Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Manufacturing Sector

Arias, Fernando Gimeno; Jaén, José Manuel Santos; Manzano, Mercedes Palacios; Garza-Sánchez, Héctor Horacio

doi:10.3390/math9222973

Cited by 22 publications

(16 citation statements)

References 97 publications

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“…The literature has studied in depth the relationship between the level of CSR and a company's financial performance, generally finding that compliance with environmental, social and corporate governance criteria increases accounting profitability and market valuation (Garcia-Castro et al, 2010;Gimeno-Arias et al, 2021;Hou, 2019;Jia, 2019;Lin et al, 2018;Miralles-Quiros et al, 2017a;Nollet et al, 2016;Palacios-Manzano et al, 2021). The influence of board composition, especially the presence of women directors, on the implementation of CSR policies has also been analyzed from both an empirical and theoretical point of view Valls Martínez et al, 2020b).…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Should risk-averse investors target the portfolios of socially responsible companies?

Martínez

Román

Martín-Cervantes

2022

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Research background: Companies are required to implement Corporate Social Responsibility (CSR) policies to mitigate the adverse social and environmental effects of their activities and gain legitimacy in the eyes of society. Sustainability initiatives are costly for companies but, at the same time, they are important value-creation drivers. Retail and institutional investors are increasingly choosing portfolios based on CSR performance. However, the relationship between CSR and market beta has hardly been studied at all in the literature, and no direct comparison of the U.S. and European markets has been conducted. Purpose of the article: The two fundamental variables that define an investment are return and risk, and the appropriate risk-return combination depends on the profile of the investors. This research aims to analyze the relationship between CSR and market risk, understood as price volatility and measured by market beta in the U.S. and European markets. Methods: Companies listed in the S&P 500 and Euro Stoxx 300 indexes from 2015 to 2019 were examined using OLS regressions with instrumental variables (IV) and fixed effects panel data. Findings & value added: The results show that those companies with higher CSR have betas below the market index in the U.S. market as well as lower volatility, and are, therefore, more appropriate choices for risk-averse investors. However, this relationship was not confirmed in the European market. This difference may be justified by two reasons: 1) The non-adherence of the United States to the Kyoto Protocol, resulting in less strict legal regulations than in Europe; 2) In the U.S. market, betas are more aggressive, while in the European market they are more defensive, with little margin for reduction. This research contributes to the current state of knowledge by providing empirical evidence that social, environmental, and corporate governance sustainability practices reduce stock volatility in the U.S. capital market, which is highly relevant for private and institutional investors who make their investments based on moral criteria. The results are current and reliable since they cover a broad and recent period for two of the most important stock market indexes.

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Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Should risk-averse investors target the portfolios of socially responsible companies?

Martínez

Román

Martín-Cervantes

2022

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“…They believe that CSR needs something else to impact performance, such as an increase in employee motivation or customer satisfaction. Therefore, its effect would be indirect (Gimeno-Arias et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

“…These studies have shown the catalytic effect of CSR on innovation (Bocquet et al, 2019;Palacios-Manzano et al, 2021;Santos-Jaén et al, 2021;Zastempowski & Cyfert, 2021). Similarly, more recent research has addressed the effects of CSR on the performance of SMEs (Gimeno-Arias et al, 2021;Martinez-Conesa et al, 2017;Palacios-Manzano et al, 2021;Sinha et al, 2018). These results have reported, in most cases, the existence of a direct and positive effect.…”

Section: Introductionmentioning

confidence: 94%

“…Nonetheless, the impact of ICT use and adoption in the firms has effects beyond merely economic (Malaquias et al, 2016). The use of ICT also reduces the effort in certain kinds of tasks (Thapa et al, 2012), which enhances employee satisfaction and motivation (Gimeno-Arias et al, 2021). This contributes to improving the work environment (Bernal-Conesa et al, 2017); one of the goals of CSR.…”

Section: Ict Adoption and Csrmentioning

confidence: 99%

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Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation

León-Gómez

Jaén

Ruiz‐Palomo

et al. 2022

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Research background: The literature on the effects of Information and Communication Technologies (ICT) on performance is extensive and shows a significant positive effect. Likewise, the use of ICT to facilitate and report on Corporate Social Responsibility (CSR) practices implemented by Small and Medium Enterprises (SMEs) contributes to improve business performance. Moreover, through innovative activities, firms also obtain competitive advantages that impact positively on their performance, even more so when they are impacted by CSR. For this reason, it is expected that the adoption of ICTs in companies through a CSR-oriented strategy will increase their impact on business performance. Purpose of the article: This article tries to examine how ICT affects SMEs? performance through CSR and innovation. Methods: We tested our hypotheses using a sample of 2,825 Spanish SMEs and by applying a Partial Least Squares Path Modeling (PLS-PM) with a double confirmatory and predictive purpose: to identify the causal relationships between latent variables, and to evaluate the ability of the model to make predictions for individual cases. Findings & value added: The results show that CSR-oriented ICT impacts innovation by changing strategies and business model in companies. Moreover, the implementation of CSR practices gave them competitive advantages to increase their performance. We highlight how innovation gives companies greater capacity to respond to changes in their environment and how innovation positively impacts the link between CSR and performance. Finally, our research makes two significant contributions to the literature by incorporating two sequential mediating effects into the model. On the one hand, the indirect effect of ICT on innovation through CSR. On the other hand, the indirect effect of CSR on SME performance through innovation.

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“…On the other hand, there are increasingly more papers in which the impact of corporate social responsibility in association with human resource management and leadership style on different aspects, such as innovation, improvement of intellectual capital, competitiveness, job satisfaction, or performance, are analyzed (Santos-Jaén et al 2021;Suto and Takehara 2022;Gallardo-Vázquez et al 2019;Gimeno-Arias et al 2021;Hajiali et al 2022).…”

Section: Conclusion Limitations and Future Lines Of Researchmentioning

confidence: 99%

Team Autonomy and Organizational Support, Well-Being, and Work Engagement in the Spain Computer Consultancy Industry: The Mediating Effect of Emotional Intelligence

Suárez-Albanchez

Estévez

Resino

et al. 2022

Administrative Sciences

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The aim of this paper is to analyze the impact of autonomy at work and organizations’ support for their employees on employee well-being and, ultimately, their commitment to their work, and how employees’ emotional intelligence mediates between these constructs. We distributed a 5-point Likert scale questionnaire among professionals from different companies in the IT consultancy sector in Spain. The data collected were analyzed using the PLS-SEM (partial least squares structural equation modeling) technique in the SmartPLS software. The analysis of the data collected shows that there is indeed a positive relationship between job autonomy and the organizational support received by workers and their well-being, as well as between the well-being of workers and their commitment to work. Likewise, the mediation effect of emotional intelligence between job autonomy and organizational support and the well-being of workers is also evident. We can conclude that improving the autonomy and support given by organizations to their employees would have a beneficial effect on the well-being and work engagement of employees.

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Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Manufacturing Sector

Cited by 22 publications

References 97 publications

Should risk-averse investors target the portfolios of socially responsible companies?

Should risk-averse investors target the portfolios of socially responsible companies?

Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation

Team Autonomy and Organizational Support, Well-Being, and Work Engagement in the Spain Computer Consultancy Industry: The Mediating Effect of Emotional Intelligence

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