Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Jung, Heungjun; Kim, Dong-One

doi:10.1007/s10551-015-2587-3

Cited by 47 publications

(28 citation statements)

References 73 publications

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“…Optimising the well-being of multiple stakeholders is not easy and our approach may identify sustainability gaps. For example, Jung and Kim (2016) warned about the two faces of CSR, exemplifying the case of "good neighbours" but "bad employers". Harrison et al (2019) confirmed that the financial performance variable needs a broadening in the stakeholder literature, to include more dimensions of the value created.…”

Section: Discussion Limitations and Practical Implicationsmentioning

confidence: 99%

Firm and country characteristics related to cumulative contribution to society

Serrano‐Cinca

Cuéllar-Fernández

Fuertes‐Callén

2020

SAMPJ

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Purpose Many indicators attempt to measure the social performance of a company from different perspectives. Grounded in stakeholder theory, this paper aims to propose capitalising the economic value distributed annually to society over a period of time, hereafter called a firm’s cumulative contribution to society (CCS). This can be done by including everything that stakeholders value; for example, payments of taxes, remuneration of employees, payments to suppliers and creditors, donations, dividends, research and development expenses and efforts to improve the environment. Design/methodology/approach First, this paper makes a methodological proposal about how to calculate the CCS and discusses potentials and shortcomings. Then, a set of hypotheses are formulated about the firm characteristics and country attributes that make the most positive contribution to society such as business models, financial performance, a country’s human development, income equality and the extent of its shadow economy. The authors also argue that a company that originally contributes to society will continue to do so because of the structural inertia faced by organisations. The hypotheses were validated with an empirical study conducted with a sample of 9,276 new-born European companies. Findings The most significant contributors to society are large, profitable companies, which are leveraged but solvent, with high asset turnover and high-profit margins and which are productive and pay high wages. Unfortunately, this win-win situation describes a small percentage of the explained variance, which can explain why social and financial performance sometimes do not go hand-in-hand. The paper identifies features of other types of companies that contribute to society, suggesting criteria for socially responsible investors. Country development favours the cumulative contribution that firms make to society. Research limitations/implications Most accounting systems do not collect all the information necessary to calculate a refined version of the indicator such as percentage of purchases from local suppliers, percentage of salaries for executives and disabled employees and percentage of financing from socially responsible financial entities. The authors encourage modification of the accounting systems to include those aspects. Practical implications This paper identifies several types of companies that contribute the most to society from a modest set of financial indicators. Socially responsible investors can estimate their contribution to society, devising new investment criteria. Social implications The paper identifies several types of companies that contribute the most to society from a modest set of financial indicators. Socially responsible investors can estimate their contribution to society, devising new investment criteria. Originality/value The paper makes two contributions, one methodological and the other empirical. By applying a financial methodology, the authors propose to capitalise the contributions of a company over a period of time. The empirical study identifies both firm and country characteristics that explain CCS.

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Section: Discussion Limitations and Practical Implicationsmentioning

confidence: 99%

Firm and country characteristics related to cumulative contribution to society

Serrano‐Cinca

Cuéllar-Fernández

Fuertes‐Callén

2020

SAMPJ

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“…Examining the relationship between the practice of social responsibility activities by a sample of American companies and the cost of ownership, the study concluded that the companies that had a high degree of social responsibility activities had a low cost of ownership, Mwangi and Jerotich, (2013) conducted a study on the companies listed on the Nairobi Stock Exchange within the industrial and services sectors, and the study concluded that there is a strong correlation between social responsibility and the return on assets index. Obby et al, (2018) in his study about the potential for critical collaboration at the local level is further challenged by the lack of commonly accepted social and environmental frameworks, transparency and accountability of the leadership of stakeholder groups, Sunghee and, Heungjun, (2016) the results of the analysis demonstrate that the positive relationship between CSR and financial performance, Hichem et.al (2015)association between performance and corporate social and environmental disclosuresocially responsible activities have been shown to create competitive advantage by building reputation, and differentiating products (Boehe and Cruz, 2010;Jung andKim, 2015, Cruz et al, 2015) suggested that having a differentiation strategy helps market position and long-term returns, Ramanathan and Akanni (2015) provided evidence of the moderating role of organizational efficiency in the link between environmental performance and performance.…”

Section: Previous Studiesmentioning

confidence: 99%

The Effect of Corporate Social and environmental Responsibility on Leverage and Performance: Evidence from Jordan

Al-Radaydeh¹,

Abughniem

Aishat

et al. 2021

JSS

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This study aimed to test the effect of corporate social responsibility through activities towards society and environmental activities on financial leverage and corporate performance, the study population consists of all companies listed on the Amman Stock Exchange. The study sample reached 187 companies for the period 2014-2017, to achieve the goals of the study; regression analysis was used to find out the effect of social and environmental responsibility on leverage and performance, the study reached the results that the social responsibility towards the society affects the financial leverage of the company while the environmental activities did not affect the financial leverage, responsibility for social and environmental activities did not affect the performance of companies, and there was a positive correlation between social and environmental responsibility and financial leverage, and a negative link was found between financial leverage and performance.

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“…Algunos la ven como parte de una elección estratégica porque, al aplicarla, las organizaciones responden a prácticas corporativas que se inscriben en tendencias globales que aportan legitimidad a sus actuaciones (Jung y Kim, 2016).…”

Section: Introductionunclassified

Dos caras de la responsabilidad empresarial. Relaciones entre Celsia y la comunidad de El Caney durante la construcción de la central Hidromontañitas

Hoyos

2017

Corresp. anál.

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Resumen: Este trabajo da cuenta de los aspectos más relevantes de la gestión de la responsabilidad empresarial y de las relaciones entre la empresa Celsia y un grupo de habitantes de El Caney (Santa Rosa de Osos, Colombia) durante la construcción de la central Hidromontañitas. La metodología seguida consistió en una entrevista en profundidad con la profesional de comunicaciones de Celsia y el desarrollo de un grupo de discusión con miembros de la comunidad. La información obtenida ha sido contrastada teniendo en cuenta qué entienden empresa y comunidad por responsabilidad empresarial, así como aspectos asociados al proceso de relación, en términos de participación de la comunidad, del cumplimiento de los compromisos pactados con ella, así como de las expectativas de esta última.Palabras clave: Celsia, Hidromontañitas, responsabilidad empresarial, sector eléctrico colombiano. Abstract: This paper gives an account of the most relevant aspects of the management of corporate responsibility and of the relations between the company Celsia and a group of inhabitants of El Caney in Santa Rosa

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Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Cited by 47 publications

References 73 publications

Firm and country characteristics related to cumulative contribution to society

Firm and country characteristics related to cumulative contribution to society

The Effect of Corporate Social and environmental Responsibility on Leverage and Performance: Evidence from Jordan

Dos caras de la responsabilidad empresarial. Relaciones entre Celsia y la comunidad de El Caney durante la construcción de la central Hidromontañitas

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