Impact of Corporate Social Responsibility on Value Creation from a Stakeholder Perspective

Abstract

In recent years, we have witnessed how companies and institutions have devoted significant effort to developing Corporate Social Responsibility (CSR) policies, basing their decision on the improvement in company results and the subsequent benefits for shareholders and other stakeholders. CSR means that managers must go beyond the mere satisfaction of the shareholders and take steps to establish balanced relations with all their stakeholders. The principles behind the CSR approach empower stakeholder governance. To test whether CSR policy constitutes a factor in value creation for shareholders and certain stakeholders such as employees, creditors and the State, we conducted an explanatory study, using a Correlated Random Effects approach, which compares the socially responsible companies included in the Spanish sustainability index, FTSE4Good Ibex, with the companies listed on the other indices of the IBEX family. On the one hand, the data show that sustainability reporting is well established in large companies in Spain but that it needs to be introduced more extensively in small and medium-sized enterprises. On the other hand, the findings point out that CSR has a positive and significant influence on the distribution of value in favor of the State, a negative influence for employees and no influence on other stakeholders.

Bridging Sustainability and Corporate Social Responsibility: Culture of Monitoring and Evaluation of CSR Initiatives in India

“…It is widely acknowledged in the development community that the monitoring and outcome assessment or IE of an intervention starts with the designing of the intervention [54]. In order to have an effective M&E system as well as an effective program design for IE, decisions have to be made regarding needs assessments and baseline surveys, program theory designs outlining causal relationships among inputs, outputs, outcomes and impact, identification of key indicators, data collection methods, and identification of a control or comparison group.…”

Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China

“…For instance, investors may raise social issues along with financial performance [8], reflecting their apprehension with respect to the triple bottom line of social, environmental, and economic performance [5]. Moreover, social scholars also suggest that strategies and operational decision of firms should ally with their economic, social, and environmental elements [9,10], and thus firms can gain a sustained competitive advantage by the induction of the triple bottom line of business [11,12].…”

“…Institutional factors in corporate governance research have received very little attention. Few studies focus on institutional drivers of CSR with respect to resource-based theory and agency theory, stakeholder theory, and legitimacy theory, while some studies examine CSR in a cross-country setting [11][12][13][18][19][20][21][22][23]. The studies suggest that institutional factors and pressure such as government regulations, the legal system, national culture, and corporate governance significantly influence the firm's CSR policies.…”

Evaluation of Sustainability Practices in Small and Medium-Sized Manufacturing Enterprises in Southern Brazil

“…On the other hand, a study from Spain points out that sustainability reports are well established in large companies, but need to be introduced more extensively in small and medium-sized enterprises. The findings of this study indicate that CSR has a positive and significant influence on the distribution of value in favor of the State, a negative influence for the employees, and no influence on for the stakeholders [40]. In another study, this one conducted in Korea, CSR-related research has also been focused on large companies.…”