• Title, Summary, Keyword: Corporate Social Contribution Activities

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The Effect of Corporate Social Responsibility and Audit Size on Credit Rating (기업의 사회적 책임과 감사인 규모가 기업신용등급에 미치는 영향)

  • Jeon, Jin-Ho
    • Journal of the Korea Convergence Society
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    • v.9 no.1
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    • pp.1-8
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    • 2018
  • This study analyzed annual final sample data from 159 companies based on firms selected as economic justice companies by Economic Justice Institute in Citizens' Coalition for Economic Justice in South Korea according to interest variables from 2005 until 2011. Analyzed results are as follows. First, higher scores in soundness and corporate social activities among CSR items suggested that corporate credit rating upgraded. This indicates that credit rating institutions give a good evaluation on their social activities and reflect them in credit rating assessment. However, environmental protection satisfaction and corporate credit rating showed the opposite results. Second, high objectivity and contribution to the economic development as well as supervision by giant auditors had substantial effects on higher corporate credit rating. In contrast, high soundness and supervision by giant auditors reduced corporate credit rating. Based on this outcome, it is estimated that there is a discriminatory response among CSR activities in terms of credit rating evaluation conducted by credit rating institution.

The Effect of Corporate Social Responsibility Activities on Investors' Heterogeneous Beliefs: A Study of Korea's Data Set

  • JUNG, Hyun-Uk;MUN, Tae-Hyoung;KIM, Young Ei
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.95-107
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    • 2020
  • This study analyzes the effect of corporate social responsibility (CSR) activity on investors' heterogeneous beliefs. The hypothesis of this study is based on the conflicting effects of CSR activities on firm value and earning's quality. Investors' heterogeneous beliefs used in the empirical analysis of this study are trading volume, and CSR activity is measured by the KEJI Index (Korea Economic Justice Institute Index). This study performs an empirical analysis using regression analysis including control variables. CSR activities are found to have a positive relationship with trading volume. This is consistent regardless of the low and high accounting information (earning's quality). It can be interpreted that Korea's CSR activity acts as an incentive to increase investors' heterogeneous beliefs about target companies. In other words, it implies that the investor judges CSR activities negatively when evaluating firm value. This study could have a policy implication in that it analyzes how CSR activities affect investors' decision-making. In other words, this study analyzed CSR activities from the perspective of shareholders. Therefore, this study is expected to provide useful information for policymaking by regulatory agencies. In particular, its contribution is to presents data that CSR activities can be a negative factor in evaluating firm values.

A Study of Measures for Sustainability of Ethical Fashion Social Enterprises - Focusing on Seoul - (윤리적 패션 사회적기업의 지속가능 방안 연구 - 서울지역 패션 사회적기업을 중심으로 -)

  • Yong, Yang
    • Journal of the Korean Society of Costume
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    • v.66 no.7
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    • pp.192-208
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    • 2016
  • Due to the paradigm shift in fashion industry, its contribution to social activities and social enterprises' practice of ethical fashion has been on the rise lately. The surveillance and regulations of international community have increased in light of the betterment of working conditions and protection of the rights, and corporate social responsibility has been emphasized through consumers' interest in ethical consumption. In this regard, the fashion social enterprises' responsible and ethical management can both boost the trust in business and value-added. The study aims to propose feasible methods by exploring ways to induce support from central and local governments, which will lead to the activation of future fashion social enterprises and paradigms shift of consumers's perception and value. The sustainability of social enterprises requires management line or policies that consider social, environmental, economic, and political aspects of virtuous cycle, differentiated internally or externally. Fashion social enterprises also need ethic management and social responsibility management that are distinctive from general fashion enterprises. Thus, they will not be sustainable or differentiated unless entrepreneurial faith and role is not clear. Education and continuous promotion including upcycling are critical to build consumer base as they can make consumers spend ethically and recognize social enterprises. In addition, social education and public relations need to take place in order to internalize consumer pattern. The goal of sustainable corporate social activity is to change the awareness and become social investment that returns some profits to the society as members in line with reviewing corporate image. This can lead to establishing the foundation of securing a big comsumer market and winning the trust of the consumer's through corporate social responsibility and investment.

A Social Recognition on Accounting Responsibility (회계책임(會計責任)에 관한 사회적(社會的) 인식(認識))

  • Pyeon, Kye-Shim
    • Korean Business Review
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    • v.4
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    • pp.339-354
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    • 1991
  • Araditionally, a business enterprise was a unit of individual economy which looked after it's own interesting. This business philosophy gave not only much wealth and advantages to the society but also caused many social problems, such as pollution, inferior goods, false advertisements, unreasonable packing and so on. Because of this criticism, it is necessary for us to fulfill the social responsibility of business and to make an accounts report about it. A business should examine itself that, for the long run, the philosophy, looking after its own interesting by means of unreasonable economical actions, is unfavorable to the business and be aware of the social responsibility of business. It is important that the business accounting should identifying, measuring and communicating on the former business actibities, but in order to help the persons interested in the business in the with their interests control and their appraising the degree of social contribution, its object should be the embodiment of social justice by giving the economic intelligences. We con get at the root of formation of corporate social accounting on this point, that it to say, we can lay it down that business activities deal with the affairs which are measured, reported, and appraised from the social view points. Givena definition of this corporate social accounting according to the general standard of business accounting. I think the persons interested in business can get useful accounting informations to make a reasonable decision from the social view points. Set forth the responsibility of accounting based on this, it is very meaningful to study in the social recognition.

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A Study on the Motives and Effects of Corporate Mecenat Activities (기업 메세나활동의 동기와 효과에 관한 고찰)

  • Park, Min-Saeng
    • Management & Information Systems Review
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    • v.28 no.3
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    • pp.117-140
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    • 2009
  • The purpose of this study is to investigate the effects of corporate mecenat activities, ultimately making more firmly established the theory of mecenat activities from the perspective of marketing. For the purpose, this researcher examined the motives of such activities and analyzed the current state and problems of those activities in Korea. In this study, the motives of corporate mecenat activities are largely classified into the improvement of corporate image, which is identified from the view of cultural investment, and direct corporate profits like tax favor, from the view of marketing. Regarding the effects of corporate mecenat activities, P. Kotler and J. Scheff suggested that in future, corporate supports to art would be the most remarkable part of marketing. In association, the Australian Foundation for Culture & Humanities and Arthur Andersen described the effects of corporate mecenat activities in form of cultural investment largely in terms of business, market and employees. In a similar vein, the Korea Business Council for the Arts classifies the effects of corporate mecenat activities largely into three, corporate legitimacy, market advantage and benefit to employees. In relation to corporate mecenat activities, now, the theory of mecenat which is established from the perspective of marketing is considered more persuasive than that which is provided from the perspective of philanthropy. For more corporate efficiency and effectiveness, in conclusion, it's needed to orient the theory of mecenat from the perspective of marketing.

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Social Responsibility Activities and Financial Performance of the Financial Industry (금융업의 사회적 책임활동과 재무성과)

  • Xia, Xuehao;Bae, Soo Hyun
    • The Journal of the Convergence on Culture Technology
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    • v.5 no.3
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    • pp.71-78
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    • 2019
  • The importance of social responsibility such as ethical management and social contribution activities is emphasized for the sustainable growth of companies. Although there is a great deal of research on corporate social responsibility due to the increase in social interest and expectation, most of them have been limited to research on general manufacturing industry. The purpose of this study is to analyze the effect of social responsibility activities on financial performance. In addition, we want to analyze the difference in the financial performance of companies with excellent social responsibility activities announced by the Institute of Economic Justice and others. The analysis period is from 2011 to 2016, and we analyze using the robust regression methodology which is relatively effective in solving the autocorrelation and this dispersion problem. First, it is proved that the higher the KEJI index, the more positive effect on financial performance. In addition, we found that there is a significant difference in the financial performance of companies with excellent social responsibility activities and those with other social responsibility activities. These results will have important implications for establishing a firm's financial strategy and will serve as useful information for the financial industry that is striving for sustainable management.

The Relationship between Firms' Environmental, Social, Governance Factors and Their Financial Performance : An Empirical Rationale for Creating Shared Value (기업의 환경, 사회, 지배구조 요인과 재무성과의 관계 : 공유가치창출의 경험적 근거)

  • Min, Jae H.;Kim, Bumseok;Ha, Seungyin
    • Korean Management Science Review
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    • v.32 no.1
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    • pp.113-131
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    • 2015
  • We examine the relationship between firms' environmental (E), social (S), and governance (G) factors, with their financial performance in order to provide an empirical rationale for CSV (creating shared value) pursuing both of firms' profitability and CSR (corporate social responsibility). The financial performance is classified into four aspects such as profitability, stability, efficiency, and cash-flow, and each of these aspects is measured by two financial ratios respectively. To measure the firms' ESG performance, we employ the published performance grades by the Korea Corporate Governance Service for a three year span, from 2011 to 2013. Total of eight regression analyses are performed. The results show that firms' non-financial performance in general has statistically significant positive relationships with return on assets, return on net sales, and cash-flow from operating activities ratio, while it has negative relationships with net working capital ratio, asset turnover ratio, and cash-flow from investing activities ratio. It has no significant relationships with debt ratio and equity turnover ratio. The results imply that firms' non-financial performance may have a negative impact on some financial performance such as liquidity and efficiency in a short term, but it would eventually improve the firms' profitability and cash-generating ability, which provides an empirical evidence for the concept of CSV, and motivates the firms to participate in social contribution activities without sacrificing their profitability for their respective sustainablity management.

The Relationship between CSR Activities and Attitude toward Discount Store: The Moderating Role of Community Attachment (할인점의 사회적 책임 활동과 점포태도간의 관계 : 지역애착도의 조절효과)

  • Moon, Youn-Hee;Kim, Jae-Wook;Choi, Ji-Ho
    • Journal of Distribution Research
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    • v.14 no.1
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    • pp.1-25
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    • 2009
  • This article examines community attachment as boundary condition that moderates the relationship between CSR activities and attitude in the discount store context. Using a sample of 1,118 consumers that have a purchasing experience. Results showed that CSR activities such as social contribution, consumer protection, and environmental protection have a significant effect on the attitude toward discount store. In addition, the authors found the role of community attachment as moderator. The discussion focuses on the meaning of the results for strategic CSR activities and the need for additional studies to clarify the relationship between CSR activities and store attitude.

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Employees' Preferences on Various Types of Matching Grants (매칭그랜트 기부방식에 대한 기부자 선호도)

  • Lee, Yeong-Ran;Park, Sang-June
    • Journal of the Korean Operations Research and Management Science Society
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    • v.38 no.1
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    • pp.15-27
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    • 2013
  • Because consumers tend to have negative opinion about a company that neglects social issues like poverty or pollution while it focuses on its own profit, a lot of companies have invested their resources in Corporate Social Responsibility(CSR). CSR has merits of image improving and profit gaining, on the other hand, it has also many shortcomings. First, the cost of CSR may become a heavy financial burden. Specifically, CSR tends to be implemented by a company's unilateral backup, and then this may impose a heavy burden on the company. Second, one cannot expect effects of CSR in a short-term. Because of these shortcomings, the unilateral CSR has gone into alteration of the type of CSR since 1980's. Instead of unilaterality, Cause-Related Marketing(CRM) began to be used for mutual profits among company, consumers, and society. That is, CRM has become to be spotlighted as a new type of CSR. It focuses on partnership between a company and consumers based on cause and mutual profit pursuing through this partnership. So, many contemporary companies prefer CRM activities that derive their positive corporate image, that increase their sales, and that reduce their financial cost. The IBM Matching Grants Program, which is the largest of the IBM-Employee partnership programs, is a typical CRM. This program enables employees and retirees to increase the value of their donations to educational institutions, hospitals, hospices, nursing homes, and cultural & environmental organizations with a matching gift from IBM. Hundreds of educational institutions and thousands of nonprofit organizations have benefited from the contributions by IBM. There might be various types of matching grants. For example, an employee might choose a lump-sum expense or partitioning a lump-sum into a series of small ongoing expenses for his (or her) donation, and a firm might match the employee's total contribution with a lump-sum expense or might match the employee's total contribution with a series of small ongoing expenses. However, it is not easy to find an academic research on which type of matching grant is preferred by employees. This paper shows that an employee prefers the type of matching grants that consists of a lump-sum expense for his (or her) contribution and a series of small ongoing expenses for a firm's contribution [or the type of matching grants that consists of a series of small ongoing expenses for an employee's contribution and a lump-sum expense for a firm's contribution] to the other types of matching grants.

The Research on the Development of the Corporate Social Responsibility (기업의 사회적 책임 발전방향에 관한 연구)

  • Song, Kwan-Cheol;Li, Yi-Ran
    • The Journal of the Korea Contents Association
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    • v.18 no.8
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    • pp.287-299
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    • 2018
  • This study is primarily aimed at conducting conceptual research that reinforces corporate social responsibility and gives direction to how local firms' CSRs should evolve in line with global CSR core values. To this end, a comprehensive approach was made to the Korean CSR system or standards in terms of research methods, and the direction of development was derived by comparing them with global standards. While the social responsibility activities of Korean companies are still focused on social contribution, CSR activities of global companies take social responsibility not only in various business areas but also in the circumstance surrounding companies, labor, environment and others. In particular, they are conducting stable CSR activities within the value chain of companies. Moreover, the CSR function is required in both the original and the primary sub-contractors and the secondary sub-contractors. This can confirm that the CSR activities of companies contribute to the development of society as they attract better working conditions and a better living environment based on the CSR. Therefore, the CSR direction presented by the study is meaningful and worthwhile in that it can contribute not only to Korean companies' global advancement but also to transform our society into a better society.