the enterprise’s strategic plans, participating in corporate social responsibility projects, as well as coordinating key performance indicators with strategic goals and results.
Purpose-The purpose of this paper is to examine the impact of financial performance (FP) on corporate social responsibility disclosure (CSRD) in the top 100 listed enterprises in Vietnam (VN100). Design/methodology/approach-This paper uses the ordinary least square method to test and uses time series data of VN100 in five years from 2015 to 2019. Findings-The results of this study show that the return on assets and return on equity have a positive impact on CSRD of VN100. Research limitations/implications-This paper has not covered all independent variables related to FP. Practical implications-The paper contribute to increasing CSRD of VN100. Social implications-The paper contribute to raising awareness of businesses about community and society. Originality/value-This paper contributes to increase the level of useful information for stakeholders to meet the trend of regional and international integration.
ABSTRACT
The study aims to analyze the relationship between the intellectual capital (IC) and
the financial performance of 11 local licensed commercial banks for the period 2010
to 2019. Data has been obtained from published annual reports of the banks, mainly
from the statement of comprehensive income and the Statement of Financial Position
for the relevant years. The value-added intellectual coefficient (VAIC) method was
used to measure the numeric value of the IC-based performance of the banks. Return
on assets (ROA) and return on equity (ROE) are the two proxies for the bank’s
performance. To analyze the value of IC, the variable was divided into three parts as
intellectual human, structural and physical capital. Intellectual Capital’s impact on
return on asset and return on equity was measured using simple and multiple
regression techniques. The analysis indicated a significant relationship between the
VAIC, the components of VAIC and financial performance. The nature of the
relationship between such components and the ROE and ROA were also found
positive with different degrees. Among the VAIC components, human capital
efficiency was identified as the most critical factor that contributes to creating value
in the Sri Lankan banking sector. The VAIC tool can be used as an important method
of measuring IC when making management decisions. This study is one of the first
empirical researches in Sri Lanka that examines the impact of IC on the financial
performance of Sri Lankan banks till 2019. The study attempts to highlight the need
for further investigating the contribution of IC to the financial performance in the
banking sector.
Key Words: Intellectual Capital, Value Added Intellectual Coefficient, Financial
Performance
Corporate Social Responsibility (CSR) activities can lead the company to gain better recognition from citizens and investors. CSR has become one of the added values for a company in increasing competition from global and domestic. However, there are some critics who contend that the CSR benefits surpass the actual cost and some also claim that for the company to be socially responsible is too expensive. Therefore, the objective of this study is to determine the relationship between Corporate Social Responsibility (CSR) impacts on the Islamic Banks' financial performance, specifically in Malaysia. This study used Fixed Effect Regression Model to achieve the objectives of this study. The independent variables used to determine CSR comprise of environment, community, and workplace and marketplace expenditure ratio. Meanwhile, to measure the financial bank performance that is the dependent variable, Return on Asset (ROA) is used in this study. Based on this model, the researcher concluded that CSR’s elements which are environment, community, and marketplace have significant impacts on banks financial performance. This is consistent with Stakeholder Theory which states that the firm financial performance is determined by external stakeholders. In order to enhance the study future research may segregate the focus of the study specifically on Islamic Bank or conventional banking. Future research may also conduct research on the different industries.
Islamic Banking works in an economy and achieving the ideal position of Shariah financial institution requires continuous improvement and indicators. The right values and environment of a bank that is operating based on Shariah are important to ensure that the delivery services could be executed in the best manner possible. Islamic Bank therefore should embed with social and the charity work network for the purpose of its corporate social responsibility to the community. The fundamental issue which is due to the lack of focus on prioritising the social objective of Islamic organisations based on Shariah leads to the inadequacy of conventional CSR theories to underpin CSR practices of Islamic organisations. The existing concept of CSR is grounded on western perspectives, and it will be a great implication to delve into CSR within the Islamic perspectives. Therefore, the objective of this study to examine the extent of CSR based on Maqasid Al Shariah in terms of four dimensions of the Islamic Banks sector between Malaysia and the MENA region for the period of 2013 to 2018. This study employed a content analysis method to collect quantitative data on CSR based on Maqasid Al-Shariah in the Bank Islam annual report and stand-alone sustainability report. The content analysis was carried out to achieve this objective. The investigation on the content is based on CSR reporting in their annual report and stand-alone sustainability report according to what has been provided by the banks. The results of the analyses provide significant insight into the amount and nature of CSR among Islamic Banks across sectors. Generally, the CSR activities cover all organization activities related to the organization and its various stakeholder. Finally, through mean score ranking for CSRD items shows that there was a mixed ranking for CSR based on Maqasid Al-Shariah dimension and element in Malaysia and MENA region.
Modern-day business setups have widely accompanied Enterprise Resource Planning Systems as a tool of competitive strategy. Successful implementation of ERP systems within organizations streamline the business processes and bring about changes in different aspects. The accounting process is one such procedure which is affected by an ERP system. Accountants are one of the key personnel involved in the process of accounting in any organization. Past literature claims that an ERP system can reduce the accounting personnel required in the organizational setting due to the probability of integrations. The purpose of this research is to determine the impact of the implementation of ERP systems on the role of accountants in Sri Lanka while providing implications for accountants in performing their functions in an ERP environment. This study adopted the quantitative approach, using a questionnaire survey, distributed among 108 accountants covering both financial and management accountants based on the public listed companies. The results revealed that with the implementation of ERP systems, the degree of operations of management accountants had been increased, whereas there had been a decrease in the extent of the operations, performed by the financial accountants. Further, it was found out that the significance of operations of education and training, financial analysis, and communication and coordination had been increased for both financial accountants and management accountants even though taxation planning, risk management, participation in management decision making, and the integration of cost data related operations are not significantly affected with the implementation of ERP systems. The requisites of human thinking towards the performance of these operations can be viewed as the cause which ERP system cannot influence these operations. The overall conclusion highlights that the implementation of ERP systems affects the role of accountants. Additionally, the accountants do need to enhance presentation skills, analysis ability, Information Technology (IT) skills, communication and coordination skills, and system design skills to make themselves fit into the ERP environment.
Today, organizations have to develop mutual, trustworthy relationships with the public and internal-external stakeholders for long-term existence in evolving economic and competitive circumstances. Moreover, corporate public relations activities assist in achieving trust, support, and sympathy by enriching corporate reputation when managed strategically. Therefore strategic corporate public relations activities need to be managed effectively by organizations. Corporate financial performances are measured by financial data obtained from many different values. Those values are essential to the survival of organizations. It is believed to have a positive effect on financial performance when corporate public relations activities are managed strategically. In this thesis, named "The Role of Strategic Public Relations Management on Financial Performance" a supportive research study is included. Accordingly, corporate public relations and strategic management at the first chapter, process, and importance of strategic corporate public relations and the role of strategic public relations management on financial performance at the second chapter and last, analyze of the role of strategic public relation activities on financial performance and discussion of a research study which is done in the scope of Turkcell sample at the third chapter.
The main aim of this study is to investigate the impact of corporate social responsibility (CSR) on the financial performance of selected companies listed in the BSE, formerly known as the Bombay Stock Exchange in India.
This study is purely based upon the secondary data collected from companies’ annual reports and sustainability reports for last three years ranging from 2016–2017 to 2018–2019. The results indicate that the involvement in socially responsible initiatives has a significantly positive effect on the financial performance of the firms. These findings provide insights to the management to assimilate firm’s CSR initiatives with its strategic business policies and, thus, to renovate the business philosophy from a traditional profit-oriented approach to a socially responsible approach.
Purpose
The purpose of this present study is to assess the impact of intellectual capital (IC) on fraud in listed firms' financial statements on the Tehran Stock Exchange (TSE). In other words, this paper seeks to figure out whether IC and its components, namely, the efficiency of human capital (HC), structural capital (SC), relational capital (RC) and customer capital (CC).
Design/methodology/approach
The logistic regression model is used for analyzing the material of this study. Research hypotheses are also examined using a sample of 187 listed firms on the TSE during 2011–2018 by employing the logistic regression pattern based on synthetic data technique. Moreover, some robustness checks are also used to ensure the correctness of the obtained results.
Findings
The findings show a negative and significant relationship between IC and its components, including the efficiency of HC, SC, RC and CC, and fraud in financial statements. This means that by investing in the IC and its components, the amount of fraud in business firms' financial statements decreases.
Originality/value
Since few studies are carried out by existing literature, this paper is among the pioneer efforts assessing IC's potential impact on fraud commitment. The findings apply to policymakers to improve the clarity of the business atmosphere of Iran.
The article is devoted to one of the most modern areas of economy and management: corporate social responsibility and its component part, such as socially responsible investing. In addition, the article reveals the importance of this direction of economic activity for enterprises in the agricultural sector, as well as the need for this work for sustainable business development in modern socio-economic conditions. It is proved that existing and proven technologies of socially responsible investment can be applied in agriculture, allowing it to develop in new directions, but this type of activity is not popular at present, due to low awareness. Recommendations are given on popularization and possible resources for disclosure of information in this area of work and how to apply it in practice.
This article explains the development and partial validation of a sector‐specific Corporate Social Responsibility (CSR) framework to help resolve a policy/practice gap in Saudi Arabia. Designed using feedback from health‐care professionals, who represent the primary stakeholders of the sector, and a quantitative method called analytical hierarchy process, the framework is intended to help Saudi CSR practitioners shift from rhetoric and undifferentiated activity to a focus on prioritized needs. The utility of the framework is tested using a simplified rubric with four levels of performance measured across two formative criteria, relevance and credibility of information. The overall result is a composite index that provides a substantive basis to implement CSR in the private health sector. The framework is potentially also suitable for stakeholders in other emerging economies seeking to integrate CSR into corporate planning and to reporting performance for strategic and ethical reasons beyond compliance.
The article aims to identify the influence of corporate social responsibility on the relationship between brand value and the company’s financial performance. The methodological basis of the work is an empirical study of an open data sample on 78 American companies for 2000-2019. The authors analyzed 962 observations from the Thomson Reuters Eikon database. The Interbrand consulting agency was the source for determining the brand value. Built by the authors, three regression models rely on panel data and control an extended set of accounting and corporate variables. The evaluation of the models employs a fixed effects model. The authors conclude that corporate investments in social responsibility activities have a positive indirect effect on the company’s financial performance, such as return on assets and market capitalization: the influence of brand value on these indicators increases due to a high level of corporate social responsibility and ethical behavior. The study showed that the level of corporate social responsibility neither enhances nor it weakens the influence of the brand on the return on equity. The study results may be of practical use to owners, top management of companies and investors when making the company’s strategy and investment decisions. Moreover, the research materials can be used by public authorities to stimulate the corporate social responsibility. The prospects for future research may relate to lifting the current restrictions: research on samples that include more heterogeneous companies and/or companies from different countries.
The purpose of the study is to know the relationship between the independent variables CSR and VAIC (Intellectual Capital) on the dependent variable, which is financial performance measured by using ROA, ROE, PER, and EPS. This study took the data of manufacturing companies listed on the Indonesia Stock Exchange in 2015-2017. There were 152 manufacturing companies, and after making sample selections, there were 115 companies left. In analyzing the statistics data of this research, the author uses the Eviews application program. The results showed that the significant effect only occurred on the independent variable VAIC on the EPS dependent variable. It was suggested that companies should pay more attention to and maximize intellectual capital owned, and pay more attention to CSR more seriously.
We describe why human resource management (HRM) decisions are likely to have an important and unique influence on organizational performance. Our hope is that this research forum will help advance research on the link between HRM and organizational performance. We identify key unresolved questions in need of future study and make several suggestions intended to help researchers studying these questions build a more cumulative body of knowledge that will have key implications for both theory and practice.
Customer satisfaction is probably one of the most frequently measured marketing constructs, with most major organisations regularly collecting data on the extent to which their customers are satisfied. This level of interest is perhaps unsurprising given that it is a basic principle of marketing that business performance is enhanced by satisfying customers. The challenges of measuring satisfaction effectively had been extensively researched and there is a growing body of evidence to support the argument that satisfied customers are more loyal. There is rather less evidence to support the proposition that satisfaction contributes to business performance, not least because of the difficulties associated with relating consumer attitudes and behaviour to financial measures of performance as well as the intervening effects of loyalty. This paper focuses exclusively on satisfaction and uses aggregate measures from the American Consumer Satisfaction Index (ACSI) for companies across a range of sectors. It provides mixed evidence for the positive, impact of satisfaction on business performance using a range of different financial measures.Journal of Targeting, Measurement and Analysis for Marketing (2001) 10, 106-116; doi:10.1057/palgrave.jt.5740038
This article provides empirical results indicating that acting in a socially respon- sible and lawful manner is a necessary, though not sufficient, condition for increasing shareholder wealth. It meta-analyzes 27 event studies that have mea- sured the stock market's reaction to incidences of socially irresponsible and illicit behavior. It finds that for firms engaging in socially irresponsible and illicit behavior, the effect on shareholder wealth is negative (wealth decreases), statisti- cally significant (p < .001), and so substantial in size (D = -.932) that the distribution of abnormal returns is shifted nearly a full standard deviation to the left (i.e., negatively) from their expected standard normal distribution. This result gives rationally self-interested firms a self-interested reason to act in a socially responsible and law-abiding manner. It also provides support for a moral position called enlightened self-interest, which prescribes that firms should act in a socially responsible manner to promote the shareholders' interests.
This study adds to the empirical evidence supporting a significant connection between ethics and profitability by examining the connection between published reports of unethical behaviour by publicly traded U.S. and multinational firms and the performance of their stock. Using reports of unethical behaviour published in the Wall Street Journal from 1989 to 1993, the analysis shows that the actual stock performance for those companies was lower than the expected market adjusted returns. Unethical conduct by firms which is discovered and publicized does impact on the shareholders by lowering the value of their stock for an appreciable period of time. Whatever their views on whether ethical behaviour is profitable, managers should be able to see a definite connection between unethical behaviour and the worth of their firm's stock. Stockholders, the press and regulators should find this information important in pressing for greater corporate and managerial accountability.
Stakeholder theory provides a framework for investigating the relationship between corporate social performance (CSP) and corporate financial performance. This relationship is investigated by examining how change in CSP is related to change in financial accounting measures. The findings provide some support for a tenet in stakeholder theory which asserts that the dominant stakeholder group, shareholders, financially benefit when management meets the demands of multiple stakeholders. Specifically, change in CSP was positively associated with growth in sales for the current and subsequent year. This indicates that there are short-term benefits from improving CSP. Return on sales was significantly positively related to change in CSP for the third financial period, indicating that long-term financial benefits may exist when CSP is improved.
Prior to the establishment of the first formal courses in service management
in the early 1970s, little research had been carried out to examine the properties of service activities that distinguished
them from more-extensively examined activities of manufacturing
organizations. While the traditional techniques of manufacturing management were invaluable to service managers, it was quickly
discovered that service managers had to contend with a set of problems that the traditional tools could not solve.
When I hear businessmen speak eloquently about the “social responsibilities of business in a free-enterprise system”, I am
reminded of the wonderful line about the Frenchman who discovered at the age of 70 that he had been speaking prose all his
life. The businessmen believe that they are defending free enterprise when they declaim that business is not concerned “merely”
with profit but also with promoting desirable “social” ends; that business has a “social conscience” and takes seriously its
responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else may be the catchwords
of the contemporary crop of reformers. In fact they are — or would be if they or anyone else took them seriously -preaching
pure and unadulterated socialism. Businessmen who talk this way are unwitting puppets of the intellectual forces that have
been undermining the basis of a free society these past decades.