Investigating the impact of workforce racial diversity on the organizational corporate social responsibility performance: An institutional logics perspective

Sharma, Amalesh; Moses, Aditya Christopher; Borah, Sourav Bikash; Adhikary, Anirban

doi:10.1016/j.jbusres.2018.10.018

Cited by 27 publications

(25 citation statements)

References 109 publications

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“…Furthermore, the authors suggest that the relationship between corporate strategic management decisions, including diversification and social inclusion opportunities and financial performances are sensitive to the attributes (e.g., reputation, independence) of female directors. A recent investigation of Sharma et al [66], shows that workforce racial diversity assumes a U−shaped relationship affecting a company's CSR performance. According to the authors, this is a relevant aspect since CSR is considered an important indicator in the current business world.…”

Section: Discussionmentioning

confidence: 99%

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Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe

2020

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The increasing awareness of climate change and human capital issues is shifting companies towards aspects other than traditional financial earnings. In particular, the changing behaviors towards sustainability issues of the global community and the availability of environmental, social and governance (ESG) indicators are attracting investors to socially responsible investment decisions. Furthermore, whereas the strategic importance of ESG metrics has been particularly studied for private enterprises, little attention have received public companies. To address this gap, the present work has three aims—1. To predict the accuracy of main financial indicators such as the expected Return of Equity (ROE) and Return of Assets (ROA) of public enterprises in Europe based on ESG indicators and other economic metrics; 2. To identify whether ESG initiatives affect the financial performance of public European enterprises; and 3. To discuss how ESG factors, based on the findings of aims #1 and #2, can contribute to the advancements of the current debate on Corporate Social Responsibility (CSR) policies and practices in public enterprises in Europe. To fulfil the above aims, we use a combined approach of machine learning (ML) techniques and inferential (i.e., ordered logistic regression) model. The former predicts the accuracy of ROE and ROA on several ESG and other economic metrics and fulfils aim #1. The latter is used to test whether any causal relationships between ESG investment decisions and ROA and ROE exist and, whether these relationships exist, to assess their magnitude. The inferential analysis fulfils aim #2. Main findings suggest that ML accurately predicts ROA and ROE and indicate, through the ordered logistic regression model, the existence of a positive relationship between ESG practices and the financial indicators. In addition, the existing relationship appears more evident when companies invest in environmental innovation, employment productivity and diversity and equal opportunity policies. As a result, to fulfil aim #3 useful policy insights are advised on these issues to strengthen CSR strategies and sustainable development practices in European public enterprises.

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Section: Discussionmentioning

confidence: 99%

“…According to the authors, this is a relevant aspect since CSR is considered an important indicator in the current business world. Also, the authors suggest 'that a racially diverse workforce brings the logic of community, which would significantly change an organization's response to its corporate social responsibility' [66] (p.149).…”

Section: Discussionmentioning

confidence: 99%

Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe

2020

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“…Mohammadi et al (2017) demonstrate that greater ethnicity diversity (measured by nationality) positively affects radical innovation at the aggregate workforce level. A possible explanation of such mixed results is given by Sharma et al (2019). They argue that a racially diverse workforce exerts pressure on the organization to adopt CSR-related practices, in accordance with an institutional logic that promotes identities and ethical norms.…”

Section: Diversity As a Mediator Of The Csr-innovation Relationshipmentioning

confidence: 99%

“…These findings may reflect theories pertaining to the negative effects of diversity, such as organizational demography (Pfeffer, 1985), social identity, and the similarity-attraction paradigm (Byrne, 1971). In our study context, nationality diversity is more difficult to manage than gender diversity, considering the number of diverse nationalities, such that social processes may be more challenging (Sharma et al, 2019), especially for technological innovation. Yet when nationality diversity results from strategic CSR, managers seemingly can avoid such negative processes by accounting explicitly for the differences, valuing them, and implementing appropriate group cohesion techniques.…”

Section: Theoretical Contributionsmentioning

confidence: 99%

“…With these motivations in mind, we consider whether diversity in gender and nationality acts as a mediator between SMEs' CSR strategies and technological innovation. In our proposed theoretical framework, we combine a strategic business case for CSR (McWilliams and Siegel, 2001;McWilliams et al, 2006;Porter and Kramer, 2006) with an institutional perspective on CSR to explain the observable divergences in SMEs' CSR and diversity strategies (Pedersen and Gwozdz, 2014;Sharma et al, 2019). We also integrate a value-in-diversity approach to predict whether and how the value of human capital might be enhanced through diversity (Singh and Point, 2004).…”

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confidence: 99%

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Strategic CSR for innovation in SMEs: Does diversity matter?

Bocquet

Bas

Mothe

et al. 2019

Long Range Planning

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Both corporate social responsibility and diversity influence firms' innovation, yet their relationship and links to innovation remain uncertain, especially among small to medium-sized enterprises. Relying on strategic and institutional CSR perspectives and a value-in-diversity approach, this study examines the mediating roles of gender and nationality diversity on the CSR-innovation link at the organizational level. With a sample of 1,348 SMEs from Luxembourg, the results show that strategic CSR can promote both types of diversity, but only nationality diversity triggers technological innovation. Nationality diversity emerges as a partial mediator of the relationship between CSR and SMEs' technological innovation. Thus, strategic CSR, through the genuine pursuit of such diversity, can help SMEs attain positive returns on their product or process innovation. These results have important theoretical and managerial implications.

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Dual nature of the relationship between corporate social responsibility and human resource management: A blessing or a curse?

Karataş‐Özkan

Özgören

Yamak

et al. 2022

Corp Soc Responsibility Env

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With the increase and prominence of corporate social responsibility (CSR), it is important to understand the interaction between CSR and human resource management (HRM), drawing on multiple institutional logics that shape such interaction in organizations. Drawing on a qualitative study, we reveal context‐sensitive nature of the CSR‐HRM relationship by demonstrating all field‐level forces and peculiarities of meso‐level influences. We have identified a dual nature in this relationship. This duality is implicated in unintended and intended organizational outcomes, such as exploitation of workforce and democratizing CSR engagements, respectively. We offer multiple contributions to knowledge and practice. By exploring dual nature of the CSR‐HRM relationship, we demonstrate multiple roles that the HR function plays in organizations, such as mediating role, regulating and governance role and legitimizing role. We recommend that organizations might better approach CSR from an employee engagement perspective and posit that employees' perceptions of CSR authenticity and of local needs will transform the dynamics of the CSR‐HRM relationship and organizational commitments.

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Investigating the impact of workforce racial diversity on the organizational corporate social responsibility performance: An institutional logics perspective

Cited by 27 publications

References 109 publications

Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe

Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe

Strategic CSR for innovation in SMEs: Does diversity matter?

Dual nature of the relationship between corporate social responsibility and human resource management: A blessing or a curse?

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