scholarly journals The legitimacy of corporate social responsibility

2007 ◽  
Vol 4 (4) ◽  
pp. 80-88 ◽  
Author(s):  
Rebecca Stratling
Keyword(s):  
Shareholder Value ◽  
Annual Reports ◽  
Potential Contribution ◽  
Legitimacy Theory ◽  
Critical View ◽  
Strategic Approach ◽  
The One ◽  
Corporate Social ◽  
Energy Companies

Based on deliberations on the legitimacy of CSR from the perspective of stakeholder and legitimacy theory on the one hand and the more critical view of Milton Friedman and Michael Jenson on the other hand, this paper analyses how major energy companies legitimise their CSR activities in their Annual Reports and their CSR reports. The research indicates that managers recognise the potential contribution of CSR to long-term financial performance of firms as well as the need to socially legitimise the firm’s operations. A surprisingly limited number of the companies in the sample take a very explicit strategic approach to CSR by stressing long-term shareholder value maximisation. The CSR policies therefore appear not to focus solely on a strategic stakeholder approach geared towards maximising shareholder value but to reflect considerations raised by legitimacy theory

scholarly journals Corporate Social Reporting By Mauritian Banks

2015 ◽  
Vol 5 (2) ◽  
pp. 56 ◽  
Author(s):  
Dineshwar Ramdhony
Keyword(s):  
Human Resources ◽  
Commercial Banks ◽  
Annual Reports ◽  
Legitimacy Theory ◽  
Csr Reporting ◽  
Corporate Social Reporting ◽  
Narrow View ◽  
Csr Disclosure ◽  
Code Of Corporate Governance ◽  
Corporate Social

The paper examines CSR disclosures by commercial banks operating in Mauritius. Annual reports for the year 2011 were scrutinized using content analysis. Five categories of disclosure were chosen in line with the Code of corporate governance and prior studies. Due to the small number (20) of banks operating in the country all banks were selected. Findings show that banks with higher visibility disclose more CSR information thus confirming that the legitimacy theory is an explanation for CSR disclosure by Mauritian banks. CSR reporting is prevalent among all banks but forty percent of banks disclose CSR information relating to one category only showing a narrow view of CSR. The primary area of disclosure is ‘Human resources’ which is at odds with previous studies. The paper contributes to the scarce literature on CSR disclosures by banks in a developing country.

The procurement dilemma: short-term savings or long-term shareholder value?

2016 ◽  
Vol 37 (6) ◽  
pp. 10-17 ◽  
Author(s):  
Michel Philippart
Keyword(s):  
Corporate Strategy ◽  
Reference Group ◽  
Shareholder Value ◽  
Potential Contribution ◽  
Competitive Advantages ◽  
Short Term ◽  
Content Type ◽  
Functional Perspective ◽  
The Impact

Purpose Research has shown the potential contribution of properly managed suppliers to the competitive position of firms. Major strategy schools of thought such as the industry view and the resource-based view have evolved in their perspective about supplier’s contributions, replacing a transactional perspective of supplier management with a more comprehensive view of their role in corporate strategy. This study aims to understand if procurement professionals have evolved in the same direction. Design/methodology/approach During a corporate wide assessment for a large consumer product corporation, the author had the opportunity to incorporate a four-statement question aimed at identifying the perception of value creation by different levels of procurement staff. The answers were compared with responses of a reference group that comprised business school students who had never been exposed to professional procurement as a function or skill. Findings The results show that buyers, even at senior levels, more clearly identify value as the result of price negotiation, a functional perspective, than as the construction of sustainable competitive advantages, the shareholder perspective. They do not discriminate sufficiently between short-term transactional value transfer and long-term shareholder value capture. Research limitations/implications The study was conducted on a sample of 500 people from four continents but limited to a single corporate environment. This study focused on innovation as a source of value and competitive advantages. Originality/value The paper shows to corporate deciders the impact of overly cost-focused procurement departments. This study reinforces their need to better balance the objectives assigned to their procurement team. This study outlines the steps necessary to align the cultural competitiveness of procurement to the objectives of the firm, with an extended enterprise scope.

scholarly journals A Research on Effectiveness of Web Sites in Announcing Corporate Social Responsibility Activities of Chain and Group Hotels: The Case of Turkey

2016 ◽  
Author(s):  
Erhan Boğan ◽  
Şevki Ulama ◽  
Mehmet Sarıışık
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Web Sites ◽  
Annual Reports ◽  
Communication Techniques ◽  
Hotel Managers ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
General Perspective

The term ‘Corporate social responsibility’, which is regarded as one of the most important way of developing good relationships between hotels and their stakeholders, provides competitive advantage to companies in long term. Hotel managers possessing a strategical awareness announce these activities they organize for public interest both in their web-sites and via different communication tools. Studies on this subject were scanned and it has been realized it has not been sufficiently examined how efficiently hotels in Turkey use web-sites which are a quite effective tool for announcing corporate social responsibility activities. The main purpose of this study aiming at filling this gap in literature is to analyze corporate social responsibility reports included in web-sites of chain and group hotels in Turkey. Scope of corporate social responsibility and sustainability reports in web-sites of hotel was discussed in terms of stakeholders (employees, society, customers and environment) and examined via content analysis. In addition, communication techniques that hotels use so as to announce these activities were researched. As a result of examination, any statement related to corporate social responsibility could not be found in web-sites of almost half of hotels. It was determined the number of hotels allocating a separate section for corporate social responsibility in their corporate social responsibility, sustainability or annual reports is quite low. From a general perspective, it was found out chain and group hotels in Turkey could not effectively use web-sites for announcing corporate social responsibility activities. Results were obtained through the analysis of findings and suggestions for hotel managers were developed accordingly.

scholarly journals Impact of Corporate Social Responsibility on the Financial Performance of Banks in Pakistan

2014 ◽  
Vol 21 ◽  
pp. 9-19 ◽  
Author(s):  
M. Shoukat Malik ◽  
Muhammad Nadeem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Service Sector ◽  
Annual Reports ◽  
Net Profit ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The purpose of this paper is to investigate the impact of Corporate Social Responsibility on the Financial Performance of banks in the service sector of Pakistan. The data is obtained from the annual reports issued by the banks during 2008-2012. To verify the relationship between EPS, ROA, ROE, Net Profit and CSR regression models are used. The results show that there is lack of CSR in Pakistan and the regression model shows that there is positive relationship between profitability (EPS, ROA, ROE, and Net Profit) and CSR practices. The Financial institutions which implements CSR in their operations earn more profit for the long term periods.

The shifting sands above the oil: commercial and legal tools to manage political risk in emerging markets

2014 ◽  
Vol 54 (2) ◽  
pp. 530
Author(s):  
Christopher Flynn
Keyword(s):  
Emerging Markets ◽  
Joint Ventures ◽  
Energy Security ◽  
Shareholder Value ◽  
Political Risk ◽  
Resource Nationalism ◽  
Strategic Approach ◽  
Made In

An increasing number of Australian resources companies are investing in emerging markets, particularly in Africa. Managing an investment in these countries, and the joint ventures invariably formed in them, is an important part of improving shareholder value, raising capital, and managing political risk. These countries typically take a strategic approach to energy security and resource nationalism rather than the more market-focused approach of western states and companies. While the key risk is expropriation, political risk also presents itself in many other ways. During the long term, an investor needs to minimise the likelihood that it becomes cheaper for a government to breach its obligations to the company than it is to comply with them. Doing that requires several important interrelated protections (both legal and commercial) to minimise political risk and ensure that if expropriation does occur, the investor has maximised its chances of recovering its losses. A range of commercial and legal tools—deployable inside and outside of a country—are available to structure these investments, support operations, and minimise political risk in emerging markets. Drawing on his experience advising on energy and resources projects and transactions in more than 50 countries, author Chris Flynn outlines key legal protections to be sought in any contracts with respect to investments made in these countries. He also discusses useful commercial tools to help align the interests of the company, its local partners, and government.

scholarly journals CSR and Shareholder Value in the Restaurant Industry: The Roles of CSR Communication Through Annual Reports

2018 ◽  
Vol 60 (1) ◽  
pp. 69-76 ◽  
Author(s):  
MinChung Kim ◽  
YongHee Kim
Keyword(s):  
Value Relevance ◽  
Information Source ◽  
Shareholder Value ◽  
Marketing Channels ◽  
Restaurant Industry ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Csr Communication ◽  
Corporate Social

Studies on the effects of corporate social responsibility (CSR) on shareholder value identified that CSR communication through marketing channels is a key mechanism necessary to translate CSR into shareholder value. In this study, annual reports are considered the primary information source used by a firm’s financial stakeholders (e.g., investors and analysts) in their valuation of the firm. Specifically, this study examined whether the extent to which restaurant firms communicate CSR through their annual reports influences the effect of CSR on shareholder value in returns (i.e., Tobin’s Q) and risks (i.e., equity-holder risk). CSR was disaggregated into two distinct types for primary and nonprimary stakeholders. Results corroborate that communicating CSR for nonprimary stakeholders through annual reports helps the nonprimary-stakeholder CSR to increase shareholder value by reducing equity-holder risk, whereas communicating CSR for primary stakeholders does not affect the value relevance of the primary-stakeholder CSR through a change of either Tobin’s Q or equity-holder risk.

Corporate political connection and corporate social responsibility disclosures

2018 ◽  
Vol 31 (2) ◽  
pp. 725-744 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Dessalegn Getie Mihret ◽  
Arifur Khan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
The State ◽  
Annual Reports ◽  
Political Connection ◽  
Legitimacy Theory ◽  
Corporate Sector ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to determine how the relationships between the state and the corporate sector influence CSR engagement. Design/methodology/approach Based on a neo-pluralist view of legitimacy theory, which conceptualizes the state as a concentration of power amenable to exploitation by the corporate sector, the study develops and empirically tests a hypothesis that CSR disclosures are inversely associated with political connection. A sample of 936 firm-year observations is used with data collected from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. Findings Results indicate that corporate political connection is associated with reduced CSR disclosures. This finding suggests that the perceived need for CSR disclosures as a legitimation strategy diminishes for politically connected firms. The finding supports a neo-pluralist argument that political connection could enable firms to eschew stakeholder pressure associated with potential legitimacy threats originating from poor CSR performance. This conclusion challenges the pluralist view of legitimacy theory that considers the state as a neutral arbiter resolving conflict among stakeholder groups in society. Originality/value The study makes a significant contribution to the literature by developing a neo-pluralist theorization of voluntary CSR disclosures within legitimacy theory and empirically testing it. Because prior empirical CSR disclosure research is largely underpinned by the pluralistic conception of society, examining this phenomenon from a neo-pluralist perspective enables a more complete understanding of CSR disclosure behaviors of firms.

scholarly journals Corporate Governance and Corporate Social Responsibility Society Disclosure: The Application of Legitimacy Theory

2020 ◽  
Vol 21 (2) ◽  
pp. 660-678
Author(s):  
Joanne Shaza Janang ◽  
Corina Joseph ◽  
Roshima Said
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Legitimacy Theory ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Corporate Social

It is important for companies to adhere to society’s values by engaging in corporate social responsibility activities to remain legitimate, which in turn, translated into disclosures in annual reports. Corporate governance mechanisms have been used as explanatory factors in determining the level of disclosures. This paper aims to determine the influence of corporate governance mechanisms on the society disclosure in Malaysian companies’ annual reports using the legitimacy theory. The level of society disclosure is examined against the Modified Society Disclosure Index (MoSDI), which was developed based on the society indicatorof Global Reporting Initiative Version 4.0, preliminary observation on the 2016 NACRA winners’ annual reports and past literature. The analysis involved 234 top Malaysian companies’ annual reports from 2014 to 2016. The results found that audit committee, independent directors, and size are significantly associated withthe level of society disclosure. By complying with good corporate governance practice, awareness can be raised and preventive measures can be taken in addressing society’s issues through proper society disclosure.The legitimacy gap can be reduced via the society disclosure.

scholarly journals The marginal morality (die Grenzen der Moral) as an ethical challenge and as the knowledge on how to gain competitive advantage

2017 ◽  
Vol 20 (5) ◽  
pp. 21-31
Author(s):  
Przemysław Rotengruber
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Competitive Advantage ◽  
Ethical Challenge ◽  
The Everyday ◽  
The One ◽  
Corporate Social ◽  
The Relationship ◽  
Final Calculation

The aim of this article is to scrutinize the relationship between the moral attitude of an entrepreneur and his or her possibility to gain competitive advantage. This declaration leads to the following question: does the everyday practice confirm or deny the economic usefulness of the postulate of corporate social responsibility? On the one hand, moral desertion is obviously profitable (also in the economic sense). Partners of the deserter, in most cases, are not able to avoid (unexpected and expansive) consequences of his or her new attitude towards them. On the other hand, this strategy—in long-term perspective—seems to be doubtfully profitable. The former victims orientate themselves to their new circumstances and become ready to face the attack. Therefore, the corporate social responsibility, in the final calculation, should be taken as the only way to protect active participants of the market against the temptation to neglect their obligation towards people, who can punish or reward them (as stakeholders and whistleblowers).

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