This paper investigates the influence of board network centrality on corporate social responsibility decoupling. CSR decoupling refers to the gap between corporate internal and external actions in CSR practices. Specifically, we measure CSR decoupling as the difference between corporate social disclosure and corporate social performance. This paper uses a sample of Chinese A-share listed firms during 2009–2018, takes the technical dimension score and content dimension score of RKS ratings as proxies of CSD and CSP, and obtains CSR decoupling as the (...) difference between CSD and CSP. Our results show that board network centrality is positively related to over-decoupling in the pre-adoption period of the new environmental law but negatively related to over-decoupling in the post-adoption period and centrality is not related to under-decoupling in the pre-adoption period but a significantly positive related in the post-adoption period. Our finding reveals a complex role of the board network in CSR practices in China. (shrink)

We investigate corporate giving behaviors of prestigious business award winners in Korea. In particular, we examine whether firms strategically use corporate giving to enhance corporate reputation. We find that award winners generally make more charitable contributions than nonwinners prior to winning awards and maintain significant charitable contributions after winning awards; multiple award winners make even more charitable contributions than single-award winners; and an increase in charitable contributions does not raise the probability of winning awards in the year after the increase. (...) The results suggest that CEOs of award-winning firms do not use corporate giving opportunistically to enhance their status and reputation. Rather, significant charitable contributions by award winners may be indicative of a sound business strategy to maximize long-term firm value. (shrink)

A survey study was conducted to look into the effect of Confucian ethics and the psychological foundations of morality on business managers' perspectives on corporate social responsibility (CSR). Using responses from 393 Chinese managers, we first conducted confirmatory factor analysis to assess the reliability and validity of the measurement model and then employed hierarchical regression to explore the relationships among Confucian ethics, moral foundations, and managers' shareholder value perspectives. The results indicate that both Confucian ethics and managers' moral foundations had (...) significant influence on shareholder value perspectives. In fact, moral foundations and Confucian ethics interacted and jointly affected managers' positions on the shareholder value model of corporate responsibility. This study demonstrates the importance of psychological foundations of morality to managers' CSR orientations and substantiates the persistent impact of Confucian ethics/cultural traditions on today' business practices. (shrink)

This article analyzes a panel of 550 international firms, for the period 2004 to 2010, to compare the role of female directors in family and non-family firms in promoting responsible practices. Many studies have associated the presence of women on the board with a higher degree of socially responsible commitment. However, we found that this is much less so in family firms than in non-family firms. In family firms, corporate social responsibility commitment does not vary significantly with the presence of (...) female directors, as the latter tend to behave in accordance with the family orientation toward CSR. This orientation depends on the stakeholders being addressed, with greater social responsibility shown toward external stakeholders than internal ones. (shrink)

This paper investigates the correlation between the quality of corporate social responsibility disclosure and financial performance. It also investigates the moderating role of chief executive officer power in the relationship between the quality of CSR disclosure and firm value in Chinese listed companies. The evidential research used the up-to-date sample of unbalanced findings for the period of 2014–2020, from the registered Chinese firms in the Shenzhen and Shanghai Stock Exchanges as samples for the study. As a starting point technique, the (...) STATA 15 has been used to test pooled ordinary least squares regression on a sample of Chinese listed companies. We use 1-year lagged regression and two SLS regressions to monitor the potential endogeneity problem. The imbalanced data set was received from the China Stock Market and Accounting Research web page, which is the most significant source of information for Chinese publicly listed firms. Data on CSR information items and media reporting are compiled manually. The findings of the study revealed that there are positive FP consequences for the companies engaged in the quality of CSR disclosure. We also report that higher CEO power negatively enhances the quality of CSR disclosure effect on the FP of FV. The research investigates the impact of CSR disclosure and FP by presenting evidence of the moderating role of CEO power. Therefore, it is suggested that a higher law for CSR engagement and disclosure be implemented in China, and robust measures for the implementation of CEO power, although there are financial advantages to be gained. A key relevance to the empirical quality of CSR disclosure research can be recognized as the moderating role of CEO power in the quality of CSR disclosure, FP, and FV in the context of Chinese study. The findings are robust with the use of an instrumental variable method. (shrink)

This paper investigates whether relative corporate sustainability as measured by the SAM sustainability ranking and sustainability reporting in terms of Global Reporting Initiative application levels are associated with a higher market valuation. We conduct a value relevance study for the 600 largest European companies with the Feltham and Ohlson valuation model as a reference point. Our results indicate that for the observation period 2001 to 2011, the association between corporate sustainability and market value is positive. The empirical evidence of a (...) positive relationship between GRI reporting and market value is statistically significant in some but not all of the model specifications. We find no evidence of interaction between the value relevance of corporate sustainability and sustainability reporting, nor do we find any positive effect of external assurance on the capital market perception of GRI application levels. Our results support the notion that conducting business in accordance with ethical norms is also a shareholder value-increasing business strategy. However, it is not possible to verify the information given in sustainability reports through external assurance. (shrink)

Based on the concept of shareholder primacy, many scholars have argued that it is more important for businesses to earn profits for their shareholders than to provide benefits to society at large. Corporate social responsibility is often regarded as an investment that comes at the expense of shareholders. In contrast, research analyzing the connections between the equity ownership structure of a company and its level of CSR engagement suggests that CSR offers benefits to shareholders that go beyond direct financial returns (...) from investments. This study provides a comprehensive review and systematic assessment of theoretical considerations and approaches regarding different forms of equity ownership and their relationships to CSR, and it discusses the relevant benefits and motivations of shareholders. The perceived value of these CSR benefits varies among different types of shareholders, as they assign unequal values to short-term financial or to rather long-term CSR benefits. Based on a literature sample of 146 publications, this review demonstrates central problems inherent in previous analyses. Given the ambiguous and partially contradictory findings of prior research, this study identifies potential moderating influences that help clarify empirical evidence. A contingency approach is suggested in future research, as this can help resolve the problem of contradictory empirical findings and theoretical arguments. (shrink)