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We examine how and when chief executive officer (CEO) abusive leadership can undermine organizational innovation and performance by diminishing top management team (TMT) behavioral integration. Based on upper echelons theory and the related interface perspective, we analyzed cross-sectional survey data from CEOs and TMTs of 308 small and medium-sized enterprises (SMEs) in Study 1 and multi-wave multisource survey data from CEOs and TMTs of 287 SMEs in Study 2. The empirical results support our theory. In addition, these effects are moderated by philanthropic corporate social responsibility (CSR) initiated by CEOs, such that CEO abusive leadership has a more substantial negative indirect impact on organizational innovation and performance when the level of philanthropic CSR is elevated. This moderation is attributed to TMT members' amplified negative perceptions of receiving inconsistent treatment, whereby the CEO treats external stakeholders favorably and internal executives poorly. The combined effects of CEO abusive leadership and philanthropic CSR on organizational innovation and performance add to the literature on abusive leadership, strategic leadership interfaces, and upper echelons theory. [ABSTRACT FROM AUTHOR]

The article from the Academy of Management Learning & Education reviews the book "Net Positive: How Courageous Companies Thrive by Giving More than They Take" by Paul Poleman and Andrew Winston. The book advocates for businesses to have a net positive impact on the environment and global sustainability, emphasizing long-term value creation over short-term profit. It highlights the need for businesses to collaborate with various stakeholders and presents case studies of companies already on the net-positive path. The book challenges traditional assumptions about capitalism and sustainability, making a compelling case for organizations to adopt a net positive approach for a sustainable future. [Extracted from the article]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Many companies are levying mandatory surcharges on products to raise funds for socio-moral causes (e.g. carbon-offset, living-wage, fair-trade, and sustainability surcharges). Should these surcharges be presented separately from the product price (i.e. partitioned pricing) or combined with the product price (i.e. all-inclusive pricing)? This research argues that partitioned pricing for socio-moral surcharges can backfire. When socio-moral surcharges are partitioned, consumers feel that the company is avoiding its own responsibility toward the cause, reducing intrinsic corporate social responsibility attributions and consequently leading to adverse consumer reactions. This theorization is specific to surcharges attached to socio-moral causes; the effects reverse for non-socio-moral surcharges. Further, we document three ways via which firms can alter consumer beliefs and attenuate negative reactions. These include approaches that signal that the firm is not seeking reputational benefits, that the firm is not avoiding responsibility, and by shifting consumers' focus from the costs they have to bear to the benefits they accrue. Hence, this research presents implications for managers and policymakers seeking to incorporate socio-moral surcharges into product prices while mitigating consumer backlash. [ABSTRACT FROM AUTHOR]

Many firms engage in corporate social responsibility (CSR) initiatives, which aim to serve a broader set of stakeholders (e.g., workforce, communities, environment). These companies often encourage management to consider these stakeholders when making operational and financial decisions. One such decision that managers face involves managing earnings. We conduct an experiment in which experienced managers are placed in the role of a division manager facing an accrual decision. We find that a company's demonstrated commitment to CSR moderates both upward and downward earnings management attempts. We propose, and find support for, a moderated-mediation model in which the firm's commitment to CSR influences managers' consideration of constituents. Managers' consideration of these stakeholders differentially affects the level of accruals, depending on the direction of the earnings management incentive. Our results provide insight into how CSR may influence individuals' decisions within the organization, minimizing the impact that incentives have on maximizing one's self-interest. [ABSTRACT FROM AUTHOR]

Data breaches have the potential to weaken employee morale, corporate reputations, and customer and supplier relationships, while also disrupting marketing investments and financial performance. Research on reducing their frequency and harm focuses on tactical solutions, though breaches represent serious, even existential threats to firms. To date, research has not attempted to simultaneously address the closely connected phenomena of preventing and recovering from data breaches. The authors propose that corporate social responsibility (CSR) is a strategic variable offering dual protection: reducing the likelihood of data breaches and attenuating harm when breaches occur. Drawing on stakeholder theory, the authors distinguish between internal (addressing primary stakeholders) and external (addressing secondary stakeholders) CSR. Study 1 shows that external CSR has no prophylactic effect, while moderate and high levels of internal CSR are equally effective at preventing data breaches, compared with low levels of internal CSR. Study 2 assesses mitigation following a data breach by examining (1) short-term effects (in the form of an event study on cumulative abnormal returns) and (2) long-term effects (with time-series analysis of Tobin's q). The results suggest that internal CSR props up financial performance only at high levels while the positive effect of external CSR is short-lived. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) is seen as one of the key areas of sustainability for sport organizations. Although the rapid development of professional sport is evidenced, the evaluation and classification of CSR is still an under-researched area, especially in the eastern context. This study proposes a conceptual CSR model of the Chinese Super League (CSL) clubs, including five dimensions: economic, youth, community, environmental, and cultural responsibility. The establishment of the conceptual model is based on sound theoretical foundations, such as sustainable development, positive youth development, a sense of community, and globalization theories. Each dimension's validity is assessed while considering the uniqueness of Chinese Super League. This study provides theoretical evidence to support the multidimensional nature of CSR, which adds value to CSR research in the Chinese professional sport context. At a strategic level, it enlightens club managers and the Chinese Football Association to develop better CSR strategies. [ABSTRACT FROM AUTHOR]

Many professionals want to both achieve professional success and contribute to society. Yet, in some professional contexts, these aims are in tension because serving elite clients is considered the pinnacle of professional success, but professionals themselves may view serving this clientele as antithetical to making a societal contribution. Drawing on interviews with 84 architects and designers who self-identify as people seeking to contribute to society—that is, who hold a prosocial identity—we develop theory about how professionals navigate tensions between their prosocial and professional identities and with what consequences for their work with clients. We identified four strategies that professionals used to ease these tensions, all of which gave the prosocially oriented professionals a sense of identity integration. However, these strategies differently shaped professionals' approach to power relations with the client, depending on the client's status and the types of knowledge and skills each professional viewed as central to their work. Professionals with marginalized social identities, such as women and ethnic/racial minorities, were more likely than others to embrace working with low-status clients and to use broader definitions of the knowledge and skills required for their work. Our findings contribute to scholarship on professional identity construction and prosocial work. [ABSTRACT FROM AUTHOR]

Sweden was one of the first countries to introduce a carbon tax back in 1991. We assemble a unique data set tracking CO2 emissions from Swedish manufacturing firms over 26 years to estimate the impact of carbon pricing on firm-level emission intensities. We estimate an emission-to-pricing elasticity of around two, with substantial heterogeneity across subsectors and firms, where higher abatement costs and tighter financial constraints are associated with lower elasticities. A simple calibration suggests that 2015 CO2 emissions from Swedish manufacturing would have been roughly 30% higher without carbon pricing. [ABSTRACT FROM AUTHOR]

This paper conducts a textual analysis of earnings call transcripts to quantify climate risk exposure at the firm level. We construct dictionaries that measure physical and transition climate risks separately and identify firms that proactively respond to climate risks. Our validation analysis shows that our measures capture firm-level variations in respective climate risk exposure. Firms facing high transition risk, especially those that do not proactively respond, have been valued at a discount in recent years as aggregate investor attention to climate-related issues has been increasing. We document differences in how firms respond through investment, green innovation, and employment when facing high climate risk exposure. [ABSTRACT FROM AUTHOR]

This article explores Nordic countries’ and companies’ sustainability practices. It explores how nations like Denmark, Finland, and Sweden and companies such as Novo Nordisk and Ørsted achieve top sustainability rankings through their distinctive approach to stakeholder cooperation. It discusses the historical and cultural context that has shaped the Nordic approach, emphasizing the importance of long-term vision, stakeholder engagement, and cooperative strategies. It provides insights into how these practices contribute to achieving sustainable development goals and offers valuable lessons for global businesses seeking to integrate sustainable practices into their operations. [ABSTRACT FROM AUTHOR]

We test the signaling view of corporate social responsibility (CSR) engagement using two complementary quasi-natural experiments that impose exogenous negative pressure on stock prices. Firms under such adverse price pressure increase CSR activities compared to otherwise similar firms. This effect concentrates among firms with stronger signaling incentives, namely, those facing greater information asymmetry, more product market competition, higher shareholder litigation risk, and higher stock price crash risk. Firms under the exogenous negative price pressure mainly improve CSR strengths, including costly environmental investments. We also find that CSR engagement attracts socially responsible investors and lowers the cost of capital for signaling firms. [ABSTRACT FROM AUTHOR]

Problemistic search literature has long sought to understand which responses firms adopt when addressing performance shortfalls. Studies have typically considered certain responses and focused on established decision rules to examine search directions, thereby, implicitly assuming that all responses considered are workable solutions to performance shortfalls. Conversely, we argue that variations in decision-makers' beliefs about the effectiveness of particular responses in improving firm performance play an important role. These beliefs, alongside evidence supporting them, determine which specific responses firms adopt. To test this argument, we focus on two types of search solutions represented by research and development (R&D) intensity and philanthropic donation intensity. Based on 2009–2018 data collected from publicly listed Chinese firms, we find that, when decision-makers agree on the effectiveness of R&D, the positive relationship between performance shortfalls and R&D intensity strengthens; whereas when they agree on the effectiveness of corporate social responsibility (CSR), the negative relationship between performance shortfalls and donation intensity weakens. The effects of shared beliefs on the effectiveness of R&D and CSR are stronger when they are supported by relevant evidence—that is, when there is a stronger correlation between R&D or CSR on the one hand and firm performance on the other. [ABSTRACT FROM AUTHOR]

Recent management research suggests that firms try to orchestrate conformity and distinctiveness in their behavior to reconcile opposing demands of norm compliance and competitive distinction in order to appear optimally distinct. Whether they succeed or not depends on how audiences perceive the multiple signals they elicit. Extant literature has not fully uncovered how the media combine these different signals to form a representation of firms' behavior and their subsequent reactions to these combinations. We adopt a configurational approach to address this gap in the environmental sustainability context. Drawing on unique proprietary data on 118 cases in the energy utility industry and using fsQCA, we determine that different equifinal signal configurations are associated with positive media coverage regarding environmental behavior or the lack thereof. We then generate five patterns of signals that explain media reactions and disentangle the underlying logics behind them. Our study adds to the research on the multifaceted nature of signal (in)congruence perception by discussing the role of conformity and distinctiveness and highlighting that this perception depends on the signals' credibility. Delivering a balanced orchestration of conformity and distinctiveness signals is possible, but complex, because audiences tend to penalize incongruent postures they cannot associate with a given category. [ABSTRACT FROM AUTHOR]

We propose that the informational environment in which firm–stakeholder interactions are embedded shapes the effect of firm–stakeholder dialogue on a stakeholder's evaluation of a firm. How much stakeholders know about a firm (information availability), what stakeholders know about a firm (information content), and how much they trust the media that informs them (information reliability) vary across countries, firms, and time. We theorize and assess how these three dimensions of the informational environment shape the effects of firm–stakeholder dialogue on the evolution of a stakeholder's evaluation of a firm. We illustrate our arguments with insights from field interviews conducted to understand stakeholders' evaluations of the Rosia Montana gold mine in Romania, and we analyze them using original, manually coded stakeholder-level data that capture 2,454 stakeholders' evaluations of 26 gold-mining operations around the world. [ABSTRACT FROM AUTHOR]

An increasing number of consumers expect brands to engage in important societal issues. Brands like Procter & Gamble, Microsoft, and Gillette have launched ads promoting their stances on highly salient issues in public discourse. While corporate social responsibility (CSR) advertising research has explored issues such as skin cancer, heart disease, and abortion, this research stream has yet to investigate how an issue's salience in society influences consumer response. Because salient (versus nonsalient) issues make information more accessible and generate debate, the advertising context (i.e., public issue salience) may influence consumer response to CSR ads. Applying the salience theory of party competition to CSR advertising, this research shows how an issue's consensus level and individual issue importance differentially impact brand attitudes and purchase intentions when an issue is salient. Through a series of four experiments with real ads, the present investigation shows how and when public issue salience affects marketing outcomes. This research adopts an issue-centric view and contributes to CSR advertising scholarship by (a) opening a new theoretical corridor, (b) demonstrating empirically how the advertising context (public issue salience) influences marketing outcomes, (c) providing a more holistic, comparative advertising perspective on issue selection, and (d) generating new insight into individual issue importance. [ABSTRACT FROM AUTHOR]

Building from recent criticisms that mainstream political corporate social responsibility has failed to effectively address the potential expansion of corporate influence in society, we advance a new conceptualization of corporate social responsibility inspired by U.S. federalist political theory. As federalism has served as a prevailing U.S. theory for arranging governmental political power for the advancement of the public interest, we derive from federalist principles descriptive, normative, and instrumental theoretical foundations for arranging corporate power and directing corporate social action in the pursuit of similar goals. What we call "federated corporate social responsibility" (FCSR) revives an older institutional approach to corporate responsibility, paying particular attention to the division of moral labor in society and how different corporate responsibility prescriptions stand to affect the social ecosystem of power. Federalist institutional strategies deploying separations of power and constitutions are used to develop a concept of corporate "constitutional devices," which have promise to constrain the corporation as it fulfills its social responsibilities, even outside the ambit of a strong state and in light of barriers to constant, effective stakeholder accountability. We conclude by outlining FCSR managerial strategies, which sometimes endorse corporate social inaction in the interest of a desirable distribution of authority across society. [ABSTRACT FROM AUTHOR]

Why do firms take positions on divisive social issues? In this article, I draw on theories of stigma by association to explain why firms' mere proximity to controversial political actors may lead stakeholders to presume that firms silent on social issues are misaligned with the stakeholders' sociopolitical preferences. Firms, in turn, countervail these presumptions of misalignment by eschewing silence and claiming sociopolitical positions. Substantiating this theory in the context of employee recruitment following the 2017 Unite the Right White supremacist rally in Charlottesville, Virginia, I show that Charlottesville's employers combated presumptions that they shared demonstrators' anti-diversity positions by making countervailing pro-diversity claims in their online job postings. In supplementary analysis, I show that the rally was associated with a newfound wage premium in job postings by Charlottesville's employers but that this premium was lower when employers made pro-diversity claims. This study advances understanding of strategic sociopolitical positioning whereby firms make calculated appeals to stakeholders. It contrasts with related research showing that firms use social claims to combat negative evaluations resulting from their own actions or to differentiate from competitors. In doing so, it suggests opportunities for further research investigating, for example, additional motivations for firms' sociopolitical positioning, how positioning might evolve in the context of growing political polarization, and how positioning might relate to workplace inequality and diversity. [ABSTRACT FROM AUTHOR]

Using supervisory data on operational losses from large U.S. bank holding companies (BHCs), we show that BHCs with socially responsible workforce policies suffer lower operational losses per dollar of total assets. The association significantly varies by the type of workforce policies and the type of operational losses. It is driven not only by small frequent losses but also by severe tail operational risk events. Further, the risk-reducing effects of the socially responsible workforce policies are stronger for larger BHCs with more employees. Our findings have important implications for banking organization performance, risk, and supervision. [ABSTRACT FROM AUTHOR]

This study investigates the impact of low-carbon economic policies on Corporate Environmental Responsibility (CER) in Chinese A-share listed companies, with a particular focus on the role of financing constraints as a mediating factor. Despite a decrease in environmental pollution incidents in 2022, the economic and social impacts of such incidents remain significant, highlighting the need for stronger environmental governance. Building upon previous research, this study utilizes data from the Shanghai and Shenzhen stock exchanges (2010–2020) and employs a Difference-in-Differences (DID) model to assess the effects of low-carbon economic policies introduced in 2016 on CER. The findings reveal that these policies positively influence CER and that financial constraints act as a mediator. The study finds how low-carbon policies indirectly promote environmental commitments by alleviating financial barriers. The research provides valuable insights for policy formulation, advocating for intensified reforms on the financial supply side to foster a sustainable economic framework. Additionally, it underscores the importance of implementing robust low-carbon policies to elevate corporate environmental responsibility. However, the study also notes limitations related to data scope and potential external factors influencing the results. These findings contribute to the broader discourse on sustainable development, offering a blueprint for harmonizing economic growth with environmental preservation and informing future research in this area. [ABSTRACT FROM AUTHOR]

AbstractThis research investigates the intersection of Corporate Social Responsibility (CSR), Diversity, Equity, and Inclusion (DEI) strategies, and financial performance within the context of the top 5 consumer-facing organizations. Utilizing a corporate social responsibility framework, the study assesses the implementation of DEI strategies in the public relations and stakeholder engagement strategies of these organizations. Results indicate a clear valuation of DEI practices among these companies, evidenced by their proactive engagement in social and environmental activism. Furthermore, there is a notable emphasis on highlighting diverse employee experiences, underscoring their commitment to fostering an inclusive environment. These findings contribute to a deeper understanding of the relationship between CSR, DEI, and financial performance in contemporary corporate environments. [ABSTRACT FROM AUTHOR]

This study examines the impact of digital media on the relationship between corporate social responsibility (CSR) and electronic word of mouth (e-WOM) in China’s hospitality industry. Utilizing a comprehensive survey and structural equation modeling (SEM) analysis, we unveil a model where CSR, as a key influencer, drives e-WOM through consumer motivation and admiration, with green altruism serving as a significant moderator. Our findings underscore the pivotal role of genuine CSR communication in enhancing consumer engagement and e-WOM, indicating that strategic digital CSR efforts can foster customer loyalty and advocacy. While our research primarily addresses China’s hospitality sector, the implications extend globally, offering valuable insights for businesses aiming to understand and leverage consumer behavior in the digital era. This pioneering work in CSR and e-WOM serves as a guide for contemporary firms navigating the complexities of digital consumer dynamics. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) is vital for sustainable growth, while some companies receive quite large variations in CSR assessments. Aiming to measure the unmeasurable social responsibility, this paper investigates the effects of corporate social responsibility (CSR) and its rating divergence on the future stock price crash risk. We use the divergence of CSR ratings as the outcome uncertainty, and find that conditional on firms' CSR performance, future stock price crash risk will increase with the CSR divergence. Further results show that the moderating effect is more pronounced for firms with weaker investor protection or higher agency costs. We conclude that firms with higher CSR divergence have more severe agency problems, complementary to the CSR literature. [ABSTRACT FROM AUTHOR]

The relationship between Corporate Social Responsibility (CSR) and competitive advantage (CA) has become more critical than ever for firms, particularly in the hospitality and other service industries, during times of crisis. This study sought to investigate the correlation between CSR and CA, with the mediating role of creative behaviour (CB) and the moderating role of creative self-efficacy (CSE). Based on data gathered from 167 employees in the hotel industry in Saudi Arabia, the proposed model was tested using PLS-SEM via SmartPLS software. The results revealed that CSR directly and indirectly affects CA through CB. Importantly, CSE moderates the linkages between ethical and philanthropic dimensions of CSR and CB. This study expands our understanding of the relationship of CSR to CA in the hospitality literature by highlighting its potential mechanism and conditional effect, where the mediating and moderating role of CB and CSE in the relationship between CSR dimensions and firms' CA have been tested. The findings can assist firms in hospitality and other service industries in achieving CA during crises in the developing market. [ABSTRACT FROM AUTHOR]

Trade unions and corporate social responsibility (CSR) are important institutional mechanisms through which corporations undertake responsibility for their for-profit as well as not-for-profit actions. This study explores the roles of trade unions, management, and shareholders in influencing environmental, social, and governance (ESG) controversies and CSR reporting. Drawing on instrumental stakeholder theory, we argue that while management and shareholders typically focus on governance, profitability, and operational efficiency, trade unions act as critical relational stakeholders advocating for employee welfare and social sustainability. Using a sample of 416 firms over a period of 10 years, our findings reveal that trade unions significantly reduce ESG controversies and enhance CSR reporting by advocating for employee welfare and social sustainability. In contrast, management significantly impacts CSR reporting but notably does not influence ESG controversies. Lastly, shareholders, who are important for governance and profitability, exhibit minimal impact on both ESG controversies and CSR reporting. [ABSTRACT FROM AUTHOR]

This article examines how decolonial and intersectional agendas, viewed through feminist and activist lenses, reshape collective social responsibility (CSR) by anchoring social justice initiatives in non-colonial perspectives. Drawing on intersectional and decolonial feminist scholarship, it explores strategic paths and challenges to envisioning a world beyond colonial frameworks. Domestic violence (DV) is highlighted as a symptom of coloniality and a largely invisible agenda in organizational studies. Addressing this requires mobilizing ontologies, epistemologies, and methodologies that confront the coloniality of power, knowledge, and being. Recognizing organizations as non-neutral entities, the article emphasizes their dual role in perpetuating problems and fostering solutions. By adopting approaches rooted in social justice, it calls for active agendas that challenge dominant paradigms, aiming to reimagine social relations and foster collective responsibility. This framework envisions new possibilities for existence, centering marginalized voices and promoting transformative change within organizational and societal contexts. [ABSTRACT FROM AUTHOR]

ABSTRACT This research examines the dynamic relationships between green improvisation, green absorptive capacity, environmental management initiatives (EMIs), corporate social responsibility (CSR) authenticity, and their combined impact on firms' green competitive advantage and environmental performance. The study empirically tested seven hypotheses, utilising structural equation modelling (SEM) via SmartPLS. Data was collected from the employees of firms situated in Pakistan through a survey in a time span of 6 months. Results indicate that green improvisation significantly enhances EMIs, highlighting the importance of innovative and adaptive approaches in environmental stewardship. Green absorptive capacity was found to effectively acquire and assimilate environmental knowledge, positively influencing EMIs. Additionally, EMIs were shown to strengthen CSR authenticity, thereby improving firms' green competitive advantage and environmental performance. The mediating role of CSR authenticity was confirmed, revealing its significance in translating effective environmental management into tangible outcomes. Moreover, green creativity was found to moderate the relationship between EMIs and CSR authenticity, with novel environmental solutions enhancing the effectiveness of CSR activities. These findings contribute to the literature on environmental management by elucidating the mechanisms through which environmental initiatives lead to competitive and ecological benefits. The study provides actionable insights for firms aiming to integrate environmental strategies into their core business practices, achieving a sustainable competitive edge in today's green economy. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the impact of corporate social responsibility (CSR) on earnings management (EM). Furthermore, the authors assessed the mediating effect of accounting conservatism (AC) on the CSR-EM relationship over the long term. The authors also tested the moderating effect of corporate governance (CG) on the AC-EM relationship in the Finnish context. Design/methodology/approach: Linear regressions were applied to panel data using Thomson Reuters' ASSET4 database. Data were collected from 140 Finnish firms between 2005 and 2022. Findings: The results confirm that negative CSR has an impact on EM. Moreover, AC mediates the relationship between CSR and EM. Likewise, CG moderates the relationship between AC and EM. Practical implications: This paper may interest academic researchers and potential and current investors. This paper will help investors make relevant investment decisions. Managers should pay special attention to their EM. These firms must take social responsibility vis-a-vis all their stakeholders. Originality/value: To the best of the authors' knowledge, this study is the first to use AC as a mediator and CG as a moderating variable in the Finnish context. This research will enrich the literature by providing a comprehensive picture of the relationships between CSR and EM through AC and CG in developed markets. Therefore, it is crucial to understand the implications of CSR in Finnish companies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to delve into the nuanced relationship between corporate governance dynamics, human capital disclosure and their impact on the competitive positioning of Japanese listed companies. The study primarily examines how these factors influence employee engagement, a critical determinant of overall business competitiveness. Design/methodology/approach: Panel data for Japanese listed companies for FY 2019 to FY 2021 were analysed using multiple regression analyses with two models. Findings: The results indicate that the presence of independent and female board members has a positive impact on human capital disclosure. Surprisingly, employee engagement was found to be negatively related with human capital disclosure, signifying a potential trade-off between transparency and engagement. Originality/value: Amidst the escalating emphasis on non-financial information and corporate social responsibility, this paper unveils a previously underexplored aspect of Japanese corporate competitiveness. Specifically, this study offers a fresh empirical perspective on the relationship between corporate governance, human capital disclosure and employee engagement in Japanese listed companies, a topic with limited academic research and no legal regulations in Japan. The findings have significant implications for companies seeking to enhance their human capital disclosure and employee engagement practices, especially in light of the growing focus on non-financial information and social responsibility. [ABSTRACT FROM AUTHOR]

Using an extensive sample of environmental, social, and governance (ESG) ratings, we reexamine the corporate social responsibility (CSR) factor premium in the developed equity markets between 2007 and 2019 and show that its extent is contingent upon size effects. Consistent with the novel market equilibrium, we contend that the exponential growth of socially responsible investment (SRI) has rendered the risk-adjusted returns of large CSR-leading firms in line with or even below their lagging counterparts. In line with the neglected effect, greater market segmentation, lower market efficiency, and lower investor awareness of CSR enable us to observe the former market equilibrium in the smaller corporation partition, where CSR-lagging firms exhibit lower returns than leading ones. We thus theorize a two-stage CSP–CFP relationship, where size effects are considered a relevant moderator. This contention is robust to portfolio and panel regression settings. However, our partly contradicting results with the existent literature emphasize the divergence in ESG ratings across rating agencies. JEL Classification M14 ; G11; G15 [ABSTRACT FROM AUTHOR]

Despite the importance of Corporate Social Responsibility (CSR) firm controversies, little is known about their effect on institutional investors. We study the most important institutional investors worldwide: pension funds and mutual funds. The separation between fund management and ownership raises the need to examine how fund managers and fund participants react to investee-firms' CSR controversies. Considering the conventional/Socially Responsible Investment (SRI-fund nature, we find that investee-firms' controversies diversely affect fund performance, depending on the controversy type. Furthermore, participants and managers of SRI pension and SRI mutual funds display a passive behavior toward controversies. These attitudes are consistent with enduring behavior and continuity investment policies, such as amending/controlling CSR-firm controversies. In contrast, conventional pension-fund and conventional mutual-fund participants seem guided by traditional investment rules to deal with unsatisfactory situations and respond to controversies after managerial decisions regarding these events with negative reactions. Finally, firms developing CSR-engagement strategies may soften market and managerial reactions toward controversies. Nonetheless, symbolic CSR-engagement practices arouse participants' responses. JEL CLASSIFICATION: G11, G23, M14 [ABSTRACT FROM AUTHOR]

The strategies of many companies have been established in a linear course. They focus on aspects related to the dissemination of their products, attracting more customers and increasing profits. These work systems, focused on short-term gains, can have an immediate favorable result; however, they are quickly restricted in their development and with an eventual erosion of their corporate reputation. The case of Industrias San Miguel (ISM), a Peruvian nonalcoholic beverage company with international projection, is different: an approach linked to Social Responsibility is evident, establishing priorities in a balanced way in the economic, environmental, educational and Social aspects. In this article, the processes that generated the Social Responsibility and Communication Plan (SRCP) are analyzed, considered as a key factor for the resurgence of this important undertaking, which has been placed in a privileged space of business reputation. [ABSTRACT FROM AUTHOR]

External social capital of support Organizations is a degree of potential resources resulting from the external communication of their managers and employees with the external environment. The purpose of this article is to design a framework for the development of external social capital of support organizations based on corporate social responsibility. The current research is "basic theory" in terms of practical purpose, qualitative nature, and implementation path. The data collection technique is "interview." Fifteen experts were selected using "criterion-based sampling." The findings indicate that by subtly monitoring social, moral, political, economic, legal and technological intervening factors and planning to change the background conditions affecting the central phenomenon, structural transformation strategies in public relations, promotion of foresight literature, attention to strategic planning, change in governance policies, corporate branding, organizational networking, and e-government promotion can be effective in the development of social-external capital of support organizations. The consequence of such an action will be the survival of companies and factories, and the empowerment of people covered by supporting organizations. Therefore, the paradigm model of the current research can serve as a desirable model for the sustainable development of external social capital of support organizations and the creation of social welfare. [ABSTRACT FROM AUTHOR]

Disasters are more destructive and frequent in the age of climate change, overpopulation, and neoliberal globalisation. While the literature on disaster prevention and management proliferates, the role of for‐profit corporations has only recently started to be examined, usually through the lens of corporate social responsibility (CSR)—the expectation that business will consider social and environmental interests in its operations, in addition to profit. There is lately much academic creativity in the CSR space pertaining to why and how large corporations should contribute to disaster recovery, but a conceptual red thread is missing. This paper proposes that the unifying concept is the CSR principle of refraining from exploiting disaster‐hit communities. Indeed, CSR principles evolve in time, reflecting contemporary societal priorities. In a contractarian perspective on CSR, a rational community would nowadays have solid reasons to expect, in its social contract with business, the latter's commitment to decency when the former is devastated by earthquakes, pandemics, wars, and the like. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Doxa Comunicación is the property of Fundacion Universitaria San Pablo - CEU and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study aims to examine, from a legitimacy perspective, the potential influence of board and audit committee (AC) characteristics on the level of corporate social responsibility (CSR) disclosure by listed firms in the Kingdom of Bahrain. Design/methodology/approach: Throughout a 10-year period (2013–2022), 160 firm-year observations from listed firms in Bahrain are used. Four hierarchical multiple regression (HMR) models are developed to examine the effects of five independent variables and three control variables. Findings: HMR model results show that CSR reporting is determined by only two independent variables: board independence and AC independence. Also, the results of this study partially support the argument that legitimacy theory is a key factor in explaining CSR. Research limitations/implications: Limitations include a small sample of 160 firm-year observations over a 10-year period (2013–2022) using a small CSR index of 16 items and not considering other board and AC characteristics. Practical implications: This study assists policymakers in achieving strategic goals and guiding future environmental, social and governance reporting guidelines. Social implications: This study reveals that the CSR practices of Bahraini listed firms are not determined by factors like board size, AC size and AC number of meetings. It offers insights for accounting scholars on the importance of including board and AC features in CSR research. Originality/value: To the best of the author's knowledge, this study is among the first to investigate this topic in Bahrain and to use board and AC characteristics as independent variables. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to describe the role of corporate social performance as a potential mechanism for reducing earnings management. This paper contributes to the existing literature by addressing the moderator effects of national culture on the relationship between CSR and earnings management. Design/methodology/approach: This study investigates the moderating impact of Hofstede's cultural dimensions on the association between corporate social responsibility (CSR) and earnings management. The data set covers 71,893 firm-year observations spanning 2006–2022 and involving 4,229 firms listed in common law countries. Findings: The result confirms that corporate social performance reduces the use of real earnings management and controls the change of method AEM to REM method. When testing the indirect effect, the results show that cultural dimensions moderate the relationship between CSR and earnings management. These findings have many theoretical and practical implications for researchers, investors and decision-makers. Originality/value: This paper contributes substantially to extant literature by comprehensively exploring the moderating influence of national cultures on the intricate nexus between CSR and earnings management, encompassing the pre- and post-COVID-19 periods. The implications of these findings extend to researchers, investors and policymakers, offering valuable insights for informed decision-making. [ABSTRACT FROM AUTHOR]

Purpose: This study attempts to uncover the nonlinear relationship between public procurement and corporate total factor productivity (CTFP), and investigates the mediating roles of R&D investment and rent-seeking cost. Additionally, it conducts a heterogeneity analysis for firms with varying levels of political connections and corporate social responsibility (CSR). Design/methodology/approach: Employing Ordinary Least Squares (OLS) and Olley-Pakes (OP) methods, the authors gauge CTFP and manually identify government customers to quantify public procurement. Leveraging panel data from Chinese listed companies, this study explores the relationship between public procurement and CTFP. Findings: This study unveils a U-shaped relationship between public procurement and CTFP, highlighting R&D investment and rent-seeking costs as potential mechanisms. Furthermore, it identifies heterogeneous effects among companies with varying levels of political connections and CSR on the relationship between public procurement and CTFP, including their mediating effects. Practical implications: This research enhances understanding of demand-side policies and provides crucial insights for the government to further improve public procurement policies. Originality/value: By offering empirical evidence of how public procurement impacts CTFP, this paper enriches the literature on the behavioral repercussions of public procurement and the determinants of CTFP. It also overcomes the "black box" of the mechanism between public procurement and CTFP, based on the government's dual role as a pathfinder and customer of enterprises. It broadens the application scenarios of institutional theory and principal-agent theory. Additionally, the heterogeneity analysis of firms with varying political connections and CSR extends the frontiers of related research. [ABSTRACT FROM AUTHOR]

Purpose: Despite the ongoing scholarly interest in greenwashing, it is not well known the impact of multiple institutional pressures on greenwashing in corporate social responsibility (CSR). Following the institutional logics perspective, this study investigates how three distinct logics – commercial, public, and social welfare – drive greenwashing and whether organizational capability for blending diverse CSR expectations reverses this link. Design/methodology/approach: The current study conceptualized and tested an original model on how three institutional logics influence greenwashing in CSR, with the mediation effect of hybridization capability as a response to logic plurality. Partial least squares structural equation modeling was performed on a survey data, which was collected from 150 middle managers in Turkey. Findings: The results show that while commercial logic has no direct or indirect impact on greenwashing, public and social welfare logics drive greenwashing in CSR. However, these effects are reversed when the CSR hybridization capability increases. Practical implications: This study contributes to the understanding of what predicts CSR greenwashing by integrating a comprehensive theoretical framework involving multiple institutional logics, conflicting stakeholder demands, and organizational hybridity. Originality/value: To the best of our knowledge, this is the first study that theoretically and empirically analyzed how the exposure of multiple external pressures affects the CSR greenwashing and how it can be reversed by CSR hybridization capability. This capability mitigates the threats and challenges of multiple logics and turns them into an opportunity to gain legitimacy in the eyes of stakeholders by preventing greenwashing. [ABSTRACT FROM AUTHOR]

This study aims to explore the connection between ESG scores and corporate bond performance, particularly credit spreads, by adopting a propensity score matching (PSM) approach, enabling a balanced comparison between a control group and one exposed to the ESG treatment effect. The results indicate that bonds issued between 2010 and 2020 by MSCI-rated ESG leaders across all industry sectors are priced at an average lower credit spread of 14.3 basis points (bps) relative to laggards, in the primary market. This credit spread difference persists in the secondary market and increases further when bonds of financial issuers are separated from non-financial sectors. In contrast, the impact of ESG disclosure on bond credit spread results is negligible. The willingness of investors to accept a discount on the credit spreads of a bond issued by highly rated companies offers potential incentives for broader adoption of ESG performance assessment. [ABSTRACT FROM AUTHOR]

After COVID, Original equipment manufacturers (OEMs), suppliers, and distributors are seeking to streamline their local, and global supply chains, the issue has gained attention in how they identify, analyze and manage their procurement and supply chain processes with stakeholders. The use of supply chain adoption with green technology has been found to be preferred in international trade, which is forcing the Indian manufacturing, and services sector to realign their CSR (Corporate social responsibility) goals. Interviews have been conducted with a mix of manufacturing and service firms in India to map their sustainable procurement in green supply chain practices. The use of MAXQDA software for conducting thematic analysis to support the inductive theory and trend-building practices to know "what, why, and how" from interview responses. Each sector, manufacturing, and service showed distinct trends that divorce their approach to green SCM, and supply chain strategy for sustainable procurement though they have spread awareness about sustainable procurement with stakeholders, emphasizing economic benefits. Additionally, they pursued jointly to address environmental issues and extend societal benefits as a CSR effort. Variances in approaches in manufacturing are market-linked, time-based, and demand-driven while services firms showed green technology pledges as CSR initiatives along with an environmental emphasis in downstream SCM activities. [ABSTRACT FROM AUTHOR]

Multinational enterprises resort to several market and nonmarket strategies to overcome the liability of foreignness (LOF) faced by them in overseas markets. A lesser explored nonmarket strategy to overcome LOF and gain legitimacy in the host country is through corporate social responsibility (CSR) expenditure. This paper empirically examines the role of "distance" on the CSR practices of foreign subsidiaries in India. Further, the study explores the role of market potential of the emerging market host country as proxied by the Gross Domestic Product in moderating the relation between distance variables and CSR expenditure. Our sample consists of CSR expenditure data of 69 foreign subsidiaries in India from 17 countries over the period from 2014 until 2018. The results show that cultural and economic distances impact the CSR expenditure of foreign subsidiaries positively and significantly. This relationship is negative and significant for administrative distance and insignificant for the case of geographic distance. Furthermore, it is observed that the market potential of the host country can make the foreign subsidiaries overlook the existence of distances. [ABSTRACT FROM AUTHOR]

Advancements in social media technology have empowered brands to engage in virtual Corporate Social Responsibility (CSR) co‐creation activities, which are crucial for CSR success and sustainability. Employing four scenario‐based experimental studies (1049 samples in total) alongside analyses of variance (ANOVA) and regression methodologies, we investigate how virtual CSR co‐creation activities impact consumer emotional reactions and branding behaviors. The SPSS software and the Process macro were used for data analysis. The results reveal that higher persistence (Study 1) and deeper participation (Study 2) in virtual CSR co‐creation are more likely to enhance brand passion. Flow experience mediates the above positive relationship between virtual CSR co‐creation and brand passion. Furthermore, when virtual CSR co‐creation activities take place in private settings rather than public settings, the positive effects of consumers' participation persistence and depth on brand passion will be attenuated. This work advances the theoretical understanding of brand passion within the domain of virtual CSR co‐creation. It provides new perspectives and practical implications for enhancing consumer‐brand relationships through virtual CSR co‐creation activities. [ABSTRACT FROM AUTHOR]

This study explores the role of corporate social responsibility in bolstering firm resilience amid the escalating threats of climate change and climate policy uncertainties. Specifically, it assesses whether corporate social responsibility initiatives can act as strategic buffers enhancing corporate sustainability. The research utilizes a panel dataset comprising annual observations from 451 US‐based firms over the period 2012 to 2023, yielding a total of 5412 firm‐year observations. Our findings indicate that corporate social responsibility potentially reduces the detrimental effects of climate change and policy uncertainty. Furthermore, the study examines the interaction effects between sustainability committees and green audits on the efficacy of corporate social responsibility. Our results reveal that sustainability committees significantly strengthen the nexus between corporate social responsibility investments and effective climate change mitigation strategies, while green audits enhance firm capabilities to navigate climate policy uncertainties. Collectively, these findings suggest that robust corporate social responsibility practices contribute to corporate value creation in the face of climate‐related challenges. [ABSTRACT FROM AUTHOR]

This study employs a two‐way fixed effects model to investigate the influence of bank competition on ESG performance of local firms and its underlying mechanisms based on the geographical distribution of bank branches and firms. Our results show that the increased level of competition among banks contributes positively to the ESG performance of firms and the promotion effect is more prominent in small firms, young firms, and nonstate‐owned firms. Industry heterogeneity analysis indicates that bank competition could be more beneficial for the sustainable development of low‐pollution, low‐tech industries, and industries that have a higher linkage with the financial industry. The mechanism analysis further reveals the mediating effect of financial constraints, green innovation, and moral hazards on firms' ESG performance. This study extends the existing understanding of the firm‐level consequences of bank competition and sheds light on the financial development drivers of corporate ESG performance in emerging market countries. [ABSTRACT FROM AUTHOR]

The study explores the relationship between corporate social responsibility practice (CSRP), firm performance (FIPE), and environmental, social and governance practice (ESGP) within the context of several developing countries in Asia. Using the Thomson Reuters Eikon database, our focus sample comprised 6927 firms operating in 10 developing Asian countries, namely Indonesia, Israel, Jordan, Malaysia, Pakistan, the Philippines, Saudi Arabia, Thailand, Turkey, and Vietnam. After a thorough screening process, a total of 817 firms were included in the final dataset, covering the years 2019 to 2023, resulting in 4085 firm‐year observations. Through the use of maximum likelihood structural equation modeling (ML‐SEM), our findings reveal that CSRP and FIPE positively influence ESGP within the Asian context. Additionally, the FIPE variable demonstrates an additional mediating role in the relationship between CSRP and ESGP. Furthermore, carbon emission (CAEM) plays a significant moderating role in the CSRP‐ESGP nexus. By focusing on enhancing CSRP, FIPE, and reducing CAEM, both businesses and governments can collaboratively work towards advancing sustainability efforts across the region. Therefore, the paper provides insight in this context using empirical evidence from 10 developing Asian countries. [ABSTRACT FROM AUTHOR]