The role of the audit committee in enhancing the credibility of CSR disclosure: Evidence from STOXX Europe 600 members

This study examines the influence of audit committee attributes, namely financial expertise, independence, meeting frequency and size, on the adoption of CSR assurance. The study also offers insight into the effect of audit committee attributes on the scope and level of CSR assurance and the selection of CSR assurance providers. Contextually, this is achieved using a sample of European companies listed on the STOXX 600 index over the period 2012–2018. The findings show that attributes related to audit committee financial expertise, audit committee independence and audit committee meeting frequency and the existence of a CSR committee, are positively linked with the adoption of CSR assurance. Moreover, our empirical analysis further highlights the critical role of audit committee financial expert members in enhancing the scope and level of CSR assurance. Furthermore, audit committee with more frequent meetings lead to higher assurance scopes. Our findings offer significant and multidimensional insights for regulators, policymakers and professionals, regarding the revision and establishment of regulations concerning the audit committee structure.     

Cross-listing and CSR performance: evidence from AH shares

This study investigates the association between corporate social responsibility (CSR) performance and cross-listing. In a clean setting where a change in CSR performance can be attributed to the cross-listing, we find a statistically significant and economically meaningful increase in CSR performance for the cross-listed firms. Moreover, such an increase comes mostly in technical CSR, which targets the firms’ primary stakeholders. We also find that the positive association between cross-listing and CSR improvements is more pronounced for firms with weak corporate governance. The results hold under a variety of different robustness checks.     

The corporate social responsibility (CSR) employer brand process: integrative review and comprehensive model

ABSTRACT

Firms are increasingly drawing on corporate social responsibility (CSR) in their employer branding to improve attractiveness and engage current and potential employees, and to ensure consistency in employee brand behaviours. However, there is a dearth of literature synthesising CSR and employer branding research to understand employee engagement with CSR-firms from a branding perspective. In this article, the authors carried out an integrative literature review of CSR and employer branding literatures. Informed by signaling theory, the authors develop a conceptual model of the CSR employer branding process as a cohesive view from the potential and current employee perspective. Our review highlights the need for firms to achieve CSR consistency in terms of (a) embeddedness of CSR values, and (b) levels of internal CSR. These two factors frame a typology that enable managers to better execute their CSR employer brand identity to achieve favourable results, such as a high-quality talent pool and positive affective, cognitive and behavioural employee outcomes.     

CSR attributions and the moderating effect of perceived CSR fit on consumer trust,identification, and loyalty

Although many companies have engaged in corporate social responsibility (CSR) actions to elicit positive customer responses, the motivation behind CSR actions plays an important role in how effective they are, often leading to unexpected outcomes. While previous literature has placed a strong emphasis on value- and strategy-driven CSR actions, the changing consumer perceptions of and responses to these CSR actions remain less understood. Therefore, the current study investigates 1) how a company's CSR attribution affects consumer trust, identification, and loyalty and 2) how the perceived CSR fit moderates these relationships. The results indicate that value-driven, strategic, and stakeholder-driven attributions have positive effects on consumer trust, influencing consumer-company identification and loyalty positively. Further, we find that perceived CSR fit significantly moderates the relationship between strategic attribution and trust and between trust and loyalty. This study provides meaningful implications for both academia and industry, as it illustrates the changes in consumer views following the global pandemic relative to consumer views revealed in earlier studies.     

Understanding customer participation in CSR activities: The impact of perceptions of CSR,affective commitment,brand equity,and corporate reputation

This study investigates the mediating role of affective commitment in the link between perceptions of corporate social responsibility (CSR) and the intention to participate in CSR activities. We also examine the moderating role of firms' brand equity and corporate reputation in the relationship between perceived CSR and affective commitment. The data were collected from two online surveys and analyzed using Hayes' PROCESS macro. The results indicate a partial mediating effect of affective commitment and a significant moderating effect of brand equity. However, the moderating effect of corporate reputation is not significant. This study contributes to uncovering the process of enhancing CSR performance.     

R&D investments in family and founder firms: An agency perspective

Investments in R&D can influence a firm's ability to develop new products and to create and adopt innovative technologies that may enhance productivity. However, due to uncertainty regarding the outcome, investments in R&D may lead to an agency problem between the owners and the managers of a firm. Family and founder firms are often considered to be different in their agency situation than other firms, which may have an influence on R&D investments. This paper analyzes R&D spending in family and founder firms versus other firms. The results show that while family ownership decreases the level of R&D intensity, ownership by lone founders has a positive effect not only on R&D intensity but also on the level of R&D productivity. The paper contributes to the understanding of the role of entrepreneurship in making high risk/high return R&D decisions.     

Company reputation and its influence on consumer trust in response to ongoing CSR communication

There is considerable disagreement in academic scholarship and beyond as to whether, in cases of bad reputations, companies will want to communicate corporate social responsibility (CSR) activities because this kind of communication is likely to increase consumers’ skepticism. In this regard, the two empirical studies discussed in this article examine the influence of prior company reputation on consumers’ trust in response to CSR communication in general and the development in response to continuous CSR activities and their ongoing communication by companies as well as by the media in particular. The two studies show that consumers’ trust in companies’ CSR activities increases after a second presentation of information by companies even in instances when companies had prior negative reputations. The second study in particular fills a gap in the literature on underlying mechanisms of consumers’ reactions to CSR communication. The results suggest that companies with prior negative reputations do not need to remain silent about their CSR activities; instead, CSR communication can help improve consumers’ trust in companies. However, the findings of these two studies also suggest that this positive development is short-lived. Consumers’ developing trust in companies’ CSR activities decreases significantly if they are exposed to negative information on these companies.     

The role of firm-level and country-level antecedents in explaining emerging versus advanced economy multinationals' R&D internationalization strategies

We examined firm-level and country-level antecedents of R&D internationalization strategies, focusing on differences between enterprises in emerging and advanced economies. Previous research often focuses on the relative importance of home-base-exploiting versus home-base-augmenting knowledge transfer strategies. We suggest that country-level and firm-level effects differ for the two strategies, and hence, we examined each strategy independently. Collecting data in China, India, the United States, and Germany, we demonstrated that firms' relative technological position as a firm-level characteristic can explain differences in home-base-exploiting strategies between emerging and advanced economies. In contrast, home-base-augmenting is more closely related to exploratory institutional environments, a country-level factor. Thus, either firm- or country-level antecedents can gain a dominant role, depending on the strategy implemented.     

The effect of cross-listing on the environmental,social, and governance performance of firms

We propose that cross-listing is associated with better environmental, social, and governance (ESG) performance, because cross-listed firms adopt ESG practices to mitigate the liability of foreignness (LOF) in foreign financial markets. Institutionalization processes have made ESG practices important for managing challenges associated with the LOF. With tests involving the S&P Global 1200 index, we show that cross-listing improves corporate social responsibility (CSR; i.e., social and environmental dimensions) but not corporate governance. The effects of cross-listing on CSR also depend on investor protection regimes of listing destinations: Stronger regimes correspond with poorer CSR performance, suggesting that they limit managerial discretion.     

In the eye of the beholder: Communicating CSR through color in packaging design

Consumers have become much more attentive and demanding about corporate social responsibility (CSR), and companies are now gradually becoming aware that receiving consumer favor could depend on conducting business in a sustainable manner. Moreover, in order to gain returns from their CSR investments, such as company reputation, customer loyalty and customer–company identification, firms must also provide effective communication of their CSR efforts to the consumers. This study explores the potential of packaging color for conveying CSR to consumers, focusing in particular on consumer packaged goods. For this purpose, a quantitative study was conducted on a representative sample of consumers (n = 2000) in the form of a structured questionnaire, administered using face-to-face interviews. Three different stimuli were created through fictitious images of a non-existent brand product. Only the color of the packaging varied, while all the other graphic elements were left unchanged. The results show that, despite the prevailing association of green with the concepts of sustainability and CSR, it is not the most suitable color to clearly and credibly convey a CSR message to consumers. Thus, it is important to examine whether different colors could serve better to improve the clarity and credibility of CSR claims.     

The Evolution of R&D Laboratories in the Brazilian Polymer Industry

ABSTRACT

Ronstadt observed that R&D laboratories in foreign subidiaries of American multinationals follow an evolutionary pattern of development. First, these laboratories adapt foreign technology to the local conditions and local raw materials. Later, laboratories focus their activity in obtaining product quality. In the last stage, these R&D units generate new technology of a long-term or exploratory nature for the corporate parent. Based on this theoretical background, this paper studies the evolution of R&D investments in polymer firms in Brazil. The methodology used was a case study conducted in 5 firms from the polymer area, complemented with secondary sources.

RESUMEN. Según Ronstadt, los laboratorios de I&D de las subsidiarias extranjeras de las multinacionales norteamericanas, cumplen un programa de desarrollo evolucionario. En primer lugar, estos laboratorios adaptan las tecnologías extranjeras a las condiciones locales y las materias primas existentes. A continuación, los laboratorios orientan sus actividades en obtener un producto de alta calidad. En la última etapa, estas unidades de I&D generan nueva tecnología de características a largo plazo o naturaleza exploratoria para la corporación matriz. Usando como base estos antecedentes teóricos, este documento estudia la evolución de las inversiones realizadas por las empresas de polímeros en el campo de la I&D en el Brasil. La metodología utilizada fue un estudio de caso realizado en 5 empresas fabricantes de polímeros, complementado con otras fuentes secundarias.

RESUMO. Ronstadt observou que os laboratórios de R&D em subsidiárias estrangeiras de multinacionais americanas seguem um padrão evolutivo de desenvolvimento. Primeiro, estes laboratórios adaptam a tecnologia estrangeira às condiç[otilde]es e às matérias-primas locais. Posteriormente, os laboratórios focalizam a sua atividade na obtenção da qualidade do produto. E, finalmente, estas unidades de R&D geram uma nova tecnologia para a matriz de natureza exploratória ou de longo prazo. Baseado nesta experiência teórica, este trabalho investiga a evolução dos investimentos de R&D em empresas de polímeros no Brasil. A metodologia usada foi um estudo de caso conduzido em cinco empresas da área de polímeros, complementada por fontes secundárias.     

The CSR's influence on customer responses in Indian banking sector

In the face of growing attention to corporate social responsibility (CSR) activities in the marketplace, this paper seeks to demonstrate how corporate social responsibility (CSR) initiatives influence customer purchase intention in context of Indian retail banking. Further, the impact of awareness as a moderating variable between CSR and purchase intention has been examined. The conclusion drawn from this study have important implications for Indian banks as they suggest that building a socially responsible image might have a favorable effect on consumer purchase intention. Findings suggest that corporate ability has a strong effect on customer purchase intention while CSR activities were found to exert influence on customer purchase intention in cases where the customer was aware of such activities being conducted. This paper contributes to existing CSR literature by offering a deeper understanding into CSR dynamics and its effect on consumer purchase intention. Further, the study tests the level of consumer awareness of CSR activities in a real market situation (not artificial or simulated) which has not been done in previous studies.     

CSR and the national institutional context: The case of South Korea

The different institutional contexts in which businesses practice corporate social responsibility (CSR) lead researchers to challenge the validity of the extant standardized global approach. This study follows recent studies in employing institutional theory to explore the specific pressures and factors that lead CSR practices to differ between countries, and how they lead to those differences. The study is a detailed qualitative analysis of CSR practice in South Korea, a country with very different value and governance systems from the US and UK where contemporary CSR evolved. Contrary to simplistic expectations, Korea shows a concern for short-termism more than for sustainability; and a normative more than a strategic orientation in its CSR, where CSR lies at a crossroads between implicit and explicit CSR behavior. The practices reflect many Korean institutional factors, but not in simple and direct ways. Institutional factors interact in intricate ways to create complex and dynamic pressures for CSR practice. CSR research needs to consider these interactions and dynamic processes with care and institutional theory can help provide a sufficiently intricate research framework.     

Harmonization of firm CSR policies across national contexts: Evidence from Brazil & Sweden

We empirically investigate differences in CSR policy adoption between Brazil and Sweden. We find that Brazilian firms adopt CSR policies to a greater extent than Swedish firms. These differences suggest that the Swedish institutional context, where the public sector is the dominant player in the social arena, may have unintended consequences on the adoption of CSR policies by the private sector. We also find that with internationalization, a trend towards harmonization in CSR policy adoption between Brazil and Sweden is likely to happen. These results suggest that Swedish firms seek to gain legitimacy through greater CSR policy adoption at the international level.     

Pricing,greening, and transparency decisions considering the impact of government subsidies and CSR behavior in supply chain decisions

In this paper, we analytically model different government subsidy strategies in a supply chain manufacturing and selling a green product. We model the interaction between greening degree and transparency level set by a manufacturer and its impact on not only the supply chain, but also consumers and the government. The supply chain is composed of a manufacturer and a retailer. The manufacturer can choose two different strategies. First, he only cares about his production profit; and second, he concerns with CSR in addition to his production profit. We develop a new transparency-based index of consumer satisfaction to model how the market reacts to manufacturer CSR decisions. The government decide three different subsidy strategies. A three-stage Stackelberg game model is developed and solved to analytically derive managerial insights. As a result, if the transparency cost coefficient is sufficiently high, the greening degree and transparency level in CSR concerns strategy are higher than when the manufacturer is not concerned with corporate social responsibility. In addition, when the transparency cost coefficient is sufficiently high, the profit of supply chain members and government are equal in both strategies. We give a real-world example of Iranian brick industry.     

Role of variability in cultural dimensions across generations in the context of CSR advertising in an East Asian market

The study examines how, across generations, Korean consumers perceive corporate social responsibility (CSR) ads when various ad appeals (help-self vs. help-other) are employed. The findings show that younger consumers have bicultural orientations compared to older consumers who have collectivistic cultural orientations. The findings showed that younger consumers were more likely to form favourable attitudes toward CSR ads and products when they viewed help-other ad appeals over help-self ad appeals compared to older consumers. Furthermore, the study revealed that variability in biculturalism plays a significant role in viewing CSR ads with help-self ad appeals. Further managerial implications and future study ideas are discussed.     

Uneasy Alliances: Lessons Learned from Partnerships Between Businesses and NGOs in the context of CSR

Interest in Corporate Social Responsibility (CSR) has proliferated in academic and business circles alike. In the context of CSR, the spotlight has traditionally focused on the role of the private sector particularly in view of its wealth and global reach. Other actors have recently begun to assume more visible roles in the context of CSR, including Non-governmental organizations (NGOs) which have acquired increasing prominence on the socio-economic landscape. This article examines five partnerships between businesses and NGOs in a developing country context that fall in the realm of CSR. The article starts with a literature review, delineating foundational underpinnings that have to be carefully designed and crafted to promote the success of collaborative ventures. An empirical study of five selected partnerships between businesses and NGOs in Lebanon is then presented, allowing to derive interesting insights into types of existing alliances, their relational characteristics as well as salient factors considered most determinant of success or failure in this regard.     

CSR对企业竞争优势贡献的模型研究

企业社会责任通常指企业对其利益相关者应当承担的责任,企业社会责任与企业的发展有什么关系?这是一个非常值得探讨的课题。本文将对企业社会责任与企业竞争优势的关系进行深入研究,提出企业对其利益相关者履行社会责任将有利于其获得战略性资源、核心能力以及良好的企业环境。也就是说对企业竞争优势具有正面的影响作用。本文最后构建了CSR对企业竞争优势贡献的模型。