Corporate Community Relations in the 1990s: A Study in Transformation

Altman, Barbara W.

doi:10.1177/000765039803700205

Cited by 50 publications

(34 citation statements)

References 3 publications

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“…For instance, within hours of the 2001 World Trade Center attacks in New York, many major corporations such as GE, Microsoft, Pfizer and Daimler Chrysler each pledged $10 million to help the victims [70]. Altman [71] proposes that many firms are reorienting their corporate community relations to fit broader strategic goals. Community investments are often targeted at suitable recipients, based on their potential to enhance the competitiveness and reputation of the firms [72].…”

Section: Community Investment (Corporate Philanthropy) and Firm Valuementioning

confidence: 99%

Impact of Corporate Social Responsibility Dimensions on Firm Value: Some Evidence from Hong Kong and China

2017

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There has been significant interest and debate on the impact that a firm's investments in corporate social responsibility (CSR) practices and initiatives have on its market value. In this paper, we target an area that is relatively under-researched: the relevance of CSR practices and initiatives for firms in the emerging economic region of mainland China and Hong Kong, where market development and the institutional environment lag that of developed economies. Using independent CSR assessment data on a sample of large mainland Chinese and Hong Kong firms listed on the Hong Kong Stock Exchange, we evaluate the impact of six CSR dimensions on the firms' adjusted stock market value over a three-year period. We found support for the influence of only two of the six dimensions considered, namely, the CSR practices and initiatives focused on community investment through philanthropy and, to a lesser extent, the CSR practices and initiatives focused on enhancing workplace quality, to be significant predictors of firm value. This suggests that social and people-centric dimensions of CSR are more relevant than technical and process-centric dimensions of CSR for mainland Chinese and Hong Kong firms. Furthermore, we found support for the hypothesis that the impact of CSR practices and initiatives on firm value follows an inverted U-shaped relationship over time, suggesting that the effect of these initiatives on firm value steadily increases during the initial years after their adoption to reach a maximum and then gradually fades away in subsequent years. To this end, this study advances our knowledge of the specific CSR dimensions that contribute to firm value and their relevance for Chinese and Hong Kong firms.

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Section: Community Investment (Corporate Philanthropy) and Firm Valuementioning

confidence: 99%

Impact of Corporate Social Responsibility Dimensions on Firm Value: Some Evidence from Hong Kong and China

2017

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“…Orlitzky et al (2003) find a positive relationship between corporate community involvement and financial performance. Altman (1998) and Saiia et al (2003) find that corporate community involvement is strategic, and undertaken to enhance financial success. Levy and Shatto (1980), Fry et al (1982), Useem (1988), File and Prince (1998) and Brammer and Millington (2005) find that corporate community involvement is underpinned, at least in part, by public relations motives which may indirectly benefit financial performance.…”

Section: Corporate Responsibilitymentioning

confidence: 99%

Institutional Interest in Corporate Responsibility: Portfolio Evidence and Ethical Explanation

Cox

Wicks

2011

J Bus Ethics

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“…Donaldson and Preston (1995) state, "Corporations practicing stakeholder management will, other things being equal, be relatively successful in conventional performance terms" (p. 67). Altman (1998) finds that many "executives believe that community involvement is a business imperative, often creating a competitive advantage" (p. 222). Despite such claims, the purported relationship is largely unsupported by empirical results.…”

Section: The Stakeholder Argumentmentioning

confidence: 99%

The Corporate Objective Revisited

Sundaram

Inkpen

2004

Organization Science

553

221

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T he stock market convulsions and corporate scandals of 2001 and 2002 have reignited debate on the purposes of the corporation and, in particular, the goal of shareholder value maximization. We revisit the debate, re-examine the traditional rationales, and develop a set of new arguments for why the preferred objective function for the corporation must unambiguously continue to be the one that says "maximize shareholder value." We trace the origins of the debates from the late nineteenth century, their implications for accepted law and practice of corporate governance in the United States, and their reflection in shareholder versus stakeholder views in the organization studies literature and contractarian versus communitarian views in the legal literature. We address in detail possible critiques of the shareholder value maximization view. Although we recognize certain boundary constraints to our arguments, we conclude that the issues raised by such critiques and constraints are not unique to the shareholder value maximization view, but will exist even if the firm is managed on behalf of nonshareowning stakeholders.

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Corporate Community Relations in the 1990s: A Study in Transformation

Cited by 50 publications

References 3 publications

Impact of Corporate Social Responsibility Dimensions on Firm Value: Some Evidence from Hong Kong and China

Impact of Corporate Social Responsibility Dimensions on Firm Value: Some Evidence from Hong Kong and China

Institutional Interest in Corporate Responsibility: Portfolio Evidence and Ethical Explanation

The Corporate Objective Revisited

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