• Title/Summary/Keyword: Social Activities of Business

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The Distribution Industry's Social Responsibility and Ethics Management: Effects on Corporate Trust and Loyalty

  • Yoon, Nam-Soo;Kim, Young-Ei
    • Journal of Distribution Science
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    • v.12 no.7
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    • pp.23-35
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    • 2014
  • Purpose - This study aims to explore the effects of social responsibility activities and business ethics practices on corporate trust and loyalty in the context of a large retail distribution business. Research design, data, and methodology - The data collected was analyzed using PASW Statistics 18.0. In order to verify the demographic characteristics, frequency analysis was conducted on the data. Results - The results of the study were as follows. First, social responsibility activities had a significant effect on corporate trust. Second, both corporate social responsibility activities and business ethics practices had significant effects on loyalty. Third, corporate trust had a significant effect on loyalty. Fourth, corporate social responsibility activities and consumer protection activities had a partial mediation effect, while environmental protection activities and social contribution activities had complete mediation effects. Conclusions - This study clarified and explained the factors of corporate social responsibility activities and business ethics practices that customers value, and analyzed the influence of these factors on corporate trust and loyalty.

Product Market Competition and Corporate Social Responsibility Activities (제품 시장 경쟁 및 기업의 사회적 책임 활동)

  • RYU, Hae-Young;CHAE, Soo-Joon
    • The Journal of Industrial Distribution & Business
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    • v.10 no.11
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    • pp.49-56
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    • 2019
  • Purpose: Corporate social responsibility is a self-regulating business model that helps a firm be socially accountable to the public. By practicing corporate social responsibility, firms can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. Corporate social responsibility activities are not directly linked to increasing corporate performance and corporate value, but rather involve spending expenses. Based on these facts, this study verifies whether the effects of corporate social responsibility activities differ depending on the firm's situation. Research design, data and methodology: This study analyzed the effect of market competition on corporate social responsibility activities using logistic regression analysis on listed companies in the KOSPI and KOSDAQ for fiscal years 2014 through 2016. In this study, market competition was measured using the Herfindahl-Herschman Index(HHI). Higher HHI value can be interpreted as a lower degree of market competition. We also measured corporate social responsibility activities using the KEJI Index published by the Korea Economic Justice Institute (KEJI). If a firm-year is included in the top 200 companies of the KEJI Index, it is classified as a good corporate social responsibility activity firm. Results: We find that companies in less competitive market were not included in the KEJI Index. This result indicates that firms in the market with lower market competition perform less corporate social responsibility activities that incur costs. An additional analysis showed that there was a significant negative relationship between the market competition and the corporate social responsibility activity scores published by the KEJI Index. These result adds robustness to the result of the hypothesis that firms that have a monopolistic place in the market practice passive corporate social responsibility activities. Conclusions: The results show that managers of a firm in the lower market competition have a lower incentive to use limited resources for projects that are not directly related to revenue. The results of this study imply that corporate social responsibility activities vary according to the position of the business. Therefore, this study suggests that market investors should consider the degree of competition in the market when they evaluate corporate social responsibility activities.

The Relationship between Corporate Social Responsibilities and Financial Reporting Quality: Focusing on Distribution & Service Companies (사회적 공헌활동과 재무보고품질: 유통, 서비스 기업을 중심으로)

  • Chae, Soo-Joon;Ryu, Hae-Young
    • Journal of Distribution Science
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    • v.16 no.10
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    • pp.77-82
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    • 2018
  • Purpose - This paper examines the relationship between corporate social responsibility and financial reporting quality. Corporate social responsibility is a way for firms to take responsibility for the social and environmental impacts of their business operations. Corporate social responsibility is a broad concept that can take various forms depending on the firm and industry. Through corporate social responsibility programs, firms can benefit society. At the same time, firms improve their reputations by increasing engagement in corporate social responsibility activities. However, corporate social responsibility activities are not directly related to profitability, especially for distribution firms. Research design, data, and methodology - 229 distribution & service firm-years between 2011 and 2016 are used for the main analysis. In Korea, Korean Economic Justice Institute evaluates the ethical performance of Korean firms, and the institute annually discloses the scores of top firms. This study uses the KEJI Index scores to measure firm-level corporate social responsibility activities. Discretionary accruals are used as a proxy for financial reporting quality. Discretionary accruals can be used opportunistically, and thus distort the information in earnings. We extract financial data from the KIS Value database. Results - We find that distribution & service firms' engagement in corporate social responsibilities is positively related to their financial reporting quality. First, there is a negative correlation between implementation of corporate social responsibility activities and discretionary accruals. In addition, we find that the coefficient of CSR is significantly negative, supporting our prediction. The result is significant at the 1% level. Conclusions - We examine the relationship between corporate social responsibility activities of distribution firms and their financial reporting quality while most prior studies examine the engagement in corporate social responsibility activities of manufacturing firms. The results of this study show that distribution & service firms engaging in corporate social responsibility activities are likely to maintain high-quality financial reporting.

The Effects of the Social Contribution Activities on Local Developmental Achievement with a focus on the Mediating effect of Inter-Firm Connected Activity (사회공헌활동이 기업 간 연계 활동의 매개효과를 중심으로 지역발전성과에 미치는 영향)

  • Ahn, Jae-Hyun;Hong, Seok-Jin;Kim, Sun-Wook
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.19 no.2
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    • pp.516-529
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    • 2018
  • Due to the growing awareness and demand for corporate social responsibility, the corporate activities designed to make a social contribution are becoming increasingly diversified. Nonetheless, according to a periodic survey, the public has become dissatisfied with the social contribution activities of domestic corporations. The perceptions of the social contribution activities of domestic corporations and the public were found to be quite different. In this study, the Social Contribution Activities were classified into three factors, "Socio-Cultural Resource Activities", "Indirect Social Resource activities" and "Economic Resource Activities", and the effect of each factor on the inter-firm connected activities and achievements of local development were analyzed. Firstly, the "Socio-Cultural Resource Activities" and "Indirect Social Resource Activities" were shown to have a positive effect on the Inter-firm connected activities in the community. Secondly, it was found that the more active the Inter-firm connected activities were in the community, the bigger their positive effect was on the achievements of local development. Thirdly, the "Economic Resource Activities" were shown to have a positive effect on the achievement of local development. Fourthly, "Socio-Cultural Resource Activities" and "Indirect Social Resource Activities" were shown to have a positive effect on the Inter-firm connected activities and an indirect positive effect on the achievement of local development. Based on this research, we quantitatively determine the relationship between the corporate social contribution activities and performance.

Effect of Organizational Culture on Corporate Social Welfare Activities

  • JEONG, Young Joo;CHOI, Moon Kyung
    • East Asian Journal of Business Economics (EAJBE)
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    • v.9 no.4
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    • pp.43-54
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    • 2021
  • Purpose - Stakeholders play a vital part in the company's CSR activities and they are part of the company's achievement and affect the company's achievement or business objectives. This study aims to add insight into the already existing knowledge how the organizational culture can promote corporate social welfare activities. Research design, Data, and methodology - The current authors obtained text data for the possible practical suggestions which might be used for the creation of coding method. That implies that the present author investigated only trustable textual sources to provide for the possible solutions such as peer-revied sources and published book. Result - Research results indicated that organizational culture promotes corporate social welfare activities by making people know their values and understand how they come about. Not every community knows what its members want and how to achieve its needs. Sometimes, a community can obtain the values and principles of an organization and incorporate them into community values. Conclusion - Executive leadership and customers are part of society. Any strategy that influences their operation and works ethic influences the contact of the community. This research found methods vital in setting up an excellent culture that enhances profitability and the corporate social welfare activities through motivation and communication.

Affecting Customer Loyalty by Improving Corporate Image and Customer Value through Corporate Social Responsibility Activities (기업의 사회적 책임활동을 통한 기업이미지 및 고객가치 향상이 고객충성도에 미치는 영향)

  • Kim, Jong-Ho;Hwang, Hee-Joong;Song, In-Am
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.31-42
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    • 2014
  • Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies' CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies' CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers' recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.

Evolution of corporate social contribution activities in the era of the Fourth industrial revolution (4차 산업혁명 시대의 기업사회공헌 활동의 진화)

  • Kim, Minseok;Cho, Youngbohk
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.1
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    • pp.85-95
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    • 2019
  • Recently, studies on the fourth industrial revolution have been actively conducted in the areas of government, business, and academia. Corporate business models that utilize the major agendas of the fourth industrial revolution such as robots, artificial intelligence, Internet of things (IoT), and block chains have been created, and various changes have occurred in not only business, education, and living environments but also in international relations. In this study, we looked at changes in social contribution activities from the perspective of a company facing impacts of the fourth industrial revolution. This study examines the definition and activities of corporate social contribution and how we can contribute to society through corporate activities. 'AT Educom', LG Uplus 'Social Contribution through IoT', KT's anti-infectious disease prevention platform and cases of Intel using IoT. In addition, we have presented what we need to do in the future to promote corporate social contribution activities that will make more meaningful impacts on how corporate social contribution activities will change according to technology development. The first, measuring the performance of corporate social contribution activities needs a standardized methodology and social contribution activities through platform business and ICT should be actively pursued. Lastly, social contribution activities between companies and sectors will increase.

Business Ecosystems as a New Source of Competitiveness and a Role of Social Capital (기업 경쟁력의 새로운 원천으로서 비즈니스 생태계와 사회적 자본의 역할)

  • Joo, Jaehun;Shin, Matthew M.;Eom, Mike Tae-In
    • The Journal of Information Systems
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    • v.23 no.4
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    • pp.93-117
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    • 2014
  • How can business ecosystems be a source of firm's competitiveness? Is corporate social responsibility (CSR) is an investment activity for building sustainable business ecosystems? The purpose of this research is to identify the relationship between CSR, social value, sustainable business ecosystems, and firm's competitiveness by introducing a mediating role of social capital. We conducted in-depth interviews with seven informants from two domestic firms and four oversea firms. Three propositions were drawn by analyzing qualitative data collected from the interviews and literature review. Various activities creating social value including CSR and CSV (Creating Shared Value) are positively associated with sustainable business ecosystems. Firm accumulates social capital of the business ecosystem through creation of social value. Finally, the social capital of business ecosystem has a positive influence on firm's competitiveness. Implications were suggested for academics and practitioners.

The Shifting of Business Activities during the COVID-19 Pandemic: Does Social Media Marketing Matter?

  • PATMA, Tundung Subali;WARDANA, Ludi Wishnu;WIBOWO, Agus;NARMADITYA, Bagus Shandy
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.283-292
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    • 2020
  • The implementation of physical or social distancing during the Covid-19 pandemic has an implication on the shifting of conventional to online business activities. This study aims to explore how financial support, perceived benefits, external pressure determine social media marketing as well as understanding the role of internet and e-business technology (IEBT) that occurs in this relationship. This study adopted a quantitative study with Structural Equation Modeling (SEM)-based variance Partial Least Square (PLS), which aims to enhance understanding of the relationship between variables. The surveyed population of this study came from 123 small- and medium-sized enterprise (SME) owners in East Java of Indonesia, using an online survey and selected with the convenience random sampling method. The findings of this study indicated that the perceived benefits and external pressure have a positive effect on the adoption of IEBT. However, financial support failed in explaining SMEs' adoption of IEBT. This study confirmed that the adoption of IEBT has successfully mediated the influence of financial support, perceived benefits, and external pressure on social media marketing. Despite the samples solely collected from East Java, this study is the first step in research related to the social media marketing in SMEs in Indonesia.

The Effects Social Entrepreneurship and CSR Activities on Performance of Social Enterprise (사회적 기업가정신이 CSR 활동과 사회적 성과에 미치는 영향에 관한 연구)

  • Jang, Sung Hee
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.9 no.2
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    • pp.117-127
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    • 2014
  • The purpose of this study is to examine the factors influencing social performance of social entrepreneurship and Corporate Social Responsibility(CSR) activities. This model tests various theoretical research hypotheses relating to social enterprise, social entrepreneurship, and CSR activities. Social entrepreneurship have been classified as innovativeness, proactiveness, risk-taking, and social value orientation. And CSR activities have been classified as community responsibility, philanthropic responsibility, and environmental responsibility. The proposed model is analyzed to target social entrepreneurs. Valid 115 questionnaires have been collected within three months of 2013. Smart Partial Least Square(PLS) 2.0 have been utilized for deriving the study results. The result of hypothesis testing are as follows. First, social entrepreneurship positively influence community responsibility, philanthropic responsibility, and environmental responsibility. Second, community responsibility, philanthropic responsibility, and environmental responsibility positively influence social performance in social enterprise. The results of this study will provide various implications to improve social performance and social entrepreneurship in social enterprise.

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