Do Lenders Value Corporate Social Responsibility? Evidence from China

Drawing on risk mitigation theory, this article examines whether the improvement of firms’ social performance reduces debt financing costs (CDFs) in China, the world’s largest emerging market. Employing both the ordinary least square (OLS) and the two-stage instrumental variable regression methods, we find that improved corporate social responsibility (CSR) reduces the CDF when firms’ CSR investment is lower than an optimal level; however, this relationship is reversed after the CSR investment exceeds the optimal level. Firms with extremely low or extremely high CSR are subject to a higher CDF. The results also suggest that the optimal CSR level for small firms is higher than that for large firms. This study is the first to document a U-shaped relationship between CSR and CDF and also the first to investigate this relationship within an emerging market context.     

Managerial Talent and Corporate Social Responsibility (CSR): How Do Talented Managers View Corporate Social Responsibility?

Motivated by the ongoing debate on the costs and benefits of corporate social responsibility (CSR), we explore how talented managers view CSR investments. Based on nearly 20,000 observations across 17 years, our evidence reveals a nonmonotonic effect of managerial talent on CSR. Exploiting a novel measure of managerial ability, we find that talented managers view CSR investments favorably. However, only those with especially strong talent are in favor of CSR investments. For executives ranked above the 75th percentile in terms of managerial talent, an increase in managerial ability leads to more CSR investments, suggesting that these strongly talented managers perceive CSR as enhancing firm performance. In contrast, for those with weaker talent, CSR investments are negatively associated with managerial ability, implying that these weakly talented managers view CSR as a wasteful deployment of resources. Further evidence shows that our conclusion is unlikely confounded by endogeneity.     

Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? <Emphasis Type=Italic>Clarifications,Exceptions and Implications</Emphasis>

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts global firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This article seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm–supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The article highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains.     

Corporate Social Responsibility for Developing Country Multinational Corporations: Lost War in Pertaining Global Competitiveness?

This article explores the conceptual and practical gap existing between the developed and developing countries in relation to corporate social responsibility (CSR), or the North-South ‘CSR Divide’, through the analysis of possible impact on the competitiveness of developing countries’ and economies’ SMEs and MNEs in globalization. To do so, this article first reviewed the traditional wisdom on the concept of strategic CSR developed in the North and the role that CSR engagement can play in corporate competitiveness, and compare with the impact on the competitive advantage of the South through the supply chains. It points out that among the many factors that could explain the ‘CSR Divide’, the negative impact of CSR on comparative advantage is the final resort where developing countries are reluctant and defensive toward western-style CSR. It did point out that developing countries are changing their approaches to make CSR work in favor of their competitive position in global trade, such as China who has started to adopt proactive approach by becoming CSR standards-setter. This article concludes with two policy proposals that aim to bridge the CSR gap, the first is to improve CSR standard-setting participation from both sides, and the second to search for solutions in the international investment legal framework which will define corporate obligations in relating to CSR in a more explicit way.     

Which Dimension of Corporate Social Responsibility is a Value Driver in the Oil and Gas Industry?

The oil and gas (O&G) industry suffers from a negative perception of poor sustainability. O&G companies are therefore engaged in several socially sustainable activities related to community development and environmental protection. This article determines whether the social, environmental, and economic dimensions of corporate social responsibility (CSR) are equally value‐additive to O&G companies. We measure the company‐specific level of CSR activities from the information provided in the annual financial reports of O&G companies and determine the effects of CSR dimensions on firm value. We find that CSR enhances firm value of O&G companies. While social activities such as employee well‐being and community development are key value‐drivers, environmental and economic sustainable activities have an insignificant impact on the market value of O&G companies. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd     

Where Are We Going? Perceptions of French Marketing Academics

This paper examines French marketing academics' perceptions of the most pressing issues for theory, practice and academia. The context is provided by an examination of individual and institutional demographic factors; how academics spend their time and what are their teaching/research interests. An analysis of the perceptions suggests there is a need to develop some new paradigmatical thoughts and that an epistemological debate is strongly missed. One key issue of theory, practice and academia is the link between practice and theory that is strongly asked for by the French respondents.     

Are Politically Endorsed Firms More Socially Responsible? Selective Engagement in Corporate Social Responsibility

Journal of Business Ethics - The state plays a major role in corporate social responsibility (CSR) in emerging and transitional economies and often influences firms through political connection,...     

Does Corporate Social Responsibility Matter in Asian Emerging Markets?

This study addresses the question whether corporate social responsibility (CSR) matters in Asian Emerging Markets. Based on CSR scores compiled by Credit Lyonnais Securities (Asia), we assess the CSR performance of major Asian firms over a period of 3 years, from 2001 to 2004. The results show that there is a positive and significant relation between CSR and market valuation among Asian firms. We further find that CSR is positively related to the market valuation of the subsequent year. More importantly, Asian firms are rewarded by the market for improving their CSR practice.     

Corporate Social Responsibility Engagement in Kenya: Bottom Line or Rhetoric?

Abstract

Over the last three decades, the concept of Corporate Social Responsibility (CSR) has sparked considerable debate in the literature on management research. While previous research on the relationship between CSR and firm performance has largely been based on data gathered in developed countries, this paper examines the relationship between CSR and firm performance in Kenya, using a sample of 352 firm-years during the period 2005–2012. CSR was measured using four dimensions relevant to Kenya: employee CSR, product/service CSR, community CSR and environmental CSR, and aggregated using my own CSR index. Firm performance was measured using both ROA and ROE. Content analysis was used to collect data from the financial reports of companies. The results indicate a positive and significant relationship between employee CSR, product/service CSR and community CSR and firm performance; environmental CSR, on the other hand, was not significant. The overall CSR index was found to be positive and significant to both measures of firm performance.     

Corporate Social Responsibility in Challenging and Non-enabling Institutional Contexts: Do Institutional Voids matter?

The extant literature on comparative Corporate Social Responsibility (CSR) often assumes functioning and enabling institutional arrangements, such as strong government, market and civil society, as a necessary condition for responsible business practices. Setting aside this dominant assumption and drawing insights from a case study of Fidelity Bank, Nigeria, we explore why and how firms still pursue and enact responsible business practices in what could be described as challenging and non-enabling institutional contexts for CSR. Our findings suggest that responsible business practices in such contexts are often anchored on some CSR adaptive mechanisms. These mechanisms uniquely complement themselves and inform CSR strategies. The CSR adaptive mechanisms and strategies, in combination and in complementarity, then act as an institutional buffer (i.e. ‘institutional immunity’), which enables firms to successfully engage in responsible practices irrespective of their weak institutional settings. We leverage this understanding to contribute to CSR in developing economies, often characterised by challenging and non-enabling institutional contexts. The research, policy and practice implications are also discussed.     

How Does Corporate Social Responsibility Affect Corporate Continuous Innovation?

From the perspective of sustainable development, this paper analyzes the impact of corporate social responsibility (CSR) on the corporate continuous innovation based on the theory of innovation economics and the demand for innovationdriven development, and then conducts a series of empirical tests based on a sample of Chinese A-shared listed companies from 2008 to 2016. The results show that better CSR performance is conducive to the continuous innovation, and this positive relationship is more pronounced for firms with voluntary accounting information disclosure, for firms of non-high-technology industries, and when policy uncertainty is high. This paper not only enriches the literature on CSR but also provides theoretical references for the innovation practice of enterprises under the innovation-driven strategy.     

The Relationship between Religiousness and Corporate Social Responsibility Orientation: Are there Differences Between Business Managers and Students?

The purpose of this paper is to determine whether there is a relationship between a person’s degree of religiousness and corporate social responsibility orientation. A total of 411 managers and 506 students from seven universities were surveyed. The statistical analysis showed that religiousness does influence students’ orientation toward the economic, ethical, and philanthropic responsibilities of business. It does not, however, have a significant impact upon the managers’ attitudes. When the “low religiousness” students and managers were compared, differences were found with respect to the economic, ethical, and philanthropic components of corporate social responsibility. Similar results were obtained when the “high religiousness” students and managers were compared. The implications of these findings are discussed. Nabil Ibrahim is the Grover Maxwell Professor of Business Administration at Augusta State University, Augusta, Georgia. He teaches courses in Strategic Management and Applied Statistics. Dr. Ibrahim’s articles have appeared in the Journal of Business Ethics, Health Care Management Review, the Journal of Applied Business Research, as well as many other journals and proceedings. Donald P. Howard is an Associate Professor of Management at Augusta State University, Augusta, Georgia. He teaches courses in Strategic Management and Entrepreneurship. His articles have appeared in a number of journals such as the Journal of Business Ethics, Journal of Applied Case Research, and Health Care Management Review, as well as many proceedings. John Angelidis is Professor and Chair, Department of Management, St. John’s University, New York, NY. He teaches courses in Strategic Management and International Business. Dr. Angelidis has published articles in the Journal of Business Ethics, Review of Business, Journal of Commerce and Management, as well as many other journals and proceedings.     

Corporate Social Responsibility in Western Europe: An Institutional Mirror or Substitute?

In spite of extensive research on corporate social responsibility (CSR) and its link with economic and social performance, few studies have investigated the institutional determinants of CSR. This article draws upon neo-institutional theory and comparative institutional analysis to compare the influence of different institutional environments on CSR policies of European firms. On the basis of a dataset of European firms, we find that firms from the more liberal market economies of the Anglo-Saxon countries score higher on most dimensions of CSR than firms in the more coordinated market economies (CMEs) in Continental Europe. This result lends support to the view of voluntary CSR practices in liberal economies as being a substitute for institutionalized forms of stakeholder participation. Meanwhile, CSR tends not to mirror more institutionalized forms of stakeholder coordination. Instead, in CMEs, CSR often takes on more implicit forms. Our analysis also shows that national institutional and sectoral-level factors have an asymmetric effect – strongly influencing the likelihood of firms adopting ‘minimum standards’ of CSR, but having little influence on the adoption of ‘best practices’.     

Corporate Social Responsibility and Employee–Company Identification

This study proposes two identification cuing factors (i.e., CSR associations and CSR participation) to understand how corporate social responsibility (CSR) relates to employees’ identification with their firm. The results reveal that a firm’s CSR initiatives increase employee–company identification (E–C identification). E–C identification, in turn, influences employees’ commitment to their company. However, CSR associations do not directly influence employees’ identification with a firm, but rather influence their identification through perceived external prestige (PEP). Compared to CSR associations, CSR participation has a direct influence on E–C identification. On the basis of these findings, it is argued that CSR performance can be an effective way for companies to maintain a positive relationship with their employees.     

Corporate Social Responsibility–Oriented Compliances and SMEs Access to Global Market: Evidence from Bangladesh

The convergence of corporate social responsibility (CSR) and corporate governance has immense impact on the participants in global supply chains. The global buyers and retailers tend to incorporate CSR in all stages of product manufacturing within their supply chains. The incorporated CSR thus creates the difficulty to small- and medium-sized manufacturing enterprises (SMEs). Incompetence in standardized CSR practices is an important issue that causes SMEs either losing their scope to access global market directly or serving as subcontractors to large enterprises. This article explores this issue by focusing on Bangladeshi SMEs under the CSR requirement of the important global buyer.     

Corporate Social Responsibility and Farmer Suicides: A Case for Benign Paternalism?

Although arguments are a good way of exploring the limitations and complexities of a concept or a theory we may find ourselves faced with a real phenomenon that challenges the existing formulations of a concept or a theory so strongly and reveals its limitations to us so starkly that we are forced to break away from the current discussion and start anew. Such is the challenge posed by the phenomenon of farmer suicides on our existing theories of corporate social responsibility. Contemporary discussions in corporate ethics are replete with many theories of corporate social responsibility which in one way or the other rely on the concept of the social contract. For the most part these theories have gone unchallenged and no fundamental limitations have been revealed. However, the phenomenon of farmer suicides in central India poses a serious challenge to them. This article attempts to show how the phenomenon of farmer suicides in central India starkly exposes some of the fundamental limitations of the contractarian formulations of corporate social responsibility.     

Does Corporate Social Responsibility Affect Information Asymmetry?

In this study, we examine the empirical association between corporate social responsibility (CSR) and information asymmetry by investigating their simultaneous and endogenous effects. Employing an extensive U.S. sample, we find an inverse association between CSR engagement and the proxies of information asymmetry after controlling for various firm characteristics. The results hold using 2SLS considering the reverse side of information asymmetry influencing CSR activities. The results also hold after mitigating endogeneity based on the dynamic panel system generalized method of moment. Furthermore, the CSR–information asymmetry relation is amplified in high-risk firms due to managers’ efforts to build a good reputation. Last, we find that CSR engagement is inversely associated with reputational risk measure and lower predicted value of reputational risk is positively associated with lower information asymmetry measures. We interpret these results as supporting the stakeholder theory-based, reputation-building explanation that considers CSR engagement as a vehicle to build and maintain firm reputation thereby enhancing the information environment.