• Korean journal of communication and information
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• v.45
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• pp.496-532
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• 2009

With the turn of the 21st century, corporate legitimacy is at risk. The society is demanding even greater responsibility to the corporations in return of exercising its enlarged influencing power. As the legitimacy is threatened, entrepreneurial activities have become even more important than ever in order to obtain trust from the public and to be accepted as an ethical enterprise. This study assumes corporate legitimacy as the necessary element in overcoming the crisis. With this respect, it further states what kind of effect the exercise of corporate reputation and social responsibility have on ensuring corporate legitimacy in crisis. To verify the purpose of this study, two research hypotheses and one research question were set. The major research results and the implications are as follows. First, the corporate reputation of Samsung Heavy Industries affects the corporate actional legitimacy in case of crisis. Second, recognition on corporate legitimacy varied in accordance with the public’s perception of the corporate social responsibility. Third, the interaction between corporate reputation and social responsibility plays a role in determining corporate legitimacy. This result denotes that it is necessary to exercise social responsibility and build up corporate reputation in order to obtain corporate legitimacy in crisis.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.21-28
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• 2021

The purpose of this study is twofold. First, this paper argues that a theoretical lens that can connect three crucial concepts is often missing when it comes to assessing the success or failure of corporate reputation in terms of corporate environmental responsibility. These three concepts include the legitimacy of environmental disclosure information, stakeholder interest in corporate environmental responsibility, and the relationship between corporate environmental practices and disclosure. The second purpose is to investigate the roles of transparency and systemic thinking in corporate environmental responsibility and disclosure that could help to connect the information from environmental disclosure to internal information in firms, thereby minimizing conflicting accountabilities and increasing stakeholder engagement in environmental disclosure. Rather than conducting an empirical study, the author has followed a theoretical examination of legitimacy, stakeholder, and stewardship theories. This study, thus, suggests the retention of many theories (e.g. legitimacy, stakeholder, and stewardship) to study and explain the relationship of corporate environmental practices, environmental disclosure, and corporate reputation.

• Journal of Korea Society of Industrial Information Systems
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• v.27 no.1
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• pp.63-77
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• 2022

This paper investigates the effect of the lack of ESG management legitimacy on the firm's corporate giving. From the institutional theory perspective, ESG management has become a globally institutionalized business standard. A firm can survive and prosper when it conforms to the institutionalized norms. Thus, we argue that firms will increase corporate giving to restore social legitimacy when they experience a lack of social legitimacy regarding ESG management. Our study also focuses on the role of family executives. As family members identify themselves with their firm and intend to hand over the business to next generation, they highly value the social legitimacy of their firm. Therefore, the relationship between the lack of ESG management legitimacy and the firm's corporate giving will be further strengthened as the number of family executives increases. Empirical results provide supports for the two hypotheses.

• Knowledge Management Research
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• v.13 no.4
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• pp.31-54
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• 2012

This study examines whether employees' legitimacy perceptions of corporate social responsibility (CSR) affect their organizational citizenship behavior (OCB). It also investigates whether CEO's visionary leadership can moderate this causal relationship. CSR legitimacy is defined in the current study as employees' personal beliefs about the appropriateness of corporate CSR activities. In fact, employees evaluate the appropriateness of CSR activity based on its consistency with corporate philosophy (e.g. corporate mission, vision, and values) which functions as employees' referencial belief structure. If CSR activity is perceived as one of firm's effort to fulfill its mission, vision, and values, which means that espoused theory and theory-in-use of CSR activity are congruent, employees will consider firm's CSR activity as legitimate. If, however, employees think that CSR activity is not congruent with firm's mission, vision, and values, which means that espoused theory and theory-in-use of CSR activity are inconsistent, they will perceive that CSR activity of their firm is not legitimate. In the current study, we propose that employees who perceive that the CSR activity of their firm is legitimate are more likely to engage in OCB. In addition, we hypothesize that CEO's visionary leadership can strengthen the positive effect of employees' perception of CSR legitimacy on their OCB. We tested these hypotheses with the sample of 383 employees from 32 companies listed on DJSI (Dow Jones Sustainability Index) Korea 2009. We employed the HLM (hierarchical linear modeling) program to decompose the multi-level random effects. We found that CSR legitimacy perceptions of employees increase employees' OCB and that CEO's visionary leadership moderates this relationship. We discussed implications of these findings in more detail.

• Journal of Korea Trade
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• v.25 no.1
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• pp.184-202
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• 2021

Purpose - This study empirically investigates the relationship between expatriate CEOs of multinational corporation (MNC) foreign subsidiaries and local philanthropy. Since corporate social responsibility (CSR) enables MNCs to achieve local legitimacy, this research argues that local philanthropy is a valuable strategic means for expatriate CEOs of foreign subsidiaries to secure local legitimacy. Design/methodology - To investigate our argument, we use a sample of 5,459 observations from 576 foreign subsidiaries of MNCs in Korea between 2002 and 2016. We conduct a random-effects panel Tobit regression with subsidiary CEO having foreign nationality as the independent variable and local philanthropy as the dependent variable. Findings - Our main findings are that expatriate CEOs of foreign subsidiaries are more actively engaged in local philanthropy. In addition, the positive relationship between expatriate CEOs and local philanthropy is weaker as their tenure increases. Originality/value - How expatriate CEOs overcome their weak local legitimacy as foreigners in a host country has remained unclear because existing studies mainly focused on the control and coordination aspects of staffing expatriates in CEO positions of foreign subsidiaries. This study broadens the literature on subsidiary CEO staffing and CSR activities of MNCs by identifying complementary relationships between expatriate CEOs and corporate philanthropy in the host country.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.6
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• pp.121-132
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• 2015

This study by the authenticity of the CSV in social contribution activities and not giving a positive effect on job satisfaction of employees, as adjusted by the identification variables in the organization that were neglected during the research for the CSV its positive impact on job satisfaction the purpose is to verify whether this study has been carried out by a survey of employees of some medium-sized enterprises and large corporations to small businesses and worker being served on them, social contributions derived for the research activities of public interest and corporate profit activities classified and divided whether the legitimacy of the employees for social contribution activities that are embedded in its base in the perception of moral legitimacy and practical perceived legitimacy of these four variables were presented, and how these variables presented a positive effect on employee job satisfaction, control Job organizational changes saw equate to verify that controls are effective. As a result, first, the authenticity of the CSV is giving a positive effect on the activity of public interest've found that giving a positive effect on the perception of employees and the moral legitimacy, and job satisfaction of employees has showed that it does not affect, whichIt could not be verified because of the moderating effect between job satisfaction and perceived moral legitimacy. Second, CSVDML authenticity showed that a positive effect on the perception of practical legitimacy by giving employees a positive impact on corporate profit activity, which results significantly affected the job satisfaction of employees. And moderator of the organization identified has been proven that there is a moderating effect between job satisfaction and perceived practical justification. In order to improve employee job satisfaction by the public activities through this research, public service activities can be seen that the need for settlement of corporate culture that can impress an astute awareness of the strategic objectives of companies seeking employees.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.1097-1104
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• 2020

This research seeks to provide evidence about how political connections, proxied by government ownership and the existence of politically connected board members, affect the extent of corporate social responsibility (CSR) disclosures in Indonesian listed companies. This research uses the legitimacy theory as a basis for explaining management's motivation for disclosing its CSR. The sample consists of 131 firm-year observations from 38 non-financial public companies that published sustainability reports from 2013 to 2017. We measured the CSR disclosures using a disclosure checklist on the sustainability reports. We subsequently processed the data using a random effect (RE) linear regression. The result shows that CSR disclosures were greater in government-owned companies but lower in companies that have politically connected board members. The results support the legitimacy theory that the government intends to demonstrate legitimate national economic and political conditions by showing that government-owned companies are sustainable. However, CSR disclosures seem to have a substitutive relationship with the existence of politically connected board members, since those political connections may protect the company from public pressure and/or the risk of litigation, reducing the need for CSR disclosures. This research provides evidence that different types of political connections may have different impacts on corporate disclosures.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.601-611
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• 2020

The study aims to investigate the impact of ownership structure on corporate voluntary disclosure in the listed companies of Bangladesh. While many studies on the impact of ownership structure on voluntary disclosure have looked at developed and developing countries, few studies have been carried out in a transition economy. Using a three-step relative voluntary disclosure index, the study applies a multivariate analysis on the cross-sectional data for the year 2018. The findings indicate that the quality of voluntary disclosure in transition economy is still below average but has improved compared to findings from the previous literature. We found a significant inverse relationship between corporate voluntary disclosure and public ownership, while no significant relationships between voluntary disclosure and institutional ownership, director ownership, and foreign ownership have been found. The empirical findings of the study will provide evidence to promote the voluntary disclosure characterized by the ownership structures. The findings have important implications for both local and foreign investors as they make their investment decisions especially related to a transition economy. Besides, the findings will assist, not only the corporate executives in rearranging their reporting paradigm, but also the regulators and governments in similar transition economy in adopting and formulating their corporate policies and strategies.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.453-463
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• 2021

The current study aims to investigate the relationship between CSRD and firm performance, as an indicator for corporate socially responsible behavior, and corporate market performance of listed companies on the Amman stock exchange (ASE). The study adopts a quantitative methodology and utilizes pooled data sets that was collected following content analysis approach of the annual reports for the period 2014 to 2019. The study sample consists of 42 listed companies. The study ran a multiple regression model in order to capture the relationship between the independent variable CSRD and the dependent variable that is Firm performance which was measured using Tobin's Q. The study also utilized five control variables in order to control the hypothesized relationship between CSRD and Firm Performance. The results indicate a negative but significant relationship between CSRD and corporate market performance measured by Tobin's Q. The results stand against the notion of the business case for CSR, and indicate the opposite position, so, the higher CSRD, the lower will be Tobin's Q. Such results support the notion of the institutional theory, and provide an initial evidence for legitimacy seeking behavior in Jordanian companies. However, the results indicate a lower level of awareness of CSR across investors and market players, which support arguments of the difference in market perceptions towards CSR.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.161-169
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• 2020

The condition of mining companies that exploit natural resources in their business processes underline this research to emphasize on social and environmental issues. After twelve years of government regulation on CSR practices, this study investigates the factors that influence mining companies in disclosing information about corporate social responsibility based on legitimacy, stakeholders, and agency theory. Thus, independent variables are foreign ownership, company size, leverage, and the board of commissioners. The dependent variable is the corporate social reporting disclosure that is measured using GRI indexing. For sampling, we have used thirty-four Indonesian mining companies listed in IDX during the 2014-2018. out of which only fifty-two companies meet the sample criteria. All data should pass the classical assumption test to get the best estimator. Multiple linear regression is used to test the hypothesis, and the results show that the model is good, and can explain 60% of the dependent variable. Based on F-test, all four variables affect CSR practices simultaneously. The findings of this study suggest that foreign ownership and firm size influences CSR disclosure in a positive direction. However, this study did not support the hypothesis that leverage negatively affects CSR disclosure and board size measures positively affect CSR disclosure.