Special Issue "Corporate Social Responsibility (CSR) in Developing Countries: Current Trends and Development"

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: 30 September 2020.

Special Issue Editor

Dr. Mohammad Nurunnabi
Website
Guest Editor
College of Business Administration, Prince Sultan University, Riyadh, Saudi Arabia;
St Antony's College, University of Oxford, Oxford, United Kingdom
Interests: CSR; sustainability; governance; business and society; policy; culture
Special Issues and Collections in MDPI journals

Special Issue Information

Dear Colleagues,

This Special Issue is designed to spotlight contemporary research on corporate social responsibility (CSR) in developing countries, with preference given to research emphasizing local or context. Previous research on CSR has been focused principally based on the western-contexts in the last 40 years. The Special Issue will, therefore, provide an opportunity for contributors to spotlight their contributions to the broad fields of business, economics, political science, law accounting, finance, marketing, supply chain, international business and management are all welcome. The following themes would be of particular interest (NB: this list is not exhaustive):

  • What are the current trends of CSR research in developing countries?
  • What are the important developments of CSR so far in developing countries?
  • What questions needed to be asked to develop fruitful future research directions on CSR in developing countries?
  • What are theoretical implications of CSR in developing countries?
  • How can CSR be specified and compared in different developing countries contexts?
  • Where can CSR research offer best practices in developing countries?
  • What are the practical and methodological challenges of conducting CSR research?
  • What are the practical challenges of implementing CSR strategy in developing countries?

 Dr. Mohammad Nurunnabi
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • CSR
  • Developing Countries
  • Challenge
  • Opportunities
  • Development

Published Papers (100 papers)

Order results
Result details
Select all
Export citation of selected articles as:

Research

Jump to: Review, Other

Open AccessArticle
Social Representations of “Rounding Up” as a Cause-Related Marketing Practice: A Study of Mexican Millennials
Sustainability 2020, 12(13), 5278; https://doi.org/10.3390/su12135278 - 30 Jun 2020
Abstract
Nowadays, companies are relying more and more on cause-related marketing (CRM) as an effective corporate social responsibility practice to achieve marketing objectives by consumers’ participation in donations. Specifically, the current study is focused on exploring millennials’ (born between 1980 and 2000) beliefs and [...] Read more.
Nowadays, companies are relying more and more on cause-related marketing (CRM) as an effective corporate social responsibility practice to achieve marketing objectives by consumers’ participation in donations. Specifically, the current study is focused on exploring millennials’ (born between 1980 and 2000) beliefs and understandings of a CRM practice that has received scant attention from marketing scholars despite its effectiveness in raising money: rounding up. For methodological purposes, a structural approach to the theory of social representations is adopted as it facilitates the analysis of interpretations and shared meanings held by a social group about a specific social phenomenon. Thus, drawing on this theoretical approach, the method of free-word associations was chosen and applied to 300 Mexican millennials. Findings indicate that millennials understand the purpose and nature of rounding up and, hence, they are willing to donate money through this practice. However, the mistrust of companies’ practices and intentions by millennials (e.g., tax evasion and misuse of money) affect the credibility of rounding up. Therefore, companies must implement practices to enhance awareness, transparency, and trust in their rounding-up practices. Full article
Show Figures

Figure 1

Open AccessArticle
Coercive, Normative and Mimetic Pressures as Drivers of Environmental Management Accounting Adoption
Sustainability 2020, 12(11), 4506; https://doi.org/10.3390/su12114506 - 02 Jun 2020
Abstract
This paper explores the impact of institutional pressures on the adoption of environmental management accounting (EMA). EMA has been recognized as a valuable mechanism to deal with environmental issues. This paper uses institutional theory to explain the drivers of EMA adoption in Pakistan. [...] Read more.
This paper explores the impact of institutional pressures on the adoption of environmental management accounting (EMA). EMA has been recognized as a valuable mechanism to deal with environmental issues. This paper uses institutional theory to explain the drivers of EMA adoption in Pakistan. Data were collected from the manufacturing sector in Pakistan through a questionnaire-based survey. The study concludes that coercive, normative and mimetic pressures have a significant and positive impact on the adoption of EMA. Full article
Show Figures

Figure 1

Open AccessArticle
Environmental Factors and Stakeholders Influence on Professional Sport Organisations Engagement in Sustainable Corporate Social Responsibility: A South African Perspective
Sustainability 2020, 12(11), 4504; https://doi.org/10.3390/su12114504 - 02 Jun 2020
Abstract
As the sporting industry has become more professionalised, there have been an increased number of studies focused on corporate social responsibility (CSR) engagement within this sector. However, with unique aspects of professional sport organisations and limited studies on this in developing market contexts, [...] Read more.
As the sporting industry has become more professionalised, there have been an increased number of studies focused on corporate social responsibility (CSR) engagement within this sector. However, with unique aspects of professional sport organisations and limited studies on this in developing market contexts, this paper reports on a study that aimed to investigate the impact of environmental factors and stakeholders that have an impact on sustainable CSR engagement in the South African professional sport industry. Following an interpretivist philosophy, this study adopted a qualitative research approach to collect the primary data. Key stakeholders were strategically selected from six South African professional sport organisations and ten in-depth interviews were conducted. This inquiry revealed that several internal and external environmental factors influence sustainable CSR engagement by professional sport organisations, namely, (1) internal objectives, funds, people and resources and (2) external uncontrollable factors, economy, and community awareness. The study also found that corporate partnerships, non-corporate partnerships and targeted communities were the main stakeholder types involved in CSR activities. The study, therefore, expands the understanding of CSR engagement within the professional sport industry in South Africa, also contributing to CSR practice and policy within this sector by proposing the engagement in more sustainable CSR initiatives. Full article
Show Figures

Figure 1

Open AccessArticle
Analysis of the Importance of Job Insecurity, Psychological Safety and Job Satisfaction in the CSR-Performance Link
Sustainability 2020, 12(9), 3514; https://doi.org/10.3390/su12093514 - 25 Apr 2020
Abstract
Existing works on the association between corporate social responsibility (CSR) and performance have investigated how CSR affects external stakeholders (e.g., shareholders, customers, local communities, and environment). However, the effect of CSR on internal stakeholders such as employees who ultimately determine organizational performance is [...] Read more.
Existing works on the association between corporate social responsibility (CSR) and performance have investigated how CSR affects external stakeholders (e.g., shareholders, customers, local communities, and environment). However, the effect of CSR on internal stakeholders such as employees who ultimately determine organizational performance is relatively underexplored. Institutional theory suggests that institutional enablers, e.g., CSR practices, influence macro-level variables, like organizational performance, via micro-level intermediating processes, such as perceptions, attitudes and behaviors of employees. Thus, this paper proposes that internal mechanisms are essential to explain the CSR-performance link. Using a 3-wave time-lagged survey data of 301 workers in South Korean firms (144 men and 157 women, average age: 40.30), this research examines how psychological safety and job satisfaction of an employee function as sequential mediators in the CSR-performance link. Moreover, the current research also investigates how job insecurity negatively moderates the link between CSR and psychological safety. The results demonstrated that psychological safety and job satisfaction function as sequential internal mediators in the link. In addition, job insecurity negatively moderated the influence of CSR on psychological safety. The results suggest that an employee’s perceptions and attitudes, such as job insecurity, psychological safety, and job satisfaction, significantly influence the relationship between CSR and performance. Full article
Show Figures

Figure 1

Open AccessArticle
Linking Corporate Social Responsibility to Customer Loyalty through Co-Creation and Customer Company Identification: Exploring Sequential Mediation Mechanism
Sustainability 2020, 12(6), 2525; https://doi.org/10.3390/su12062525 - 23 Mar 2020
Cited by 2
Abstract
Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light [...] Read more.
Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility and Performance in SMEs: Scientific Coverage
Sustainability 2020, 12(6), 2332; https://doi.org/10.3390/su12062332 - 17 Mar 2020
Cited by 1
Abstract
The objective of this research is to analyze the scientific production indexed in the international Scopus database on the subject of “corporate social responsibility and corporate social performance” in small and medium-sized enterprises. In the literature, it is currently possible to observe how [...] Read more.
The objective of this research is to analyze the scientific production indexed in the international Scopus database on the subject of “corporate social responsibility and corporate social performance” in small and medium-sized enterprises. In the literature, it is currently possible to observe how large corporations undertake social responsibility actions as a usual practice. However, in the case of small and medium-sized enterprises, the reality is different due to their high heterogeneity. To fulfil the proposed objective, a bibliometric analysis is carried out, identifying 277 articles on the subject. It is observed that scientific production is concentrated in a period of 18 years (2000–2018), the majority being qualitative studies. Full article
Show Figures

Figure 1

Open AccessArticle
The Determinants of Cooperative Banks’ Community Service—Empirical Study from Poland
Sustainability 2020, 12(5), 1885; https://doi.org/10.3390/su12051885 - 02 Mar 2020
Abstract
This research concentrated on the socio-financial qualities of Poland’s co-op banking. The study’s results enabled answering the question of whether the cooperative banks (co-op banks) are exclusively focused on maximum financial effectiveness or faithful to the idea of cooperation, which basically means supporting [...] Read more.
This research concentrated on the socio-financial qualities of Poland’s co-op banking. The study’s results enabled answering the question of whether the cooperative banks (co-op banks) are exclusively focused on maximum financial effectiveness or faithful to the idea of cooperation, which basically means supporting its membership and community development. The main objective of the study was to determine the influence of internal factors on initiated support to the community within the framework defining the activities pertaining to a business’s social responsibility, as seen for Poland’s co-op banks. A seven-year study period was adopted, i.e., 2011–2017, inclusive. The research indicated that the co-op banks decide about a sum of contributions for community initiatives based on their current condition—according to current profits, current credits volume, total accounts number and considering financial security as expressed by the level of the solvency coefficient of the previous year. Full article
Open AccessArticle
Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia
Sustainability 2020, 12(4), 1395; https://doi.org/10.3390/su12041395 - 13 Feb 2020
Abstract
Mining is an important industry in Indonesia. A nickel mining company has operated for almost 45 years. It has managed corporate social responsibility (CSR) programmes in the neighbouring local community. In addition to the environmental conservation and mitigation, as well as socioeconomic enhancement, [...] Read more.
Mining is an important industry in Indonesia. A nickel mining company has operated for almost 45 years. It has managed corporate social responsibility (CSR) programmes in the neighbouring local community. In addition to the environmental conservation and mitigation, as well as socioeconomic enhancement, the CSR is expected to nurture resilience in the local communities. This study’s goal is to examine the effect of CSR on community resilience (COM-R) in the surrounding community. To analyse the effect of CSR practise on COM-R, Partial Least Squares -Structural Equation Model (PLS-SEM) is used. Results show that CSR has a positive effect on and a significant relationship with COM-R. Results also indicate that CSR’s contribution to COM-R enhances community collective efficacy, community action, and adaptation. Thus, the verified CSR and COM-R model benefits other researchers, companies, and governments to be further explored. Full article
Show Figures

Figure 1

Open AccessArticle
Investing In CSR Pays You Back in Many Ways! The Case of Perceptual, Attitudinal and Behavioral Outcomes of Customers
Sustainability 2020, 12(3), 1158; https://doi.org/10.3390/su12031158 - 06 Feb 2020
Cited by 4
Abstract
Researchers and scholars have widely attributed corporate social responsibility (CSR) to enormous outcomes. However, the customer-specific outcomes are either less investigated or lack clarity. By focusing on perceptual, attitudinal and behavioral outcomes of CSR, this study entails that CSR influences customers’ citizenship behavior [...] Read more.
Researchers and scholars have widely attributed corporate social responsibility (CSR) to enormous outcomes. However, the customer-specific outcomes are either less investigated or lack clarity. By focusing on perceptual, attitudinal and behavioral outcomes of CSR, this study entails that CSR influences customers’ citizenship behavior (behavioral outcome) both directly and indirectly (through service quality and affective commitment—perceptual and attitudinal outcomes). Survey data collected from 669 fast-food restaurant customers were analyzed through the structural equation modeling technique. The results revealed a positive and significant relationship between restaurants’ CSR efforts and customers’ behavioral responses in terms of citizenship behavior. Findings also highlight that CSR does not only have a direct relation but the sequential mediation mechanism also exists. The study extends the existing literature by focusing on the ignored causal link of CSR and customer citizenship behavior (CCB) by considering the service quality and affective commitment as an explanatory mechanism, and provides certain practical implications which could also be useful for managers of the restaurant industry to devise their socially responsible practices. Full article
Show Figures

Figure 1

Open AccessArticle
Effect of Transaction Rules on Enterprise Transaction Costs Based on Williamson Transaction Cost Theory in Nanhai, China
Sustainability 2020, 12(3), 1129; https://doi.org/10.3390/su12031129 - 05 Feb 2020
Abstract
The high transaction costs due to the incomplete information and transaction rules of the rural collective construction land (RCCL) market indicate that the government must improve the rural collective construction land market. Transaction rules are an important means for the government to intervene [...] Read more.
The high transaction costs due to the incomplete information and transaction rules of the rural collective construction land (RCCL) market indicate that the government must improve the rural collective construction land market. Transaction rules are an important means for the government to intervene in the market and promote the development of market order, to secure land tenure, and to improve the disclosure of information. Vertical integration may reduce enterprise transaction costs but will increase the governance cost of internal organizations in enterprises. Land commercialization and corporate governance restructuring is a considerable challenge worldwide. Using a field survey in Nanhai district, Guangdong province, China, we estimated how the transaction costs of the RCCL are influenced not only by three dimensions of transaction rules—openness, equity, and justice—but also by the human asset in EC or EJC. Tobit models were constructed, and the results show that (1) the greater number of collective leaders, the higher the enterprise transaction cost (human asset in EC or EJC increases transaction costs of enterprises) and (2) the transaction rules are not sufficiently open or fair, which leads to high costs of market information searching, opportunism, and corruption. The transaction information is not transparent and the lag in transaction supervision mode gives rise to unfair transactions, in which the formation mode of land price is unreasonable. Therefore, we suggest that the transaction rules of RCCL market should be further improved in the three dimensions of openness, equity, and justice. Chinese authorities should strengthen their current efforts to build a more open and fair market by reducing the transaction costs of enterprises and improving the transaction efficiency. Our work provides some insights into the improvement of market efficiency which will contribute to the development of the RCCL market in other areas of China and worldwide. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility Information Disclosure and Innovation Sustainability: Evidence from China
Sustainability 2020, 12(1), 409; https://doi.org/10.3390/su12010409 - 04 Jan 2020
Cited by 2
Abstract
We selected the Chinese A-share listed companies during period of 2007 to 2017 as the research subject, and from the perspective of information and reputation effects, we examined the relationship between corporate social responsibility (CSR) information disclosure and innovation sustainability. The results show [...] Read more.
We selected the Chinese A-share listed companies during period of 2007 to 2017 as the research subject, and from the perspective of information and reputation effects, we examined the relationship between corporate social responsibility (CSR) information disclosure and innovation sustainability. The results show that CSR information disclosure has a significant positive relationship with innovation sustainability. Analysis of the effects channel suggests that the information effect plays a dominant role; CSR information disclosure can alleviate the information asymmetry between managers and investors, controlling shareholders and minority shareholders, and alleviate the financing constraint problems, thereby improving innovation sustainability. Our findings support the information hypothesis but not the reputation hypothesis. The relationship between CSR information disclosure and innovation sustainability is more significant in non-state-owned companies. The moderating effect shows that managerial stock incentives can strengthen the positive relationship between CSR information disclosure and innovation sustainability. A series of robustness test results show that the conclusions are reliable. The research is important for promoting the fulfillment of CSR, improving corporate innovation, and promoting the healthy development of the capital market. Full article
Open AccessArticle
Can Corporate Fairness towards Public Authorities Enhance Customer Loyalty? A Multi-Sectorial Investigation in a Developing Country
Sustainability 2020, 12(1), 187; https://doi.org/10.3390/su12010187 - 25 Dec 2019
Cited by 2
Abstract
This paper investigates how customer loyalty can be enhanced by improving customers’ perceptions of corporate fairness towards public authorities, taking into account the mediating role of customer-company identification, in a multi-sectorial context, in a developing country in Central and Eastern Europe. The investigation [...] Read more.
This paper investigates how customer loyalty can be enhanced by improving customers’ perceptions of corporate fairness towards public authorities, taking into account the mediating role of customer-company identification, in a multi-sectorial context, in a developing country in Central and Eastern Europe. The investigation is conducted comparatively within four main industries (telecom services, retail banking services, dairy products and personal care products) and depicts the particular impact these perceptions have on customer loyalty in each domain, with practical implications concerning corporate social responsibility (CSR) communications. A consumer survey was designed and implemented among a sample of 1464 customers from Romania. The collected data was analyzed by means of partial least squares structural equation modeling (PLS-SEM). We found that customers’ perception of corporate fairness towards public authorities has a significant and positive impact on customer loyalty in all investigated industries, both directly and indirectly via customer-company identification, with a higher impact for services, especially for retail banking services. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibilities of Food Processing Companies in Vietnam from Consumer Perspective
Sustainability 2020, 12(1), 71; https://doi.org/10.3390/su12010071 - 20 Dec 2019
Abstract
Corporate social responsibility (CSR) has been receiving increasing attention in the international community since the Sustainable Development Goals (SDGs) emphasise effective corporate partnership. CSR is one of the most critical instruments linking corporate activities to the SDGs. Among various stakeholders, consumers can play [...] Read more.
Corporate social responsibility (CSR) has been receiving increasing attention in the international community since the Sustainable Development Goals (SDGs) emphasise effective corporate partnership. CSR is one of the most critical instruments linking corporate activities to the SDGs. Among various stakeholders, consumers can play an essential role in motivating companies to become socially responsible. However, there is little evidence from developing countries about the linkage between CSR and consumers. This paper, therefore, examines the relationship between consumers’ perception of a company’s CSR practices and their attitudes towards and intentions on purchasing its goods with empirical evidence from the Vietnamese food industry. The primary data was collected from 622 consumers using processed food in a self-administered survey in Northern Vietnam. Based on the structural equation modelling (SEM) analysis, this study shows that perception of CSR toward community has the most substantial influence on consumers’ attitude, followed by the perception of CSR toward employees and perception of fair operating practices responsibility. Although Vietnamese consumers have knowledge of the CSR in the food processing industry, their response to either good or bad CSR practices is still insufficient. Hence, the Vietnamese government and civil society should actively intervene to strengthen CSR regulations and enhance consumers’ CSR awareness. Full article
Show Figures

Figure 1

Open AccessArticle
A Corporate Case Study: The Application of Rokeach’s Value System to Corporate Social Responsibility (CSR)
Sustainability 2019, 11(23), 6612; https://doi.org/10.3390/su11236612 - 22 Nov 2019
Cited by 3
Abstract
Starting from the research assumption that corporate social responsibility (CSR) values cannot be communicated efficiently, if they do not belong naturally to a company’s identity, this paper debates the prospect of applying Rokeach’s Value System (1973) to Continental corporation’s CSR values. Rokeach’s Value [...] Read more.
Starting from the research assumption that corporate social responsibility (CSR) values cannot be communicated efficiently, if they do not belong naturally to a company’s identity, this paper debates the prospect of applying Rokeach’s Value System (1973) to Continental corporation’s CSR values. Rokeach’s Value System (1973) is used to compare Continental data provided online and establish whether the ideal corporate values presented by the company are similar to the real values, with respect to the CSR values. We base our assessment of the level of integration of CSR into corporate identity on Maon et al.’s integrated model of CSR development (2010). Our analysis reveals that although the Continental corporation works with the CSR concept in a strategic and systematic manner, the set CSR values do not correspond to the real corporate values. Full article
Open AccessArticle
Critical Success Factors for Corporate Social Responsibility Adoption in the Construction Industry in Malaysia
Sustainability 2019, 11(22), 6411; https://doi.org/10.3390/su11226411 - 14 Nov 2019
Cited by 2
Abstract
In the construction industry, corporate social responsibility (CSR) is increasingly valued as a strategic tool for business sustainable development and for addressing ethical issues. However, understanding the concept of CSR in the construction industry, and how to practice it, is limited. This study [...] Read more.
In the construction industry, corporate social responsibility (CSR) is increasingly valued as a strategic tool for business sustainable development and for addressing ethical issues. However, understanding the concept of CSR in the construction industry, and how to practice it, is limited. This study aims to explore and assess the factors critical to the successful adoption of CSR in the construction industry through the lens of critical success factors (CSFs) theory. Through a literature review, a list of potential factors that may theoretically have a major impact on CSR adoption in the construction industry was compiled as a proxy. Then, the potential factors were refined and validated by employing a Delphi technique. An expert panel of sixteen qualified Malaysian industry practitioners and academia was assembled. Results from three iteration rounds of the Delphi process depicted that successful adoption of CSR in practices depends upon eight CSFs including financial resources, top management support, managerial or internal skills on CSR, national economic growth, employees’ education and training on CSR, participation of key stakeholders in the CSR process, effective CSR communication, and organizational structure. This study contributes to the field by addressing a theme that has been covered less in literature. Knowing the CSFs for CSR adoption in advance could help the construction firms to successfully integrate CSR into business strategies and minimize the risk of failure. Policy-makers could also consider the findings when promoting the CSR agenda or development programs that adhere to the construction industry’s way forward. Although this study is particularly suited for the Malaysian context, nevertheless, the outcomes could shed some light upon the CSR initiative in other countries, since CSR adoption status in the construction industry overall does not significantly differ between countries. Full article
Open AccessArticle
The Perception of Corporate Social Responsibility in Muslim Society: A Survey in Pakistan and Sudan
Sustainability 2019, 11(22), 6297; https://doi.org/10.3390/su11226297 - 09 Nov 2019
Cited by 1
Abstract
Corporate social responsibility (CSR) concepts are spread out in different organizations and cultures. To comprehend the Muslim consumers’ perception of CSR, this study conducted a self-administered survey in two Muslim-culture-rich countries, Pakistan and Sudan. Combined with previous studies and Carroll’s pyramid of CSR, [...] Read more.
Corporate social responsibility (CSR) concepts are spread out in different organizations and cultures. To comprehend the Muslim consumers’ perception of CSR, this study conducted a self-administered survey in two Muslim-culture-rich countries, Pakistan and Sudan. Combined with previous studies and Carroll’s pyramid of CSR, this study shows that Muslim consumers have more supportive responses toward CSR compared to consumers of Western, developed countries. The findings of the study also reveal that Carroll’s pyramid of responsibilities could be applied in the Muslim culture, as the relative importance placed by Muslim consumers on the four responsibilities of firms—economic, legal, ethical and philanthropic—is significantly different from that in Western, developed countries. These differences provide useful guidance for firms intending to use CSR for strategic purposes in Muslim countries. The reasons for these phenomena are also discussed. Full article
Open AccessArticle
Corporate Responsibility in India: Academic Perspectives on the Companies Act 2013
Sustainability 2019, 11(21), 5939; https://doi.org/10.3390/su11215939 - 25 Oct 2019
Cited by 1
Abstract
Developing prosperous and inclusive societies requires a reformulation of the business-society nexus toward sustainability. This means that all economically motivated behaviors of firms also need to consider their social and environmental impact, and all social and environmental policies their impact on the business [...] Read more.
Developing prosperous and inclusive societies requires a reformulation of the business-society nexus toward sustainability. This means that all economically motivated behaviors of firms also need to consider their social and environmental impact, and all social and environmental policies their impact on the business sector and the economy. With the Companies Act 2013, the Indian government adopted a legislative approach to reconfigure the business-society nexus. Mandating what has been considered discretionary elicited an extensive academic debate. To study this India-specific political corporate social responsibility (CSR), we employ Content Configuration Analysis on 70 local and international English-language book chapters, research articles, reports, reviews, and expert commentaries published between 2013 and 2019 to develop a typology of the advantages and disadvantages associated with the Companies Act 2013. Among a large number of positions for and against the Act, we find that arguments extolling its advantages concurrently appear as disadvantages in other texts. This paradox is indicative of the difficulties of satisfying stakeholder expectations, as well as the complexities corporate responsibility programs face in India. Nonetheless, CSR as a policy tool allows the Indian government to instrumentalize the growing success of the business sector to address local and national needs and expectations. By systematizing the opportunities and challenges associated with the Companies Act 2013, we show how, similar to China, context and culture influence India’s socioeconomic development trajectory beyond the conventional market economy canon. Our analyses reveal how advantages and disadvantages are frequently connected to multiple stakeholders, including the government, business, and society. We conclude by highlighting the contribution this study makes to the field of political CSR. Full article
Open AccessArticle
Eco-Innovative Museums and Visitors’ Perceptions of Corporate Social Responsibility
Sustainability 2019, 11(20), 5744; https://doi.org/10.3390/su11205744 - 17 Oct 2019
Abstract
This study assumes that green technologies at tourist destinations are a part of corporate social responsibility (CSR). It investigates how technology-based eco-innovation is related to sustainable development goals (SDGs) and how eco-innovative CSR performance affects tourists’ perceptions of destinations, emotions, and WOM (word [...] Read more.
This study assumes that green technologies at tourist destinations are a part of corporate social responsibility (CSR). It investigates how technology-based eco-innovation is related to sustainable development goals (SDGs) and how eco-innovative CSR performance affects tourists’ perceptions of destinations, emotions, and WOM (word of mouth) intentions in the context of sustainability and smart tourism. A dataset collected from the Handok Museum in South Korea was analyzed via a partial least squares (PLS) method, using structural equation modeling. This study examines the link between museum visitors’ awareness of CSR and green technology. The constructs (perceived quality, image, and reputation) are positively correlated with CSR; museum visitors’ emotions are in a parallel relationship with WOM intentions. The results confirm that the green technology implemented in the tourist destination is perceived as CSR by visitors. These technologies have a positive impact on environmental sustainability and contribute to a positive tourist experience. Thus, this paper encourages social responsibility practices at tourist destinations, as well as the development of green technology. This is the first empirical study that demonstrates how the profit-related concept of CSR can be applied to nonprofit organizations, Furthermore, for the first time, the managerial concept of CSR has been reviewed with technology-based eco-innovation in a museum setting. Full article
Show Figures

Figure 1

Open AccessArticle
Does CSR Influence Firm Performance Indicators? Evidence from Chinese Pharmaceutical Enterprises
Sustainability 2019, 11(20), 5656; https://doi.org/10.3390/su11205656 - 14 Oct 2019
Cited by 1
Abstract
This research is carried out in the backdrop of increasing product quality and environmental degradation scandals associated with Chinese Pharmaceuticals in recent years. We examined the data of 125 Chinese Pharmaceuticals between 2010–2016 to investigate the impact of overall corporate social responsibility (CSR) [...] Read more.
This research is carried out in the backdrop of increasing product quality and environmental degradation scandals associated with Chinese Pharmaceuticals in recent years. We examined the data of 125 Chinese Pharmaceuticals between 2010–2016 to investigate the impact of overall corporate social responsibility (CSR) performance as well as the performance on five unique aspects of CSR such as shareholders, employees, customers and suppliers, environmental practices, and the society to gauge the impact of these individual dimensions on the firm’s financial performance. The Hexun rating system is used to gauge a firm’s CSR performance on various stakeholder dimensions as it is one of the widely accepted CSR measurement criteria in China. The firm performance is measured by Tobin’s Q, return on assets (ROA), return on equity (ROE), and earnings per share (EPS) ratios. The outcome of the panel-based regression models reveals that the overall CSR score has a positive and significant influence on a firm’s financial indicators. Moreover, although all the CSR dimensions relate positively to firm performance, the environmental aspect of CSR has the most profound impact on firm performance followed by customers and suppliers, and employees. However, the shareholders and social dimensions have a relatively lesser influence on firm performance. These results imply that Chinese Pharmaceuticals shall further optimize each aspect of CSR performance as it can not only create a favorable brand image for various stakeholders but also results in sustainable financial performance. Full article
Show Figures

Figure 1

Open AccessArticle
Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China
Sustainability 2019, 11(19), 5478; https://doi.org/10.3390/su11195478 - 02 Oct 2019
Cited by 4
Abstract
This study investigates the relationship between sub-national institutional contingencies and corporate social responsibility performance (CSRP). Sub-national institutional contingencies (SNICs) play a moderating role in the link between CSRP and corporate financial performance (CFP). Using data from all A-share Chinese companies listed on the [...] Read more.
This study investigates the relationship between sub-national institutional contingencies and corporate social responsibility performance (CSRP). Sub-national institutional contingencies (SNICs) play a moderating role in the link between CSRP and corporate financial performance (CFP). Using data from all A-share Chinese companies listed on the Shenzhen and Shanghai exchanges for the period 2010 to 2015, ordinary least square (OLS) regression was used as a baseline methodology to draw inferences from the data. The study uses propensity score matching (PSM) to confirm the robustness and to tackle the possible issue of endogeneity. We find reliable evidence that SNICs have a positive and significant effect on CSRP. This positive relationship is more pronounced in cross-listed companies as compared to state-owned enterprises (SOEs) and in companies located in the more developed region. Moreover, SNICs moderate the positive relationship between CSRP and CFP. The relationship is stronger in firms that are non-SOEs, are non-cross-listed, and are from less-developed regions as compared to their counterparts. The findings provide implications for regulators and individual companies. Investment in corporate social responsibility (CSR) helps companies to achieve their primary objective (i.e., financial performance). With respect to practical implications, the study indicates that policymakers, executives, and managers should refrain from “one size fits all” CSR policies. Instead, they need to simultaneously evaluate the effects of regional development, cross-listing, and ownership characteristics. Considering weak social performance by firms that are from less developed regions, are non-cross-listed, and that are non-SOEs, policymakers and the government should improve information transparency and the regulatory framework, and provide these firms with incentives. This study also provides insights for other emerging economies, especially those going through extraordinary government interventions. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility, Corporate Governance and Business Performance: Limits and Challenges Imposed by the Implementation of Directive 2013/34/EU in Romania
Sustainability 2019, 11(19), 5146; https://doi.org/10.3390/su11195146 - 20 Sep 2019
Cited by 8
Abstract
In order to identify the factors that have influenced the Romanian companies’ level of compliance required by the Directive 2013/34/EU with respect to publishing, alongside the annual financial statements for 2017, a report containing non-financial information regarding environmental, social, and personal aspects, and [...] Read more.
In order to identify the factors that have influenced the Romanian companies’ level of compliance required by the Directive 2013/34/EU with respect to publishing, alongside the annual financial statements for 2017, a report containing non-financial information regarding environmental, social, and personal aspects, and business ethics, the following steps were taken in our groundbreaking study: firstly, we analyzed whether there are statistical associations between the level of compliance and the legal forms of organization, the forms of ownership of capital, the branch of activity, the number of employees, the turnover, and the company location; secondly, we evaluated the meaning and intensity of these associations with the help of non-parametric correlation coefficients; thirdly, we identified and presented the economic and social causes of the results obtained; and fourthly, we proposed measures that can contribute to increasing the degree of compliance. What is more, this rigorous scientific work highlights the need to enhance corporate governance and corporate social responsibility in order to create an appropriate balance between sustainability, competitiveness, productivity, and businesses’ financial and non-financial performance, while taking into consideration the benefits brought by the tangible value of businesses (such as, cash flow and earnings) as well as the intangible value of businesses (such as, brand, customer experience, intellectual capital, organizational culture and reputation). Full article
Show Figures

Figure 1

Open AccessArticle
Board Directors’ Expertise and Corporate Corruption Disclosure: The Moderating Role of Political Connections
Sustainability 2019, 11(16), 4491; https://doi.org/10.3390/su11164491 - 19 Aug 2019
Cited by 4
Abstract
Professional expert directors extensively influence corporate corruption disclosure (CCD), while higher political connections may exacerbate corporate management. This study investigates the relationship between the presence of external experts on a board and CCD, as well as the moderating effect of political connections, on [...] Read more.
Professional expert directors extensively influence corporate corruption disclosure (CCD), while higher political connections may exacerbate corporate management. This study investigates the relationship between the presence of external experts on a board and CCD, as well as the moderating effect of political connections, on the positive role of legal experts in CCD. The study combines agency, resource dependence and stakeholder theories to show how resourceful directors on the board can promote corruption disclosure. Using data on listed firms in the Bangladeshi financial sector, the study analyzes 247 firm-year observations from 2012 to 2016. The results of a multiple regression analysis indicate that accounting experts, legal experts, political connections and corporate media visibility each have a positive and significant influence on CCD. Moreover, the moderating effect of political connections on the relationship between legal experts and CCD is negative and significant due to their higher political influences. The study has significant implications for corporate governance and for policies concerning the development of the economy while reducing corruption. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility and Sustainable Development in China: Current Status and Future Perspectives
Sustainability 2019, 11(16), 4392; https://doi.org/10.3390/su11164392 - 14 Aug 2019
Cited by 2
Abstract
With a long history, large population, rapid economic growth, and major social transformation in recent years and the launch of the Belt and Road Initiative, China has increasingly become an important global player. However, the negative social and environmental consequences of such a [...] Read more.
With a long history, large population, rapid economic growth, and major social transformation in recent years and the launch of the Belt and Road Initiative, China has increasingly become an important global player. However, the negative social and environmental consequences of such a fast and extensive economic expansion are becoming significant. A series of measures have been taken to tackle the current problems faced by the country, including the issuing of new laws and regulations, and the most recent is China’s ban on plastic waste imports. However, there is a significant gap between Chinese laws and their implementation. Therefore, more people are putting their hope in a combination of legislation and Corporate Social Responsibility (CSR) to help address the current social and environmental problems faced by the country. This paper discusses the drivers of CSR in China and compares them to the drivers of CSR in the West. The paper also explores the extent to which CSR can make a contribution to solving the sustainable development challenges faced by China and discusses possible solutions if the current CSR pattern fails. Finally, the paper makes suggestions for future research on CSR in China. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility of Forestry Companies in China: An Analysis of Contents, Levels, Strategies, and Determinants
by Yanli Li and Lan Gao
Sustainability 2019, 11(16), 4379; https://doi.org/10.3390/su11164379 - 13 Aug 2019
Cited by 1
Abstract
Corporate social responsibility (CSR) has gained attention in the forestry sector, especially among Chinese forestry companies, which faces serious challenges. This study explores the CSR activities of Chinese forestry companies listed on the Shanghai and Shenzhen Stock Exchanges and analyzes how they differ [...] Read more.
Corporate social responsibility (CSR) has gained attention in the forestry sector, especially among Chinese forestry companies, which faces serious challenges. This study explores the CSR activities of Chinese forestry companies listed on the Shanghai and Shenzhen Stock Exchanges and analyzes how they differ from their international counterparts. CSR contents, levels, strategies, and determinants are examined through a quantitative content analysis and statistical analyses. The results show that Chinese forestry companies’ CSR contents, like their international counterparts, are diverse and include the environment, employees, communities, general social issues, consumers and products, investors and creditors, governments, and supply chains. Both of them focus on environmental and employee responsibility and pay less attention to community responsibility; however, their CSR priority activities differ. While Chinese companies rank employee responsibility activities first and environmental activities second, their international counterparts prioritize environmental activities over employee responsibility. Chinese forestry companies have four types of CSR strategies—reactive, focused, opportunistic, and proactive—and the majority of these companies adopt reactive strategies. Only a few Chinese forestry companies choose proactive strategies. Forest resources partially explain the variance in the levels of government responsibility among forestry companies, and the industry type influences the levels of corporate environmental responsibility. Full article
Show Figures

Figure 1

Open AccessArticle
Do CSR Ratings Converge in China? A Comparison Between RKS and Hexun Scores
Sustainability 2019, 11(14), 3921; https://doi.org/10.3390/su11143921 - 18 Jul 2019
Cited by 7
Abstract
Rankings (RKS) and Hexun are the two most widely used corporate social responsibility (CSR) ratings in research on CSR in China’s capital market. These scores are used as a proxy for CSR performance and disclosure quality. However, research is lacking on the validity [...] Read more.
Rankings (RKS) and Hexun are the two most widely used corporate social responsibility (CSR) ratings in research on CSR in China’s capital market. These scores are used as a proxy for CSR performance and disclosure quality. However, research is lacking on the validity of measuring CSR performance and disclosure quality, as well as the convergent validity between these scores. In this paper, a comparative and quantitative analysis was performed for the period 2010–2017, and the following results were obtained: (1) Based on a comparison of the rating methods, information sources, and other factors, RKS is more suitable for measuring the CSR disclosure quality, while Hexun is more suitable for measuring the CSR performance; (2) based on a Spearman correlation analysis, the convergent validity between these two scores is very low, particularly after 2013; and (3) the sub-indicator weights of the RKS system always maintain a high stability, whereas those of the Hexun system suffer from severe fluctuations starting in 2013. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility and Financial Performance: A Quantile Regression Approach
Sustainability 2019, 11(13), 3717; https://doi.org/10.3390/su11133717 - 08 Jul 2019
Abstract
A prominent claim within the literature is that corporate social responsibility-disclosured firms are fundamentally more resilient to financial shocks, relative to firms that take no corporate social responsibility action. To test this, we examine the impact of corporate social responsibility (CSR) information disclosure [...] Read more.
A prominent claim within the literature is that corporate social responsibility-disclosured firms are fundamentally more resilient to financial shocks, relative to firms that take no corporate social responsibility action. To test this, we examine the impact of corporate social responsibility (CSR) information disclosure on financial constraints (FC). Our sample is composed of A-share publicly listed firms from Shanghai and Shenzhen in China during 2013–2017. We find that CSR disclosure influences negatively financial constraints. The quantile regression results also indicate that the influences would more obvious when a company faces stronger financial constraints. Further, CSR disclosure influences negatively financial constraints in financially opaque firms, and the effect of financial opaque on the relationship strengthens when the company faces great financial constraints. After considering the problems of missing variables and endogenous, changing the level of CSR and FC measurement, using 2SLS and two-step GMM methods, the conclusion is still robust. However, the results should not be generalized, since the sample was based on 434 A-share publicly listed firms for 2013–2017. From the perspective of FC, this study contributes to the literature in the field of CSR and expands the empirical research on the economic consequences of CSR. It also can encourage enterprises to voluntarily disclose social responsibility information and it is of great significance to promote the stable development of the capital market and society. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey
Sustainability 2019, 11(13), 3643; https://doi.org/10.3390/su11133643 - 02 Jul 2019
Cited by 7
Abstract
The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of [...] Read more.
The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of non-financial public firms listed on the Borsa Istanbul (BIST)-100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for. Full article
Open AccessArticle
Is Corporate Social Responsibility Used to Mask Corporate Speculation? Evidence from Emerging China
Sustainability 2019, 11(12), 3375; https://doi.org/10.3390/su11123375 - 18 Jun 2019
Abstract
Why do rational, profit-orientated firms generously engage in corporate social responsibility (CSR)? Our study explores the real motives of speculative firms for CSR engagement and the hidden causality behind it. Using national survey data of privately owned firms in China, we find that [...] Read more.
Why do rational, profit-orientated firms generously engage in corporate social responsibility (CSR)? Our study explores the real motives of speculative firms for CSR engagement and the hidden causality behind it. Using national survey data of privately owned firms in China, we find that corporate speculation positively influences firms’ engagement in CSR, revealing that CSR is instrumental and that firms use it as a tool to mask their speculative activities by building their reputations and buying ‘leniency insurance’ against potential penalties. Further, the relationship between speculation and CSR is less pronounced in firms with political involvement, revealing that the effect of political involvement as an informal institution somewhat protects speculators from potential sanctions without a CSR premium. We also discovered that the relationship between corporate speculation and CSR—as well as the moderating role of political involvement—is less pronounced among developed regions, revealing that the development of formal institutions can restrict the instrumentality of CSR and the effect of political involvement. Such findings have important implications for CSR in emerging economies. Full article
Open AccessArticle
Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms
Sustainability 2019, 11(11), 3132; https://doi.org/10.3390/su11113132 - 03 Jun 2019
Cited by 2
Abstract
Addressing the fact that there are few studies exploring the relationship between board characteristics and corporate social responsibility (CSR) in non-Western contexts, this study examines the relationship in South Korean corporate contexts. We concentrate on foreign directors as a board attribute, which is [...] Read more.
Addressing the fact that there are few studies exploring the relationship between board characteristics and corporate social responsibility (CSR) in non-Western contexts, this study examines the relationship in South Korean corporate contexts. We concentrate on foreign directors as a board attribute, which is reported as a remarkable change in Korean corporate boards, and propose that foreign directors have different impacts on CSR investment depending on their nationality (Anglo-Americans vs. non-Anglo-Americans) and director types (insiders vs. outsiders). In detail, the presence of directors from Anglo-American countries (e.g., the United States, the United Kingdom) decreases firms’ CSR involvement, whereas the presence of directors from non-Anglo-American countries (e.g., France, Germany) increases firms’ CSR involvement. Moreover, the effects of Anglo-Americans on CSR are strengthened when they are inside (rather than outside) directors. Empirical analyses using a sample of 1828 Korean firms from 2002 to 2015 provide evidence to support the predictions. This study theoretically contributes to CSR and corporate governance literature in that it sheds light on the CSR in non-Western companies and reveals varied effects of foreign directors contingent upon their individual attributes. It also has practical implications for policymakers and corporate managers by providing insights of the changes generated by foreign members in a boardroom. Full article
Open AccessArticle
Corporate Social Responsibility Among Travel and Tour Operators in Nepal
Sustainability 2019, 11(10), 2771; https://doi.org/10.3390/su11102771 - 15 May 2019
Cited by 1
Abstract
Travel and tour operators (TTOs) have become increasingly and positively engaged in Corporate Social Responsibility (CSR) due to increased consumer awareness and responsible business practices. However, CSR engagement has not fully permeated the travel and tourism industry in Nepal as it is still [...] Read more.
Travel and tour operators (TTOs) have become increasingly and positively engaged in Corporate Social Responsibility (CSR) due to increased consumer awareness and responsible business practices. However, CSR engagement has not fully permeated the travel and tourism industry in Nepal as it is still considered ambiguous. There is a need to identify baseline knowledge, and to institute programs and policies for CSR engagement. This study formulated a conceptual model to empirically test the relationship between perceptions of CSR (comparative, benefits and favorability) and its association with the importance, participation and future engagement intentions among TTOs in Nepal. Data were collected via a questionnaire among TTO (n = 138) that were registered with the National Association of Tour and Travel Agents. Based on the results, CSR was deemed to be important due to customers’ favorability toward organizations that implemented related activities. This relationship influenced CSR participation and subsequently led to future intentions to engage. Overall, it was apparent that the TTOs which were essentially small and medium enterprises were focused on CSR implementation largely due to customers’ pressure and/or demand. This study provides knowledge to devise appropriate strategies to drive CSR implementation in the tourism industry via TTO in Nepal. Full article
Show Figures

Figure 1

Open AccessArticle
Regional Anti-Corruption and CSR Disclosure in a Transition Economy: The Contingent Effects of Ownership and Political Connection
Sustainability 2019, 11(9), 2499; https://doi.org/10.3390/su11092499 - 29 Apr 2019
Cited by 3
Abstract
Based on the empirical data of China’s Shanghai and Shenzhen A-share market, this paper examined the impact of regional anti-corruption intensity on corporate social responsibility (CSR) disclosure. The results indicate that (1) regional anti-corruption intensity has a significant positive effect on firms’ CSR [...] Read more.
Based on the empirical data of China’s Shanghai and Shenzhen A-share market, this paper examined the impact of regional anti-corruption intensity on corporate social responsibility (CSR) disclosure. The results indicate that (1) regional anti-corruption intensity has a significant positive effect on firms’ CSR disclosure; (2) through the grouping test based on the ownership of firms, it was found that the positive effect of anti-corruption intensity on CSR disclosure in the sample of non-state-owned enterprises was more significant and positive than that of state-owned enterprises (SOEs); and (3) through the grouping test of whether or not the enterprises had political connections, the positive effect of regional anti-corruption intensity on CSR disclosure was stronger and more significant in firms with political connections (relative to those with no or weak political connections). This paper sheds light on the research into anti-corruption policies by linking government macro policy and enterprises’ micro social economic behaviors, and it provides empirical evidence for this linkage. This paper also contributes to organizational legitimacy theory and CSR theory by probing the impact of anti-corruption policies on firms’ CSR disclosure. At the same time, the effects of two contingency factors (ownership and political connection) also provide some practical implications to the relevant government departments by: (1) speeding up the market-oriented reform of state-owned enterprises including clarifying the boundaries of authority and responsibility between SOEs and the government, and conducting the de-administration of managers of SOEs; and (2) encouraging firms to focus on market competition and be more socially responsible, instead of speculating with political rents. Full article
Open AccessArticle
Corporate Social Responsibility Practices in the U.S.: Using Reverse Supply Chain Network Design and Optimization Considering Carbon Cost
Sustainability 2019, 11(7), 2097; https://doi.org/10.3390/su11072097 - 09 Apr 2019
Cited by 3
Abstract
A research model using the market price for greenhouse gas (GHG) emissions illustrates how the policies, and economic and environment implications of the carbon price can be formulated using a deterministic equilibrium model. However, with increasing carbon costs, the optimal reverse supply chain [...] Read more.
A research model using the market price for greenhouse gas (GHG) emissions illustrates how the policies, and economic and environment implications of the carbon price can be formulated using a deterministic equilibrium model. However, with increasing carbon costs, the optimal reverse supply chain (RSC) system is being required to adapt and has undergone many distinct shifts in character as it seeks out new configurations through which costs may be effectively managed and minimized. The model was studied comprehensively in terms of quantitative performance using orthogonal arrays. The results were compared to top-down estimates produced through economic input-output life cycle assessment (EIO-LCA) models, providing a basis to contrast remanufacturing GHG emission quantities with those realized through original equipment manufacturing operations. Introducing a carbon cost of $40/t CO2e increased modeled remanufacturing costs by 2.7%, but also increased original equipment costs by 2.3%. The research presented in this study puts forward the theoretical modeling of optimal RSC systems and provides an empirical case study concerning remanufactured appliances, an area of current industrial literature in which there is a dearth of study. Full article
Show Figures

Figure 1

Open AccessArticle
Taxation of Wealthy Individuals, Inequality Governance and Corporate Social Responsibility
Sustainability 2019, 11(7), 1851; https://doi.org/10.3390/su11071851 - 27 Mar 2019
Abstract
This paper provides new evidence on reducing income (or wealth) disparity. Accurate inequality measures are important to policymakers with a concern for inequality governance and the calibration of tax policy. Our empirical findings show that block trading of securities has no significant impact [...] Read more.
This paper provides new evidence on reducing income (or wealth) disparity. Accurate inequality measures are important to policymakers with a concern for inequality governance and the calibration of tax policy. Our empirical findings show that block trading of securities has no significant impact on volume or amount before and after the 2015 abolition of capital gains taxation in Taiwan. Crucially, the results ultimately demonstrate complete capital gains tax redistribution failure, due to capital flight into overseas investments. Thus, tax policy cannot be the only channel to reduce these inequalities. At the national level, policymakers could build on the conclusions drawn in this paper by developing corporate social responsibility (CSR) strategies and adjusting the tax systems for wealthy people so as to achieve policy goals. Our study aims to provide the first quantitative empirical evidence recognizing significant factors among the CSR strategies pursued to strengthen the rules of inequality governance. More precisely, we have also applied both fully modified and dynamic ordinary least squares cointegration tests, as well as conical cointegration regression, to check the robustness of our estimation results. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Perceived Corporate Social Responsibility on Frontline Employee’s Emotional Labor Strategies
Sustainability 2019, 11(6), 1780; https://doi.org/10.3390/su11061780 - 25 Mar 2019
Cited by 1
Abstract
This study explores the relationship between corporate social responsibility and emotional labor strategies of frontline employees. In particular, the research focuses on the impact of perceived motives of corporate social responsibility on the cynicism, authenticity, and subsequently, the effect of cynicism and authenticity [...] Read more.
This study explores the relationship between corporate social responsibility and emotional labor strategies of frontline employees. In particular, the research focuses on the impact of perceived motives of corporate social responsibility on the cynicism, authenticity, and subsequently, the effect of cynicism and authenticity on surface acting and deep acting of frontline employees. Based on the online survey of 258 frontline employees in South Korea and structural equation modeling of the data, the findings show that the selfish motives of corporate social responsibility (CSR) increase cynicism whereas the altruistic motives of corporate social responsibility increase authenticity and decrease cynicism of frontline employees. In addition, this study reveals that CSR-cynicism leads to surface acting and reduces deep acting whereas CSR-authenticity increases deep acting and does not significantly affect surface acting of frontline employees. Full article
Show Figures

Figure 1

Open AccessArticle
Critical Barriers to Social Responsibility Implementation within Mega-Construction Projects: The Case of the Kingdom of Saudi Arabia
Sustainability 2019, 11(6), 1755; https://doi.org/10.3390/su11061755 - 22 Mar 2019
Cited by 3
Abstract
Even though social responsibility (SR) has been widely discussed as a business concept, it is still not being effectively implemented within mega-construction projects due to a range of barriers. Overcoming these barriers requires detailed information, however, there is a lack of research on [...] Read more.
Even though social responsibility (SR) has been widely discussed as a business concept, it is still not being effectively implemented within mega-construction projects due to a range of barriers. Overcoming these barriers requires detailed information, however, there is a lack of research on the barriers to SR implementation within mega-construction projects, particularly in developing countries like the Kingdom of Saudi Arabia (KSA). This study thus aims to investigate the critical barriers to SR implementation with reference to mega-construction projects in the KSA. Eleven barriers were identified from a comprehensive literature review and interviews with experts. These barriers were examined in more detail using a questionnaire survey on two current mega-construction projects in the KSA. There were no differences in the ranking of barriers between the two projects with the 136 respondents identifying the top seven SR barriers as being: (i) additional costs; (ii) lack of awareness and knowledge; (iii) lack of guidelines and coherent strategy; (iv) lack of stakeholder communication; (v) lack of law enforcement; (vi) lack of training; and (vii) unclear project requirements. The findings of this study not only contribute to deeper understanding of the critical SR implementation barriers, but could also encourage industry practitioners and stakeholders to improve SR activities for more effective SR implementation. Moreover, identification and ranking of the critical barriers allows decision-makers to prioritize and develop effective strategies to tackle them at both project and sector scale. Future studies should investigate the interrelationship between the critical barriers and their impact on SR implementation Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility Information Disclosure and Corporate Fraud—“Risk Reduction” Effect or “Window Dressing” Effect?
Sustainability 2019, 11(4), 1141; https://doi.org/10.3390/su11041141 - 21 Feb 2019
Cited by 3
Abstract
We examine the impact in Chinese capital markets of publishing information on corporate fraud in a corporate social responsibility (CSR) report. We develop and test two competing hypotheses of “risk reduction” and “window dressing”. Based on the listed company’s CSR report, we analyze [...] Read more.
We examine the impact in Chinese capital markets of publishing information on corporate fraud in a corporate social responsibility (CSR) report. We develop and test two competing hypotheses of “risk reduction” and “window dressing”. Based on the listed company’s CSR report, we analyze the effect of CSR disclosure on the commission of corporate fraud, fraud detection and the severity of corporate fraud. The research results show that after controlling for the firms’ characteristics and corporate governance factors, the CSR report’s information disclosures have a significantly negative relation to corporate fraud. Specifically, the CSR report’s publication reduces the information asymmetry between the insiders and the stakeholders, thus decreasing the tendency to commit fraud. Our findings support the risk reduction hypothesis but not the window dressing hypothesis. Further research shows that firms with a good CSR disclosure practice have a lower probability of committing corporate fraud and have fewer types of fraud violations, thereby mitigating the severity of corporate fraud. Full article
Open AccessArticle
CSR Practices in Polish and Spanish Stock Listed Companies: A Comparative Analysis
Sustainability 2019, 11(4), 1054; https://doi.org/10.3390/su11041054 - 18 Feb 2019
Cited by 3
Abstract
In recent years, many studies have been carried out on corporate social responsibility (CSR) reporting by enterprises. However, none of the previous surveys have covered CSR reporting in countries in Western Europe (Spain) and Central Europe (Poland). In our research, we looked for [...] Read more.
In recent years, many studies have been carried out on corporate social responsibility (CSR) reporting by enterprises. However, none of the previous surveys have covered CSR reporting in countries in Western Europe (Spain) and Central Europe (Poland). In our research, we looked for answers to two research questions. The first was aimed at answering whether the industry represented by a given company influenced the number of disclosures in CSR reporting. The second question was to answer whether there were differences between Poland and Spain in the amount of disclosure in CSR reporting. We carried out a statistical analysis of the collected research material, under which we performed non-parametric tests as all of the variables for the distribution were not normal (Shapiro–Wilk test). We performed both the U Mann–Whitney and Kruskal–Wallis tests, which allowed us to answer our questions. The obtained results indicated that enterprises from the fuel and energy sectors as well as the financial industry provided more CSR disclosure than the other industries. There was a significant difference in the number of CSR disclosures between Poland and Spain, where more disclosures in CSR reporting were recorded in Spain. Full article
Open AccessArticle
Building Consumer-Oriented CSR Differentiation Strategy
Sustainability 2019, 11(3), 664; https://doi.org/10.3390/su11030664 - 28 Jan 2019
Cited by 5
Abstract
In a fierce competitive industry, firms conducting a corporate social responsibility (CSR) differentiation strategy can build a relative advantage. However, there is lack of literature to discuss the approach to identifying companies’ CSR differentiation conditions. Based on the theoretical foundations of consumers’ responses [...] Read more.
In a fierce competitive industry, firms conducting a corporate social responsibility (CSR) differentiation strategy can build a relative advantage. However, there is lack of literature to discuss the approach to identifying companies’ CSR differentiation conditions. Based on the theoretical foundations of consumers’ responses to CSR differentiation strategies, this paper proposes a consumer-oriented approach to identify CSR differentiation by using the best–worst scaling approach. In the context of the mobile phone industry, CSR activities were prioritized according to the extent to which they were valued by consumers. Consumers’ perceptions of the CSR activities of Huawei and Apple were also assessed in this study. Finally, the CSR differentiation conditions between the two companies was evaluated. The findings include the following: (1) the consumer priorities for different CSR activities vary greatly, and it is essential for firms to adopt a CSR differentiation strategy; (2) it is feasible to adopt a proper CSR premium in product pricing to build a socially responsible company; and (3) the lack of CSR communication between companies and consumers leads to consumers’ perceived distortion. The results provide implications for firms’ CSR practice. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs
Sustainability 2019, 11(2), 436; https://doi.org/10.3390/su11020436 - 15 Jan 2019
Cited by 15
Abstract
Leadership style is an important factor that affects the enhancement of organizational performance and employee’s job performance, and what objectives they should pursue, which also makes a profit for their employees or makes another social and economic contribution to society. The present study [...] Read more.
Leadership style is an important factor that affects the enhancement of organizational performance and employee’s job performance, and what objectives they should pursue, which also makes a profit for their employees or makes another social and economic contribution to society. The present study was developed to observe the impact of transformational leadership on job performance and to investigate the mediating mechanism of corporate social responsibility (CSR). Primary data were collected from the employees by using a cross-sectional design method. Employees who participated in the study are working in the Small and Medium Enterprises (SMEs) of Pakistan. A total of 300 questionnaires were circulated, and 130 were received. The Regression analysis was executed to examine whether CSR mediated the correlation among transformational leadership and job performance. The results of the study suggest that transformational leadership positively and completely predicts job performance. Particularly, the study finds that CSR significantly mediated the effect of transformational leadership on job performance. On the basis of these findings, it can be explicated that transformational leadership, job performances, and CSR are important elements of an organization. These elements can improve organizational performance. Theoretical implications of the recent study are discussed, and offer directions for future research in the area. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance
Sustainability 2019, 11(2), 354; https://doi.org/10.3390/su11020354 - 11 Jan 2019
Cited by 10
Abstract
This study analyzes the trends, context, and impact of corporate social responsibility (CSR) initiatives on company’s performance and productivity in China. We use environmental and social responsibility data in 34,000 CSR projects released by 839 companies in 31 provinces from 2006 to 2016. [...] Read more.
This study analyzes the trends, context, and impact of corporate social responsibility (CSR) initiatives on company’s performance and productivity in China. We use environmental and social responsibility data in 34,000 CSR projects released by 839 companies in 31 provinces from 2006 to 2016. Clustering methods as wells as ordinary least squares and the fixed effects panel regression modeling are performed to provide insights on the context, trends, and impact of CSR projects on companies’ productivity and financial outcomes. Results of data processing and modeling indicate that: (a) most projects focused on improving companies’ environmental sustainability (compared to social); (b) implementation of both environmental and social projects had positive impacts on companies’ performance; and (c) trends, context, and impact of the projects varied with time, company type, and location (provinces). In addition, data suggest that companies operating in regions with lower economic conditions (GDP per capita) seem to be less motivated to implement environmental and social sustainability projects compared to those operating in regions with higher economic conditions. This study is meaningful for both companies that consider adopting CSR initiatives, as well as stakeholders and managers who aim to promote sustainable development in China. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Board Gender Diversity and Foreign Institutional Investors on the Corporate Social Responsibility (CSR) Engagement of Chinese Listed Companies
Sustainability 2019, 11(2), 307; https://doi.org/10.3390/su11020307 - 09 Jan 2019
Cited by 5
Abstract
The main purpose of this research is to examine the impact of board gender diversity and foreign institutional investors on the corporate social responsibility engagement of Chinese listed companies by considering a sample from the China Stock Market and Accounting Research (CSMAR) database [...] Read more.
The main purpose of this research is to examine the impact of board gender diversity and foreign institutional investors on the corporate social responsibility engagement of Chinese listed companies by considering a sample from the China Stock Market and Accounting Research (CSMAR) database of all non-financial firms listed on the Shanghai stock exchange and the Shenzhen stock exchange during the period from 2008–2015. The CSR is engaged by using the data from the CSMAR database at the firm level, and ranks the CSR disclosures of Chinese companies separately. The recent CSR promotion in China produced a visible increase in attracting female members on the board and members as foreign institutional investors by Chinese listed companies. The findings also showed that the greater the presence of female directors on the board, the stronger the CSR engagement would be. According to critical mass theory and team dynamics, these findings further broaden the accounts that emphasize social networks based on gender. Hence, female members on the board of directors emerged to be significant as a gender mix with extending CSR change. Therefore, our results added a new aspect to the emerging literature on CSR-engagement and gender especially in China. Due to intense political forces and networks in the Chinese listed entities, foreign institutional investors (FIIS) have less incentive to enhance CSR engagement further. Thus, the impact of foreign institutional investors on CSR engagement is as yet unknown, but we improved our knowledge about how the international aspects affect CSR in China. Furthermore, our results are robust, which concern control variables under consideration. Full article
Open AccessArticle
An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan
Sustainability 2019, 11(1), 248; https://doi.org/10.3390/su11010248 - 07 Jan 2019
Cited by 10
Abstract
Corporate social responsibility (CSR) are the activities of firms that are not only considered for economic profit but also include the social welfare returns. To find the key drivers that affect the relationship between corporate social responsibility (CSR) and firm performance, we investigated [...] Read more.
Corporate social responsibility (CSR) are the activities of firms that are not only considered for economic profit but also include the social welfare returns. To find the key drivers that affect the relationship between corporate social responsibility (CSR) and firm performance, we investigated the moderating effects of CEO power and ownership structure. Ownership structure is classified into two parts: managerial ownership and ownership concentration. We selected a sample of firms from eight manufacturing sectors of the Pakistani economy for the analysis. We collected data from the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX), and companies’ annual reports over the period 2008 to 2017. We employed the Fixed Effects model and Generalized Method of Moment (GMM) to investigate the association between CSR and firm performance. The empirical analysis of this study highlights the following conclusions: First, CSR has a significant positive association with firm performance. Second, the relationship between CSR and firm performance shows the same results with the interaction of CEO power. Thirdly, interaction of the managerial ownership with CSR has a significant positive relationship with firm performance. Fourth, the interaction of the ownership concentration with CSR has a positive effect on firm performance. Full article
Show Figures

Figure 1

Open AccessArticle
Gender-Based iTrust in E-Commerce: The Moderating Role of Cognitive Innovativeness
Sustainability 2019, 11(1), 175; https://doi.org/10.3390/su11010175 - 31 Dec 2018
Cited by 6
Abstract
Despite the extensive academic interest in e-commerce, cognitive innovativeness in e-commerce context has been neglected. This study focuses on the moderating role of consumer cognitive innovativeness on the influencing factors of interpersonal trust (iTrust) towards online purchase intention of new product in business-to-consumer [...] Read more.
Despite the extensive academic interest in e-commerce, cognitive innovativeness in e-commerce context has been neglected. This study focuses on the moderating role of consumer cognitive innovativeness on the influencing factors of interpersonal trust (iTrust) towards online purchase intention of new product in business-to-consumer (B2C) e-commerce. Data were collected in Australia from consumers who has had prior online shopping experience. Variance-based structural equation modeling such as partial least squares (PLS-SEM) is used to test the research model. The results show men and women have different perceptions of what is important to be provided by an online store to make a positive shopping experience. We highlighted that in-addition to the e-commerce web design aspects; the individual cognitive innovativeness can influence females more to purchase online. Practitioners should adjust their online business strategies, considering consumer cognitive innovativeness to enhance their e-commerce desirable outcomes. This means online business should not treat their consumers as a uniform group with a ‘one-design-fits-all’ web design strategy but need to consider the individual needs of their male and female consumers. Full article
Show Figures

Figure 1

Open AccessArticle
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure
Sustainability 2018, 10(12), 4518; https://doi.org/10.3390/su10124518 - 30 Nov 2018
Cited by 4
Abstract
Prior CSR and firm performance research has produced mixed results. Even so, numerous researches examining this relationship from the perspective of international standardisation have primarily concentrated on developed economics. This leaves an obvious gap within the extant literature with regards to evidence from [...] Read more.
Prior CSR and firm performance research has produced mixed results. Even so, numerous researches examining this relationship from the perspective of international standardisation have primarily concentrated on developed economics. This leaves an obvious gap within the extant literature with regards to evidence from sub-Saharan Africa. The aim of this study is to investigate the relationship between the extent of CSR disclosure performance and firm value, in an emerging institutional setting. Using hand collected data of South African listed companies, we apply the GRI G3.1 guidelines, as a measure of disclosure performance. Based on the panel data fixed effect model, we document a positive but insignificant relationship between CSR disclosure performance and firm value. Secondly, a negative and insignificant relationship was found between environmental disclosure performance and firm value. Lastly, we found a positive and statistically significant relationship between social disclosure performance and firm value. Overall, our findings suggest that CSR disclosure has a limited effect on firm value. Our findings hold for a set of robustness tests. Our findings suggest that the incorporation of sustainability disclosure, on the basis of GRI, is moderately high among the selected companies. Implications of our results suggest that CSR disclosure may not necessarily influence firm value, despite its numerous benefits. We contribute to this line of research from a multi-theoretical perspective. Full article
Open AccessArticle
The Theory of Reasoned Action to CSR Behavioral Intentions: The Role of CSR Expected Benefit, CSR Expected Effort and Stakeholders
Sustainability 2018, 10(12), 4462; https://doi.org/10.3390/su10124462 - 28 Nov 2018
Cited by 2
Abstract
During the past several years, many governments and non-government organizations in the world made efforts to promote policies and activities regarding corporate social responsibility and proposal of relevant regulations. However, scandals of international financial organizations and transnational corporations are enduring issues, which threaten [...] Read more.
During the past several years, many governments and non-government organizations in the world made efforts to promote policies and activities regarding corporate social responsibility and proposal of relevant regulations. However, scandals of international financial organizations and transnational corporations are enduring issues, which threaten to reduce social responsibility to a mere corporate slogan. This is not only the basis for sustainable operations but, also it is a vital academic issue. Understanding the factors behind the intention of a corporation’s social responsibility practice is a problem that governments and other governance organizations urgently need to solve and is also an issue that scholars and other relevant workers need to pay attention to and investigate. This study tries to discuss the behavioral intention behind social responsibility practices, and to point out exogenous factors, corresponding with theory of reasoned action, among the factors proposed by literature regarding corporate social responsibility. Then we apply structural equation modelling to analyze each hypothesis of the study. Finally, the results show several determinants which empirically affect behavioral intentions towards social responsibility practices. This study serves as a supplement for present literature, which did not clearly explain the reason why corporations hesitate to put social responsibility into action. In addition, although the theory of reasoned action was widely used to discuss the motive of various reasoned actions, the current study might be a pioneer in using theory of reasoned action to discuss the behavioral models for corporate social responsibility practices and discussing the applicability of the theory of reasoned action based on empirical data. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms
Sustainability 2018, 10(11), 3991; https://doi.org/10.3390/su10113991 - 01 Nov 2018
Cited by 3
Abstract
The purpose of this study is to examine whether for-profit firms make opportunistic use of their corporate foundations to pursue self-serving earnings objectives in China. Using data on corporate foundations and a sample of firms listed on the A-share market from 2010 to [...] Read more.
The purpose of this study is to examine whether for-profit firms make opportunistic use of their corporate foundations to pursue self-serving earnings objectives in China. Using data on corporate foundations and a sample of firms listed on the A-share market from 2010 to 2016, we first use the propensity score matching method to explore the effect of corporate foundations on earnings management of their founder firms. We find that the overall discretionary accruals of firms with corporate foundations are significantly higher than for those without corporate foundations. Given the ownership property with Chinese characteristics, we further find that the significant difference is driven by privately-owned firms. Then we develop a model of discretionary donation expenditures to measure the magnitude of earnings management associated with corporate foundations. We observe that firms with small profits and consecutive earnings increase record income-increasing discretionary donation expenditures. While firms that record income-decreasing discretionary donation expenditures create earnings reserves that they can use in subsequent periods to report consecutive earnings increases. The results demonstrate that the visibly ethical behavior of establishing corporate foundations does not necessarily represent the consistent embodiment of corporate social responsibility (CSR), but can be regarded as corporate hypocrisy with self-interest embedded in benevolence. Full article
Show Figures

Figure 1

Open AccessArticle
The Effect of Social Ties between Outside and Inside Directors on the Association between Corporate Social Responsibility and Firm Value
Sustainability 2018, 10(11), 3840; https://doi.org/10.3390/su10113840 - 23 Oct 2018
Cited by 6
Abstract
The purpose of this paper is to examine the association between activities related to corporate social responsibility (C81SR) and firm value, and whether social ties between outside and inside directors within the board (social ties) affect this association. We analyzed a sample of [...] Read more.
The purpose of this paper is to examine the association between activities related to corporate social responsibility (C81SR) and firm value, and whether social ties between outside and inside directors within the board (social ties) affect this association. We analyzed a sample of non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange market for the period of 2012–2017, measuring the intensity of social ties based on region and school relations using the concept of density from social network theory. Using environment, social, and governance (ESG) scores from the Korea Corporate Governance Service to measure CSR activities, we find that, on average, firms can increase their value through CSR activities in Korea. In addition, in firms with strong social ties, the positive association between CSR activities and firm value is attenuated, indicating that boards with strong social ties are ineffective in monitoring CSR activities. Although the government has made great efforts to improve corporate governance with a focus on independence of outside directors, the results of our analysis indicate that there is room for firms to improve board independence substantively in a society where nepotism is widespread. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan
Sustainability 2018, 10(10), 3511; https://doi.org/10.3390/su10103511 - 30 Sep 2018
Cited by 1
Abstract
This paper aims to explore the dynamics of corporate social responsibility (CSR) of multinational companies (MNCs) subsidiaries operating in Pakistan. To do this, the corporate social performance (CSP) model, has been modified and integrated with the relevant models of CSR for multinational companies [...] Read more.
This paper aims to explore the dynamics of corporate social responsibility (CSR) of multinational companies (MNCs) subsidiaries operating in Pakistan. To do this, the corporate social performance (CSP) model, has been modified and integrated with the relevant models of CSR for multinational companies (MNCs). Empirical evidence from MNCs operating in the developing country context was collected and analyzed from MNCs operating in Pakistan. Findings from semi-structured interviews uncover that CSR is yet to institutionalize and most MNC executives understand CSR in narrow philanthropic and ethical terms and ignore the legal and economic aspects. Interestingly, there is evidence that MNCs are able to modify global CSR strategies to respond to local contexts and issues. In addition, the sample MNCs lack systematic environmental scanning, stakeholder management and demonstrate a short-term reactive approach to CSR. We believe that the proposed theoretical framework of the study can be utilized to understand MNCs CSR practices in both developed and developing countries. However, these empirical findings are context bound and cannot be generalized. Full article
Show Figures

Figure 1

Open AccessArticle
Do Private Benefits of Control Affect Corporate Social Responsibility? Evidence from China
Sustainability 2018, 10(9), 3309; https://doi.org/10.3390/su10093309 - 16 Sep 2018
Cited by 2
Abstract
In this study, we examined whether private benefits of control can influence corporate social responsibility performance. We used both separations between cash flow and control rights and the length of the longest control chain to measure private benefits of control. Consistent with the [...] Read more.
In this study, we examined whether private benefits of control can influence corporate social responsibility performance. We used both separations between cash flow and control rights and the length of the longest control chain to measure private benefits of control. Consistent with the private benefits motive, we found that firms with greater divergence between cash-flow rights and control rights, with longer control chains, are associated with lower corporate social responsibility performance. Further, we found that earnings management and capital occupation by the controlling shareholder are the two effective channels through which private benefits of control affect corporate social responsibility. Additionally, this negative association is more pronounced for firms located in regions with low degree of law environment and with CEOs appointed by the largest shareholder. Additional robustness tests using alternative CSR measurements, and two-stage least squares (2SLS) regression support the main findings. This study highlights a new determination channel of private benefits of control and practically guides the introduction of corporate social responsibility activities in emerging markets. Full article
Open AccessArticle
The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China
Sustainability 2018, 10(9), 3302; https://doi.org/10.3390/su10093302 - 15 Sep 2018
Cited by 7
Abstract
This paper examines the effect of independent director reputation incentives on corporate social responsibility (CSR). Using an unbalanced panel of 3765 Chinese-listed firms between 2009 and 2014, this study suggests that independent director reputation incentives improve CSR. Furthermore, it is found that this [...] Read more.
This paper examines the effect of independent director reputation incentives on corporate social responsibility (CSR). Using an unbalanced panel of 3765 Chinese-listed firms between 2009 and 2014, this study suggests that independent director reputation incentives improve CSR. Furthermore, it is found that this effect is more pronounced in non-state-owned enterprises (non-SOEs) than in state-owned enterprises (SOEs). In addition, our results also show that the effect of independent director reputation incentives on CSR is moderated by firm size, and this effect is much stronger in relatively larger firms. Together, these results suggest that reputation is an effective mechanism that can motivate independent directors to fulfill their role of monitoring and advising CSR, especially in non-SOEs and relatively larger firms. We add new insights to the research on the topics of independent director system, protection of the stakeholders’ interests, and CSR enhancement. Full article
Open AccessArticle
Corporate Social Responsibility and Insider Trading: Evidence from China
Sustainability 2018, 10(9), 3163; https://doi.org/10.3390/su10093163 - 04 Sep 2018
Cited by 9
Abstract
Corporate Social Responsibility (CSR) is the obligation of a company to pursue long-term goals, and is an important part of a sustainable society. It is related not only to the survival and sustainable development of the company, but also to the expectations of [...] Read more.
Corporate Social Responsibility (CSR) is the obligation of a company to pursue long-term goals, and is an important part of a sustainable society. It is related not only to the survival and sustainable development of the company, but also to the expectations of the public. CSR is an important way for companies to disclose non-financial information. Information disclosure can alleviate information asymmetry effectively, improve the quality of internal control, and affect the occurrence of insider trading. However, the existing research has paid less attention to the impact of non-financial information on CSR and insider trading, as well as the impact of the corporate nature and disclosure motivation on this relationship. This paper takes China’s 2011–2016 Shanghai and Shenzhen A-share listed companies as a sample to study the relationship between CSR and insider trading. The results show the following. (1) CSR and insider trading have a significant negative correlation. (2) From the perspective of the nature of the enterprise, the CSR of non-state-owned enterprises can significantly suppress the occurrence of insider trading, while the relationship is not significant for state-owned enterprises. (3) From the perspective of disclosure motivation, voluntary disclosure can significantly suppress the occurrence of insider trading. However, mandatory disclosure and semi-mandatory disclosure are not significant. The research in this paper is of great significance to encourage enterprises to fulfill their social responsibilities and improve the supervision of illegal insider trading. Full article
Open AccessArticle
Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange
Sustainability 2018, 10(9), 3141; https://doi.org/10.3390/su10093141 - 03 Sep 2018
Cited by 6
Abstract
The present paper empirically examines the relation between corporate social responsibility (CSR) practices and company financial performance (CFP) for firms listed on the Bucharest Stock Exchange. Likewise, the paper analyzes the CSR policies adopted by the companies as CSR practices towards six types [...] Read more.
The present paper empirically examines the relation between corporate social responsibility (CSR) practices and company financial performance (CFP) for firms listed on the Bucharest Stock Exchange. Likewise, the paper analyzes the CSR policies adopted by the companies as CSR practices towards six types of stakeholders that influence the CFP. Using principal component analysis, we developed a CSR index and several specific indices for CSR practices. By estimating cross-sectional regression models, our study provides support for a positive link between CSR and CFP, when companies implement CSR policies regarding employees, environmental protection, and ethics as social practices. Further, empirical findings show that companies responsive to the CSR concept and those considering international standards and regulations for quality products and services in their business strategy enhance CFP. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Coercive Pressures on Sustainability Practices of Small Businesses in South Africa
Sustainability 2018, 10(9), 3032; https://doi.org/10.3390/su10093032 - 27 Aug 2018
Cited by 5
Abstract
The study sought to examine the role that coercive isomorphic pressures play in the sustainable development practices by small and medium enterprises (SMEs). The survey research approach was utilised in the research through 222 self-administered questionnaires distributed to SME owners and managers. The [...] Read more.
The study sought to examine the role that coercive isomorphic pressures play in the sustainable development practices by small and medium enterprises (SMEs). The survey research approach was utilised in the research through 222 self-administered questionnaires distributed to SME owners and managers. The structural equation modelling (SEM) method was utilised to analyse the data through the Maximum Likelihood Estimation (MLE) method in Amos Version 24 software. Major findings in this study are that coercive isomorphic pressures have a significant impact on all the three dimensions of sustainable development which are economic, environmental and social. The implications are that government, environmental pressure groups and other stakeholders need to take into consideration the coercive pressures such as laws and regulations in pressuring small businesses to enhance sustainability practices. The research contributes by unearthing the extent to which coercive pressures impact the behaviour and practices of SMEs in sustainability practices. The study indicates that eventually small firms are expected to behave the same when it comes to adopting sustainability practices due to coercive isomorphism. The findings of this study further contribute toward understanding the concept of sustainable development in practice and theory. Full article
Show Figures

Figure 1

Open AccessArticle
The Effects of Corporate Social Responsibility (CSR) Fit and CSR Consistency on Company Evaluation: The Role of CSR Support
Sustainability 2018, 10(8), 2956; https://doi.org/10.3390/su10082956 - 20 Aug 2018
Cited by 16
Abstract
With growing interest in corporate social responsibility (CSR), companies are utilizing it as a public relation (PR) tool for corporate image change. Previous research suggests that the fit between a company and CSR activity is a key determinant of CSR success. They show [...] Read more.
With growing interest in corporate social responsibility (CSR), companies are utilizing it as a public relation (PR) tool for corporate image change. Previous research suggests that the fit between a company and CSR activity is a key determinant of CSR success. They show that, the higher the CSR fit, the more positive the consumers’ evaluations are. However, although many companies undertake various CSR activities, there is no research examining the effect of consistency among various CSR activities. In addition, there is a lack of explanation for cases where consumers positively evaluate low CSR fit. In this study, we examine CSR fit, consistency among various CSR activities (CSR consistency), and the degree of consumer support for CSR activities (CSR support). Our multiple regressions show that higher the CSR support, the more positive is the consumer’s evaluation of the company. In addition, when CSR support is high, the effect of CSR fit and CSR consistency on company evaluations is insignificant. However, when consumer support for CSR activities is low, company evaluations are positive only when both CSR fit and CSR consistency are high. In addition, the influence of three variables on company evaluation is mediated by CSR motives. Finally, we discuss the implications of this study. Full article
Show Figures

Figure 1

Open AccessArticle
A Multimethod Approach to Assess and Measure Corporate Social Responsibility Disclosure and Practices in a Developing Economy
Sustainability 2018, 10(8), 2955; https://doi.org/10.3390/su10082955 - 20 Aug 2018
Cited by 12
Abstract
Disclosures on Corporate Social Responsibility (CSR) practices of business organizations have heightened over the past few decades due to increased awareness. Major contributions in the literature on CSR practices and their disclosures come from the studies conducted in the developed world, while many [...] Read more.
Disclosures on Corporate Social Responsibility (CSR) practices of business organizations have heightened over the past few decades due to increased awareness. Major contributions in the literature on CSR practices and their disclosures come from the studies conducted in the developed world, while many developing economies like Pakistan remain under-researched and fewer revelations have been made about their CSR practices. Therefore, the present study aims to explore various aspects of CSR practices of Pakistani firms and their reporting trends. A multimethod approach has been adopted to measure CSR practices with respect to both approaches, quantitative and qualitative, for 170 listed firms from 2008 to 2015. First, content analysis is employed to develop a CSR Disclosure Index (CSRD Index) as well as five sub indices, i.e., community welfare, health and education, environment and energy, product, and customer and workforce. Second, a multidimensional financial approach is used to calculate firm’s CSR monetary spending ratio (CSR-MSR) using the monetary data of CSR activities. Results suggested that most Pakistani firms disclose more information about their product-, customer-, and stakeholder-related CSR activities and put less emphasis on health and education responsibilities. Moreover, there is a strong impact of government reforms on both the firm’s CSR disclosures and monetary giving. Full article
Show Figures

Figure 1

Open AccessArticle
Does Institutional Context Affect CSR Disclosure? A Study on Eurostoxx 50
Sustainability 2018, 10(8), 2823; https://doi.org/10.3390/su10082823 - 09 Aug 2018
Cited by 5
Abstract
We propose to investigate the relationship between corporate social responsibility disclosure and institutional/environmental factors among a sample of European listed companies. We find that, by using several traditional explicative variables, institutional factors affect the level of CSR disclosure, in a context where the [...] Read more.
We propose to investigate the relationship between corporate social responsibility disclosure and institutional/environmental factors among a sample of European listed companies. We find that, by using several traditional explicative variables, institutional factors affect the level of CSR disclosure, in a context where the EU Commission has been paying growing attention to social and environmental accountability of listed companies (see the EU Dir. 95/2014). Our findings are further supported by multivariate regression, where ESG score (measure of CSR disclosure) is regressed on nine variables which represent the expression of institutional factors. By looking at the institutional determinants of CSR disclosure, we are seeking to pose a challenge for future research agenda, in order to understand whether CSR does actually reflect an effective commitment of firms to accounting practices and rules, as a form of social behavior, or whether it is just a tool to manage stakeholders’ perception and to comply with regulation. Full article
Open AccessArticle
How Perceived Crisis Leads to Anti-Corporate Prejudice: Mediating Mechanisms of Negative Emotion and Stereotypes
Sustainability 2018, 10(8), 2778; https://doi.org/10.3390/su10082778 - 06 Aug 2018
Abstract
In contrast with the existing studies dealing with crisis communication strategies in most aspects of corporates, this study investigated the mechanism of anti-corporate prejudice toward personal-information leakage as part of corporate crisis. This study develops a structural model of anti-corporate prejudice (ACP) in [...] Read more.
In contrast with the existing studies dealing with crisis communication strategies in most aspects of corporates, this study investigated the mechanism of anti-corporate prejudice toward personal-information leakage as part of corporate crisis. This study develops a structural model of anti-corporate prejudice (ACP) in crises, for measuring a perceived crisis (PC), negative emotion (NE) and stereotypes (ST). We used the structural equation model and equality constrained model techniques for testing several proposed hypotheses with experimental research. The results identified the significant positive paths: PC → NE; PC → ST; NE → ACP; ST → ACP. In addition, NE and ST were found to play mediating roles in the relationships between PC and ACP. The mediating effect of NE was seen to have a stronger effect on ACP than ST. Finally, the moderating effect of crisis intentionality (CI) was significant. In particular, for high intentionality focused on internal causes, NE is more likely to increase ACP than ST. On the other hand, for low intentionality focused on external causes, ST is more likely to increase ACP than NE. Full article
Show Figures

Figure 1

Open AccessArticle
Environmental Risk Management Strategies and the Moderating Role of Corporate Social Responsibility in Project Financing Decisions
Sustainability 2018, 10(8), 2771; https://doi.org/10.3390/su10082771 - 06 Aug 2018
Cited by 6
Abstract
The purpose of this study is to examine the moderating role of corporate social responsibility (CSR) in project financing decisions. CSR has gained growing prominence in today’s business era. This study investigates four environmental strategies and the credit risk assessment, stakeholder assessment and [...] Read more.
The purpose of this study is to examine the moderating role of corporate social responsibility (CSR) in project financing decisions. CSR has gained growing prominence in today’s business era. This study investigates four environmental strategies and the credit risk assessment, stakeholder assessment and corporate social responsibility assessment impact on project financing decision. It explores three main issues related to environmental responsibility (planet), economic responsibility (profit) and social responsibility (people). The study is explanatory and quantitative, and both domestic and foreign banks participated in the data collection process. The sample size for the study is 491 participants. Data was collected through a simple random sampling technique and was analyzed by applying simple linear regression, confirmatory factor analysis (CFA) and structural equation modeling analysis (SEM) through the Statistical Package for the Social Sciences (SPSS). The study shows that the Pakistani banking sector is implementing environmental management policies. Foreign banks are more motivated towards corporate social responsibility practices. Cultural differences can influence a manager’s attitude towards implementation of environmental risk-management policies. The result shows that corporate social responsibility has a moderating role in project financing decisions and environmental risk management, stakeholder and credit risk assessment. All hypotheses has significant values. Full article
Show Figures

Figure 1

Open AccessArticle
Board Composition and Corporate Social Responsibility Performance: Evidence from Chinese Public Firms
Sustainability 2018, 10(8), 2752; https://doi.org/10.3390/su10082752 - 04 Aug 2018
Cited by 7
Abstract
This study investigates the relationship between board composition and corporate social responsibility (CSR) performance. Specifically, we examine the impact of board composition (aspects like political experience, academic experience, overseas background, and gender diversity) on CSR performance. We test our hypotheses using data collected [...] Read more.
This study investigates the relationship between board composition and corporate social responsibility (CSR) performance. Specifically, we examine the impact of board composition (aspects like political experience, academic experience, overseas background, and gender diversity) on CSR performance. We test our hypotheses using data collected from 839 Chinese public firms during the period from 2008 to 2016. Applying generalized least squares regression, the study shows that the political experience, academic experience, and overseas background of the board members are positively related to the firm’s CSR performance. Moreover, we discuss the distinctive relationship between gender diversity and CSR performance in the context of Chinese culture. We extend the CSR literature by examining unique aspects of board composition in the Chinese context and offer fruitful implications for both scholars and practitioners. Full article
Open AccessArticle
A Cross-Country Investigation of Corporate Governance and Corporate Sustainability Disclosure: A Signaling Theory Perspective
Sustainability 2018, 10(8), 2611; https://doi.org/10.3390/su10082611 - 25 Jul 2018
Cited by 24
Abstract
There is a dearth of research on corporate governance and total sustainability disclosure (economic, environmental, and social) in developing, particularly South Asian, countries. This is unique cross-country research on South Asian countries’ corporate governance elements and total sustainability disclosure practices. The study considers [...] Read more.
There is a dearth of research on corporate governance and total sustainability disclosure (economic, environmental, and social) in developing, particularly South Asian, countries. This is unique cross-country research on South Asian countries’ corporate governance elements and total sustainability disclosure practices. The study considers a set of insightful theories, namely, the signaling and agency theories of understanding the motives and drivers of sustainability reporting. Based on data from the Global Reporting Initiative database, the study analyzes Bangladesh, India, and Pakistan. We have collected annual report and sustainability reports from the GRI database for the period between 2009 and 2016. Based on the signaling and agency theories, the study investigates how board and shareholding structures convey signals to the market and different stakeholders. Our empirical results find that total sustainability disclosure has a positive and significant relationship with foreign shareholding, institutional shareholding, board independence, and board size. On the other hand, we document that director shareholding is negatively but significantly associated with total sustainability disclosure. Therefore, we conclude that corporate governance elements have very strong influential power to send positive signals to the market that lead to reduced information asymmetry and ensuring honest signals from different stakeholders. Full article
Open AccessArticle
Does Analyst Coverage Enhance Firms’ Corporate Social Performance? Evidence from Korea
Sustainability 2018, 10(7), 2561; https://doi.org/10.3390/su10072561 - 21 Jul 2018
Cited by 4
Abstract
This paper examines the association between analyst coverage and corporate social performance, using comprehensive donation expense data from Korea. Following analyst “investor recognition view”, analyst coverage might be the one of the key determinants of firms’ CSP to higher firms’ reputational capital. The [...] Read more.
This paper examines the association between analyst coverage and corporate social performance, using comprehensive donation expense data from Korea. Following analyst “investor recognition view”, analyst coverage might be the one of the key determinants of firms’ CSP to higher firms’ reputational capital. The empirical results suggest that analyst coverage is, on average, positively associated with corporate social performance (CSP) and that this positive association is more pronounced in a non-chaebol (i.e., non-large industrial conglomerate) sample. Further this result is consistent with a battery of robustness tests, such as alternative use of CSP, interaction analysis, two-stage least square regression (2SLS) and alternative use of analyst coverage. This paper goes beyond prior literature using audited donation expense and chaebol data, this paper shows that analysts could partially provide information to enhance firms’ reputations and thus their reputational capital by attending to CSP which would be regarded as pertinent firms’ sustainability. Furthermore, this tendency is more pronounced in relatively lower-reputation firms, such as non-chaebol ones in Korea. Mainstream literature on CSR is conducted within the context of developed countries, such as the U.S. or the U.K., leaving the empirical question as to whether such results apply to other developing countries such as Korea. So, using unique corporate giving data, this paper investigate analyst coverage might enhance firms’ CSP even in a relatively poor information environment such as Korea. Full article
Show Figures

Figure 1

Open AccessArticle
Embedding Diversity in Sustainability Reporting
Sustainability 2018, 10(7), 2487; https://doi.org/10.3390/su10072487 - 16 Jul 2018
Cited by 2
Abstract
The relevance of diversity has been recognised by academics and researchers as well as decision-makers. Diversity reporting can be perceived as the first step in addressing inequalities in organisations and potential assistance for the diversity agenda, because it allows measuring diversity and ultimately [...] Read more.
The relevance of diversity has been recognised by academics and researchers as well as decision-makers. Diversity reporting can be perceived as the first step in addressing inequalities in organisations and potential assistance for the diversity agenda, because it allows measuring diversity and ultimately managing it. However, the recognition of the importance of diversity and diversity reporting does not necessarily contribute to a greater inclusion of diversity into sustainability reporting. The following paper attempts to determine the scope of diversity reporting, the specificity of the collected and disclosed diversity data, as well as the determinants of diversity reporting. For this purpose, a CATI (computer-assisted telephone interview) research was conducted, involving companies indexed on the Warsaw Stock Exchange. The results were analysed using the Cramer’s V contingency measure, the Kruskal–Wallis H test and ordinal regression. The results show a substantial difference in the collection of diversity information between organisations that map and that do not map their stakeholders. Furthermore, they show that, when organisations collect diversity data, their specificity is rather high, however this does not translate into an equally high level of diversity disclosure. Furthermore, the paper analyses the possible determinants of diversity disclosure, which do not necessarily overlap with the determinants of sustainability reporting. Full article
Open AccessArticle
Employees’ Perception of Corporate Social Responsibility Impact on Employee Outcomes: Mediating Role of Organizational Justice for Small and Medium Enterprises (SMEs)
Sustainability 2018, 10(7), 2429; https://doi.org/10.3390/su10072429 - 12 Jul 2018
Cited by 10
Abstract
Corporate social responsibility is emerging topic in the modern business world. Employees are vital assets for any organization. Corporate Social Responsibility practices have a significant influence on employee’s performance. The study aimed to investigate the relationship between employee perception of corporate social responsibility [...] Read more.
Corporate social responsibility is emerging topic in the modern business world. Employees are vital assets for any organization. Corporate Social Responsibility practices have a significant influence on employee’s performance. The study aimed to investigate the relationship between employee perception of corporate social responsibility (CSR) and employee’s outcome in Pakistan for SMEs. Additionally, it examined the relationship of Employee’ Perception of CSR as an independent variable. Further, this study considers mediating role of organizational justice between employee’s perception of CSR and employee’ outcomes. The quantitative method was used to collect data from 300 SME’s. Hypotheses were tested by using statistical software (SPSS). Correlation analysis shows the significant relationship between variables, i.e., employee’s perception of CSR and employee outcomes. Moreover, regression analysis was performed for mediation analysis. The results show that organizational justice partially mediated between employee’s perception of corporate social responsibility and employee’s outcomes. Practical implications were discussed, and future research directions were recommended. Full article
Show Figures

Figure 1

Open AccessArticle
Carbon Emissions by South American Companies: Driving Factors for Reporting Decisions and Emissions Reduction
Sustainability 2018, 10(7), 2411; https://doi.org/10.3390/su10072411 - 11 Jul 2018
Cited by 4
Abstract
In the last decade, companies have started to disclose information on carbon emissions. To our knowledge, this is the first paper to look into this phenomenon in South America, which is a very important geographical area regarding climate change because of the local [...] Read more.
In the last decade, companies have started to disclose information on carbon emissions. To our knowledge, this is the first paper to look into this phenomenon in South America, which is a very important geographical area regarding climate change because of the local nature and developing economies. This paper explores the relationships between some corporate variables and two important decisions: (i) whether to report carbon emissions, and (ii) the impact on the evolution of carbon emissions. Logit and linear panel data models are used to determine the driving factors for decisions (i) and (ii). Our results show that regarding the carbon reporting decision, a company’s size, sustainability reporting, existence of a sustainability committee, and whether it belongs to a certain sector (telecom, utilities, and consumer discretionary) are significant positive factors, whereas the country is a negatively significant factor if the company is based in either Chile or Peru. Regarding the factors that lead to more sustainable behavior, our results reveal that a company’s size, the existence of a corporate social responsibility (CSR) committee, and the disclosure of a sustainability report lead to a decrease in emissions levels. Full article
Open AccessArticle
CSR and the Supply Chain: Effects on the Results of SMEs
Sustainability 2018, 10(7), 2356; https://doi.org/10.3390/su10072356 - 06 Jul 2018
Cited by 11
Abstract
Currently, companies and SMEs (small and medium enterprises) are looking to be more competitive. To achieve this, they are adopting new business models and strategies that allow them to move towards sustainability. Strategies such as CSR (Corporate social responsibility) and supply chain management [...] Read more.
Currently, companies and SMEs (small and medium enterprises) are looking to be more competitive. To achieve this, they are adopting new business models and strategies that allow them to move towards sustainability. Strategies such as CSR (Corporate social responsibility) and supply chain management have become essential for ensuring a company’s permanence and financial consolidation. The literature has stated that theories on stakeholders and sustainability are fundamental pillars for the development and sustained growth of business. The purpose of this article is to examine the effects of CSR and SCMM (supply chain management) on innovation, image and reputation, and, in turn, their influences on profitability in SMEs. An additional purpose is to verify the bidirectional relationship that exists between CSR and SCM in SMEs. This research was based on a sample of 143 companies in the city of Guaymas Sonorain Mexico. For the analysis and validation of the results, we used the ordinal least squares method (OLS) through multiple linear regressions and SEM (Structural Equation Modeling) statistical technique based on the variance, through PLS (Partial Least Squares) (using SmartPLS version 3.2.6 Professional). The findings show that SMEs that develop social and sustainable practices increase their level of innovation, and improve their image, their reputation, and their financial profitability. The results also indicate that CSR and SCM have a strong interdependence. This work contributes mainly to the development of the literature on stakeholders and sustainability. Full article
Show Figures

Figure 1

Open AccessArticle
Bridging Sustainability and Corporate Social Responsibility: Culture of Monitoring and Evaluation of CSR Initiatives in India
Sustainability 2018, 10(7), 2353; https://doi.org/10.3390/su10072353 - 06 Jul 2018
Cited by 3
Abstract
This study examines the continuum of sustainability and corporate social responsibility (CSR) policies, and analyzes broad patterns that have emerged with respect to monitoring and evaluation practices in the CSR programs of Indian companies under new CSR regulations. Under these regulations, the Indian [...] Read more.
This study examines the continuum of sustainability and corporate social responsibility (CSR) policies, and analyzes broad patterns that have emerged with respect to monitoring and evaluation practices in the CSR programs of Indian companies under new CSR regulations. Under these regulations, the Indian firms are mandated to spend at least 2% of their profits on social and development sectors. We specifically analyze (i) how Indian companies have conceptualized the idea of sustainability in their annual sustainability reports, and how these ideas get reflected in their CSR policies, and (ii) the monitoring and evaluation practices in CSR interventions. The study uses both primary and secondary data sources, and employs text network analysis and narratives-based content analysis to analyze the data. We find that the conceptualization of sustainability is a largely rhetoric and customary exercise that does not take into account variations in firms’ businesses. This approach toward sustainability initiatives presents serious challenges to sustainability, including social sustainability. The study also finds that there is lack of ‘willingness’ and ‘readiness’ among Indian companies to measure and monitor the outcomes of CSR interventions, which is arguably one of the most robust ways to signal their commitment toward corporate sustainability. Although mandatory CSR spending is a recent phenomenon in India, our study establishes that it is only through the design of effective CSR policies that the best practices for Indian business community can emerge in the near future. Full article
Show Figures

Figure 1

Open AccessArticle
Corruption and Technological Innovation in Private Small-Medium Scale Companies: Does Female Top Management Play a Role?
Sustainability 2018, 10(7), 2252; https://doi.org/10.3390/su10072252 - 29 Jun 2018
Cited by 4
Abstract
Common acts of corruption such as bribery and informal payments are virtually illegal everywhere and prevalent in every corner of the world. This paper aims to contribute to the literature by considering the influences of corruption and female top management on the likelihood [...] Read more.
Common acts of corruption such as bribery and informal payments are virtually illegal everywhere and prevalent in every corner of the world. This paper aims to contribute to the literature by considering the influences of corruption and female top management on the likelihood of technological innovation by using a nationwide survey and a sample of private small-medium sized companies (SMCs) in China. Interestingly, we find that female top managers have less enthusiasm for innovation than their male counterparts. Corruption, when measured by informal payments, poses a positive effect on the possibility of innovation after controlling for firm-level characteristics. However, female executives may weaken the positive innovation effects caused by corruption. Furthermore, one of our implied findings is that a firm with a female top manager is less likely to engage in corruption because this may raise the costs of doing business without any benefits for innovation. The results collectively illustrate the role that female top management and corrupt actions have in shaping innovative activities of private SMCs, and suggest that bribe-combating actions in firms are necessary, such as a framework for rationalizing the proportion of female executives involved in management. Full article
Show Figures

Figure 1

Open AccessArticle
Does Firm Performance Influence Corporate Social Responsibility Reporting of Chinese Listed Companies?
Sustainability 2018, 10(7), 2217; https://doi.org/10.3390/su10072217 - 28 Jun 2018
Cited by 19
Abstract
This study aims to investigate whether firm performance influences corporate social responsibility reporting of Chinese listed companies. We have used the sample of all A-share listed firms on Shenzhen and Shanghai stock exchanges for the period 2008 to 2015. The authors used pooled [...] Read more.
This study aims to investigate whether firm performance influences corporate social responsibility reporting of Chinese listed companies. We have used the sample of all A-share listed firms on Shenzhen and Shanghai stock exchanges for the period 2008 to 2015. The authors used pooled ordinary least squares (OLS) regression as a baseline methodology. To control the possible problem of endogeneity we use one year lagged and two-stage least squares regression. We find that firm performance has a statistically significant impact on CSR reporting. Moreover, we see that firms with high performance are more likely to report CSR activities than low-performance firms. Additionally, five of the control variables (board size, CEO power, SOE, firm size, and Big4) have some influence on CSR reporting. These findings hold for a set of robustness tests. Our results have implications for the development of CSR reporting in developing countries like China. Our research suggests that, in China, companies with better financial performance undertake more CSR reporting. The paper contributes to the existing literature by investigating the effect of firm performance on CSR reporting of Chinese listed companies. Additionally, this paper enriches the current literature on CSR reporting and highlights the importance of a firm’s financial performance for better environmental performance and reporting. Full article
Open AccessArticle
The Influence of Corporate Social Responsibility on Organizational Commitment: The Sequential Mediating Effect of Meaningfulness of Work and Perceived Organizational Support
Sustainability 2018, 10(7), 2208; https://doi.org/10.3390/su10072208 - 28 Jun 2018
Cited by 9
Abstract
Although many scholars have investigated the influence of corporate social responsibility (CSR) in an organization, there has been relatively minimal research regarding the CSR’s impacts on employees as well as the underlying mechanisms of it. Considering the research gaps, in the present research, [...] Read more.
Although many scholars have investigated the influence of corporate social responsibility (CSR) in an organization, there has been relatively minimal research regarding the CSR’s impacts on employees as well as the underlying mechanisms of it. Considering the research gaps, in the present research, we examine how CSR practices influence attitudes of employees. In particular, we hypothesize that perceived CSR would enhance organizational commitment (OC) of employees through the sequential mediation of meaningfulness of work (MOW) and perceived organizational support (POS). In order to empirically test this, we utilized two-wave time-lagged survey data from 378 employees who work for companies in South Korea. The results show that MOW and POS sequentially mediate the relationship between perceived CSR and OC. The findings suggest that CSR practices could be an active investment which enhances important attitudes of employees, instead of merely being a cost or obligation for firms. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Authentic Leadership on Organizational Citizenship Behaviours and the Mediating Role of Corporate Social Responsibility in the Banking Sector of Pakistan
Sustainability 2018, 10(7), 2170; https://doi.org/10.3390/su10072170 - 26 Jun 2018
Cited by 9
Abstract
This study was designed to examine the effect of authentic leadership on organizational citizenship behaviour (OCB), as well as to examine the mediating mechanism of corporate social responsibility (CSR) on the aforementioned relationship. Using the cross-sectional design method, the data were collected from [...] Read more.
This study was designed to examine the effect of authentic leadership on organizational citizenship behaviour (OCB), as well as to examine the mediating mechanism of corporate social responsibility (CSR) on the aforementioned relationship. Using the cross-sectional design method, the data were collected from 395 employees working in the banking sector of Pakistan. Drawing on social exchange theory, it was hypothesized that authentic leadership would positively predict organizational citizenship behaviour. Furthermore, it was hypothesized that CSR would positively mediate the relationship between authentic leadership and OCB. The results of the study indicate that authentic leadership positively predicts OCB. Importantly, CSR was found to positively mediate the effect of authentic leadership on OCB. Theoretical implications of the study and future research directions are also discussed. Full article
Show Figures

Figure 1

Open AccessArticle
Impact of Corporate Social Responsibility on Value Creation from a Stakeholder Perspective
Sustainability 2018, 10(6), 2062; https://doi.org/10.3390/su10062062 - 18 Jun 2018
Cited by 16
Abstract
In recent years, we have witnessed how companies and institutions have devoted significant effort to developing Corporate Social Responsibility (CSR) policies, basing their decision on the improvement in company results and the subsequent benefits for shareholders and other stakeholders. CSR means that managers [...] Read more.
In recent years, we have witnessed how companies and institutions have devoted significant effort to developing Corporate Social Responsibility (CSR) policies, basing their decision on the improvement in company results and the subsequent benefits for shareholders and other stakeholders. CSR means that managers must go beyond the mere satisfaction of the shareholders and take steps to establish balanced relations with all their stakeholders. The principles behind the CSR approach empower stakeholder governance. To test whether CSR policy constitutes a factor in value creation for shareholders and certain stakeholders such as employees, creditors and the State, we conducted an explanatory study, using a Correlated Random Effects approach, which compares the socially responsible companies included in the Spanish sustainability index, FTSE4Good Ibex, with the companies listed on the other indices of the IBEX family. On the one hand, the data show that sustainability reporting is well established in large companies in Spain but that it needs to be introduced more extensively in small and medium-sized enterprises. On the other hand, the findings point out that CSR has a positive and significant influence on the distribution of value in favor of the State, a negative influence for employees and no influence on other stakeholders. Full article
Open AccessArticle
Doing Good Is Not Enough, You Should Have Been Authentic: Organizational Identification, Authentic Leadership and CSR
Sustainability 2018, 10(6), 2026; https://doi.org/10.3390/su10062026 - 15 Jun 2018
Cited by 4
Abstract
Previous studies on the relationship between corporate social responsibility (CSR) and organizational performance have emphasized how CSR influences the external stakeholders such as shareholders, customers, and local communities to explain the association. Thus, it is relatively less studied how CSR influences internal stakeholders, [...] Read more.
Previous studies on the relationship between corporate social responsibility (CSR) and organizational performance have emphasized how CSR influences the external stakeholders such as shareholders, customers, and local communities to explain the association. Thus, it is relatively less studied how CSR influences internal stakeholders, which ultimately accrue to organizational performance. Grounded on institutional theory which proposes that institutional enablers such as CSR activities affect macro-level outcomes (i.e., organizational performance) through micro-level mechanisms (i.e., attitudes or behaviors of members), we argue that internal processes are critical to explaining the CSR–performance link. Using 2-wave time-lagged survey data of 301 employees from various companies in South Korea, we first investigate how organizational identification (OI) mediates the CSR–performance link. In addition, we also investigate how authentic leadership moderates the link between CSR and OI. The results showed that OI is an important internal process that CSR enhances for organizational performance. In addition, authentic leadership positively moderated the effect of CSR on OI. Our results suggest that we need to understand “internal” intermediating mechanisms as well as critical contextual factors to elaborately explain the relationship. Full article
Show Figures

Figure 1

Open AccessArticle
Opportunism Motivation of Environmental Protection Activism and Corporate Governance: An Empirical Study from China
Sustainability 2018, 10(6), 1725; https://doi.org/10.3390/su10061725 - 25 May 2018
Cited by 4
Abstract
In the study of environmental protection issues for more than forty years, research on the impact of financial performance on environmental protection has been one of the important branches. In the framework of principal-agent theory, this paper explores the opportunism motives in a [...] Read more.
In the study of environmental protection issues for more than forty years, research on the impact of financial performance on environmental protection has been one of the important branches. In the framework of principal-agent theory, this paper explores the opportunism motives in a company’s environmental protection activism and the moderating role of corporate governance using the data of Chinese listed companies from 2005 to 2016. The study finds that: (1) the company’s environmental protection activism is driven by the opportunist motives of policymakers who want to mask their inability; and (2) environmental protection activism does not enhance the company’s future performance and value creation capability. Further studies find that corporate governance mechanisms play different moderating roles. Fund Shareholders play a positive governance role and reduce the correlation between financial performance and environmental protection activism. However, independence of the board of directors intensifies the opportunist motives. This paper provides new theoretical explanations for environmental protection decision-making, provides novel enlightenment for the protection of environmental protection policies in developing countries and regions. Full article
Open AccessArticle
Corporate Social Responsibility, Internal Controls, and Stock Price Crash Risk: The Chinese Stock Market
Sustainability 2018, 10(5), 1675; https://doi.org/10.3390/su10051675 - 22 May 2018
Cited by 13
Abstract
As the core of sustainable development strategy, corporate social responsibility (CSR) is a concept that influences business missions, management, operations, finance, and marketing. Studies of the economic consequences of CSR have focused on the theoretical and practical arenas. However, few studies have examined [...] Read more.
As the core of sustainable development strategy, corporate social responsibility (CSR) is a concept that influences business missions, management, operations, finance, and marketing. Studies of the economic consequences of CSR have focused on the theoretical and practical arenas. However, few studies have examined the impact of CSR on the market price fluctuations of company shares. The purpose of this study was to investigate the effect of CSR on stock price crash risk and its relationship with the role of internal controls in China. After empirical analysis, we found a significantly negative association between CSR and stock price crash risk. Furthermore, we determined that internal controls play a significant and partially mediating role between CSR and stock price crash risk. Internal controls have become an important system for Chinese companies to improve their social responsibility and reduce their operating risk, especially the risk of a stock price crash. We also found that internal controls had a significant and partial moderating effect on the relationship between CSR and stock price crash risk. In certain environments with higher levels of internal controls, CSR prominently reduced the risk of stock price crash. In theory, our study adds to the growing literature about CSR, expands the scope of CSR research, elaborates upon relevant CSR economic consequences, and complements the literature about the determinants of stock price crash risk. In practice, our conclusions provide a reference for Chinese managers, investors, and the related government departments to evaluate the effects of CSR and internal controls, and provides regulators with a method to help control abnormal fluctuations in the stock market. More importantly, the results of this study have reference value for scholars and practitioners in developing countries like China. Full article
Open AccessArticle
CSR Communication Strategies of Colombian Business Groups: An Analysis of Corporate Reports
Sustainability 2018, 10(5), 1602; https://doi.org/10.3390/su10051602 - 16 May 2018
Cited by 7
Abstract
The aim of this paper is to assess stakeholder orientation and corporate social responsibility (CSR) communication strategies in the business groups (BGs) of an emerging economy by means of content analysis. We worked with 30 non-financial BGs taken from the Colombian Stock Exchange. [...] Read more.
The aim of this paper is to assess stakeholder orientation and corporate social responsibility (CSR) communication strategies in the business groups (BGs) of an emerging economy by means of content analysis. We worked with 30 non-financial BGs taken from the Colombian Stock Exchange. The study uses as its unit of analysis corporate reports that have been classified into four categories: annual reports (ARs), sustainability reports (SRs), combined reports (CRs), and integrated reports (IRs). The results show that IRs are the most similar reports, that Colombian BGs are mainly employee-oriented (ARs, SRs, CRs) and shareholder-oriented (IRs), and that response and involvement communication strategies are the most commonly used. Our research has theoretical and practical implications based on the assumption that the study of corporate reports has particular importance for those BGs with diversification strategies and international orientation, since it opens possibilities for future research. Full article
Open AccessArticle
A Fusion Approach for Exploring the Key Factors of Corporate Governance on Corporate Social Responsibility Performance
Sustainability 2018, 10(5), 1582; https://doi.org/10.3390/su10051582 - 15 May 2018
Cited by 5
Abstract
It is widely recognized that a firm’s well-established corporate governance (CG) has a considerable impact on its corporate social responsibility (CSR) performance. How to determine the main trigger among CG’s indicators for strengthening CSR performance is thus an urgent and complicated task due [...] Read more.
It is widely recognized that a firm’s well-established corporate governance (CG) has a considerable impact on its corporate social responsibility (CSR) performance. How to determine the main trigger among CG’s indicators for strengthening CSR performance is thus an urgent and complicated task due to its (i.e., CSR) multi-dimensional and numerous perspectives. In order to solve this critical problem, the study breaks down CSR into four dimensions and further examines the impact of CG’s indicators on each CSR dimension by joint utilization of rough set theory (RST) and decision tree (DT). By doing so, users can realize which one CG indicator is the most essential to CSR performance. Managers can take the results as a reference to allocate valuable and scarce resources to the right place so as to enhance CSR performance in the future. To solidify our research finding, we transform the CSR forecasting model selection into a multiple criteria decision making (MCDM) task and execute a MCDM algorithm. By implementing the MCDM algorithm, users can achieve a much more reliable and consensus decision in today’s highly turbulent economic environment. The proposed mechanism, examined by real cases, is a promising alternative for CSR performance forecasting. Full article
Show Figures

Figure 1

Open AccessArticle
Drivers and Barriers in Socially Responsible Human Resource Management
Sustainability 2018, 10(5), 1532; https://doi.org/10.3390/su10051532 - 11 May 2018
Cited by 11
Abstract
The current recession has caused a large number of companies to reevaluate their valuable resources and ways to preserve and invest those resources. Given the relevance of employees as key stakeholders, developing a socially responsible orientation in human resource management for taking care [...] Read more.
The current recession has caused a large number of companies to reevaluate their valuable resources and ways to preserve and invest those resources. Given the relevance of employees as key stakeholders, developing a socially responsible orientation in human resource management for taking care of workers and their needs must be an essential process for business success. This study, based on stakeholder theory and a social integrative approach, examines the main drivers and barriers in the implementation of socially responsible actions in human resource management. The research uses a quantitative analysis based on questionnaires responded to by 85 human resource managers from large Spanish companies. We conclude that there are two significant drivers of socially responsible actions in human resource management (HRM): access to public subsidies and the improvement of the working environment. The main significant barriers highlighted by human resource managers are conflicts in decisions with boards and/or management teams and the lack of employees’ acceptance. The professional implications of the research are discussed at the end of the paper. Full article
Show Figures

Figure 1

Open AccessArticle
Crowdfunding as an Alternative Means for Funding Sustainable Appropriate Technology: Acceptance Determinants of Backers
Sustainability 2018, 10(5), 1456; https://doi.org/10.3390/su10051456 - 07 May 2018
Cited by 21
Abstract
The research and development as well as the propagation of sustainable, appropriate technology requires the availability of stable funding. Crowdfunding is a form of funding whereby small sums of investments or contributions are collected from the general public and used to finance the [...] Read more.
The research and development as well as the propagation of sustainable, appropriate technology requires the availability of stable funding. Crowdfunding is a form of funding whereby small sums of investments or contributions are collected from the general public and used to finance the development of goods or services. This method has been widely used in the arts and cultural fields and presents a useful alternative means by which to fund appropriate technology projects. The aim of this study is to identify the factors that influence backers who participate in appropriate technology projects through crowdfunding platforms, analyze the connections among these factors, and thereby establish the usefulness of crowdfunding as a viable new funding alternative. Results indicate that the key factors influencing user intention to crowdfund appropriate technology projects include social influence, effort expectancy, and perceived trust. In comparison to the findings of previous studies, performance expectancy was not found to have a significant effect. When compared to crowdfunding conducted in other fields, these results suggest that crowdfunding for appropriate technology is closer in nature to donations. Accordingly, for funding of these projects to be successful, aggressive online exposure using the social network service (SNS) of backers should be pursued from the earliest stages of funding. Full article
Show Figures

Figure 1

Open AccessArticle
The Development Perspectives of Sustainable Management Accounting in Central and Eastern European Countries
Sustainability 2018, 10(5), 1445; https://doi.org/10.3390/su10051445 - 06 May 2018
Cited by 6
Abstract
Central and Eastern European countries undergo many political, structural, social and economic changes, with growing public awareness of the need for corporate sustainability among them. These changes influence all business activities of companies; the management accounting system, however, is particularly susceptible to the [...] Read more.
Central and Eastern European countries undergo many political, structural, social and economic changes, with growing public awareness of the need for corporate sustainability among them. These changes influence all business activities of companies; the management accounting system, however, is particularly susceptible to the effects of these changes. Management accounting research is usually carried out using a conventional, mainstream approach, followed by most scientific researchers analyzing management accounting. This paper aims to promote the perception of the changes and prospects of the development of management accounting in Central and Eastern European countries with in-depth consideration of corporate social responsibility, viewing the role of accounting in a wider social, ethical, environmental, cultural and historical context. Therefore, the aim of this study is to contribute to the understanding of sustainable management accounting in the context of socio-economic transformations and developments in these countries, in the research perspectives of alternative management accounting. The paper relies on theoretical and methodological triangulation, using inductive and deductive reasoning as well as descriptive and comparative analysis. A bibliometric analysis, based on the scientific paper in Web of Science’ database relating management accounting research in Central and Eastern Europe countries in 1945–2017, reveals key trends in changes in the field of management accounting research, and allows us to anticipate the direction of future research in this region. The results of research in these areas determine the future growth, importance, and character of the sustainable management accounting practices of companies from Central and Eastern Europe. It offers findings which are potentially useful for both theory and practice. Full article
Show Figures

Figure 1

Open AccessArticle
Is Green Regulation Effective or a Failure: Comparative Analysis between Bangladesh Bank (BB) Green Guidelines and Global Reporting Initiative Guidelines
Sustainability 2018, 10(4), 1267; https://doi.org/10.3390/su10041267 - 20 Apr 2018
Cited by 9
Abstract
Green reporting and green regulation have been commonly used in the sustainability movement. This study evaluates Bangladesh Bank’s (BB’s) green regulation by considering the global reporting initiative (GRI) of environmental regulation along with self-determined content to justify BB’s institutional effort in the banking [...] Read more.
Green reporting and green regulation have been commonly used in the sustainability movement. This study evaluates Bangladesh Bank’s (BB’s) green regulation by considering the global reporting initiative (GRI) of environmental regulation along with self-determined content to justify BB’s institutional effort in the banking sector. The analytical study has considered secondary data of all listed banks on the Dhaka Stock Exchange between 2013 to 2016. A multi-theoretical framework has been adopted in which the research is comprised of institutional, stakeholder, and legitimacy theories. Considering the analytical research, we have drawn-up a green reporting score and undertaken SWOT analysis. The results of the study have identified the narrow coverage of BB’s regulation and strategic limitations. Moreover, the findings of the study show that banking companies disclosed more green information in line with BB’s regulation. Furthermore, our analysis has found the lack of transparency of green reporting in terms of absent global reporting as well as external verification. Additionally, we have documented that BB’s regulation falls into a legitimacy threat owing to political, corporate, and social responsibility. Therefore, we concluded that for BB to overcome all possible weaknesses and threats, it should consider all possible opportunities for a holistic international reporting framework while taking into account a transparent financial sector. Full article
Show Figures

Figure 1

Open AccessArticle
Relational Benefit on Satisfaction and Durability in Strategic Corporate Social Responsibility
Sustainability 2018, 10(4), 1104; https://doi.org/10.3390/su10041104 - 07 Apr 2018
Cited by 3
Abstract
These days, companies are moving from Corporate Social Responsibility (CSR) activities for short-term profit generation to the ones for achieving economic and social long-term goals. This phenomenon results from the idea that CSR is not a mere cost but can be used as [...] Read more.
These days, companies are moving from Corporate Social Responsibility (CSR) activities for short-term profit generation to the ones for achieving economic and social long-term goals. This phenomenon results from the idea that CSR is not a mere cost but can be used as a source of opportunity, innovation and competitive advantage. Deemed as a great business strategy, strategic CSR activities are being emphasized by various stakeholders in the global market. The purpose of this study is to present specific implications and to empirically research the relations among relational benefits, commitment, and authenticity. It identifies the main factors of relationship management in expanding the stakeholder pool and forming relationships for strategic CSR activities. To this end, we conducted a questionnaire survey of 113 CSR practitioners in Korea and analyzed how social, psychological, and economic benefits affect the satisfaction and durability of strategic CSR activities through relational commitment and authenticity. Consequently, social, psychological, and economic benefits have an impact on relationships and, by extension, have a positive effect on relational satisfaction and durability. However, economic benefits affect relational authenticity, but social and psychological benefits do not. As a result, relational benefits cannot affect satisfaction through relationships. Therefore, relational benefits and commitment are more important variables for the satisfaction and durability of strategic CSR activities. Full article
Show Figures

Figure 1

Open AccessArticle
Doing Well or Doing Good: The Relationship between Corporate Social Responsibility and Profit in Romanian Companies
Sustainability 2018, 10(4), 1041; https://doi.org/10.3390/su10041041 - 01 Apr 2018
Cited by 39
Abstract
The traditional goal of a company is to earn profit to pay its shareholders, but, nowadays, for the business to be sustainable in the long term, a strategy of Corporate Social Responsibility (CSR) activities is needed to meet stakeholder demands, respect ethical principles [...] Read more.
The traditional goal of a company is to earn profit to pay its shareholders, but, nowadays, for the business to be sustainable in the long term, a strategy of Corporate Social Responsibility (CSR) activities is needed to meet stakeholder demands, respect ethical principles and give an appropriate answer to organizational stakeholders. The objective of the paper is to identify how strong the correlation between CSR and profit is, and how companies behave in the periods they have losses, whether they continue to do CSR activities, they reduce the activities, or they give them up. Thus, CSR is attributed to the concept of “doing good” and profit to the expression of “doing well”, from which a “positive business” can be built. Our empirical research consists of a panel data econometric model using logistics regressions to highlight the correlation between profit and the decision to do CSR activities and feasible generalized least squares (FGLS) regressions to identify the correlations between the level of CSR activities and the dimension of profit, an expression of financial performance. The main results emphasize that the companies which implement CSR activities in a greater extent are more profitable in economic terms. Full article
Show Figures

Figure 1

Open AccessArticle
Social Sustainability in Apparel Supply Chains—The Role of the Sourcing Intermediary in a Developing Country
Sustainability 2018, 10(4), 1039; https://doi.org/10.3390/su10041039 - 31 Mar 2018
Cited by 4
Abstract
After considering significant literature on sustainable supply chain management (SSCM), it is evident that research has neglected the social dimension and still lacks in highlighting the role of sourcing intermediaries in supply chains. The apparel supply chain has increased enormously in length and [...] Read more.
After considering significant literature on sustainable supply chain management (SSCM), it is evident that research has neglected the social dimension and still lacks in highlighting the role of sourcing intermediaries in supply chains. The apparel supply chain has increased enormously in length and complexity, driving apparel retailers to employ sourcing intermediaries who manage their sourcing activities with suppliers from developing countries overseas. Thus, the purpose of this study is to enrich existing findings on SSCM by exploring the management of social sustainability when sourcing intermediaries are in between the focal company and the respective developing country factories. More specifically, this study aims to understand the role of apparel sourcing intermediaries for the implementation of social management strategies based on the perception of multiple supply chain actors. Qualitative data was collected through semi-structured interviews conducted in Vietnam and Europe. Ultimately ten propositions are presented, all explicitly concentrating on the apparel intermediary’s role as a significant enabler for social sustainability in apparel supply chains. The roles are social sustainability, supplier developer and coordinator, gatekeeper and safeguard, cultural broker, and social risk manager. The social sustainability roles assumed by the apparel sourcing intermediary offer great opportunities to both apparel retailers and developing country factories. Full article
Show Figures

Figure 1

Open AccessArticle
P2P Network Lending, Loss Given Default and Credit Risks
Sustainability 2018, 10(4), 1010; https://doi.org/10.3390/su10041010 - 29 Mar 2018
Cited by 5
Abstract
Peer-to-peer (P2P) network lending is a new mode of internet finance that still holds credit risk as its main risk. According to the internal rating method of the New Basel Accord, in addition to the probability of default, loss given default is also [...] Read more.
Peer-to-peer (P2P) network lending is a new mode of internet finance that still holds credit risk as its main risk. According to the internal rating method of the New Basel Accord, in addition to the probability of default, loss given default is also one of the important indicators of evaluation credit risks. Proceeding from the perspective of loss given default (LGD), this paper conducts an empirical study on the probability distribution of LGDs of P2P as well as its influencing factors with the transaction data of Lending Club. The results show that: (1) the LGDs of P2P loans presents an obvious unimodal distribution, the peak value is relatively high and tends to concentrate with the decrease of the borrower’s credit rating, indicating that the distribution of LGDs of P2P lending is similar to that of unsecured bonds; (2) The total asset of the borrower has no significant impact on LGD, the credit rating and the debt-to-income ratio exert a significant negative impact, while the term and amount of the loan produce a relatively strong positive impact. Therefore, when evaluating the borrower’s repayment ability, it is required to pay more attention to its assets structure rather than the size of its total assets. When carrying out risk control for the P2P platform, it is necessary to give priority to the control of default rate. Full article
Show Figures

Figure 1

Open AccessArticle
The Relationship between Firm Size and Age, and Its Social Responsibility Actions—Focus on a Developing Country (Romania)
Sustainability 2018, 10(3), 805; https://doi.org/10.3390/su10030805 - 14 Mar 2018
Cited by 16
Abstract
The concept of Corporate Social Responsibility covers a wide range of actions which have been practiced for many years in Western countries. As well as in other developing and transitional countries, the concept of social responsibility emerged in Romania after 1990, concurrently with [...] Read more.
The concept of Corporate Social Responsibility covers a wide range of actions which have been practiced for many years in Western countries. As well as in other developing and transitional countries, the concept of social responsibility emerged in Romania after 1990, concurrently with the set-up of many non-governmental organizations (NGOs) and the entrance of multinational companies and was rapidly adopted by several firms. The main purpose of our paper is to investigate practices and actions related to social responsibility, which are undertaken by small and medium enterprises (SMEs) in Romania and to reveal which factors really matter in determining different degrees of involvement in Corporate Social Responsibility (CSR) actions. The level of social responsibility actions undertaken by SMEs often depends on the decisions of their managers and the value orientation of the entrepreneur. Moreover, the younger a firm is, the less likely it is that it gets involved in CSR. This is our main assumption: young ventures display a weaker propensity for CSR actions. In order to validate this hypothesis, we used survey data, collected from 84 SMEs, operating in Oradea, Romania. Data were collected between July–September 2016 and analysed by the authors through correlations, independent sample T-tests and linear regression modelling. Our findings reveal that there are significant differences between newly established ventures and those with a longer history; however, age is not a determining factor of CSR. Although, in the literature, there is no clear consensus regarding whether there is a different model of implementation of CSR related practices in developing and transitional countries, especially in the case of SMEs, our results show there are no essential differences between the models of CSR involvement as these are known in the theory and practice of developed countries. Full article
Show Figures

Figure 1

Open AccessArticle
Corporate Social-Environmental Performance versus Financial Performance of Banks in Central and Eastern European Countries
Sustainability 2018, 10(3), 772; https://doi.org/10.3390/su10030772 - 11 Mar 2018
Cited by 17
Abstract
Developed market economies demonstrate a growing interest in issues concerning Corporate Social Responsibility (CSR) and its effects, confirmed by the sizeable theoretical and empirical literature on this issue. A substantial research proves also the positive relation between CSR commitment and financial results of [...] Read more.
Developed market economies demonstrate a growing interest in issues concerning Corporate Social Responsibility (CSR) and its effects, confirmed by the sizeable theoretical and empirical literature on this issue. A substantial research proves also the positive relation between CSR commitment and financial results of banks in mature markets. However, there is less evidence on CSR existence and its impact in other geographical areas, especially in the research concerning Central and Eastern European Countries (CEEC). In our study we analyze the interrelation between being socially responsible and tangible financial outcome (Corporate Financial Performance—CFP) of banks in the CEEC. The aim is also to empirically verify the relation between efficiency of corporate social-environmental performance (CSP) and the efficiency of CFP for CEEC banks. In our study, we analyze the financial and CSP data of the biggest public banks in CEEC. The researched period is 2012–2016. The empirical part analyzes the interrelation between CSP and CFP based on the panel regression. Moreover, in order to evaluate the CSP efficiency and the CFP efficiency we use the Data Envelopment Analysis (DEA) approach. The empirical results reveal that in case of banks in the Central and Eastern Europe (CEE) region being socially responsible is not reflected in the bottom line. The financial condition of the banks also does not impact the CSR engagement. Our study confirms, however, that CEEC banks with better financial efficiency have higher efficiency of CSR activities. The conclusions may lead to the improved decision-making processes concerning CSR activities and their communication in banks in CEEC. Full article
Open AccessArticle
Training the CSR Sensitive Mind-Set: The Integration of CSR into the Training of Business Administration Professionals
Sustainability 2018, 10(3), 754; https://doi.org/10.3390/su10030754 - 09 Mar 2018
Cited by 20
Abstract
Current corporations are subject to stringent requirements in terms of sustainable development; however, a relevant problem is highlighted on the basis of the studies conducted. On the one hand, corporations experience greater or lesser pressure, while on the other hand, it must be [...] Read more.
Current corporations are subject to stringent requirements in terms of sustainable development; however, a relevant problem is highlighted on the basis of the studies conducted. On the one hand, corporations experience greater or lesser pressure, while on the other hand, it must be admitted that the problem of demand for professionals, which is presupposed by the insufficient quality of training in higher education institutions, is important. This is somewhat strange given that the issues of business ethics, corporate social responsibility, and sustainability have attracted increased attention in management education in recent years, and a five-fold increase in the number of stand-alone ethics courses has been noted since 1988. This interaction could contribute to the development of CSR, however a certain dissonance of cooperation between higher education and business exists, as there is a lack of leadership in this area in the study programs of business administration approved by the states, as well as in higher education institutions. Given these facts, the goal of the paper is to analyze the Master of Business Administration programs in North America, Europe, Asia, and Australia to offer direction to the challenge of integrating corporate social responsibility (CSR) into management and training. The method of analysis of professional business and administration training program content in terms of the integration of CSR was used during the survey. Using panel data of 28 full-time MBA programs, our findings show that that the core parts of MBAs under analysis merely—and mostly indirectly—cover CSR issues through one core course on business ethics. However, the leading MBA programs are currently missing an opportunity by ignoring their responsibility to support the training of CSR-minded future business administration professionals. The results of our research may act as a guide to which areas should be modified and/or changed. Full article
Open AccessArticle
A Human Resources Perspective on Responsible Corporate Behavior. Case Study: The Multinational Companies in Western Romania
Sustainability 2018, 10(3), 726; https://doi.org/10.3390/su10030726 - 07 Mar 2018
Cited by 10
Abstract
This article aims to show the extent to which socially responsible Human Resource Management practices are implemented in multinational companies. As more recent studies highlight, the manner in which companies in Romania presently comprehend the social responsibility of their actions is mostly aimed [...] Read more.
This article aims to show the extent to which socially responsible Human Resource Management practices are implemented in multinational companies. As more recent studies highlight, the manner in which companies in Romania presently comprehend the social responsibility of their actions is mostly aimed towards the social component of the outer environment in which they function and less towards their own employees. In Romania, at the moment, there are only a few studies that catalogue the efforts made by companies in order to become more responsible towards their employees, or in other words, studies that present Corporate Social Responsibility (CSR) within its relationship with Human Resources Management (HRM). The research method we used for our case study was the semi-structured interview, applied on 32 respondents from the multinational companies carrying out their activities in the automotive sector in western Romania. Our study shows that multinational companies from the automotive sector are aware that CSR effects a series of long-term advantages, either externally—enhancing the company’s reputation and consolidating its brand as employer, its competitive advantage on the market, its media visibility—or internally—fostering an organizational culture that may generate greater engagement from its own employees, and financial advantages. Full article
Show Figures

Figure 1

Open AccessArticle
A Concession Period and Price Determination Model for PPP Projects: Based on Real Options and Risk Allocation
Sustainability 2018, 10(3), 706; https://doi.org/10.3390/su10030706 - 06 Mar 2018
Cited by 18
Abstract
Concession period of PPP (Public–Private Partnership) projects is the most essential feature in determining the time span of various rights, obligations and responsibilities between the government and concessionaire. Most traditional methods are based on the analysis of the future cash flow to determine [...] Read more.
Concession period of PPP (Public–Private Partnership) projects is the most essential feature in determining the time span of various rights, obligations and responsibilities between the government and concessionaire. Most traditional methods are based on the analysis of the future cash flow to determine the concession period, but either ignored the potential values or the risks that might emerge during the project life span, thus failing to find the proper concession period for the project. This paper builds a new model taking both recognized real option value and risk into concession period decision-making, and considering the distribution coefficient of option value, which uses game theory integrated with risk sharing, which increases the flexibility of the negotiation. Real option theory is introduced based on traditional NPV (Net Present Value); its potential value and strategic importance are further exploited. A case shows that the project concession period and the price of the sewage disposal are different when considering option value and risk sharing simultaneously and respectively, which give the two side’s references during negotiation. Allocating the option value and the risk properly between the government and concessionaire can also avoid dispute and promote cooperation. Full article
Show Figures

Figure 1

Open AccessArticle
The Outcomes of Corporate Social Responsibility to Employees: Empirical Evidence from a Developing Country
Sustainability 2018, 10(3), 698; https://doi.org/10.3390/su10030698 - 05 Mar 2018
Cited by 7
Abstract
Employees creativity has been recognized as a crucial part of an organization’s ability to be innovative. To know which factors contribute to employee involvement in creative work, in this paper, we first examine the effects of corporate social responsibility (CSR) to employees. Moreover, [...] Read more.
Employees creativity has been recognized as a crucial part of an organization’s ability to be innovative. To know which factors contribute to employee involvement in creative work, in this paper, we first examine the effects of corporate social responsibility (CSR) to employees. Moreover, we study the employees’ positive work attitudes and their intention to leave as a mediating mechanism to explain the effect of CSR to employees on the involvement of employees in creative work. Survey data from 209 employees in 45 small-sized enterprises in Iran were used to test the hypotheses of the study. The hypotheses were tested with hierarchical regression analyses using SPSS software. The results support the direct impact of CSR to employees on employees’ creative work involvement. In addition, the findings indicate that the indirect effect of CSR to employees on the involvement of employees in creative work through positive work attitudes and their intention to leave are significant. Consequently, small-sized enterprises should reinforce CSR to employees to elevate their involvement in creative work. Full article
Show Figures

Figure 1

Open AccessArticle
Principles of Islamic Finance and Principles of Corporate Social Responsibility: What Convergence?
Sustainability 2018, 10(3), 637; https://doi.org/10.3390/su10030637 - 28 Feb 2018
Cited by 7
Abstract
Islamic Finance, among its other features, figures as a financial and economic model based on principles and ethical values in which sustainable development and social responsibility play an essential role. The aim of this study is to illustrate the concept of Corporate Social [...] Read more.
Islamic Finance, among its other features, figures as a financial and economic model based on principles and ethical values in which sustainable development and social responsibility play an essential role. The aim of this study is to illustrate the concept of Corporate Social Responsibility (CSR) with specific reference to Islamic financial institutions, their principles, values and objectives, in order to understand the underpinning dynamics and identify the convergences between the principles underlying conventional CSR and those of Islamic Finance. Specifically, the ultimate purpose of the comparison is to highlight how CSR may constitute a significant factor of convergence between Islamic and conventional finance systems, going beyond the logic of sustainability in short-term marketing policy and implementing medium- and long-term sustainability. This approach aims at increasing the potential for value creation and the pursuit of economic, social and environmental results for all stakeholders. This convergence should, finally, create conditions favourable to the harmonisation of the regulations and directives relative to CSR in the different countries, and therefore a better integration between Islamic finance institutions and conventional ones in the economic contexts. Full article
Open AccessArticle
Does Corporate Governance Affect Sustainability Disclosure? A Mixed Methods Study
Sustainability 2018, 10(1), 207; https://doi.org/10.3390/su10010207 - 16 Jan 2018
Cited by 25
Abstract
This research paper aims to understand the impact of corporate governance (CG) on economic, social, and environmental sustainability disclosures. This paper adopted an explanatory sequential mixed methods approach. The data regarding corporate governance and sustainability disclosure were collected from top 100 companies listed [...] Read more.
This research paper aims to understand the impact of corporate governance (CG) on economic, social, and environmental sustainability disclosures. This paper adopted an explanatory sequential mixed methods approach. The data regarding corporate governance and sustainability disclosure were collected from top 100 companies listed on the Pakistan Stock Exchange (PSE) for the period ranging from 2012 to 2015. In addition to the quantitative data, we collected qualitative data through interviews with five board members of different companies. Overall, our results indicate that CG elements enhance sustainability disclosures. This study concludes that a large board size consisting of a female director and a CSR committee (CSRC) is better able to check and control management decisions regarding sustainability issues (be they economic, environment, or social) and resulted in better sustainability disclosure. This paper, through quantitative and qualitative analysis, provides a methodological and empirical contribution to the literature on corporate governance and sustainability reporting in emerging and developing countries. Full article
Open AccessArticle
CSR Reporting Practices in Visegrad Group Countries and the Quality of Disclosure
Sustainability 2017, 9(12), 2322; https://doi.org/10.3390/su9122322 - 13 Dec 2017
Cited by 14
Abstract
Companies around the world more often issue publicly available reports to disclose how responsibly they conduct their business. The practices of corporate social responsibility (CSR) reporting are more popular in western part of Europe then in Central and Eastern European (CEE) countries and [...] Read more.
Companies around the world more often issue publicly available reports to disclose how responsibly they conduct their business. The practices of corporate social responsibility (CSR) reporting are more popular in western part of Europe then in Central and Eastern European (CEE) countries and empirical studies related to these practices in the region are sporadic and fragmented. The Visegrad Group countries have undergone tremendous changes in political, environmental and social area during the last twenty years. The CSR concept in these countries is relatively new but is rapidly spreading, in particular as part of their integration with the European Union, as well as under the influence of transnational corporations (TNCs) and foreign investors. Therefore, acquisition of knowledge, which presents the functioning of CSR reporting practices in the region seems to be of interest to both the scientific community and enterprises themselves. An important part of the analysis conducted in the study was the assessment of quality of CSR reports issued in this region. The quality indicator of the studied reports was based on seventeen criteria related to relevance and credibility of disclosed information. The findings indicate that CSR reporting practices are not widespread among V4 countries and suggest some area of improvements. Furthermore, the achieved results confirm the existence of a relationship between two factors (external verification of a report and usage of the GRI guidelines when developing a report) and the level of quality of the CSR report. Full article
Show Figures

Figure 1

Open AccessArticle
The Organizational Identification Perspective of CSR on Creative Performance: The Moderating Role of Creative Self-Efficacy
Sustainability 2017, 9(11), 2125; https://doi.org/10.3390/su9112125 - 18 Nov 2017
Cited by 12
Abstract
Corporate social responsibility (CSR) is an emerging and fast-growing concept for both academic research and organizations. In recent years, the far-reaching influence of CSR practices on stakeholders has made both researchers and practitioners pay heed to this dimension. Employees are one of the [...] Read more.
Corporate social responsibility (CSR) is an emerging and fast-growing concept for both academic research and organizations. In recent years, the far-reaching influence of CSR practices on stakeholders has made both researchers and practitioners pay heed to this dimension. Employees are one of the most important stakeholders influenced by CSR practices. CSR brings in many ideas, concepts, and techniques. In the past, different antecedents and consequences of corporate social responsibility have been studied, but there is still a deficit in regard to whether employee creative performance is an outcome of corporate social responsibility, and the interlinked variables that might enhance this relationship. The main objective of this study is to examine how CSR practices enhance employee performances within the organization, and which other variables may enhance this relationship. The literature suggests that employees who value CSR campaigns and other practices identify with their company to a greater degree, work with more devotion and loyalty, and show more creativity in their work performance. In this study, organizational identification has been taken as the mediator, and creative self-efficacy has been taken as the moderator. The hypotheses were tested within the sample of companies engaging in CSR practices in Pakistan. A questionnaire survey was conducted using simple random sampling. Simple linear regression, hierarchical regression, and Barron and Kenny tests were applied through SPSS (Statistical Package for the Social Science) for data analysis, and results were found according to the proposed model of the study. Full article
Show Figures

Figure 1

Open AccessArticle
Signaling Product Quality Information in Supply Chains via Corporate Social Responsibility Choices
Sustainability 2017, 9(11), 2113; https://doi.org/10.3390/su9112113 - 18 Nov 2017
Cited by 4
Abstract
This study focuses on how an upstream supplier signals the private information of its product quality with corporate social responsibility (CSR) choices to a downstream retailer and uninformed consumers in the final market. We build a signaling model to: capture the strategic interactions [...] Read more.
This study focuses on how an upstream supplier signals the private information of its product quality with corporate social responsibility (CSR) choices to a downstream retailer and uninformed consumers in the final market. We build a signaling model to: capture the strategic interactions among the supplier, the retailer, and the final consumers in the supply chain; characterize completely the set of all separating perfect Bayesian equilibriums (PBEs); and finally, select a unique equilibrium that satisfies the intuitive criterion for exploring some comparative statics. The equilibrium results show that under some technical conditions: (1) a set of moderate levels of CSR conduct signal the upstream supplier’s high quality in the sense of separating PBEs; (2) the unique separating PBE satisfying the intuitive criterion is the one with the lowest CSR level that separates a high-quality supplier from a low-quality supplier; (3) the lowest CSR level decreases in the proportion of informed consumers and the low-quality supplier’s marginal CSR cost, but is independent of the high-quality supplier’s marginal CSR cost; (4) the profits of the high-quality supplier increase in proportion to the number of informed consumers and the low-quality supplier’s marginal cost CSR, but decrease in proportion to the high-quality supplier’s marginal CSR cost. Managerial insights are also discussed. Full article
Show Figures

Figure 1

Open AccessArticle
The Impact of Corporate Social Responsibility on the Workforce of Selected Business Firms in the United Arab Emirates: A Nascent Economy
Sustainability 2017, 9(11), 2077; https://doi.org/10.3390/su9112077 - 12 Nov 2017
Cited by 2
Abstract
The main purpose of this study is to explore the impact of Corporate Social Responsibility (CSR) on employees working in two United Arab Emirates (UAE)-based companies. “Hilti Emirates” and “EROS Group” are the two companies that engage in a number of CSR applications [...] Read more.
The main purpose of this study is to explore the impact of Corporate Social Responsibility (CSR) on employees working in two United Arab Emirates (UAE)-based companies. “Hilti Emirates” and “EROS Group” are the two companies that engage in a number of CSR applications which were focused on India in 2015. The impact of CSR on the companies is the key focus in this study by gauging employees’ and managers’ perceptions. Primary data were collected by means of a prepared questionnaire that concentrated on employee and managerial behavior and attitudes, while secondary data were collected from theoretical articles and published company reports. Data were analyzed by means of statistical analysis using SPSS software. Methods like factor analysis, descriptive analysis and ANOVA in SPSS software are helpful in assessing the effect of CSR on employees, and hence companies, in the UAE. The main findings of the study are that employees can develop a behavioral change depending on the nature of CSR practices within the company. In turn, CSR polices are sustainable in relation to company profit which may vary from one company to another and one financial year to another. Therefore, this study concludes that employee behavior regarding CSR policies has notable and positive implications, relevant to the company as well as to the employees and management. The two leading UAE companies demonstrate a confluent pattern of CSR practices and effects that may also relate to employee behavior in other economies, although the researchers encourage more investigations to corroborate that view. Full article
Open AccessArticle
Do Peer Firms Affect Firm Corporate Social Responsibility?
Sustainability 2017, 9(11), 1967; https://doi.org/10.3390/su9111967 - 29 Oct 2017
Cited by 10
Abstract
Peer-firm strategies are a critical factor for corporate finance, and corporate social responsibility (CSR) is the main trend for evaluating the behavior of firms. On the basis of the connection between peer strategy and CSR, this paper explores the CSR strategies employed by [...] Read more.
Peer-firm strategies are a critical factor for corporate finance, and corporate social responsibility (CSR) is the main trend for evaluating the behavior of firms. On the basis of the connection between peer strategy and CSR, this paper explores the CSR strategies employed by a sample of Chinese firms during the 2008–2015 period. Our two main empirical findings are as follows. First, the CSR strategies of firms have a positive effect on their CSR behavior. Second, when there is the CSR gap between firms and peer firms, firms will feel the pressure from stakeholders and the public and improve the level of CSR performance. Our paper enriches empirical research on the CSR behavior of Chinese firms. Full article
Open AccessArticle
Exploring the Organizational Culture’s Moderating Role of Effects of Corporate Social Responsibility (CSR) on Firm Performance: Focused on Corporate Contributions in Korea
Sustainability 2017, 9(10), 1883; https://doi.org/10.3390/su9101883 - 19 Oct 2017
Cited by 17
Abstract
The purpose of this study was to examine the role of organizational culture in helping to translate corporate social responsibility (CSR) into firm performance. We employed arguments from the CSR strategy view to highlight the effectiveness of CSR and the contingency approach to [...] Read more.
The purpose of this study was to examine the role of organizational culture in helping to translate corporate social responsibility (CSR) into firm performance. We employed arguments from the CSR strategy view to highlight the effectiveness of CSR and the contingency approach to explain the vertical fit between CSR and the organizational culture in a firm. Furthermore, we examined the moderating influence of organizational culture on the CSR–firm performance linkage. The results suggest that some organizational cultures moderate the relationship between CSR and financial outcomes, and that organizational culture may play an important role in enhancing a positive relationship between CSR and firm performance. Full article
Show Figures

Figure 1

Review

Jump to: Research, Other

Open AccessReview
Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies
Sustainability 2018, 10(7), 2400; https://doi.org/10.3390/su10072400 - 10 Jul 2018
Cited by 5
Abstract
Corporate social responsibility (CSR) practices and conceptions vary across sectors and nations. However, there is a general tendency among academics and practitioners to present CSR in Africa as activities characterized by philanthropy due to the existence of institutional voids. This review of the [...] Read more.
Corporate social responsibility (CSR) practices and conceptions vary across sectors and nations. However, there is a general tendency among academics and practitioners to present CSR in Africa as activities characterized by philanthropy due to the existence of institutional voids. This review of the current literature demonstrates that weak institutions lead to weaker bargaining powers designed through the historical and geopolitical institutional frameworks of international business and global governance systems. Accordingly, multinational corporations (MNCs) take advantage of such weaknesses to define CSR on their own terms by replacing the ideal responsible and sustainable innovations with ad hoc philanthropy that diverts the attention from the negative consequences of neoliberal ‘structures of accumulation’. This is akin to aid that hardly contributes to structural changes, but rather leads to complacency, corruption, dependency, boutique projects, disguised exploitation, and the misuse of corporate political power to achieve corporate bottom lines. The implications of the results are vast, and they are generalizable to all weaker institutional settings. Thus, weaker institutions create the necessary regulatory, political, economic, and governance climate that perpetuates a pattern of abuses and ethical violations that are then masked with philanthropy. It is argued that the fundamental institutional and geopolitical contexts within which MNCs interact with nation states cannot be ignored in any comprehensive analysis that seeks to meaningfully shed light on the comparative differences of CSR practices. The neglect of the web of contextual, historical, and geopolitical issues in which CSR is entrenched and framed diverts attention from the origins of the socio-economic and environmental questions to philanthropy as a final solution, which has hitherto been perpetuated with undesirable outcomes. Full article
Show Figures

Figure 1

Other

Jump to: Research, Review

Open AccessHypothesis
Corporate Sustainability Management and Its Market Benefits
Sustainability 2018, 10(5), 1455; https://doi.org/10.3390/su10051455 - 07 May 2018
Cited by 5
Abstract
An increasing number of firms around the world are applying corporate sustainability management (CSM) to their business operations, and the research interest on the effect of CSM in terms of the capital market benefit has grown rapidly under the different research settings across [...] Read more.
An increasing number of firms around the world are applying corporate sustainability management (CSM) to their business operations, and the research interest on the effect of CSM in terms of the capital market benefit has grown rapidly under the different research settings across various countries. This study investigates whether CSM contributes to increasing firm value and improving the market response to earnings disclosure, using Korean firms as the sample. The test results show that firms with CSM reporting outperform the other firms in terms of Tobin’s Q and the market-adjusted stock returns over a year. Further, investors respond more strongly to the earnings announcement events of the CSM firms than the non-CSM firms, which is more likely to be attributed to the enhanced corporate disclosure practice of the CSM firms than an improvement in earnings quality. Our findings indicate that the shareholders of firms with CSM reporting can enjoy relatively higher market valuations and enhanced information content of earnings disclosures. In conclusion, the results show that the CSM activities in pursuit of a harmonious relationship with the various stakeholders bring different forms of market benefits to shareholders as well. Full article
Back to TopTop