A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

Choongo, Progress

doi:10.3390/su9081300

Cited by 83 publications

(120 citation statements)

References 87 publications

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“…Secondly, another field is focused on the reasons that lead firms to adopt sustainable behaviors, CSR reporting and then to obtain certification [7,16,31,32]. Thirdly, in the economic perspective, researches assess the impact of CSR on the financial system [15,16,[33][34][35], evaluating the role of the industrial sectors as in [36][37][38] or focusing on single countries ( [20,21,39,40]). …”

Section: Literature Reviewmentioning

confidence: 99%

Measure the Performance with the Market Value Added: Evidence from CSR Companies

et al. 2017

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An increasing number of firms in OECD countries are obtaining certification as Socially Responsible. Literature is sensitive in testing whether there is a relation between firm performance and Social Responsibility certification. In order to overcome problems related to the multiplicity of Corporate Social Responsibility (CSR) definitions and certifications, our work implements a CSR index based on the intersection between two of the three main international indices (Domini 400 Social Index, Dow Jones Sustainability World Index and FTSE4Good Index). By using this database in a panel framework, our work shows that among Corporate Performance Measures (CPF), Market Value Added (MVA) is affected by a firm's social responsible behaviour and certification. The results support the idea that CSR firms have better long-run performance. Thanks to the reputation effect, they achieve higher sales volumes and profits and a reduction in long-run costs: these effects compensate the costs due to the certification.

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Section: Literature Reviewmentioning

confidence: 99%

Measure the Performance with the Market Value Added: Evidence from CSR Companies

et al. 2017

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“…This indicates that from the host firm's perspective, foreign investment can be incentivized by managing inter-relationships with their stakeholders, or how they are evaluated by their stakeholders [18][19][20][21][22][23][24][25]37]. From this standpoint, we argue that foreign investors, who want to avoid uncertainty and information asymmetry in investing in firms in different countries, are likely to have favorable attitudes for the host firms that actively engage in CSR activities.…”

Section: Csr Performance and Foreign Ownershipmentioning

confidence: 99%

“…In the stock market, firms engaging in CSR activities including sound governance structures and transparent investments can get positive evaluations from potential investors [30,34]. Choongo [22] illustrated that small-and medium-sized enterprises in Zambia can build a good reputation when they actively engage in CSR activities. Likewise, Alshammari [44] contended that CSR contributes to building a better image with stakeholders.…”

Section: Csr Performance and Foreign Ownershipmentioning

confidence: 99%

“…If firms can respond to stakeholders' explicit or implicit demands in socially desirable ways, the stakeholders can behave more leniently toward the firm [18][19][20][21][22][23][24][25]37]. When a firm makes efforts to develop eco-friendly and high quality products, customers tend to build a positive reputation of the firm as they perceive the firm's activities as being socially desirable [38][39][40].…”

Section: Csr Performance and Foreign Ownershipmentioning

confidence: 99%

“…Given that a high level of CSR performance contributes to an improvement in corporate reputation [17][18][19][20][21][22][23][24][25], firms can actively seek for CSR to attract foreign investments. In this sense, we investigate the role of CSR performance in enhancing its foreign investments.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate Social Responsibility as a Strategic Means to Attract Foreign Investment: Evidence from Korea

2017

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This study examines how foreign investment can be driven by corporate social responsibility (CSR). By specifying the underlying mechanism of foreign investors' stock picking behavior, we argue that CSR can attract foreign investment. Given that CSR actions are taken to meet various needs of its stakeholders, the host firm can convey a reliable signal to foreign investors as well as the stakeholders. As such, foreign investments can be increased in the host firm. This idea is examined in a sample of Korean firms. We hypothesize that Korean firms, as host firms, will have more foreign investments, instantiated by foreign ownership, if they are more actively engaged in CSR. To test this argument, we collected a panel dataset of the Korea Economic Justice Institute (KEJI) Index between 2004 and 2009 to measure CSR performance of the firm. We estimated foreign ownership with respect to CSR performance. As a result, we found a positive effect of CSR performance on foreign ownership. Given the importance of foreign investment in host countries, this study opens an avenue that can account for foreign investors' stock-picking behavior.

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Corporate culture in small and medium enterprises: Application of corporate social responsibility theory

Getele

Arrive

2019

Corp Soc Responsibility Env

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The small and medium enterprises play a major role in creating jobs and therefore minimize the unemployment rate to attain corporate sustainable development. Its attention on corporate social responsibility is in doubt about their corporate culture including corporate image and motivation of employees. The purpose of this study is to identify the impact of corporate social responsibility in small and medium enterprises image and employees motivation in terms of environmental and social practices dimension. A quantitative sampling method of 34 small and medium enterprises in the global south was used. The result of this research shows that the variables of environmental dimensions have a significant impact on image and motivation than the variables of social dimensions such as human resources management and community practices. The study indicates that having corporate social responsibility in terms of environmental practices is the main factor in the effective business image and employees motivation.

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A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

Cited by 83 publications

References 87 publications

Measure the Performance with the Market Value Added: Evidence from CSR Companies

Measure the Performance with the Market Value Added: Evidence from CSR Companies

Corporate Social Responsibility as a Strategic Means to Attract Foreign Investment: Evidence from Korea

Corporate culture in small and medium enterprises: Application of corporate social responsibility theory

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