Battling Corruption Within a Corporate Social Responsibility Strategy

Arafa, Mohamed A.

doi:10.18060/17658

Cited by 8 publications

(11 citation statements)

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“…It is of great importance to highlight that money laundering happens because of illegal business, which in many cases includes breach of human rights, corruption and other elements, which are already under the scope of CSR. This notion is also brought by Arafa (2011) when the concern regards corruption, which is a part of money laundering.…”

Section: Compatibilitymentioning

confidence: 99%

“…The awareness and obligation to address certain subjects in terms of company behavior is important. Even within CSR literature, it has been noted that there has been a lack of focus on anti-bribery and corruption, even though it is part of the CSR regulation (Arafa, 2011). The problem is that if one company starts bribing a foreign public official to get a contract, all other parties need to do the same to remain competitive.…”

Section: Csr Without Regulation 431mentioning

confidence: 99%

“…By forcing a sharing of information and thereby supporting full transparency by CSR disclosure, there is a possibility to level out the playing field and start a competition toward being the best for society instead of being the best for oneself. The competition on being good should be started by multinational companies (Arafa, 2011), as the risk of SME's (small and middle-sized entities) are lower because of their limited resources to engage in corruption (money laundering). This does not mean that SME's are free to do what they want.…”

Section: Csr Without Regulation 431mentioning

confidence: 99%

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Disclosing anti-money launderers through CSR regulation – a new way to combat money laundering

Rose

2020

JMLC

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Purpose Recent research questions the innocence of companies outside the current EU money laundering regulation in terms of contributing to the externality problem of money laundering. The purpose of this paper is to examine how including anti-money laundering as an element of the EU corporate social responsibilities (CSR) directive can contribute to solving the externality problem of money laundering. Based on the principles of CSR and the economic effects of disclosure duties, this paper analyzes the implications an introduction of anti-money laundering policies and disclosure duties can have on corporate clients and the combatting against money laundering. Furthermore, it is the intention of this paper to argue how such a regulatory change can help the financial companies dividing “good” and “bad” clients to prevent money laundering from happening. Design/methodology/approach The method of this paper is a functional approach to law and economics. It seeks to enhance the efficiency of the regulatory framework combatting money laundering by including economic incentive theory. Findings Based on the regulatory framework of the fourth anti-money laundering and counter terrorist financing directive and the directive on criminalizing money laundering, this paper argues that inclusion of anti-money laundering in the EU CSR directive will contribute to solving the externality problem of money laundering in the EU. Additionally, the expansion of the regulatory framework can start a culture, where corporate clients to the financial sector will take active steps toward combatting money laundering. Originality/value The paper identifies a way to change the corporate perception of anti-money laundering prevention from having an incentive of minimal compliance/“race-to-the-bottom” to be a possible element of competition between companies through their CSR strategy. While most research focuses on the financial sector in terms of money laundering, this paper takes the next step and includes corporate clients in the financial sector.

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Section: Compatibilitymentioning

confidence: 99%

Section: Csr Without Regulation 431mentioning

confidence: 99%

Section: Csr Without Regulation 431mentioning

confidence: 99%

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Disclosing anti-money launderers through CSR regulation – a new way to combat money laundering

Rose

2020

JMLC

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“…Among advantages we can mention here: appearance the organization as the responsible one; the harmonization of rules readily and speedily in the face of diverse legal systems and delays in the adoption and implementation of conventions; selfimposed regulatory framework. At the same time CSR can be perceived as solely public relations activity without deeper meaning; the "free-rider" problem, since many may take little or no action, hoping to avoid the cost of such action whilst absorbing some of the benefits of the action of others, for instance improved public perceptions of the industry as whole (Arafa, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Social Responsibility and Corruption Risks of Enterprise Board Members

Vēvere¹

2020

BSSR

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Practice of Corporate Social Responsibility applies not only to the labor market and to labor law. Its aim is to encourage society and entrepreneurs to develop a socially responsible entrepreneurship that involves active participation in ensuring of the working and living conditions for both employees and society in overall.In Latvia, there is anactual need to organize and create a socially responsible business environment where the main operating principles are clearly defined and where the main criterion is reputation that plays an important role in ensuring the social stability and sustainability. The company's board implements the company's financial policy and thus bears a responsibility in the face of employees and the third parties involved. The goal of the current study is to research the cases where the legal responsibility of the board members towards third parties occurs and to identify the main corruption risk factors. Two research questions are being proposed: (1) What is the legal background for fighting corruption in enterprise boards in Latvia?; (2) What are the main corruption risks for enterprise board members? The research methods employed in the study are monographic research, comparative analysis of the legal bases and case study. The novelty of the current research lies with the identification of specific risk factors in the field, which will allow working out a set of practical suggestions.

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“…For example, [15] found systematic differences in managers' responses to socially responsible activities because of nation-specific political, cultural, and other institutional differences. Similarly, existing research affirms that corporate social responsibility decisions cannot be made in isolation from institutional mechanisms and perceived corruption, which are likely to have an impact on corporate social responsibility activities [14,[16][17][18][19][20][21][22][23]. Some studies, for example, have suggested a negative association between perceived corruption and CSR [14,[24][25][26].…”

Section: Introductionmentioning

confidence: 99%

An analysis of Corporate Social Responsibility and Financial Performance with Moderating Role of Perceived Corruption: Evidence from Pakistan and Thailand

Bokhari¹

2022

Preprint

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Abstract Given the mixed findings on the direct relationship between corporate social responsibility (CSR) and financial performance, researchers have strived to determine whether the relationship is context-dependent. This study examines whether perceived corruption measures such as institutional quality and law enforcement (IQLE) and internal compliance and ethical management (ICEM) moderate the relationship between CSR and financial performance by applying the corruption framework. The findings revealed that IQLE has a negative moderating impact on the positive relationship between CSR and financial performance. This study also discovered that ICEM, as a moderator, helps to strengthen the positive relationship between CSR and financial performance.

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Battling Corruption Within a Corporate Social Responsibility Strategy

Cited by 8 publications

References 0 publications

Disclosing anti-money launderers through CSR regulation – a new way to combat money laundering

Disclosing anti-money launderers through CSR regulation – a new way to combat money laundering

Corporate Social Responsibility and Corruption Risks of Enterprise Board Members

An analysis of Corporate Social Responsibility and Financial Performance with Moderating Role of Perceived Corruption: Evidence from Pakistan and Thailand

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