scholarly journals Do Managers Pay CSR for Private Motivation? A Dividend Tax Cut Case in Korea

2019 ◽  
Vol 11 (15) ◽  
pp. 4041 ◽  
Author(s):  
Jun Hyeok Choi ◽  
Saerona Kim ◽  
D.-H. Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Personal Interest ◽  
Experimental Setting ◽  
Simultaneous Reduction ◽  
Agency Conflict ◽  
Quasi Experimental ◽  
Corporate Social ◽  
Dividend Tax

A CEO who has an opportunity to pursue his interest may sacrifice investors with inefficient investments such as overinvestment in corporate social responsibility (CSR). As prior researchers have suggested a possibility to detect the perk portion of CSR investment using the dividend tax cut event, we tested whether managers decreased CSR spending while accelerating dividend payouts during the Korean dividend tax cut of 2015. Consistent with the prior studies on the dividend tax cut, we discovered a pattern of incremental dividend increase for the companies of agency conflict measured by extreme CEO ownership. However, we failed to find any statistically significant simultaneous reduction in donations after 2015. This study does not provide evidence that investments in CSR of Korean firms are not due to CEOs’ personal interest-seeking. Instead, we showed that the dividend tax cut event may not work as a universally applicable quasi-experimental setting to detect management overinvestments in CSR.

Implikasi Corporate Social Responsibility Dalam Good Corporate Governance Untuk Mengurangi Konflik Keagenan

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Fitri Susilowati ◽  
Mugi Harsono
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Evidence ◽  
Financial Management ◽  
Corporate Value ◽  
Agency Conflict ◽  
Good Corporate Governance ◽  
Conflict Identification ◽  
Corporate Social

The purpose of writing this article is to identify, study, map research related to CSR in reducing agency conflict. This article begins with the presentation of the concepts of Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), CSR in GCG, and agency conflict. Identification is made by collecting articles in the field of financial management that are related to CSR, agency conflict, and corporate value. Furthermore, an assessment of these studies is carried out to determine the results of each article. Articles are grouped into two articles that support the existence of agency conflict in CSR and group that do not have agency conflict.The method of review of CSR and agency conflict is carried out using previous studies. The identification, assessment and mapping of prior studies are not limited to new studies (less than ten years) but also reviews of more than 20 years. Based on the results of previous research, mapping can be synthesized the influence of CSR in reducing agency conflict.The Implementation of CSR related to agency conflict in the field of financial management is still being debated. Based on empirical evidence, the results are still inconsistent. CSR activities that synergize financial performance, the environment, and society can reduce the use of cash flow that benefits managers so that it will increase the value of the company. On the other hand, empirical evidence that does not support CSR considers that managers use CSR for personal gain.Keywords: GCG, CSR, Agency Conflict

Corporate social responsibility and employee engagement: making the case for international corporate-sponsored volunteering using a matched-sample analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicole L. Gullekson ◽  
Anders Cedergren ◽  
Liz Arnold ◽  
Taggert Brooks
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Employee Engagement ◽  
Exact Matching ◽  
Content Type ◽  
Financial Investment ◽  
Individual Level ◽  
Volunteer Program ◽  
Quasi Experimental ◽  
Corporate Social

Purpose This paper aims to contribute to the growing body of research which demonstrates corporate social responsibility (CSR) initiatives can be linked to individual-level outcomes, such as employee engagement, using a quasi-experimental field study to provide initial evidence of a casual effect for such programs. Design/methodology/approach The authors examined whether participating in an international corporate-sponsored volunteer program increased employee engagement by comparing a sample of employees, matched on their pre-trip engagement scores and other demographic variables, with employees who did not volunteer in the program and comparing the differences in this employee engagement after completing the volunteer experience. Findings Using an exact matching technique, the authors were able to isolate the influence of the volunteer program on employee engagement and demonstrate that the program was associated with increased employee engagement after the program ended. Originality/value This study provides additional, and stronger, support on the CSR and employee engagement relationship through isolating the causal influence of the volunteer program on engagement. Thus, it provides additional justification for the use of, and financial investment in, such programs by organizations.

scholarly journals Does Corporate Social Responsibility Impact on Corporate Risk-Taking? Evidence from Emerging Economy

2022 ◽  
Vol 14 (1) ◽  
pp. 531
Author(s):  
Xiao Li ◽  
Gang Liu ◽  
Qinghua Fu ◽  
Abdul Aziz Abdul Rahman ◽  
Abdelrhman Meero ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Risk Taking ◽  
The Self ◽  
The Sustainable Development ◽  
Agency Conflict ◽  
Self Interest ◽  
Corporate Social ◽  
Corporate Risk ◽  
The Impact

This study analyzes the impact of corporate social responsibility (CSR) fulfillment on corporate risk-taking to assist stakeholders in identifying the “double-edged sword” role of CSR activities and provide empirical evidence for enterprises to properly carry out CSR activities. The results show that the self-interest instrumentalization of CSR activities intensifies agency conflict, and CSR fulfillment weakens risk-taking to a certain extent. When CSR fulfillment reaches a certain value, CSR activities can improve risk-taking. Then, CSR fulfillment and risk-taking show a U-shaped relationship. Further analysis shows that the impacts of CSR on debt financing and R&D input reflect the U-shaped effect pathways of CSR fulfillment on risk-taking. Finally, it is suggested that CSR activities should be avoided to become the “self-interest tool” of the management. The regulators guide enterprises to break through the inflection point of the U-shaped effect and consider more for the stakeholders’ overall interests. Additionally, the regulators establish an effective compensation system to ensure that the enterprises with adequate CSR fulfillment obtain high-quality capital resources and promote the sustainable development of the capital market.

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