We link the corporate governance literature in financial economics to the agency cost perspective of corporate social responsibility to derive theoretical predictions about the relationship between corporate governance and the existence of executive compensation incentives for CSR. We test our predictions using novel executive compensation contract data, and find that firms with more shareholder-friendly corporate governance are more likely to provide compensation to executives linked to firm social performance outcomes. Also, providing executives with direct incentives for CSR is an effective (...) tool to increase firm social performance. The findings provide evidence identifying corporate governance as a determinant of managerial incentives for social performance, and suggest that CSR activities are more likely to be beneficial to shareholders, as opposed to an agency cost. (shrink)

Social enterprises are a new concept, integrating corporate profitability and social purposes. SEs seek to realize sustainable social values, rather than short-term profits. It is therefore important to study the factors that affect the sustainable management of SEs. Corporate social responsibility is known to improve corporate image and performance; it can also promote the sustainable development of companies. Innovation has been described as the driving force behind corporate growth and ultimate performance. This study aims to investigate whether CSR can affect (...) sustainability through the economic and social performance of SEs. In addition, it attempts to verify the moderating role of innovativeness in the relationship between CSR and social enterprise performance. Using survey data from 226 employees of 204 SEs in Korea, we have empirically tested this conceptual framework. The results suggest that, while CSR can improve sustainability through economic and social performance, innovativeness has no moderating effect on the relationship between CSR and SE performance. This study enriches our understanding of the important role played by CSR in driving SE sustainability. It provides new insights into the mechanisms through which SEs can achieve sustainable development. It also contributes to the literature by emphasizing the need for innovation through technical support for SEs. (shrink)

Earlier evidence predominantly supports that women are more ethical than men. With the replication of such a hypothesis for testing, this study further examined whether feminine gender roles are a better predictor of ethical attitudes, ethical behaviors, and corporate responsibility values than the biological sex. Four hundred ten management students from two technical institutes in eastern India participated in this study. Along with the socio-demographic variables in the questionnaire, inventories were used to assess gender roles, ethical attitudes, ethical behaviors, and (...) corporate responsibility values. The inventories had acceptable reliability and validity. The results suggested that when the confounding effects of age, caste, and rural/urban origin are controlled, women manifest higher corporate responsibility values than men, but they embody similar ethical attitudes and ethical behaviors as men. Furthermore, the feminine roles of the participants were found to be more consistent, potent, and direct predictors of ethical attitudes, ethical behaviors, and corporate responsibility values than the biological sex. Hence, individuals with feminine roles may be better suited for ethical responsibilities. (shrink)

This study reviews and synthesizes the contemporary business literature that focuses on the role of corporate social responsibility to enhance firm value. The main objective of this review is to proffer a precise understanding of what has already been investigated and the findings of those investigations regarding the value-enhancing capabilities of CSR for public firms. In addition, this review identifies gaps in the existing literature, evaluates inconsistent findings, discusses possible data sources for empirical researchers, and provides direction for exploring other (...) promising avenues in future studies. The thrust of the CSR literature largely acknowledges the value-enhancing capabilities of firms’ social and environmental activities. However, the predominance of inconsistent theoretical grounds in major CSR-benefits-related areas suggests that there is ample room for future research to contribute to the extant literature. Anecdotal evidence, the prevalence of theoretical arguments, and the availability of large cross-sectional firm-level data suggest that future research will enrich the literature by investigating the real insights behind several unanswered questions, by establishing implicit understandings regarding recognized findings, and by developing new theories in this emerging field. (shrink)

The paper goes beyond critique to read institutional approaches, specifically institutional logics of CSR in India and their management by Indian firms, from a post-colonial location, to explore decolonising possibilities. Drawing on post-colonial approach of catachrestic reading, it reads institutional logics of CSR literature to argue against a linear hierarchical travel of western CSR logic into India, which is then adapted/adopted/translated or decoupled, along with the secondary status this implies for India; and suggests that Indian and western CSR logics are (...) competing logics. It argues that these competing logics are non-core, but significant and need to be managed by Indian firms. An exploratory survey supports this argument. It also suggests a few testable propositions for CSR institutional logics using “deferment of routine development” and “strategic ambiguity in meanings” as mechanisms. In addition, it shows that decolonising purpose can also be realised by having cross-paradigmatic engagements with mainstream management and organisation studies scholarship such as institutional approaches. (shrink)

Multinational companies (MNCs) frequently adopt corporate social responsibility (CSR) activities that are aimed at providing ‘public goods’ and influencing the government in policymaking. Such political CSR (PCSR) activities have been determined to increase MNCs’ socio-political legitimacy and to be useful in building relationships with the state and other key external stakeholders. Although research on MNCs’ PCSR within the context of emerging economies is gaining momentum, only a limited number of studies have examined the firm-level variables that affect the extent to (...) which MNCs’ subsidiaries in emerging economies pursue PCSR. Using insights from resource dependence theory, institutional theory, and the social capital literature, we argue that MNCs’ subsidiaries that are critically dependent on local resources, have greater ties to managers of related businesses and to policymakers, and that those that are interdependent on the MNCs’ headquarters and other foreign subsidiaries, are more likely to be involved in PCSR. We obtain support for our hypotheses using a sample of 105 subsidiaries of foreign firms that operate in India. Our findings enhance our understanding of the factors that determine MNCs’ political CSR in emerging economies. (shrink)

This study reviewed and analysed the phenomenon of employer branding. We began with a review of recent research in employer branding. Next, drawing the theoretical knowledge from OB, HRM, and marketing, a framework is developed depicting the antecedents of employer branding and its impact on the company performance. For this, primary data were collected administering a questionnaire survey on 347 top-level executives in 209 companies in India, and secondary data were collected on financial performance. The results revealed that realistic job (...) previews, perceived organizational support, equity in reward administration, perceived organizational prestige, organizational trust, leadership of top management, psychological contract obligations, and corporate social responsibility influence employer branding, which in turn impact non-financial and financial performance of companies. Furthermore, leadership of top management is the most potent predictor of employer branding. Greater deviation of the existing state from the ideal state of antecedents adversely affects employer branding. Management can use this framework for developing strategy towards implementation of employer branding. (shrink)

The authors describe the intensity and orientation of the corporate social responsibility reporting in four Spanish industries and explore the relationship that exists between both concepts and an independent measurement of reputation for CSR. The results demonstrate that the CSR reporting is especially relevant and useful in the finance industry. Finance companies report significantly more CSR information than most industries in Spain, and this reporting is more closely linked to their CSRR than the CSR reporting of basic, consumer goods and (...) services industries. (shrink)

The corporate financial performance (CFP)–corporate social performance (CSP) relationship has been investigated many times over the past few decades, yet the notion of CSP has generally been understood to be a single, monolithic aspect of corporate strategy. This article examines the common CFP–CSP understanding in three distinct ways: (1) by extending the evaluation of CSP as a complex, multistakeholder notion; (2) by analyzing CSP's relationship with the firm's financial performance at a given point in time as a lead (independent) variable (...) in the relationship and as a lag (dependent) variable in the relationship; and (3) for both positive and negative stakeholder relationships. The results indicate that the employee emerges as the stakeholder group most strongly linked to CFP, followed by the consumer stakeholder. The natural environment and the community stakeholder group are minimally associated with CFP. General support is found for a CFP–CSP relationship at a given point in time, with some support found for CSP as a lead (independent) variable. When used as a measure of financial performance, return on assets is more often correlated with CSP than is return on equity. These results and their implications are discussed. (shrink)

Corporate social responsibility reporting is becoming mainstream, yet there is limited research on whether and how CSR reports communicate value relevant information. We examine the effects of CSR report readability and tone on future CSR performance and the market reaction around the release of CSR reports. Using a hand-collected dataset of Fortune 500 companies that published stand-alone CSR reports from 2002 to 2014, we find that 1-year-ahead CSR performance is positively associated with the changes in both CSR report readability and (...) tone, suggesting that more readable text and more optimistic tone in a firm’s CSR report are indicative of better future CSR performance. Furthermore, consistent with the view that CSR reports communicate important value relevant information to the market, we document significant market reactions to report readability and tone around the release of CSR reports. Additional analyses suggest that CSR report readability enhances the association between the abnormal returns and the change in CSR report tone, and that the market reaction to CSR report readability is more pronounced for firms with lower analyst following and higher financial opacity. Taken together, our results substantiate the important roles of CSR report readability and tone in communicating future CSR performance and imparting value relevant information to the market. (shrink)

This paper investigates whether the pattern of firms’ corporate social responsibility activities affects firm value. If firms do permanently CSR activities for strategic purposes, firms’ value is more likely to increase. Using firms known to do CSR in Korea, we examine the valuation effect by adopting an earnings response coefficient model and document firms with permanent CSR activities, which show higher ERCs than other firms regardless of the level of CSR activities. This result partly explains the inconsistency among the results (...) of previous studies by showing the differential implication for firm value depending on the CSR activity pattern. Also, the results of our paper imply that investors need to consider the pattern of firms’ CSR activities in their economic decision making. (shrink)

This article develops a conceptual framework that explains how organizations can influence employees’ attitudes and behaviour through their corporate social responsibility activities. There are plenty of studies to suggest the financial benefits of CSR. However, studies are scarce to link CSR with non-financial measures of organizational effectiveness, such as, affective commitment, job engagement and organizational citizenship behaviour. Moreover, studies are rare to delineate the process through which CSR can bring positive attitudes. Thus, this article focuses on organizational prosocial identity as (...) a mediating variable. The role of communicating CSR activities is almost negligible and to address this gap, this article considers CSR communication as a moderating variable. Drawing from literature, this article argues that the success of an organization lies in enhancing positive attitudes among employees and probably, one of the ways to promote this is through CSR. Based on this assertion, the framework identifies CSR activities towards four stakeholders and its impacts on employees. Several research implications are proposed based on the propositions highlighted in this article. (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 study aims to explore how CSR-related messages posted by CEOs on social media are beneficial in fostering social capital, which in turn impacts the FP and online reputation of the firm. The study also examines whether there is any difference in FP due to sharing of CSR-related messages by CEOs before and during the pandemic. Hierarchical regression is used to examine the influence of CEOs CSR related tweets on FP and online reputation. The study reveals that by posting CSR-related (...) messages on Twitter, CEOs can build social capital available on social media, which leads to better FP and online reputation. Findings also indicate that there is no statistically significant difference in FP and online reputation of the firm due to sharing of CSR-related messages by CEOs before and during the pandemic. Our research makes a significant addition to the empirical studies of CSR, social media and social capital theory. (shrink)

In spite of an overwhelming importance of business groups in the economic development of many countries, systematic inquiry on how the BGs and their affiliated firms approach and contribute to shared value creation and sustainable development is rare. In this paper we address this research gap by investigating two related questions—do BG-affiliated firms differ from non-BG firms in their corporate sustainability strategy and how does BG affiliation influence the relationship between stock of fungible resources and CSS of firms? Drawing from (...) the BG literature we theorize that BG-affiliated firms tend to adopt of both environmental and social sustainability strategies more than non-BG firms. We also argue that although according to resource-based view, the stock of fungible resources of firms positively influences CSS, BG affiliation negatively moderates the relationship between stock of fungible resources and CSS of firms. Stock of fungible resources matters less for BG-affiliated firms in undertaking CSS as they have access to resources of the BG network. We test our theoretical predictions using a proprietary data set of 163 Indian publicly listed firms, out of which 76 are BG-affiliated firms belonging to 74 BGs. The data for corporate environmental and social sustainability strategies have been obtained by administering a survey instrument among the top level executives of the participating firms. We find support for our theoretical predictions that signify that BGs and their affiliates make important contributions to shared value creation and sustainable development in emerging economies like India. (shrink)

The corporate ethics literature has considerably focused on whether giving results in getting. However, the relationship between corporate philanthropy and performance and the underlying mechanisms remain unclear. Drawing on signaling and cue consistency theories, we develop and test a model that specifies whether, how, and when corporate philanthropy benefits relative competitive performance from a micro-process perspective. Using a Chinese sample of 1623 employees, 145 CEOs, and 145 human resources managers, we found that corporate philanthropy could positively influence relative competitive performance (...) through the internal processes—organization-level citizenship behaviors of employees. Moreover, work–life balance practices strengthen the aforementioned mediation. In particular, when a firm performs high levels of work–life balance practices, corporate philanthropy tends to promote more citizenship behaviors in the entire organization, thereby enhancing the relative competitive performance of the firm. By contrast, when organizations perform low levels of work–life balance practices, the aforementioned mediation becomes nonsignificant. The theoretical and practical implications of these findings are discussed. (shrink)

The nature of the relationship between environmental performance and firm performance of corporations is a long standing and contentious issue in the literature. This study is intended to advance this debate by arguing for the existence of curvilinear relationship and empirically testing the same using survey data on UK manufacturing firms. FP is captured in terms of growth in sales and market share. Our results show evidence for a quadratic relationship—as firms improve their EP, they seem to achieve much higher (...) levels of FP. These results are consistent with the resource-based view of a firm; as firms engage in EP activities, they are able to gain inimitable knowledge that helps in further learning to further improve performance. Based on our results, we suggest that new studies focus on strategies to extend the period of increasing returns and maximizing the benefits of the positive association between EP and FP. (shrink)

This study examines corporate stakeholder orientation across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO–shareholder communications from India, we find that in general large firms in India exhibit a pre-dominant, significant and rising trend of pro-shareholder orientation in (...) the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social activism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries. (shrink)

An attempt is made in this article to explore and build knowledge on the corporate social responsibility performances for community development and sustainability in the context of Rourkela Steel Plant of Steel Authority of India in Odisha, particularly in the wake of Companies Act, section 135, 2013. The paper looks at the conduct of CSR transitional strategy if any for delivering a range of activities while the amount of money spent on CSR is a common indicator of performance. The case (...) is based on content analysis and narrative inquiry. In-depth, open-ended personal interview and focus group discussion were conducted with project participants, women leaders, youth, community stakeholders, NGO partners and officials. Hard data and field information on the impact of CSR initiatives were organised to validate the proposition. Findings indicate that brand building and creating far-reaching positive business impact of RSP-SAIL as a responsible corporate citizen were important outcomes. This paper sets up an analytical framework that defines transitional strategies at different levels of communities in terms of production, organisations, governance, institutions and culture of relationships, noting how best to guide corporate towards sustainable community development through its CSR policy. (shrink)