The institutionalisation of corporate social responsibility reporting

This study examines corporate social responsibility reporting (CSRR) structures through a comparison of the disclosures in two countries with different social issues. The analysis is guided by a focus on the legitimisation offered by isomorphism. We compare the 2007 annual report and website (including standalone report) CSRR of a matched sample of 18 Australian and 18 South African mining companies. Among the 30 comparisons of disclosure patterns, 29 show no difference. We also provide examples of specific disclosures that show a remarkable level of similarity in CSRR and in the CSRR management structures adopted in the two countries. Our findings show similar overall patterns of CSRR in diverse settings, while differences in CSRR content at a more detailed level remain. For example, companies refer to the applicable national regulations and rules; as well as to their specific local communities. These findings provide evidence that the same reporting templates are used in CSRR globally. There is evidence to suggest that CSRR is institutionalised through professionalization and other means, suggesting a need to interpret CSRR characteristics and patterns as a reflection of global CSRR templates. Management intent or company-specific characteristics, such as social and environmental performance, do not necessarily drive CSRR patterns.     

Cross-listing and corporate social responsibility

This paper investigates the dynamics of cross-listing and corporate social responsibility (CSR). Using a sample of 10,815 firm-year observations from 54 countries over the period 2002–2011, we find that cross-listed firms have better CSR performance than non–cross-listed domestic firms. This result is robust to endogeneity and different types of cross-listing. We also find that CSR increases (decreases) significantly after cross-listing in (delisting from) U.S. markets. The positive impact of cross-listing on CSR performance is stronger for firms from countries with weaker institutions, lower country-level sustainability, and higher liability of foreignness, and for firms operating in industries with high litigation risk. Finally, we find that cross-listed firms with better CSR performance exhibit higher valuations.     

The absence of corporate social responsibility reporting in Bangladesh

This paper aims to broaden the present corporate social responsibility (CSR) reporting literature by extending its focus to the absence of CSR reporting within a developing country, an area which, to date, is relatively under researched in comparison to the more widely studied presence of CSR reporting within developed Western countries. In particular this paper concentrates upon the lack of disclosure on three particular eco-justice issues: child labour, equal opportunities and poverty alleviation. We examine why this is the case and thereby illuminate underlying motives behind corporate unwillingness to address these issues. For this purpose, 23 semi-structured interviews were undertaken with senior corporate managers in Bangladesh. The findings suggest that the main reasons for non-disclosure include lack of resources, the profit imperative, lack of legal requirements, lack of knowledge/awareness, poor performance and the fear of bad publicity. Given these findings the paper raises some serious concerns as to why corporations would ever be expected to voluntarily report on eco-justice issues where performance is poor and negative publicity would be generated and profit impaired. Further research is still required to uncover current injustices and to imagine what changes can be made.     

Accounting conservatism and corporate social responsibility

We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.     

Valuation effects of corporate social responsibility

This paper develops a valuation model of the firm that provides for the expenditure of corporate resources in support of community, social or environmental causes. We show that under certain circumstances CSR expenditures create value for the firm. We also test our model by simulations and confirm that, at least under some conditions, CSR does pay off in the form of value creation.     

An ongoing journey of corporate social responsibility

The purpose of the following discussion is to consider how a progressive multinational corporation constrained by the demands of global market capitalism responds to the maelstrom of corporate responsibility. Employing a normative framework for considering corporate responsibility, a case study of Intel Corporation is undertaken that identifies the meaning and operationalization of corporate responsibility and its various dimensions. The process is followed over time through various responsibility centers. While corporate responsibility is important, it is always viewed through the fiscal viability dimension of the maelstrom. The business case dominates the representation and operationalization of corporate responsibility. Due to the increased public sensitivity to corporate responsibility, the attitude has evolved from one of unnecessary intrusion, through a proactive, operations focus, to a compliance based one residing within shareholder relations and legal.     

The business case for regulation of corporate social responsibility and accountability

This paper develops an alternative (or supplementary) theoretical justification for the regulation of corporate social responsibility (CSR) and social and environmental accounting and reporting (SEAR) to the justification contained in the extant academic literature. It does this by demonstrating how, contrary to the dominant business discourse, increased regulation designed to protect the social and environmental interests of a range of stakeholders can also serve to enhance corporate economic performance and shareholder value.

The theoretical perspectives developed in this paper are drawn from Beck's and Giddens’ theories on reflexive modernity, and indicate that reflexively appropriated knowledge can be a key factor in developing socially constructed understandings of the social and environmental risks to a range of stakeholders inherent in business operations.

In situations where voluntary self-regulation of CSR and SEAR has been ineffective in preventing corporate actions and decisions that have resulted in damaging social and environmental consequences, processes of reflexivity can substantially increase public awareness of the level of risk they face from corporate operations. Such increased perceptions of risk can lead to a loss of trust in an individual corporation or a whole industrial sector, and this can be exacerbated where stakeholders begin to actively seek out alternative risk discourses to inform themselves about possible risks of which they were previously unaware. We argue that effective statutory regulation could avoid these outcomes, and the loss of shareholder economic value that can flow from these outcomes.     

The impact of corporate social responsibility on the cost of bank loans

This study examines the link between corporate social responsibility (CSR) and bank debt. Our focus on banks exploits their specialized role as delegated monitors of the firm. Using a sample of 3996 loans to US firms, we find that firms with social responsibility concerns pay between 7 and 18 basis points more than firms that are more responsible. Lenders are more sensitive to CSR concerns in the absence of security. We document a mixed reaction to discretionary CSR investments. Low-quality borrowers that engage in discretionary CSR spending face higher loan spreads and shorter maturities, but lenders are indifferent to CSR investments by high-quality borrowers.     

The effect of corporate social responsibility on the branding of financial services

In today's global world, corporate social responsibility (CSR) is increasing public demand for greater transparency from multinational companies. CSR is a new and growing financial risk factor. If it is mismanaged, a firm's corporate reputation can be badly damaged and a direct negative impact on its business and bottom-line may result. Instead of simply campaigning directly against industrial groups and lobbying governments and international organisations to issue new legislation, non-governmental organisations (NGOs) are increasingly putting pressure on the financial services groups and insurance companies. This new global tactic may affect a bank's relationship with its clients and shareholders.There are market benefits and competitive advantages for those companies whose business policies integrate CSR. The growth in socially responsible investments and in CSR awareness among City people persuades some bankers that the most successful firms of the future will be those who proactively balance short-term financial goals with long-term sustainable franchise building. To respond to this challenge, corporations will have to convince citizens they can trust both their brands and the people behind them. In this context, one must recognise that finance brands have been clumsily managed. Nowadays, several big consumer brands are used as societal role models, but they are also the targets of anti-globalisation and anti-logo activists. In order to avoid such an outcome — not to mention corporate mortification — the key social marketing strategy must be to communicate proactively the business activity's raison d'être to opinion leaders and the general public. In general, industry does not yet care enough and many companies are reacting only when put under pressure by public opinion. It is time, however, to market the social raison d'être of a business and indeed to contest its current exclusion from ‘civil society’. Consumer and service sectors lead the field. In view of the downturn of the global economy, more than ever before, CSR branding is of paramount importance to the financial sector if bankers do not want to become the easy scapegoats. It is necessary to make it clear that financial services companies are global citizens too.     

Tax avoidance,tax management and corporate social responsibility

This study examines the effect of three measures of corporate social responsibility (CSR) — corporate governance, community and diversity on tax avoidance in firms that use auditor‐provided tax services. This is one of the first studies, to our knowledge, to empirically relate tax avoidance, tax management and CSR literature. By separating the strengths and concerns for each CSR measure, we are able to analyze the effects of a firm's negative and positive social actions on tax avoidance. We find that the interaction of community concerns with tax management fees positively affects both GAAP and Cash ETR, while the interaction of corporate governance strengths and diversity concerns with tax management fees negatively affects Cash ETR. Our results are similar when we use Excess ETR that is not explained by firm specifics. We find additional evidence that CSR affects tax avoidance when we divide firms into portfolios based on CSR levels. Our findings suggest that future studies on tax avoidance and tax management should incorporate CSR.     

Tax impact in corporate social responsibility decisions and reporting

Tax effects of corporate social responsibility decisions should be incorporated into the various approaches for performing social audits or accounting for social performance. This paper identifies some special U.S. tax provisions which encourage corporate participations in social responsibilities. The Linowes' socio-economic accounting model is revised to show tax costs.     

Determinants of corporate social responsibility disclosures: Evidence from India

Over the last few decades, a number of studies, mostly in the western countries, have investigated the nature and frequency of corporate social responsibility disclosures, their patterns and trends, and their general relationships with corporate size and profitability. This study seeks to extend the knowledge regarding the relationship between a number of financial and non-financial corporate characteristics and the level of social responsibility disclosures based on an extensive sample of top Indian companies. Corporate size and industry category are found to correlate with the corporate social disclosures of the companies and the corporate reputation as recognised through awards and social ratings has also been observed to be a significant factor that influences the social disclosures made by the Indian companies.     

CRM:保险企业发展之道

对于服务渠道多样并具有多重复杂性的保险企业而言,CRM因其"以客户为中心"的出发点正契合了保险企业的经营理念。我国保险企业仍处于快速的发展阶段,如何进行管理和业务流程的革新以适应开放市场中日益激烈的竞争,成功地实施CRM并得以落实应用无疑是有效的方法之一。本期我们就保险企业CRM进行一些探讨,业界专家和学者从不同角度分析了保险企业如何实施CRM及其实施的方法。我们殷切地希望广大读者能就此话题,或从保险业界信息化角度与我们进行进一步的深入交流和沟通。     

Geographic proximity,long-term institutional ownership,and corporate social responsibility

Review of Quantitative Finance and Accounting - Building on the premises that institutional ownerships vary in their impact on corporate social responsibility (CSR) decisions and that geographic...     

Corporate greed: its effect on customer satisfaction,corporate social responsibility and corporate reputation among bank customers

Corporate greed has received increasing attention in recent years with various stories hitting the headlines, particularly after the global financial crisis and the ensuing negative attitudes toward banks. Customer satisfaction and corporate social responsibility are known to have a positive effect on corporate reputation among customers, but perceived corporate greed is likely to impede their effect. Corporate greed, customer satisfaction, corporate social responsibility and corporate reputation are considered, and a research model is proposed. Results indicate that the effect of corporate greed is stronger on corporate social responsibility than on customer satisfaction, implying that corporate social responsibility activities may be futile if the company is perceived to be acting greedily by its customers. Thus, perceptions of corporate greed need to be dealt with swiftly, to enable management to enhance the corporate reputation of the firm.     

Thinking for the future: global corporate responsibility in the twenty-first century

This paper reflects on the kinds of responsibility businesses today must exercise in order to be part of the solution to the problems of a globalising world. These problems are to a large extent rooted in the dynamics of a globalization that is driven by business objectives and operations. They are brought to the fore of global consciousness by civil society protest on the one hand and investor pressure on the other in a manner that reminds us of Adam Smith's anxieties concerning the threats posed by corporate power. It is clear that in our time the systemic complexities of global interdependence magnify these threats in ways beyond the control of governments and nation states. The remedy must thus lie with the companies themselves. Businesses, whether global or local, must recognize that as agents of global change they are acting not simply as economic but also as moral agents. They must assume the responsibility for the effects of their actions, and we argue that the best way to do this is to commit to the primacy of human rights as an overarching value governing all their internal and external dealings. This has its difficulties, as we discuss in the latter part of the article: we use the example of a Brazilian study to illustrate some of the problems of acting out such a commitment. This study also illustrates the point that the futures of business and of the communities in which they exist are intertwined; shareholder value and human rights are interactive elements of ‘good’ business.     

The effect of corporate social responsibility on stock performance: new evidence for the USA and Europe

This paper provides new empirical evidence for the effect of corporate social responsibility on corporate financial performance. In contrast to former studies, we examine two different regions, namely the USA and Europe, and disentangle firm and sector specific impacts. Our econometric analysis shows that environmental and social activities of a firm compared with other firms within the industry are valued by financial markets in both regions. However, the respective positive effects on average monthly stock returns between 2003 and 2006 are more robust in the USA and, in addition, non-linear. Our analysis furthermore points to biased parameter estimates if incorrectly specified econometric models are applied: the seemingly significantly negative effect of environmental and social performance of the industry to which a firm belongs strongly declines and mostly becomes insignificant if the explanation of stock performance is based on the Fama–French three-factor or the Carhart four-factor models instead of the simple Capital Asset Pricing Model.     

Strategy and society: the link between competitive advantage and corporate social responsibility

Governments, activists, and the media have become adept at holding companies to account for the social consequences of their actions. In response, corporate social responsibility has emerged as an inescapable priority for business leaders in every country. Frequently, though, CSR efforts are counterproductive, for two reasons. First, they pit business against society, when in reality the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to their individual strategies. The fact is, the prevailing approaches to CSR are so disconnected from strategy as to obscure many great opportunities for companies to benefit society. What a terrible waste. If corporations were to analyze their opportunities for social responsibility using the same frameworks that guide their core business choices, they would discover, as Whole Foods Market, Toyota, and Volvo have done, that CSR can be much more than a cost, a constraint, or a charitable deed--it can be a potent source of innovation and competitive advantage. In this article, Michael Porter and Mark Kramer propose a fundamentally new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero-sum game. They introduce a framework that individual companies can use to identify the social consequences of their actions; to discover opportunities to benefit society and themselves by strengthening the competitive context in which they operate; to determine which CSR initiatives they should address; and to find the most effective ways of doing so. Perceiving social responsibility as an opportunity rather than as damage control or a PR campaign requires dramatically different thinking--a mind-set, the authors warn, that will become increasingly important to competitive success.     

Towards the age of corporate responsibility? Emerging challenges for the business world

The article seeks to show how the issue of ethical corporations can be examined and challenged through the concept of corporate responsibility. Corporate responsibility first emerged as a term around 10 years ago with the rise of environmental reporting systems. At that time, the UNCED summit in Rio boosted the general level of consciousness concerning these issues and the first business-driven international organisation to tackle the field, Business Council for Sustainable Development, emerged. Globalisation, which by any indicators accelerated enormously during the 1990s, has challenged corporations to consider responsibility in a new light. The evolution and spread of a global network of finance have increased the need for transparency and responsibility, at the same time as the shift from ‘international’ to ‘global’ signified the gradual breakdown of old institutions and the emergence of new ones. This article evaluates how corporations have responded to this challenge and postulates, in the light of increasing pressures on human and natural conditions, a coming ‘Age of Responsibility’ that will set corporate responsibility a basis for any action in business world.