scholarly journals The Impact of Corporate Social Responsibility Information Richness on Trust

2014 ◽  
Vol 8 (2) ◽  
pp. 67 ◽  
Author(s):  
Rafeah Mat Saat ◽  
Mohamad Hisyam Selamat

Corporate Social Responsibility (CSR) is a concept that describes the relationship between company  and society. The way a company portrays corporate ethics and social initiatives can evoke strong positive reactions among consumers. The emergence of Internet creates a new communicating culture and gives an idea for a company to deliver their CSR message. Applying Media Richness Theory (MRT) in CSR message is believed could facilitate trust among consumer. Thus, this study aims to examine the impact of different level of CSR information richness with consumers trust towards the company. This study divides trust into three components that are competence, benevolence and integrity. An experimental design consisting of different levels of CSR information is selected (rich CSR information, lean CSR information and no CSR information as a control condition). The finding shows that rich CSR information has impacted on competence and integrity but not on benevolence. Result from this study is believed can assist companies in setting up their CSR communicating strategy in engaging consumers’ trust.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liem Thanh Nguyen ◽  
Khuong Vinh Nguyen

PurposeThis research investigates the link between corporate social responsibility (CSR) activities and bank risk-taking in Vietnam and introduces the constraint factor to see whether this link alters with different levels of constraint.Design/methodology/approachUsing a sample of commercial banks in Vietnam from 2008 to 2017, this study employs two-step system generalized method of moments (Sys GMM) with a finite sample correction mechanism to estimate the models.FindingsThe results suggest that CSR activities reduce bank risk-taking, and this relationship is only present in the case of financially constrained banks. Unconstrained banks, on the other hand, are more likely to invest in unnecessary CSR, thus reducing bank performance and increasing bank risk-taking.Research limitations/implicationsThe first implication from this study is that CSR activities might be considered as a risk-mitigating tool and should be invested in that respect. Secondly, regulatory units and investors should be more cautious about CSR expenditures since this type of spending could increase default risk, especially for banks with easy access to external financing. One particular limitation of this study is the low number of observations available for banks in Vietnam. Future studies could use texture analysis to expand the sample or consider macro-level governance characteristics to examine which factors might modify the relationship between CSR and bank risk.Originality/valueVery limited studies discussed the link between corporate social responsibility and bank performance and bank risk. There are even fewer papers examining the relationship between CSR and risk, and most of these papers deal with advanced economies. Furthermore, no studies investigate the interaction effect of CSR and financial constraint, which should be prevalent in developing countries on bank risk. As a consequence, the current study seeks to verify the impact of financial constraints on the link between CSR and bank risk.


2019 ◽  
Vol 2 (1) ◽  
pp. 51
Author(s):  
Theofilus Salea ◽  
Irfan Ido

ABSTRACTTPT. ANTAM Tbk is a company engaged in the exploration of mining materials such as nickel, gold and silver, and bauxite. Tambea village is one of the areas in Pomalaa Subdistrict, Kolaka Regency, which is close to PT. ANTAM Tbk. The purpose of this study can evaluate the CSR program of PT. ANTAM Tbk in Tambea Village, Pomalaa District, Kolaka Regency. The method of determining the sample uses the System of Rising Intensification method with a population of 24 heads of households as respondents. The analytical method used to determine the relationship between the level of performance and level of expectation is the method of IPA analysis (Importance-Performance Analysis). The results of this study indicate that the company PT. ANTAM Tbk still has to improve its performance on the elements of program distribution and supporting elements of the program. Keywords: Evaluation, CSR Program and company PT. ANTAM Tbk.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anura De Zoysa ◽  
Nobyuki Takaoka ◽  
Yuqian Zhang

PurposeThis paper aims to examine the impact of three key factors — corporate social responsibility (CSR) awareness, CSR affordability and CSR management system (CSRMS) sophistication—on the CSR performance of Japanese firms.Design/methodology/approachUsing responses to 36 items developed on the Global CSR standard of ISO26000, two CSR indexes were constructed to assess the CSR management system sophistication and performance of Japanese firms. The relationship between the three key variables (CSR awareness, affordability and management system sophistication) and CSR performance was then examined through a partial least squares (PLS)-based structural equation model. Data were collected through a questionnaire survey of 146 firms.FindingsThe results of the study found a positive relationship between CSR performance and three exogenous variables (CSR awareness, affordability and management system sophistication). Furthermore, the study found that CSRMS sophistication played a mediating role in the relationship between CSR performance and firms' CSR awareness and affordability.Research limitations/implicationsThe study was limited to examining the CSR practices of a major province in Japan, which may hinder the generalisation of the findings to the rest of the country. Moreover, the data used for assessing the variables in this study were self-reported by the participating firms, in addition to being cross-sectional. The findings of this study clarified areas that policymakers, including Japan's business associations–Keidanren and Keizai Doyukai, and other relevant parties need to focus on for further improving CSR performances of Japanese firms.Originality/valueThis study highlights the role CSR awareness, affordability and CSRMS sophistication play in improving CSR performance. On the one hand, it identifies the critical role CSRMS plays in mediating the relationship among CSR performance, awareness and affordability. On the other hand, it advances CSR theory providing insight for practitioners to generate positive CSR outcomes.


2019 ◽  
Vol 11 (22) ◽  
pp. 6251 ◽  
Author(s):  
Jae Mee Yoo ◽  
Woojae Choi ◽  
Mi Lim Chon

This study investigated the mechanism behind the impact of corporate social responsibility (CSR) on firms’ financial performance while focusing on internal stakeholders. Although many studies have examined the effects of CSR few has empirically investigated the underlying process of the mechanism. In addition, previous research has rarely regarded employees as a link between CSR and firms’ outcomes, despite employees implementing CSR policies. This study explored the pathway of the CSR-employees-firm’s performance. Employee commitment was used to explain the relationship between CSR and performance, since it is an important employee-associated micro-level outcome of CSR. The results showed that CSR indirectly influenced a firm’s accounting profitability through enhanced employee commitment, as well as directly affected firm’s profitability. CSR increases employee commitment, which in turn leads to improvements in a firm’s accounting returns. The paper suggests that employees should be considered as an important agent for the effects of CSR initiatives.


2015 ◽  
Vol 15 (4) ◽  
pp. 563-575 ◽  
Author(s):  
José Luis Fernández Sánchez ◽  
Ladislao Luna Sotorrío ◽  
Elisa Baraibar Diez

Purpose – The purpose of this study is to provide more knowledge about the model to generate reputation and its relationship in the long term with companies’ strategy of social responsibility. Particularly, research is done to test whether there is a positive effect of firms’ social behaviour (corporate social responsibility [CSR]), analysing differences of intensity and consistency, on their corporate reputation (CR) and whether the current financial crisis is a factor that has changed the relationship between both variables (moderator factor). Design/methodology/approach – This study uses a sample of 26 Spanish large firms of the Ibex35 index and covers an eight-year period from 2004 to 2011. To test the hypotheses of this research, a fixed-effects model was estimated using moderating regression analysis. Findings – The results obtained show that, for the Spanish Ibex35 companies, CSR practices according to their consistency have a significant positive effect on CR and in turbulent environments, as in the current financial crisis, it has had a significant positive influence on the CSR-CR relationship. Originality/value – Although a substantial number of empirical studies have examined the relationship between firms’ strategy and their performance, only a few of them have analysed the impact of the external environment on this relationship, whereby there is a need for longitudinal studies with different economic scenarios to achieve better knowledge of the CSR–CR relationship.


2021 ◽  
Vol 9 (2) ◽  
pp. 85-96
Author(s):  
Afifah Izzaturrahmi Ibrahim ◽  
Lukiati Komala Erdiyana ◽  
Aat Ruchiat Nugraha

ABSTRACT The diversity of tribes, religions, races, and between groups for the Indonesian people is a strength to build a great nation. The younger generation's understanding of the cultural diversity of Indonesia is fading due to the impact of globalization, so an education program for love of the homeland is needed. One of the educational programs is the Student Know the Archipelago Program which is sponsored by a company that is part of a State-Owned Enterprise (BUMN) conducted by PT. Pertamina in Papua Province. The purpose of this research is to know about implementing Corporate Social Responsibility through the student program to know Nusantara by PT Pertamina (Persero). The research method used is a descriptive study with qualitative data types through data collection techniques conducted utilizing interviews, observations, and literature studies. The results showed that in the planning phase of PT Pertamina SMN CSR program which refers to the concept of Hohnen shows there is still some inconformity implementation of CSR program due to the condition of Papua area that has limitations in access to information and communication. This limitation can make the lack of a valid CSR program SMN 2018 held by PT. Pertamina (Persero) in campaigning for the diversity of Indonesian culture. Simpulan showed that PT. Pertamina has been striving to be able to realize the CSR program as a manifestation of the responsibility of BUMN present for the state.  


Author(s):  
Rahma Sandhi Prahara ◽  
Diah Syifaul A'yuni

The phenomenon of environmental multicrisis occurring today has created a new paradigm of Green Accounting. The concept of Green Accounting directs corporations to make business decisions at an advantage that not only leads to profit orientation but also to the environment and society around the company. Of course, the domino effect of these concerns and considerations is that corporate sacrifices in the form of assets / assets may even be more than that. The role of corporations in supporting Green Accounting is the implementation of Corporate Social Responsibility (CSR). CSR is the moral responsibility of a company to its social, economic, and environmental strategies because of the impact of its operations so that it is expected to contribute benefits to society and the environment. If it is related to Green Accounting, then this will be the right concept to support the 2030 SDGs program.


Nirmana ◽  
2022 ◽  
Vol 20 (2) ◽  
pp. 106-120
Author(s):  
Natalia Widiasari

Advertising plays an important role in narrating the social side of a company which is often referred to as Corporate Social Responsibility (CSR). Corporate social campaigns are often seen as dubious, however, audiences as individuals interpret advertisements based on their values and experiences. TBSI (The Body Shop Indonesia) advertisements were conceptualized and analyzed using narrative transportation. Interviews are conducted with nine informants from various backgrounds. The results of the study are described in themes, namely (1) insight, (2) the relationship between CSR messages and the participant's value system, and (3) narrative responses to CSR advertisements. The result of the study states that advertising does not necessarily make the value from a social issue to be embedded or instilled in someone. Narrative and commitment to these values depend on the individual, person by person.


2021 ◽  
Author(s):  
◽  
Nathalie Weerasundara

<p>Corporate Social Responsibility (CSR) has increasingly become identified as a societal expectation of companies around the world. The concept has not only risen in significance, but its impacts and potential benefits have become widely recognised by the organisational literature as well as managers. As a result, the influence of CSR practices have been discussed in regards to the numerous stakeholders that hold a vested interest in a company. However, the literature has been predominantly focused on the influence of CSR on external stakeholders such as: shareholders, customers, Non-Governmental Organisations (NGOs) and the general public. As such, the attention attributed to the internal stakeholder group of employees, has been relatively underdeveloped. While focus on this area has begun to emerge throughout the literature, there continues to be a lack of attention given to the effects of CSR on an individual’s sense of belonging within the organisation. As a result, there is a lack of understanding on the nature and extent of this relationship within the existing literature.  This qualitative, interview-based study of fourteen respondents, presents results that provide a greater understanding of the relationship between CSR and an individual employee’s sense of belonging. The results uncover the consequences of an organisation’s CSR initiatives on its employees and discusses its influence over fostering a sense of belonging. The findings illustrate that significant impacts upon an employee’s sense of belonging include generating a sense of pride in the organisation, promoting bottom-up, employee-driven initiatives and establishing social relationships amongst colleagues. The findings also recognise the similarly unexplored potential for this influence on employee belonging to be negatively perceived should the value of CSR be overleveraged with external stakeholders. The development of a framework to present the linkages and interconnections between these ideas are able to generate greater understanding of the relationship.  The research concludes with practical implications for organisational management to recognise the influence and power to benefit its employees, and ultimately the wider entity, through the implementation of CSR. For a business strategy whose primary implications are concerned with the influence on external stakeholders, this study provides deeper understanding of the unexplored relationship between CSR policies and its influence over an individual employees sense of belonging.</p>


2021 ◽  
Vol 39 (7) ◽  
Author(s):  
Sayeed Zafar Qazi ◽  
Parvesh Kumar Aspal

Strategic managers are persistently accosting with the decision of switching the scared corporate resource for the community welfare to balance the shareholders’ and multiple stakeholders’ interests. Corporate houses are presumed to not only intensify the economic priorities of investors, but must also consider the community and environmental ramifications as well. Presently, corporations are in dilemma over whether investment in corporate social responsibility (CSR) initiatives will be a cost or gain from an economic point of view. For this purpose, the association between CSR disclosure and corporate financial performance has been empirically explored and also the company characteristic has been considered as a significant and interesting factor influencing the association between CSR and corporate financial performance. The prime objective of the present paper is to examine the impact of companies’ characteristics i.e., Age of company on the relationship between corporate social responsibility disclosure and corporate financial performance. Panel data regression statistical technique has been applied to investigate and analyze the relationship. The findings of the study reveal that companies CSR have significant influence on their financial performances.  But, on the other hand the company characteristic, age of the company has no significant impact on the corporate financial performance. The findings are found consistent with earlier studies, which validate the company’s venture in undertaking the CSR initiatives. The present study addresses theoretical as well as empirical support and inspiration for the corporations towards CSR initiatives.


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