Reflections on CSR: the case of Egypt

Darrag, Menatallah; Crowther, David

doi:10.1108/sbr-01-2016-0010

Cited by 12 publications

(16 citation statements)

References 17 publications

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“…Thus, the findings suggest that the shift in ESG ratings after the revolution, in which they became based on political and ideological motives (see Darrag and Crowther, 2017), contributes to a higher financial performance. However, this is a modest evidence given that the political changes have little to do with the market consequences of ESG ratings.…”

Section: The Market and Financial Reactions To Esg Performance After mentioning

confidence: 85%

“…After the recent political changes, ESG practices were expected to shift more toward the social duty and religious responsibility of corporations toward their communities. In this respect, Darrag and Crowther (2017) showed that the socioeconomic and political changes that Egypt faced could have implications for CSR disclosures. They argued that before the last revolutions, CSR practices had been undertaken by corporations with a high philanthropic direction and low governmental intervention to manage corporate practices.…”

Section: 2mentioning

confidence: 99%

“…The revolutionary events played a role in heightening the social, religious and political perspectives versus the earlier philanthropic one as a definition of ESG practices in Egypt (Ararat, 2008). This shifted the definition of ESG performance to embed a sense of social duties and responsibilities and religious perspectives (Darrag and Crowther, 2017). Similarly, Ibrahim (2011) argued that: "[c]ontemporary philanthropy in the Arab region grapples with the need for appropriate measures of self-governance and codes of practice, especially in the wake of recent reform movements" (p. 3).…”

Section: 2mentioning

confidence: 99%

“…However, few studies have addressed the impact of these political changes on accounting and control practices (e.g., Acemoglu et al 2017;Ahmed et al 2017;Elmassri et al 2015;Maaloul et al 2018). The latest changes in the Egyptian society after the revolution of 25 th of January 2011 could have influences on budgeting, strategic orientation, and drivers for and obstacles to ESG practices (Darrag and Crowther 2017). Thus, this study contributes to the understanding of ESG ratings by investigating the stock market reactions to ESG ratings in the Egyptian context before and after the 2011 revolution.…”

Section: Introductionmentioning

confidence: 99%

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The financial and market consequences of environmental, social and governance ratings

Aboud

Diab

2019

SAMPJ

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Purpose This study aims to examine the combined impact of environmental, social and governance (ESG) ratings on the market and financial performance of Egyptian companies during the period from 2007 to 2016 and, thereby, determines the influence of the recent political revolutions –that broke out in the MENA region in early 2011 – on the association between ESG practices and corporate performance. Design/methodology/approach The present work uses data from the S&P/EGX ESG index, which is the first of its kind in the MENA region. The ESG index is designed to increase the profile of companies listed on the Egyptian Exchange and is expected to boost the level and quality of ESG practices in the Egyptian context. The sample includes the 100 most active Egyptian companies in the Egyptian Stock Exchange as measured by the EGX 100 index in the financial year that ended in 2016. The sample begins in 2007, concurrent with the start of the ESG index, and ends in 2016. The period from 2007 to 2010 represents the pre-revolution period, and the period from 2012 to 2016 is the post-revolution period. Findings Firms with high ESG ratings are found to enjoy a better financial and market performance. The authors found some evidence that the influence of ESG ratings on financial performance is more obvious after the revolutions than before the revolutions. Practical implications This study provides insights regarding the impact of political events on the market in the Middle East region. Despite its increasing economic and political importance, this region still suffers from inadequate attention in the literature. The present work investigates the variances that evolved out of the events that started in early 2011 and the implications of these events on the market. The results of this study have implications for regulators and investors in the Egyptian stock market. The authors believe that the relatively new S&P/EGX ESG index provides a way to enhance ESG ratings in Egypt. Social implications The results of the present study provide insights for policymakers regarding the usefulness of the sustainability indices. Originality/value The present results contribute to the growing literature on the economic consequences of ESG ratings, especially in relation to a context characterized by intense political/revolutionary changes. In particular, this study contributes to the few works that have addressed the economic implications of ESG ratings in emerging markets.

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Section: The Market and Financial Reactions To Esg Performance After mentioning

confidence: 85%

Section: 2mentioning

confidence: 99%

Section: 2mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The financial and market consequences of environmental, social and governance ratings

Aboud

Diab

2019

SAMPJ

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“…In this light, seeking organisational legitimacy and legitimation not only implies adopting CSR reporting practices to meet transactional motives in response to the expectations of one's immediate audiences but also towards reflecting an appreciation of the broader responsibilities and purposes of the company in addressing deficits in the delivery of public services. However, in our view, there has been very little research on this aspect, both from the perspective of analysing CSR reports and exploring perceptions of organisational managers during, or close to, periods of significant socio-political changes (Darrag and Crowther, 2017).…”

Section: Csr Reporting In Developing Countriesmentioning

confidence: 99%

Exploring the evolving motives underlying corporate social responsibility (CSR) disclosures in developing countries: the case of “political CSR” reporting

Sorour

Shrives

El-Sakhawy

et al. 2020

AAAJ

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PurposeThis paper seeks to investigate to what extent (and why) CSR reporting in developing countries reflect instrumental and/or “political CSR” motivations and the types of organisational legitimacy sought in these circumstances.Design/methodology/approachWe adopt a theoretical framework based on neo-institutional theory, “political CSR” framework and types of organisational legitimacy. This interpretive research is set in the Egyptian context post-2011 revolution. We first carry out a content analysis of web disclosures for 40 banks in 2013 and 2016 to ascertain the nature of CSR activities and any changes over time. Second, we draw on 21 interviews to tease out the implications of the change in societal expectations due to the revolution and to deepen our understanding of the organisational motivations underlying CSR reporting.FindingsFollowing the 2011 revolution, the banks’ CSR reporting practices have gradually shifted from a largely instrumental “business-case” perspective towards a more substantive recognition of a wider set of societal challenges consistent with a political CSR perspective. Overall, the maintaining/gaining of legitimacy is gradually bound to the communication of accounts about the multi-faceted socially valued consequences or structures performed by banks. Our interview data shows that participants reflected on the legitimation challenges brought by the revolution and the limits of transactional strategies involving traditional constituents, with a preference for pursuing consequential and structural forms of moral legitimacy.Research limitations/implicationsThis study demonstrates a constructive shift by businesses towards engaging with the new social rules in response to sociopolitical changes and the need to achieve moral legitimacy. Hence, policymakers and stakeholders could consider engaging with different economic sectors to foster more transparent, accountable, and impactful CSR practices.Originality/valueWe highlight the implications of Scherer and Palazzo’s political CSR approach for accountability and CSR reporting. CSR reporting in some developing countries has typically been seen as peripheral or a symbolic exercise primarily concerned with placating stakeholders and/or promoting shareholders’ interests. We suggest that researchers need to be instead attuned to the possibility of a blend of instrumental and normative motivations.

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Marketing and the Sustainable Development Goals: Case Studies from Egypt

Abdou¹,

El‐Bassiouny

2023

Developments in Marketing Science: Proceedings of the Academy of Marketing Science

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Reflections on CSR: the case of Egypt

Cited by 12 publications

References 17 publications

The financial and market consequences of environmental, social and governance ratings

The financial and market consequences of environmental, social and governance ratings

Exploring the evolving motives underlying corporate social responsibility (CSR) disclosures in developing countries: the case of “political CSR” reporting

Marketing and the Sustainable Development Goals: Case Studies from Egypt

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