Showing papers in "Social Responsibility Journal in 2019"

Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan

Abstract: This study aims to investigate the extent and nature of corporate social responsibility (CSR) disclosure in the context of Jordan. It also empirically examines the impact of board composition variables (size, independent [non-executive] directors, CEO/chairman duality, age and gender) and ownership structure variables (board ownership concentration, institutional ownership and foreign ownership) on CSR disclosure level.,A CSR disclosure index is constructed, and content analysis is used to analyze the extent and nature of CSR disclosure in the annual reports of Jordanian manufacturing companies listed on the Amman Stock Exchange (ASE) during the period (2013-2015). Regression analysis using panel data is undertaken to analyze the potential impact of board composition and ownership structure on CSR disclosure level.,The results reveal that, on average, a listed Jordanian manufacturing company has disclosed 30.8 per cent of the 42 items of CSR information included in the disclosure index. In addition, there was a very slight improvement in the CSR disclosure over the study period. These results suggest there is considerable room for improvement in CSR disclosure. The regression analysis identified board size to be significantly and positively associated with CSR disclosure level. On the other hand, the percentage of independent (non-executive) directors on the board, duality of CEO and chairman positions, director’s age, board ownership concentration and the percentage of shares outstanding held by institutional shareholders were found to have had a significant negative impact on CSR disclosure level.,The study contributes to the literature on CSR practice and disclosure in various ways. First, it demonstrates the extent to which listed companies in developing countries, such as Jordan, take their social role seriously. Second, the study adds to the existing literature on the potential impact of board composition and ownership structure on CSR disclosure by using new variables that have not been tested before using Jordanian data. Third, the study is anticipated to provide feedback to Jordanian regulators in the Jordan Securities Commission and the ASE on the adequacy of current regulations on corporate disclosure requirements in Jordan. Finally, the study raises some issues of interest to other researchers who are currently or intend to conduct research in this area.

Towards a more ethical market: the impact of ESG rating on corporate financial performance

Abstract: This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015.,This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation.,The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI).,The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior.,This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.

The state of art of corporate social disclosure before the introduction of non-financial reporting directive: a cross country analysis

Abstract: According to the Directive 2014/95/EU on non-financial information (NFI), from 2017 onwards, large companies of member states will be required to provide a series of social, environmental and governance disclosures. This paper, focusing on the evaluation of the quality of NFI in the UK and Italy before the implementation of the EU Directive, aims to investigate which factors affect the quality of NFI in the comparison between the UK and Italy.,To evaluate the “state of the art” of NFI in corporate social disclosure of British and Italian listed companies, a non-financial score is created, based on specific items concerning the requirements of the EU Directive. To this aim, the authors analyzed the corporate disclosures of 343 large listed companies.,Findings show that the UK is more compliant than Italy. So, regulation could be important to improve NFI in Italy more than in the UK. The results could represent relevant evidence for European policymakers of the action agenda “emphasizing the importance of national and sub-national CSR policies”.,This research represents a preliminary analysis on the EU Directive and on its potential effects. Moreover, this study strengthens the previous literature on the quality of non-financial disclosure.

Corporate social responsibility initiatives in Nigeria and rural women livestock keepers in oil host communities

Abstract: The purpose of this paper is to critically examine the multinational oil companies’ (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on rural women livestock keepers in the oil producing communities.,This paper uses a quantitative methodology. Data were collected from primary sources using participatory rural appraisal technique. The use of participatory research technique in collecting CSR impact data especially as it concerns the small-scale women livestock keeper is based on the fact that it involves the people being studied, and their views on all the issues are paramount. The primary tool used for household survey (collection of the primary data) is a structured questionnaire which is divided into two sections. Section one of the instrument elicited information on the socio-economic characteristics of respondent, while the other section elicited information on the research questions. Both descriptive and inferential statistics were used to analyze the data so as to answer the research questions and test the hypothesis. To answer the research questions, descriptive statistics of measurement of central tendency was used, and the results were presented in tables and charts. While in testing the hypothesis, inferential statistical tool-estimation of logit model (of receipt and non-receipt of MOCs CSR through the GMoU by rural women livestock keepers as function of selected socio-economic and domestic empowerment variables) was used.,The findings show that GMoU model is gender insensitive as rural women rarely have direct access to livestock interventions except through their husband or adult sons, which is attributed to the cultural and traditional context of the people, anchored in beliefs, norms and practices that breed discrimination and gender gap in the rural societies.,The structured questionnaire was directly administered by the researchers with the help of local research assistants. The use of local research assistants was because of the inability of the researchers to speak the different local languages and dialects of the many ethnic groups of Ijaws, Ogonis, Ikweres, Etches, Ekpeyes, Ogbas, Engennes, Obolos, Isokos, Nembes, Okirikas, Kalabaris, Urhobos, Iteskiris, Igbos, Ika-Igbos, Ndonis, Orons, Ibenos, Yorubas, Ibibios, Anangs, Efiks, Bekwarras, Binis, Eshans, Etsakos, Owans, Itigidis, Epies, Akokoedos, Yakkurs, etc., in the sampled rural communities.,If the rural women do not feel GMoUs efforts to eliminate discrimination and promote equality in the livestock sector, feminized poverty would create a hostile environment for MOCs in the region.,The livestock development in Nigeria can only succeed if CSR is able to draw on all the resources and talents and if rural women are able to participate fully in the GMoUs intervention plans and programs.,This research contributes to gender debate in livestock keeping from CSR perspectives in developing countries and rational for demands for social projects by host communities. It concludes that business has an obligation to help in solving problems of public concern, and that CSR priorities in Africa should be aimed toward addressing the peculiarity of the socio-economic development challenges of the country and be informed by socio-cultural influences.

CSR perceptions and employee creativity: examining serial mediation effects of meaningfulness and work engagement

Abstract: This study aims to explore how corporate social responsibility (CSR) perceptions foster employee creativity. Specifically, an attempt is made to investigate the intervening role of meaningfulness and work engagement to explain the above linkage.,The study sample consisted of 316 employees from different information technology firms in India. Ordinary least square regression procedures were used to test the study hypotheses with the help of SPSS Process macro.,Employees’ perceptions of CSR were found to show both direct and indirect effect on their creativity. Work engagement was found to partially mediate the relationship of perceived CSR and creativity. In addition, results supported the serial mediation model where CSR was found to exercise its influence on creativity via meaningfulness and work engagement in a sequential manner.,The findings suggest that being a good corporate citizen can pay employers in terms of enhanced employee engagement and creativity, which can provide competitive advantage to the organizations in this highly competitive business environment.,This study contributes to the understanding of micro-foundations of CSR by showing whether and how employees’ perceptions of CSR relate to various workplace outcomes. Further, by investigating the complex serial mediation process, it contributes to the extant literature by advancing the understanding of the underlying mechanisms through which CSR influences employee creativity.

Developing a framework for assessing sustainable banking performance of the Indian banking sector

Abstract: Sustainable development has now been recognised as the pivot around which development activities should revolve. Banking is an important component in the same and adoption of sustainable banking practices by various banking institutions is a strong driver to achieve sustainable development. The purpose of this paper is to study the level of adoption of sustainable banking tools and the extent to which banking institutions practice the same in India. In addition, the banking institutions have been ranked and categorised on basis of their sustainable banking performance.,The proposed framework focuses on the environmental and social conduct of the banks, who address the issues of sustainability in Indian banking sector. As there is a difference in the economic standards of developed and developing countries, the review of literature helps to figure out the gap in specific frameworks for assessing sustainable banking practices in developing countries. Previous researchers have made an attempt to develop a general framework for assessing the sustainable banking efforts of the banking sector. These studies fall short of indicators on the social dimension of sustainability specifically in the context of less developed countries like India, the social dimensions are is equally a major thrust area along with environmental indicators. Content analysis technique has been used to evaluate sustainable banking performance of the banks and Mann–Whitney U test used to determine the differences in sustainable banking performance of the banks in India.,In Indian banking sector, the adoption of the international sustainability code of conduct is still in its nascent stage. The research indicates that sustainability issues which are of the highest priority for the banks are directly related to their business operations such as financial inclusion, financial literacy and energy efficiency, and banks are more focussed on addressing social dimension of sustainability in banking rather than important dimensions of sustainable banking, namely, environmental management, development of green products and services and sustainability reporting.,The application of the proposed framework reflects the status quo of sustainable banking in India. This study is useful for the banks and all the stakeholders in understanding more about the shortcomings in integrating sustainability issues in banking. Further, the present study also redresses the extant research dearth in the field of sustainable banking in the Indian context.,This is one of the first studies evaluating the sustainable banking performance of the Indian banking sector.

CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies

Abstract: The purpose of this paper is to comprehensively analyze the corporate social responsibility (CSR) and sustainability reporting (SR) practices of Indian companies in terms of disclosure quantity and quality, and to investigate the differences in SR practices by SR dimension, industry, ownership structure, firm size and profitability.,Data are collected from annual reports/business responsibility reports (BRR)/CSR/sustainability reports of 60 top-listed companies in India. A comprehensive sustainability reporting index is developed. Content analysis technique is used. Inter-coder reliability is established.,Altogether, 18 items of the index are not disclosed by the majority of companies in India. SR quality is found significantly lower than the SR quantity. Moreover, SR practices significantly differ by dimension/category, industry-type and firm-size but are not influenced by ownership structure. However, the study fails to establish any conclusive relationship between SR and profitability.,The present study has several implications for corporates, practitioners, policymakers and stakeholders. The findings underscore the need for amendments in the Global Reporting Initiative guidelines and BRR framework of the Securities and Exchange Board of India to avoid patchy disclosures and ensure complete reporting by companies.,This study is among the foremost studies in India evaluating SR practices of top-listed companies in the wake of the mandatory BRR requirement from a quantitative as well as qualitative perspective using a multidimensional index.

Corporate social responsibility disclosure in small and medium-sized entities and large companies

Abstract: Corporate Social Responsibility (CSR) literature has focused mainly on larger firms. Only recently has discussion of the engagement of small and medium-sized enterprises (SMEs) in CSR emerged in research studies. Here we contribute to that growing discussion of CSR in SMEs by analyzing the disclosure practices of 57 Portuguese companies of different sizes (small, medium, large).,We use stakeholder theory to identify the stakeholders that SMEs and large firms prioritize. By means of thematic content analysis and an index of disclosure (calculated according to company type and stakeholder type) we analyze whether business characteristics influence CSR disclose strategies.,Companies give priority to CSR activities that are directly related to maintaining business and achieving economic results. CSR disclosure practices of SMEs and large companies do not differ significantly. However, larger companies disclose more information on Environment and Society. Companies who are closer to consumers disclose more information on Customers, Community and Society. The act of assuring a CSR report drives system improvements and extended CSR disclosure.,We recognize that it is difficult to compare CSR in Small and large enterprises. For this reason, we have developed a methodology based on the most basic aspects of the CSRD, and therefore applicable without distinction to large and small companies.,A framework to evaluate the CSRD of SMEs was developed. We identify CSR indicators divided in five dimensions (customers, employees, environment, community and society) that are applicable to firms of all sizes.,This study extends knowledge of CSR by comparing the disclosure practices of SMEs and large (listed and un-listed) Portuguese companies. This study takes account of the particularities of SMEs and other fundamental business characteristics using a replicable assessment framework.

Relationship between corporate social responsibility and tax avoidance: international evidence

Abstract: This paper aims to examine the relationship between corporate social responsibility (CSR) and tax avoidance as well as how CSR and country-level governance interplay in affecting tax avoidance in an international setting.,This paper is an empirical work using listed companies from 35 countries and relying on several proxies for corporate tax avoidance activities including the difference between the statutory tax rate and the annual effective tax rate, the book-tax difference and the residual book-tax difference.,This study finds strong evidence that CSR is positively related to tax avoidance. It also finds that in countries with weak country-level governance, firms with higher CSR scores engage in less tax avoidance, implying that CSR and country-level governance are substitutes.,This paper is the first study that examines the relationship between CSR and tax avoidance in an international setting with different legal and institutional environment.

Do CEO incentives and characteristics influence corporate social responsibility (CSR) and vice versa? A literature review

Abstract: This paper aims to analyze whether chief executive officer (CEO) incentives and characteristics (e.g. CEO power, CEO tenure) are linked with corporate social responsibility (CSR) and vice versa.,Based on upper echelons theory, the author conducts a structured literature review and evaluates 84 empirical-quantitative studies on CEO and CSR variables.,While the majority of the included studies analyzed the CEO-CSR link, there are indicators for a bidirectional relationship. Moreover, prior research has focused on CEO incentives, especially compensation contracts, and on the US capital market. A major research gap relates to CEO characteristics, e.g. CEO values, education and experience.,Heterogeneous CEO and CSR variables and endogeneity concerns lower the validity of recent studies. Future research is encouraged to implement dynamic regression models, increase CSR and CEO proxies and focus on international samples with country-specific effects.,As CEO activities can have a major impact on CSR activities, the author recommends firms to search for opportunities to make their CSR strategy more comprehensive by their stakeholder communication, thus providing deeper insights into their CSR performance in line with stakeholders’ interests.,The paper is the first literature review on the interaction between CEO and CSR so far. The author explains the main CEO and CSR variables that have been included in research, stresses the limitations of the studies and gives useful recommendations for future research, practice and regulators.

Impact of CSR on cost of debt and cost of capital: Australian evidence

Abstract: Purpose This paper aims to investigate the association between the corporate social responsibility (CSR) and the cost of equity (COE) and cost of debt (COD). Design/methodology/approach The authors use the multivariate regression analysis approach to address the developed hypotheses. Findings Using a sample of 230 Australian listed firms from 2004 to 2016, the authors document that firms complying with higher CSR affect both COE and COD negatively, which means that CSR disclosure reduces financing cost. Practical implication These results support the risk mitigation perspective of CSR compliance, showing that both the investors and creditors may lower their expected returns because they find that CSR can mitigate potential business risk. Originality/value The authors extend the CSR research with both COE and COD.

Comprehensive sustainability reporting in higher education institutions

Abstract: The purpose of this study is to evaluate the comprehensiveness of sustainability reporting in higher education institutions.,This study adopts a university sustainability rating framework and uses it to evaluate the comprehensiveness of sustainability reporting in higher education institutions.,The results of the study demonstrate that notwithstanding growing concerns over sustainability issues; higher education institutions have been slow to adopt sustainability reporting practices including publishing consistent and periodic reports, receiving third-party assurance and integrating sustainability reporting into university’s sustainability management systems.,The results of the study suggest that the quality of sustainability reporting varies quite significantly, and important dimensions such as education and outreach programs are ill-treated in universities’ sustainability reports. The quality presents a tremendous challenge for sustainability reporting as more organizations are joining the sustainability reporting process, the quality would become a differentiator and competitive advantage, the study concludes. Two main limitations were identified. First, the number of reports examined were limited and are not representative of all higher education institutions. Second, data from other sources, like websites, were not factored in the analysis, as the study focuses on evaluating the comprehensiveness of sustainability reporting in higher education institutions.,The results provide useful insights into comprehensiveness (one aspect of quality of sustainability reporting) in higher education institutions and help to better navigate the future trends in sustainability reporting practices of universities.,Sustainability reporting is well established in the corporate environment; however, the extent to which it has been adopted and its quality in universities remains relatively unexamined. The study attempts to fill the research gap in the quality of sustainability reporting (comprehensiveness) in higher education institutions to better navigate the future trends in sustainability reporting practices of universities.

Corporate social responsibility behaviors and corporate reputation

Abstract: This paper aims to study how corporate social responsibility (CSR) behaviors can lead to corporate membership on Fortune Magazine’s Most Admired Companies list.,Regression analysis using environmental, social and governance (ESG) statistics published by MSCI-KLD as independent variables to predict the behaviors that lead to most admired status.,Not surprisingly, corporate financial performance (CFP) is the largest contributor to membership on the list. However, after controlling for CFP, the analysis finds that specific social responsibility behaviors contribute to membership on the Fortune list.,This paper finds that CSR behaviors are important to a firm’s reputation as measured by Fortune’s Most Admired Companies list. Therefore, companies should continue with social responsibility activities to improve their reputation with investors.,Many articles test the effect of ESG on financial performance and the role of financial performance on stock price. This paper is unique in that it measures the impact of CSR on corporate reputation using an important financial market benchmark – the Fortune Most Admired Companies list.

Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016)

Abstract: The purpose of this study is to examine the relationship of corporate governance and corporate profitability on corporate value with corporate social responsibility (CSR) disclosure as the intervening variable.,The population of this study was all companies listed in Indonesia, China and India Stock Exchange in 2013-2016. The inferential statistics used in this study applied the partial least square-based (PLS-based) structural equation model (SEM) method with PLS. The PLS method was selected based on the consideration that there was a construct formed with reflective indicators in this study.,In Indonesia, corporate governance and corporate profitability have a significant and positive effect on CSR disclosure. Similarly, CSR disclosure and corporate profitability have a significant and positive impact on corporate value. Corporate governance indirectly influences corporate value, through mediation CSR disclosure. In China, corporate governance and corporate profitability have a significant and positive effect on CSR disclosure. Similarly, CSR disclosure and corporate governance have a significant and positive impact on corporate value. Corporate profitability indirectly affects corporate value, through mediation CSR disclosure. In India, corporate governance and corporate profitability have a significant and positive effect on CSR disclosure. The same thing is seen that CSR disclosure has a significant and positive effect on corporate value. Corporate governance and corporate profitability influence indirectly corporate value, through mediation CSR disclosure.,The study is one of the few studies to investigate and compare the relationship between corporate governance, corporate profitability, CSR and corporate value. The originality of this study is on the reason that many studies that have been conducted still indicated the inconsistency in the results and diversity of the indicators, so that a similar study was conducted by involving the indicators used for measuring the corporate governance variable, which were the proportion of independent commissioners and audit committee. Meanwhile, for the corporate profitability variable, ROA and ROE were used as the indicators. The originality of this study is that it is a comparative study in three countries in Asia, namely, China, India and Indonesia. The three countries have the highest population and highest economic growth in the past five years.

The contemporary definition of university social responsibility with quantifiable sustainability

Abstract: The university social responsibility (USR) is still in embryonic stage compared to corporate social responsibility (CSR) which is still debatable by researchers. The purpose of this paper is to propose the contemporary dimension (on top of teaching and research dimensions) of USR in most educational institutes. Based on this new definition, a proposal of a mechanism to quantify USR sustainability was presented.,Based on a review of the theme of the CSR with the inter-related recent research on USR with researchers perspectives, characteristics of USR were identified and incorporated in the proposed newly definition of USR. The new definition takes into account the interrelationship of university–corporate communication and create shared value (CSV) principle, as well as the knowledgeability and sustainability.,Based on the review of most active research in the USR development and the concluded contemporary definition of USR, this paper proposes a new extended version of sustainability suitable for educational institutes, where it is composed of different zones, and each zone was defined in terms of value of sustainability with associated knowledgeability in each zone. The Green Cloud project was taken as a vehicle to demonstrate collaboration between a university and cloud service provider located in Middle East (Dubai). Sustainability quantification was provided with hypothetical numbers to illustrate the technique.,This paper is focused on University-specific social responsibility rather than general CSR. The proposed contemporary definition of the USR is a hybrid of a mutated latest research on CSR as well as cascaded recent development on USR. The view of this new definition can have different arguments depending on the ideology (communitarianism as opposed to individualism) adopted by specific university admiration of the objective of social responsibility which is sometimes driven by the political and strategic views of countries and the regions. However, the proposed sustainability zone-split between the CSV type of projects and the reputation values (described via hypothetical example) can minimize the gap between the two ideologies.,This paper attempts to provide a universally acceptable definition of the USR based on different points of views of researchers and tries to accommodate both ideologies toward social responsibility into one coherent framework. The sustainability Venn diagram was extended and made suitable for educational institutes. This approach facilitates the mechanism of quantifying the value of sustainability of a university or educational institutes. Hypothetical “Green Cloud” project was used as a mechanism to show the quantification process.

Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

Abstract: This paper aims to investigate the relationship between corporate governance (CG) and corporate social responsibility (CSR) disclosure in a sample of 64 companies listed on the Tehran Stock Exchange.,This study opts for a descriptive-correlational method. To measure the extent of CSR disclosure and CG variables, companies’ annual reports and websites during 2014-2015 are content analyzed by applying a 64-item checklist. Boards’ size, age, tenure and independence, CEO duality, audit committee (AC) composition and ownership concentration are considered as CG variables. To ascertain the CG–CSR disclosure relationship, multivariate linear regression analysis is incorporated.,Based on the results, audit committee composition, board tenure and ownership concentration positively influence CSR disclosure level with ownership concentration as the most influential variable, that is, in companies with majority shareholders ownership, managers tend to disclose more CSR information.,Only annual reports and company websites are analyzed. Researchers are encouraged to apply other methods such as interview and to consider other variables, such as board diversity, proportion of female members and the extent of shareholders activities, to measure CG.,This paper provides implications at the policy level to identify governance mechanisms to increase CSR awareness of heavy-pollution industries in developing countries.,Studies rarely examined CSR reporting in Iran, particularly among heavy-pollution companies. Besides, the paper highlights the role of majority shareholders and non-executive AC members in CSR disclosure.

Does corporate governance spillover firm performance? A study of valuation of MENA companies

Abstract: Purpose The aim of the paper is to examine the association of corporate governance (CG), the firms’ characteristics and the financial performance of firms operating in the Middle East and North Africa (MENA) region after Arab Spring. The study focuses on CG, exemplified by boards’ composition and ownership structure. It also explores the possible moderating effects of environmental social and governance characteristics (ESG), leverage and size on the relationship between CG and the company’s performance. Design/methodology/approach Using Thomson-Reuters database, a sample of 67 firms was extracted in the MENA region to measure CG and financial performance post Arab Spring from 2012 to 2016. Panel GLS regression random effects is used to quantify the relationship; robustness is checked by using several alternative regressions and specifications to the performance measure. Findings The results reveal that board independence (BI) is negatively correlated with firm profitability but ownership concentration and board gender diversification contribute to profits. When firms that voluntarily form a governance committee are examined, ownership is less concentrated. We obtain a stronger impact of good governance on performance in these firms: board composition, in general, and workers’ satisfaction generate more profits; and undertaking ESG activities become a more dispensable activity. The effect of board size (BS) and forming a governance committee are studied and ensuing recommendations are drawn. In addition, relevant internal control of firms’ characteristics that strongly predict firms’ market values are discussed in the context of agency and stewardship theories. Originality/value Despite the fact that governance-performance nexus has been extensively discussed and examined, the focus of this volume of research is on western developed countries. The growing economies of the MENA countries, and the limited governance-performance literature in the MENA context have created a demand to understand the governance environment in these countries and its influence on firm’s performance. In this region where firms’ owners are mainly family members, governments and/or institutions, governance is typically weak; moreover, ownership concentration is expected to guarantee good performance, as the role of independent directors becomes ineffective. For firms where ownership is more diluted, a sound governance system should be established to replace ownership concentration, and to more efficiently monitor management, and consequently improve firm performance. Therefore, this study not only contributes a summary of the prevailing corporate structure in MENA. Moreover, it explains the settings where both the stewardship and agency theories apply in MENA firms. Some recommendation on the importance of changes to the existing governance rules are highlighted in terms of more rules requiring board independence, board gender diversity, limits on board size and establishing governance committees.

Demographics of sustainable technology consumption in an emerging market: the significance of education to energy efficient appliance adoption

Abstract: This paper aims to address gaps in the sustainable technology literature by evaluating the demographics of energy efficient appliance consumption in Vietnam. Sustainable technologies can reduce greenhouse gas emissions and address environmental problems such as air quality and climate change. Opportunity is the greatest in emerging markets, where population growth has triggered dramatic rises in electricity consumption. However, their adoption of energy efficient appliances has been slow and understanding why is limited.,Following a literature review, a questionnaire was designed to capture sustainable consumption attitudes and behaviours. In total, 682 interviews were conducted among Vietnamese electrical appliance consumers to investigate the influence of demographics on sustainable technology consumption.,While many respondents were aware of the sustainable benefits of energy efficient appliances, this did not generally translate into responsible purchase behaviour. Of the demographic variables, education had the strongest relationship with sustainability. Those with higher incomes and more children were also more likely to exhibit sustainable consumption attitudes and behaviours. Gender and age were weaker sustainability predictors.,This study is relevant to a wide range of sustainable technology contexts. The literature shows contrary findings regarding relationships between demographics and sustainable consumption, and the value of demographics to sustainable consumer segmentation and targeted behaviour change campaigns has been contested by some researchers. This research highlights education as the most significant demographic predictor of sustainable consumption and reveals the consistency of this finding with many other studies. The implications of this for promoting future sustainability are discussed.

Regional differences in impact investment: a theory of impact investing ecosystems

Abstract: Impact investing, a type of values-based investing that combines financial investment with philanthropic goals, is receiving heightened scholarly and practitioner attention. The geography of impact investing, however, is largely unexamined, and it is not clear why some regional impact-investing communities are more vibrant than other communities. Regional differences in entrepreneurial activities are increasingly explained by differences in the vitality of entrepreneurial ecosystems, the set of interconnected forces that promote and sustain regional entrepreneurship. The purpose of this paper is to leverage insights from entrepreneurial ecosystems studies to understand the dynamics of communities that encourage and support impact investing.,To explain inter-regional differences in the prevalence and intensity of impact investing, this conceptual paper draws from research on entrepreneurial ecosystems and impact investment to theorize about the ecosystem attributes and components that drive vibrant impact investing communities.,It is theorized that vibrant impact investing ecosystems have three system-level attributes – diversity, cohesion and coordination – that are influenced by the core components of the ecosystems, including the characteristics of investors, the presence of social impact support organizations and cultural values that promote blending logics.,The theoretical model contributes to research on impact investing and hybrid organizing, produces concrete implications for ecosystem builders and sets an agenda for future research.

Validity and reliability of the questionnaire that evaluates factors associated with perceived environmental behavior and perceived ecological purchasing behavior in Peruvian consumers

Abstract: The purpose of this study is to determine the metric properties of a questionnaire that evaluates environmental and ecological purchasing behavior, environmental personal norms, environmental identity and environmental social influence.,The validity and reliability of the scales of the questionnaires were determined in a sample of 2445 consumers from Lima (Peru), selected through non-probabilistic sampling by quotas and by factorial analysis based on Classical Theory of Tests (CTT) and Structural Equations of Variance with Partial Least Squares (SEM-PLS).,The results support the construct and discriminant validity of the instrument, as well as the internal consistency of all the subscales (Cronbach’s alpha between 0.662 and 0.8887 – composite reliability between 0.815 and 0.917).,Customers evaluated were only from Lima city. It would be important to evaluate, in future research, customers from other cities in Peru.,Although a large number of instruments have been designed, not all are based on integral theoretical models, and their metric properties were determined with methodological criteria that restrict their applicability. Therefore, there is a need to have valid and reliable instruments for the identification of environmental behavior and ecological purchasing.,This “new questionnaire” integrates the exploration of environmental behavior and ecological purchasing, along with the measurement of personal environmental norms, environmental identity and the social influence received from peers and teachers, to provide a comprehensive picture of the consumer behavior.,This research constitutes a theoretical and practical contribution to the understanding and evaluation of ecological behavior and some of its associated factors. Its main contribution is the adaptation of this instrument to the Peruvian context and the validation of an instrument that evaluates environmental and ecological purchasing behavior, personal environmental standards, environmental identity and environmental social influence.

Does corporate social responsibility lead to improved firm performance? The hidden role of financial slack

Abstract: The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), as the findings on the relationship have been inconsistent and have led to calls to further examine this relationship. However, instead of investigating the connection between CSR and CFP, academics have stated that a contingency viewpoint must be used for uncovering the context and conditions which catalyse the relationship between both constructs.,This study acquired the CSR data from 100 companies listed in Fortune’s most admired US companies between 2007 and 2016. These data were used to investigate the CSR–CFP link with the help of the dynamic panel data system, which is the generalised method of moments (GMM) estimator.,The results indicate that CSR and CFP have a neutral relationship which characterises the effect between CFP and CSR. However, this study found that financial slack positively affected the CSR–CFP relationship, implying that companies will only benefit from CSR activities if they have excess financial resources.,This study offers a very distinctive perspective regarding the CSR–CFP link according to the financial slack perspective.

Corporate social responsibility, customer loyalty and brand positioning

Abstract: Purpose In the current era, businesses and customers are becoming increasingly concerned with social and environmental issues, and unlike the past, the main focus is not merely on economic growth. As new customers are getting more informed and responsible toward their surroundings, it is necessary for enterprises to act responsibly to attract responsible customers. Therefore, this paper aims to investigate the impact of corporate social responsibility (CSR) on brand positioning and customer loyalty in travel agencies in Tehran, Iran. Design/methodology/approach Through quota sampling, 86 agencies are selected and a number of 200 customers of those travel agencies are surveyed by means of purposive sampling. Findings The result reveals that CSR has a significant effect on loyalty of customers and brand positioning. In addition, the results indicate that all hypotheses have significant effects except for the C-C identification on customer loyalty. Practical implications Tourism managers should bear in mind that performing CSR activities is not merely a cost burden but a viable strategy for creating competitive advantage. They should adapt their CSR activities to the industry environment. Originality/value The study provides important evidence about CSR and their role in brand positioning and customer loyalty in tourism industry. In addition, the study contributes to the literature by developing the link between CSR and brand positioning.

The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa

Abstract: This study aims to explore factors influencing voluntary adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework. Given South Africa’s political history, the authors argue that accounting practice can be used to secure the legitimacy and transparency of businesses.,Two logistic regression equations are used to predict the likelihood of firms’ subscribing to either Global Reporting Initiative (GRI) or the Integrated Reporting ( ) framework, respectively. The authors consider annual, sustainability and integrated reports issued for the financial year ended 2014.,The results show a statistically and significant positive association between the adoption of the GRI’s guidelines and the level of transparency of non-financial disclosures and environmental sensitiveness. The application of the framework is also associated with the level of a firm’s transparency score and with its respective analyst following, which acts as a measure for capital markets requiring a high information environment.,This paper illustrates the development of integrated and sustainability reporting (SR) practices within an emerging market. By drawing distinctions between locally developed South African codes of corporate governance, namely, King I-III and international guidelines proxied by the GRI’s guidelines for SR, and the framework, the authors show that South African firms still adopt international guidelines despite the mandatory framework in place.

Revisiting the relationship between corporate governance and corporate social and environmental disclosure practices in Pakistan

Abstract: This study aims to revisit the corporate social and environmental disclosure (CSED) practices of Pakistani companies using unique CSED index which measures the CSED through three dimensions such as theme, news type and nature of information. In addition, the effect of board composition, ownership structure and corporate characteristics on CSED was tested through performing multiple regression analysis.,For this purpose, data were collected from annual reports of top 120 companies’ selected based on market capitalization for three years period of 2013-2015.,Based on the descriptive statistics, the results found that overall level of CSED in Pakistan is moderate. However considering CSED using three dimensions, the results demonstrate that highest level of disclosure on the basis of theme is reported in terms of human resource category as compared to other categories where, as in terms of news type and nature of information, analysis shows that companies in Pakistan feel resistant to disclose bad news, monetary and non-monetary aspect of CSED information. Using multiple regression analysis, the results found that all the variables have hypothesized relationship with CSED except government and institutional ownership. The variables such as chairman as non-executive director, board diversity, appointment of independent director as audit committee chairman, CSR committee, industry type and firm size are found to have significant influence on the CSED practices in Pakistan.,These results imply that the CSED phenomenon is still lacking behind. Under individual categories of CSED, descriptive statistics found that environment is still not a matter of concern for companies operating in Pakistan. In addition, the results demonstrate that CSED practices are only performed by very few companies in Pakistan based on standard deviation. In addition, appointment of non-executive and independent director as chairman of board and audit committee and representation of foreigners on the board should be encouraged in order to improve CSED practices in Pakistan.,This study contributes to the existing literature in developing country like Pakistan through using unique CSED index and also making comparison of financial versus non-financial sectors. The author suggests that regulatory authorities in Pakistan must take reasonable steps to make the company’s operations environment-friendly.

Impact of corporate social responsibility on bank’s corporate image

Abstract: The purpose of this study is to investigate the impact of the corporate social responsibility (CSR) on the corporate image in the banking sector. The focus of the study is on four main components of CSR, which are economic, legal, ethical and philanthropic.,A model was used in this study to show the impact of different CSR’s factors on corporate image; (240) banks customers were approached using a questionnaire, where (155) responses were received and (144) valid responses entered for analysis.,The findings revealed that customers perceive CSR activities as a main element when dealing with banks. The corporate image is strengthened when banks adopt such activities, and positive and significant relationships were statistically found between CSR activities and corporate image. These activities differ in importance as perceived by banks’ customers.,Enlarging sample size, involving more stakeholders such as employees and managers, and replicating the study in other countries would enrich the findings.,Banks are advised to consider the study factors in their activities and act as champions of CSR for the welfare of the society to strengthen their corporate image.,Many studies have discussed the issue of CSR, but very few are found in the Middle East, particularly in Bahrain, and in the banking sector. This paper calls for more investigation in this area for a better understanding of CSR activities and their effects on the corporate image.

Corporate social responsibility in Vietnam: opportunities and innovation experienced by multinational corporation subsidiaries

Abstract: This study aims to examine corporate social responsibility (CSR) with the opportunity- and innovation-based view of multinational subsidiaries (MNSs) in Vietnam. While CSR has traditionally been investigated in the developed market, this paper demonstrates how MNSs can take advantage of their CSR practises and create business opportunities and innovation activities for themselves and local society in Vietnam.,This is an exploratory qualitative research-based on four MNSs that have practised CSR in Vietnam. Data were collected from 18 individual interviews with managers and business leaders in four case firms.,This study finds that CSR activities in the studied firms potentially drive new business opportunities and innovation in the form of product, process, idea and management practises. In addition, both opportunities and innovation also benefit MNSs and the local community in Vietnam.,The paper makes clear that CSR literature varies depending on the different countries or areas where the studies take place and these studies tend to focus on a specific area that was appropriate within a particular socio-economic and political context. Given that the business context in Vietnam is characterised by opportunities and incentives for innovation from the socio-economic of the context of a South East Asian developing market, the research provides an important first step in the integration and consolidation of CSR practises, opportunities and innovation. In light of the findings presented above, the study provides an important contribution to the CSR literature, particularly the CSR practises of multinational corporations (MNCs) in developing countries.,The study suggests that CSR practitioners in Asian emerging countries should ground themselves in an understanding of the local society and try to gain an understanding of the priorities of local stakeholders. MNCs should develop an appreciation of the context in which CSR is initiated, as addressing such issues often inspires firms to bring in social innovations in the form of products, services and processes and discover or create opportunities based on the emergent social problems through business solutions that overall benefit their business and local stakeholders.,This is one of the first studies to explore the interaction between MNSs undertaking CSR and business opportunities and innovation in the context of a developing country – Vietnam.

Can ethical leaders drive employees’ CSR engagement?

Abstract: The association between ethical leadership and employees’ ethical behaviors is well-established. But can ethical leadership go beyond this and drive employees’ corporate social responsibility (CSR) engagement? The purpose of this study is to examine the association between ethical leadership and employees’ perception of their engagement in CSR activities while exploring the mediating role of person–organization fit.,Using a quantitative research design, data were collected via self-administered questionnaires from 142 employees of multi-national companies in Malaysia. This study used partial-least squares structural equation modeling to test and validate the research model and hypotheses posited.,The results reveal that ethical leadership has a positive impact on employees’ CSR engagement, mediated through person–organization fit. Moreover, analyses were carried out to assess the predictive performance of the proposed model. Our results confirmed the predictive capability of the proposed model.,This study has provided a better understanding of employees’ CSR engagement, which is a crucial factor for effectiveness of CSR implementation in any organization. Finding evidence on the positive role of ethical leadership in driving employees’ CSR engagement extends both the leadership and CSR literature and offers new avenues for future research studies.,This study has shown that ethical leadership can stimulate employees’ CSR engagement through creating a better person–organization fit. This understanding can help managers in finding ways for more effective involvement of employees in a company’s CSR activities and creating a better working environment.,Organizations can find better ways to involve employees in CSR activities through having ethical leaders who lead by example and champion social causes. Although ethical leadership will benefit society, it will also help employees experience a better fit between their values and those of the organization.,Despite extensive research on CSR, its drivers and outcomes, there is still limited knowledge on the role of leaders in driving employees’ CSR engagement. Findings from an emerging economy (i.e. Malaysia) will offer fresh insights into the growing CSR and leadership literature.

Relationship between corporate social responsibility performance and disclosures: commercial banks of Bangladesh

Abstract: The research investigates the determinants of corporate social responsibility (CSR) spending and CSR disclosures by the Bangladeshi commercial banks. In the process, it explains the relationship between CSR disclosures and CSR expenditure by Bangladeshi commercial banks.,Legitimacy theory has been used to explain the motivation for such expenditure and disclosure. For purpose of analysing the determinants, ordinary least square (OLS) regression analysis has been used for the first test with CSR expenditures and ordered PROBIT regression analysis has been used for test with CSR disclosures.,The result found that CSR expenditure depend on banks’ size, age and government ownership, whilst CSR disclosures depend on CSR expenditure, profitability, age, government ownership and Islamic compliance.,The practical contribution of this study includes the assistance for the public policy development by providing better understanding of extent and credibility of CSR reporting by the Bangladeshi banking sector.,The study contributes to the academic literature by presenting preliminary findings from different focus on a developing economy like Bangladesh. The study leads to draw a standard for the developing country to find out the differences compared to developed country.

Purpose-washing of impact investing funds: motivations, occurrence and prevention

Abstract: As an emerging field of financing, impact investing is under-institutionalised and is in a legitimacy building phase. In an attempt to unpack how impact investing is deployed in global markets, the key elements of its definition (intentionality, returns and measurement) are examined through a review of academic and practitioner literature. A refined definition is developed which emphasises the key elements of intentionality and measurement as separating impact investment from the established field of socially responsible investment (SRI).,Funds and products from a publicly available database are systematically analysed against the refined definition to determine the rigour with which intentionality and measurement are applied by self-identified market participants. These elements are used as a proxy to determine “purpose-washing” – a process where funds are presented as impact investments but do not satisfy a tightly applied definition. Purpose-washing enables the possibility of “retrofitting”, where funds originally defined as other products (e.g. SRI) retrospectively claim to be impact investments.,Having found evidence of purpose-washing but not retrofitting, actions are identified to enhance impact investment’s integrity, focussing on intentionality, measurement and transparency. Clarity of definition and purpose are important for a field in the market-building phase, as a lack of clarity could have negative implications for integrity and growth. The authors postulate that purpose-washing may be attributed to twin but distinctive motivations by market participants: interest in fee-generation among fund managers and attempts to bolster field legitimacy by demonstrating sector growth among impact investing proponents.,This paper represents a unique analysis of impact investments against a robust and refined definition. By doing so, it offers a systematic appraisal of impact investments and an overall assessment of market integrity in its field-building phase.

Role of Integrity System, Internal Control System, and Leadership Practices on the Accountability Practices in the Public Sectors of Malaysia

Abstract: This study aims to assess the status of current practices of accountability and its relationship with the practices of integrity system, internal control system and leadership qualities in the public sector of Malaysia.,This study collected primary data from 109 departments and agencies under 24 federal ministries in Malaysia. The data were analysed under descriptive statistics, ordinal regression and structural equation modelling (SEM). Several diagnostic tests were conducted to check the validity and reliability of data and models, such as Cronbach alpha test, Kaiser–Meyer–Olkin test, Shapiro–Wilk test, internal consistency reliability, indicator reliability, convergent validity and discriminant validity.,The regression and SEM results show that the practices of integrity system and leadership quality had statistically significant positive relationship, but the practice of internal control system showed mixed relationship with the practices of accountability.,The findings of the study will help the policymakers to ensure better accountability in the public sector in Malaysia and other countries.,This is an original study based on primary data to examine the current practices of accountability and its relationship with the practices of integrity system, internal control system and leadership qualities in the public sector of Malaysia.