• Title/Summary/Keyword: Corporate Social Responsibility

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The Impact of Corporate Social Responsibility on Firm Value: The Role of Tax Aggressiveness in Indonesia

  • FUADAH, Luk Luk;KALSUM, Umi
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.209-216
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    • 2021
  • This study aim is to examine 1) the impact of corporate social responsibility disclosure and tax aggressiveness on firm value, 2) the impact of tax aggressiveness on firm value, and 3) the impact of corporate social responsibility on firm value. The sample of this study is 29 manufacturing companies listed on the Indonesia Stock Exchange. The period of research spans three years, from 2017 to 2019. The data is gathered from the annual report of the companies or website of companies and also the website from Indonesia Stock Exchange (IDX). This study uses Structural Equation Model with Partial Least Square. The research findings show that corporate social responsibility and tax aggressiveness have a negative and significant impact on firm value. The tax aggressiveness and firm value have a negative and significant impact. Corporate social responsibility has a positive and significant impact on firm value. This study uses the manufacturing sector, so that the findings of this study cannot be generalized to other sectors. Future research should explore other sectors such as mining, banking, etc. This study uses Effective Tax Rate (ETR) to measure tax aggressiveness. Further research should use another measurement, for instance, Current Effective Tax Rate (CETR).

CEO Humble Leadership and Corporate Social Responsibility: The Moderating Effect of Firm Slack

  • HONG, Sung Min
    • The Journal of Economics, Marketing and Management
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    • v.8 no.2
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    • pp.27-38
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    • 2020
  • Purpose: Strategic management scholars have investigated the effects of corporate social responsibility (CSR) on firm financial performance, identifying various impacts of CSR activities showing conflicting results. Meanwhile, relatively less attention has been paid to the antecedents of CSR activities. According to upper echelons theory, organizational outcomes are predicted by characteristics of CEOs and top management team members. Corporate social responsibility is a type of organizational outcome influenced by such top leader characteristics and choices. Recognizing the importance of exploring new antecedents of CSR activities, I examine whether CEO humility affects CSR outcomes. Research design, data and methodology: The KEJI index was set as a dependent variable to measure CSR activities. Among the 200 sample companies registered in the KEJI database in 2014, 85 companies were finally selected and analyzed to measure CEO humility, as independent variable. I also examine the moderating effects of firm slack on the relationship between CEO humility and CSR activities. Results: There is a positive relationship between CEO humility and corporate social responsibility activities and this relationship is negatively moderated by firm slack. Conclusions: This paper contributes to understanding positive impacts of having humble CEOs on corporate social responsibility outcomes and recognizes the role of firm slack.

The Historical Paradigm of Corporate Social Responsibility (CSR) in Korea

  • Hyein WOO
    • Journal of Koreanology Reviews
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    • v.2 no.1
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    • pp.9-16
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    • 2023
  • This study will provide an overview of the development of 'Corporate Social Responsibility' (CSR) in South Korea throughout time, as well as its sources of inspiration and recommendations. The study will also rely on the body of existing research to provide insights into the present condition of CSR in the nation and the measures launched to promote socially responsible practices in the corporate environment. As a result, it will act as a crucial dedication to comprehending corporate social responsibility within the Korean environment. According to the searching results in the literature content dataset, there has been total four historical paradigm of CSR in South Korea, such as (1) Adoption of the CSR principles, (2) Introduction of the Korean Association of Social Responsibility, (3) The Seoul Environmental Charter, (4) The Board of Audit and Inspection Intervention. Based on the results of the current study, the present author could conclude that ingrained corporate social responsibility (CSR) is in Korean business culture, which has been promoted since the 1920s. Businesses can benefit by using the guidelines offered by the CSR Promotion Act and related activities to uphold their responsibilities towards society and the environment, overviewing comprehensively CSR advancement in South Korea from the 1920s to the display day.

Influence of Machiavellianism on the Perception of Corporate Social Responsibility (마키아벨리적 성향이 사회적 책임에 대한 인식에 미치는 영향)

  • Kim, Jong-Shik
    • Korean Business Review
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    • v.21 no.1
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    • pp.19-36
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    • 2008
  • This study examines respondents' perception of influence of corporate social responsibility on the corporate effectiveness. Also it investigates the relationship between Machiavellianism and corporate social responsibility. Survey data were collected from undergraduate business students, Advance Management Program attendants and business professors of Hallym University. The results show that they perceive corporate social responsibility's positive contribution to profitability and success. Older respondents thought more positively about contributions of corporate social responsibility to short-run success than younger ones. Also Machiavellian scores of older ones were lower than those of younger ones. The findings indicate that Machiavellianism influences directly respondents' perception of corporate social responsibility. It implies that understanding of human nature is important to induce corporate managers to be socially responsible.

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The Effects of the Perceived Motivation Type toward Corporate Social Responsibility Activities on Customer Loyalty (기업사회책임활동적인지인지동기류형대고객충성도적영향(企业社会责任活动的认知认知动机类型对顾客忠诚度的影响))

  • Kim, Kyung-Jin;Park, Jong-Chul
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.3
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    • pp.5-16
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    • 2009
  • Corporate social responsibility (CSR) activities have been shown to be potential factors that can improve corporate image and increase the ability of corporations to compete. However, most previous studies related to CSR activities investigated how these activities influence product and corporate evaluation, as well as corporate image. In addition, some researchers treated consumers' perceptions of corporate motives as moderator variables in evaluating the relationship between corporate social responsibilities and consumer response. However, motive-based theories have some weaknesses. Corporate social responsibility activities cause two motives(egoistic vs. altruistic) for consumers, but recently, Vlachos et al. (2008) argued that these motives should be segmented. Thus, it is possible to transform the original theory into a modified theory model (persuasion knowledge model, PKM). Vlachos et al. (2008) segmented corporate social responsibility motives into four types and compared the effects of these motives on customer loyalty. Prior studies have proved that CSR activities with positive motives have positive influences on customer loyalty. However, the psychological reasons underlying this finding have not been determined empirically. Thus, the objectives of this research are twofold. First, we attempt to determine why most customers favor companies that they feel have positive motives for their corporate social responsibility activities. Second, we attempt to measure the effects of consumers' reciprocity when society benefits from corporate social responsibility activities. The following research hypotheses are constructed. H1: Values-driven motives for corporate social responsibility activities have a positive influence on the perceived reciprocity. H2: Stakeholder-driven motives for corporate social responsibility activities have a negative influence on the perceived reciprocity. H3: Egoistic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H4: Strategic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H5: Perceived reciprocity for corporate social responsibility activities has a positive influence on consumer loyalty. A single company is selected as a research subject to understand how the motives behind corporate social responsibility influence consumers' perceived reciprocity and customer loyalty. A total sample of 200 respondents was selected for a pilot test. In addition, to ensure a consistent response, we ensured that the respondents were older than 20 years of age. The surveys of 172 respondents (males-82, females-90) were analyzed after 28 invalid questionnaires were excluded. Based on our cutoff criteria, the model fit the data reasonably well. Values-driven motives for corporate social responsibility activities had a positive effect on perceived reciprocity (t = 6.75, p < .001), supporting H1. Morales (2005) also found that consumers appreciate a company's social responsibility efforts and the benefits provided by these efforts to society. Stakeholder-driven motives for corporate social responsibility activities did not affect perceived reciprocity (t = -.049, p > .05). Thus, H2 was rejected. Egoistic-driven motives (t = .3.11, p < .05) and strategic-driven (t = -4.65, p < .05) motives had a negative influence on perceived reciprocity, supporting H3 and H4, respectively. Furthermore, perceived reciprocity had a positive influence on consumer loyalty (t = 4.24, p < .05), supporting H5. Thus, compared with the general public, undergraduate students appear to be more influenced by egoistic-driven motives. We draw the following conclusions from our research findings. First, value-driven attributions have a positive influence on perceived reciprocity. However, stakeholder-driven attributions have no significant effects on perceived reciprocity. Moreover, both egoistic-driven attributions and strategic-driven attributions have a negative influence on perceived reciprocity. Second, when corporate social responsibility activities align with consumers' reciprocity, the efforts directed towards social responsibility activities have a positive influence on customer loyalty. In this study, we examine whether the type of motivation affects consumer responses to CSR, and in particular, we evaluate how CSR motives can influence a key internal factor (perceived reciprocity) and behavioral consumer outcome (customer loyalty). We demonstrate that perceived reciprocity plays a mediating role in the relationship between CSR motivation and customer loyalty. Our study extends the research on consumer CSR-inferred motivations, positing them as a direct indicator of consumer responses. Furthermore, we convincingly identify perceived reciprocity as a sub-process mediating the effect of CSR attributions on customer loyalty. Future research investigating the ultimate behavior and financial impact of CSR should consider that the impacts of CSR also stem from perceived reciprocity. The results of this study also have important managerial implications. First, the central role that reciprocity plays indicates that managers should routinely measure how much their socially responsible actions create perceived reciprocity. Second, understanding how consumers' perceptions of CSR corporate motives relate to perceived reciprocity and customer loyalty can help managers to monitor and enhance these consumer outcomes through marketing initiatives and management of CSR-induced attribution processes. The results of this study will help corporations to understand the relative importance of the four different motivations types in influencing perceived reciprocity.

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Do Firms with Historical Loss Disclose Less Social Responsibility Information?

  • YIN, Hong
    • The Journal of Industrial Distribution & Business
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    • v.11 no.1
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    • pp.19-28
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    • 2020
  • Purpose: This research aims to empirically investigate the motivation of corporate voluntary disclosure by exploring the impact of historical loss on corporate social responsibility disclosure (CSRD). Research design, data, and methodology: This paper takes Chinese A-share listed firms that issued standalone social responsibility reports during the period of 2009-2017 as a sample. Drawing on extant literature, this paper defines historical loss firms as firms with net profit greater than or equal to 0 and undistributed profit less than 0. The tendency score matching method (PSM) is used to find matching samples for historical loss firms. Then OLS regression is conducted to investigate the relationship between historical loss and corporate social disclosure. Results: The results show that historical loss has a significant positive impact on the quality of corporate social responsibility disclosure. After changing the measurement of independent and dependent variables as well as adopting different matching methods to screen the control group, the results still hold. Further research indicates that the relationship between historical loss and CSRD is influenced by corporate financing constraints and industry competition. Conclusions: This research supports the resource motivation hypothesis of corporate social responsibility disclosure, and provides empirical evidence for regulators to strengthen supervision on corporate disclosure.

A Study of Social Responsibility and Cultural Marketing of Korean Casual Brands (캐주얼 브랜드의 사회적 책임과 문화마케팅에 대한 연구)

  • Kim, Eun-Gyeung;Sung, Hee-Won
    • Fashion & Textile Research Journal
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    • v.13 no.2
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    • pp.162-172
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    • 2011
  • The purpose of this study is to examine the influences of social responsibility and culture marketing on corporate image and brand equity in the casual wear market. In addition, whether corporate image and brand equity have impact on purchase intention is investigated among high school students in a local area. Two casual brands, Polham and Tate are selected for this study. The data are collected from male and female adolescents living in a local area with convenience sampling method. A total of 402 useful data are analyzed by SPSS 14.0 program. The results of this study are as follows. First, there are significant relationships among corporate social responsibility, culture marketing, corporate image, and brand equity of two brands. Second, environmental cultural support, social contribution, and economical responsibility of CSR present positive influences on corporate image and brand equity in common between two brands. Especially environmental cultural support of fashion business is highly important to improve corporate image and brand equity. Third, cultural direction and cultural business marketing are more influential than cultural sales promotion or cultural support marketing to improve corporate image and brand equity. Fourth, corporate image does not have a direct influence on the purchase intention, but brand equity factors show significant influences on the purchase intention. In conclusion, fashion companies should commit to perform corporate social responsibility and culture marketing that are suitable to target market for the long term, since these efforts would improve corporate image and build brand equity.

Fashion Corporate Social Responsibility, Corporate Image, Product Preference, and Purchase Intention: Chinese Consumers' Perspectives

  • Zhang, Jian;Cui, Yu Hua
    • Journal of Fashion Business
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    • v.22 no.6
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    • pp.14-24
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    • 2018
  • In this age of information, companies are losing grip of their image. Perhaps this explains the reason why corporate social responsibility (CSR) has become somewhat of a buzzword among established fashion industry leaders-companies seem determined to show stakeholders that they have values, are responsible, and they are driven by more by values than the prospects of financial gain. This study assessed the effect of CSR have in the fashion industry on the corporate image, product preference, and purchase intention in China. Three hundred native residents in China participated in an online survey from 1-12th Jan 2017. The results were as follows: (1) CSR consists of five components; economic responsibility, ethical responsibility, environmental protection, consumer protection, and philanthropic responsibility. (2) Both economic and ethical responsibilities have significant positive effects on corporate image, while perceived CSR does not have significant effect on product preference or purchase intention. (3) Consumers' product preference and perceptions regarding corporate image influence their intention on making a purchase. These findings might operationally assist Korean fashion corporations to identify and address the critical aspects of CSR management which will improve their image as good corporate citizens and foster favorable attitudes toward fashion products from China. Further results and direction of future research were discussed.

A study on the impact of corporate social responsibility on organizational trust and Labor-Management Relations (기업의 사회적 책임 활동이 조직신뢰 및 노사관계에 미치는 영향에 관한 연구)

  • Shin, Dong-Ju;You, Yen-Yoo
    • Journal of Digital Convergence
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    • v.9 no.5
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    • pp.123-140
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    • 2011
  • The purposes of this study are to verify if social responsibility activities of domestic companies and organizations who are widening the area of corporate social responsibility activities make a significant effect on the Labor-Management Relations of the company statistically and suggest political and strategic tasks the company must assume if the corporate social responsibility activities are to make positive and negative effects on organizational trust and Labor-Management Relations by members of the company. The results of the study can be summarized as follows. First, companies make a positive effect partially on the standard of employees' confidence for the organization through the corporate social responsibility activities. Second, corporate social responsibility activities have an effect partially on the Labor-Management Relations which are one of the variables influencing an organization's results. Third, the improvement of employees' organizational trust had a significant effect on Labor-Management Relations. Therefore, the results of this study verified the direct and indirect effects between organizational trust and Labor-Management Relations which are important factors of companies' social responsibility and organizational results which were not treated in the precedent studies.

The Influence of Super-Centers' Social Responsibility Activities and Authenticity On Consumer Attitude and Purchase Intention

  • Cho, Hee-Young;Ju, Yoon-Hwang
    • Journal of Distribution Science
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    • v.13 no.2
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    • pp.35-44
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    • 2015
  • Purpose - In this study, corporate social responsibility activities as perceived by customers visiting super-centers and the influence of the authenticity of such social responsibility activities on trust have been examined while attempting to verify how trust would influence consumers' attitude and purchase intention. Research design, data, and methodology - For data collection, a questionnaire survey has been conducted on 200 consumers who would visit super-centers, and 161 effective samples have been used for the final analysis. Methodologies such as Cronbach's α, factor analysis, correlation analysis, and structural equation modeling were used. Results - Among corporate social responsibility activities, legal responsibility in particular has turned out to influence consumers rather greatly. Thus, law observance has turned out to be a necessity rather than merely an economic or ethical responsibility; as for trust, trust in the product has turned out to exert more influence on consumers than trust in the enterprise. Conclusions - Corporate social responsibility activities can mean that the complete fulfillment of natural and proper corporate responsibility will secure consumer trust, thus influencing consumer attitude and purchase intention positively.