The corporate governance and social responsibility nexus in the Lebanese banking industry

Gali, Nazha; Hajjar, Dima; Jamali, Ibrahim

doi:10.1108/cg-08-2015-0109

Cited by 8 publications

(5 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The fundamental role of disclosure and reporting lies in enhancing transparency, decreasing information asymmetry between companies' management and investors, reducing agency cost, and ultimately nurturing the trust of local and foreign investors (Jizi, 2017). Therefore, disseminating firms' environmental and social practices is an efficient platform that improves market trust, enhances firms' reputation, and manages risk (Gali et al, 2016;Salama et al, 2011). Therefore, the effectiveness of firms' social profile depends clearly on communicating firms' social and environmental activities to various groups of stakeholders (Godfrey et al, 2009;McWilliams and Siegel, 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of board composition on the level of ESG disclosures in GCC countries

Arayssi

Jizi

Tabaja

2020

SAMPJ

203

228

View full text Add to dashboard Cite

Purpose This paper aims to investigate the impact of board composition on environmental, social and governance (ESG) reporting in the Gulf countries. Despite the vast literature on the significance of ESG disclosure on firms’ performance, trust and reputation, there are relatively few studies on the influence of board structure on ESG disclosure in the Gulf Cooperation Council (GCC) countries. Gulf countries are witnessing a fast growing capital markets and having serious efforts to attract foreign investments to divert their economies from the oil and gas reliance. This could be facilitated by illustrating firms’ good citizenship and communicating the fulfillment of their social obligation. Design/methodology/approach The study examines publically listed companies between 2008 and 2017. Thomson Reuter’s database is used to collect the ESG disclosure scores and governance information. The authors apply multiple panel data regressions and sensitivity testing to ensure the robustness of the results. Findings Examining publically listed companies for a 10-year period shows that higher board independence and female board participation facilitate the transmission of a firm’s positive image by improving social responsibility. Independent boards of directors and participation among women serve as catalysts to strike an effective balance between firms’ financial targets and social responsibilities. In contrast, boards chaired by chief executive officers are less supportive in executing a social agenda and consequently reporting their ESG activities. Practical implications The results suggest that firms that appoint a sustainability and/or governance committee tend to engage in more impactful social and environmental activities and communicate their societal engagements more effectively. Social implications The paper recommends that policymakers, executives and shareholders in the GCC countries support board participation among women, independent directors and formation of sustainability committees to facilitate engaging in effectual social activities. Originality/value Empirical evidence regarding the relationship between board composition and ESG disclosure in the Gulf countries is limited. Prior literature mainly provides results on developed countries in which the governance system is mature and well structured. This study provides useful evidence regarding the Gulf countries that lack privatization and where corporate boards tend to be dominated by families and governments.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The impact of board composition on the level of ESG disclosures in GCC countries

Arayssi

Jizi

Tabaja

2020

SAMPJ

203

228

View full text Add to dashboard Cite

show abstract

“…The context of the study is the Lebanese banking sector, which constitutes an interesting place to investigate these relationships for two reasons. First, the Lebanese banking sector has long been considered one of the most advanced and resilient in the region (Itani Traboulsi, 2019; Bizri, 2018), always on the forefront in demonstrating socially responsible behavior and undertaking CSR initiatives to support the communities in which it operates (Gali et al , 2016). This means that if CSR was ever practiced in Lebanon, it would be within the banking sector, where 62% of the banking institutions reported a formal application of CSR practices, while only 20% of the institutions in the tourism sector reported such application (Al Am, 2016).…”

Section: Introductionmentioning

confidence: 99%

The impact of CSR best practices on job performance: the mediating roles of affective commitment and work engagement

Baba

Wahbi

Jardali

2021

JOEPP

View full text Add to dashboard Cite

PurposeOne of the main challenges of human resource management (HRM) functions is how to leverage an organization's corporate social responsibility (CSR) practices for the improvement of employees' job performance. The rationale is that employees identify with and learn from CSR best practices and try to replicate them in their own capacities on the job, thus elevating levels of performance. This study aims at investigating the impact of organizational CSR practices on employee job performance, in the presence of important job attitudes, namely, affective commitment and work engagement.Design/methodology/approachThe study employed structural equation modeling to analyze data that were collected through a survey of previously validated scales. The survey was distributed using the convenience sampling technique among respondents in the Lebanese banking sector, and 302 useable surveys were collected.FindingsThe structural model confirmed the significant influence of CSR best practices on job performance, in the presence of significant mediation effects of affective commitment and work engagement.Practical implicationsThe effects of organizational CSR could be underscored through a variety of HR initiatives that aim at promoting employees' identification with the organization and its CSR goals, thereby enhancing affective organizational commitment and work engagement. Levels of affective commitment and work engagement could be periodically assessed and enhanced through HR-led programs to facilitate and augment their mediatory effects on job performance.Originality/valueThis study fills a gap in the literature by shedding light on the impact of CSR practices on employees' affective commitment and work engagement within the framework of the social cognitive theory. It highlights the importance of employees' identification with their organization's CSR values and practices, leading to improved job performance, a dynamic that has not been studied in previous research. This study also serves as a point of reference to future studies that will be conducted after the Lebanese banking sector undergoes restructuring, following accusations of corruption and mismanagement.

show abstract

“…Most organizations lacked systematic tools to measure the impact of their CSR practices, neglected other explicit CSR practices related to social or environmental issues, and paid limited attention to non-market stakeholder management strategies (Jamali & Mirshak, 2007). A decade later, Gali et al (2016) find that, although Lebanese organizations have developed a better understanding of the benefits of CSR and the competitive advantage CSR activities can yield, they still limit CSR practices to mostly philanthropic acts performed at the discretion of top management. Charbaji (2009) shows that a desire to practice CSR positively influences commitment from public and private sector employees to ethical corporate governance.…”

Section: Csr Practicesmentioning

confidence: 99%

Corporate governance in the Middle East and North Africa: A systematic review of current trends and opportunities for future research

Farah

Elias

Aguilera

et al. 2021

Corporate Governance

View full text Add to dashboard Cite

Research Question/Issue: We systematically review the corporate governance (CG) literature on the Middle East and North Africa (MENA), organize it into six main themes and their subthemes, and propose several opportunities for future research.Research Findings/Insights: We highlight CG's unique characteristics in the MENA region as well as differences and similarities across MENA countries. We shed light on how organizations are governed in this region especially that their ownership structures are centered on families and the state, and that Islam plays a major role in their governance. Our review establishes a solid foundation for future research directed at CG practices in the MENA region and encourages policymakers and practitioners to improve CG in the region.Theoretical/Academic Implications: To the best of our knowledge, this is the first systematic literature review covering CG in the MENA region. In an effort to encourage the continuing evolution of this research stream and augment its contributions to the broader CG literature, we develop an extensive research agenda focusing on several key topics that deserve further attention such as ownership and countries' political regimes, family business and royal families, Sharia law, and executive compensation, among others.Practitioner/Policy Implications: This review invites policymakers and investors to consider implementing better policies aimed at improving CG practices, specifically by fomenting transparency, developing financial markets, providing stronger protections for minority shareholders, and enhancing compliance with existing and new regulations.corporate governance, board of directors, financial disclosure, Middle East and North Africa (MENA), ownership 1 | INTRODUCTION Corporate governance (CG) research has exploded over the past few decades and adopted different perspectives from management, finance, and sociology, among other fields. Significant corporate scandals, public protests against excessive managerial greed (Dorff, 2014), the recklessness of some major financial institutions leading to the 2008 financial crisis (Aguilera et al., 2016), and heightened attention to sustainability (Jamali et al., 2008) have played a role in scholars' and practitioners' growing interest in CG. This governance

show abstract

The corporate governance and social responsibility nexus in the Lebanese banking industry

Cited by 8 publications

References 61 publications

The impact of board composition on the level of ESG disclosures in GCC countries

The impact of board composition on the level of ESG disclosures in GCC countries

The impact of CSR best practices on job performance: the mediating roles of affective commitment and work engagement

Corporate governance in the Middle East and North Africa: A systematic review of current trends and opportunities for future research

Contact Info

Product

Resources

About