Determinants of corporate social performance: the influence of organizational culture, management tenure and financial performance

Abstract

Purpose -The purpose of the paper is to examine the influence of organizational culture, top management tenure and financial performance on corporate social performance (CSP).Design/methodology/approach -The sample comprises 295 Fortune 500 American companies from 2000 to 2005. Financial information from Thompson World Scope is contrasted with social responsibility data from KLD database and the estimation technique applied is panel data. Findings -Results indicate that a humanistic culture has a positive impact of CSP, as well as management tenure and slack resources in a lesser degree.Research limitations/implications -The paper successfully constructs and employs a variable depicting the humanistic culture of a firm. More research is needed to define which factors determine this culture dimension, so it can be scientifically agreed on as opposed to being used exploratorily.Practical implications -The results point out that firms that incorporate a humanistic approach to culture perform well in CSP because their internal cultural values and beliefs drive them to establish a good relationship with stakeholders.Originality/value -As opposed to the majority of the studies that focus on the CSP leading to financial performance relation, this article alternatively analyzes factors that determine CSP.

Board Composition and Corporate Social Responsibility Performance: Evidence from Chinese Public Firms

“…Thus, we examine three additional aspects of board composition in our study: the gender diversity, academic affiliation, and overseas background of the board members. A large proportion of previous studies have relied on the Kinder, Lydenberg, Domini & Co. (KLD) database to measure a firm's CSR performance [28][29][30]. However, all the variables in the KLD database have adopted binary measures.…”

Effect of Governance on the Efficiency of the Indonesian Banking Industry

“…The calculation of these independent observational variables includes: Total Board of Commissioners (total number of commissioners), Independent Commissioners (ratio of independent commissioners), Gender of the Board of Commissioners (ratio of women to gender), Education of the Board of Commissioners (number of commissioners who have knowledge and expertise in finance), Commissioner Meeting (number of commissioners' meetings), and Commissioner Term of Service (average number of years a commissioner has served). For more details, here is a table of measurements of input and output on the dependent adding up the members of the board of commissioners listed in the company's annual report in the board of commissioners profile chapter (Bashir and Asad, 2018;Brédart, 2014;Khan, et al ., 2017;Salim, et al ., 2016;Soba, et al ., 2016;Wang, et al ., 2007) Independent Commissioner (DKI) the percentage of commissioners from external companies (independent) compared to the total number of members of the company's internal commissioners (Andrieș, et al ., 2018;Brédart, 2014;Kristanti, et al ., 2016;Poudel and Hovey, 2013;Salim, et al ., 2016;Soba , et al ., 2016;Wang, et al ., 2007) Gender Board of Commissioners (GDK) ratio of the number of women to the total number of management board members (Darmadi, 2013b;García-Meca, et al ., 2015;Huang, 2013;Khan, et al ., 2017;Kristanti, et al ., 2016) Board of Commissioners Education (PDK) the number of commissioners who have knowledge and expertise in finance, which then compares it with the number of boards of commissioners (Ahmad, 2013;Andrieș, et al ., 2018;Kristanti, et al ., 2016;Ombaba and Kosgei, 2017) Commissioner Meeting (RDK) number of board of commissioners meetings (Bashir and Asad, 2018;Brédart, 2014;Brick and Chidambaran, 2010;Poudel and Hovey, 2013) Board Term (MJD) the average number of years of commissioners in a banking company and the total number of commissioners (Melo, 2012;Ombaba and Kosge...…”

“…The term of office of the board must be able to increase the ability of the board to monitor and provide resources for the company, so as to reduce the risk of financial distress. The increasing tenure of the board will make the company's performance better, so that the company avoids risk and makes the company more efficient (Huang, 2013;Melo, 2012). The difference between this study and previous studies is that researchers used corporate governance variables that were not included by previous researchers in their research.…”

“…A board that has a long term of office can better understand the culture of the company, so the board is able to propose strategies that are appropriate to the company culture and more efficiently. The increasing tenure of the board will make the company's performance better, so that the company avoids risk and makes the company more efficient (Huang, 2013;Melo, 2012). Based on the statement above, the research framework is as follows: The purpose of this observation is to assess the company's internal management mechanism on banking efficiency in Indonesia in 2012-2017.…”

A Study of Organizational Culture: Octapace-Profile

“…The analysis of the study done by Tiago Melo (2011) indicates that a humanistic culture has a positive impact of CSP, as well as management tenure and slack resources in a lesser degree. As opposed to the majority of the studies that focus on the CSP leading to financial performance relation, this article alternatively analyzes factors that determine CSP (corporate social performance).…”