An Empirical Analysis of the Strategic Use of Corporate Social Responsibility

Siegel, Donald S.; Vitaliano, Donald F.

doi:10.2139/ssrn.900521

Cited by 259 publications

(374 citation statements)

References 26 publications

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“…These findings can be viewed as a theoretical support for the empirical judgment of Fabrizio [12] that voluntary CSR disclosure can be interpreted as a signal of product quality, and the empirical observation of [13] that firms selling experience goods and credence goods are more likely to be socially responsible than firms selling search goods. Moreover, we show in Proposition 2 that the high-quality supplier gets a higher profit than the low-quality supplier if the former conducts CSR activities to separate from the latter.…”

Section: Discussionsupporting

confidence: 63%

Signaling Product Quality Information in Supply Chains via Corporate Social Responsibility Choices

Xiao

et al. 2017

Sustainability

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This study focuses on how an upstream supplier signals the private information of its product quality with corporate social responsibility (CSR) choices to a downstream retailer and uninformed consumers in the final market. We build a signaling model to: capture the strategic interactions among the supplier, the retailer, and the final consumers in the supply chain; characterize completely the set of all separating perfect Bayesian equilibriums (PBEs); and finally, select a unique equilibrium that satisfies the intuitive criterion for exploring some comparative statics. The equilibrium results show that under some technical conditions: (1) a set of moderate levels of CSR conduct signal the upstream supplier's high quality in the sense of separating PBEs; (2) the unique separating PBE satisfying the intuitive criterion is the one with the lowest CSR level that separates a high-quality supplier from a low-quality supplier; (3) the lowest CSR level decreases in the proportion of informed consumers and the low-quality supplier's marginal CSR cost, but is independent of the high-quality supplier's marginal CSR cost; (4) the profits of the high-quality supplier increase in proportion to the number of informed consumers and the low-quality supplier's marginal cost CSR, but decrease in proportion to the high-quality supplier's marginal CSR cost. Managerial insights are also discussed.

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Section: Discussionsupporting

confidence: 63%

Signaling Product Quality Information in Supply Chains via Corporate Social Responsibility Choices

Xiao

et al. 2017

Sustainability

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“…The authors showed that the difference in the intensity of CSR involvement across types of goods is explained by the consumers' perception of a firm's involvement in CSR as a valuable signal of the firm's reliability and its commitment to quality and honesty. In this regard, the research findings state that a positive impact of CSR on performance is generally found in consumer industries and especially for experience goods and credence services (Baron et al, 2009;Hoepner et al, 2010;Siegel and Vitaliano, 2007). Previous research supports this assumption (e.g., Calabrese and Lancioni, 2008;García de los Salmones et al, 2005;Maignan and Ferrell, 2001;Sureshchandar et al, 2001Sureshchandar et al, , 2002.…”

Section: Csr Effect On Performance In Service Firms Vs Goods Firmsmentioning

confidence: 88%

“…Customers often use corporate reputation to assess products, with positive reputation resulting in higher perceptions of product/service quality (Jacoby et al, 1971;Shapiro, 1982). In the minds of some consumers, CSR is a signal of honesty and reliability, and a reliable and honest firm is believed to produce better products (Siegel and Vitaliano, 2007). Siegel and Vitaliano (2007) found that firms selling experience goods (i.e., products whose characteristics cannot be verified before buying or using them), and experience and credence services are more likely to engage in CSR than those selling search goods (i.e., products whose characteristics can be identified before buying).…”

Section: Csr Effect On Performance In Service Firms Vs Goods Firmsmentioning

confidence: 99%

“…In the minds of some consumers, CSR is a signal of honesty and reliability, and a reliable and honest firm is believed to produce better products (Siegel and Vitaliano, 2007). Siegel and Vitaliano (2007) found that firms selling experience goods (i.e., products whose characteristics cannot be verified before buying or using them), and experience and credence services are more likely to engage in CSR than those selling search goods (i.e., products whose characteristics can be identified before buying). The authors showed that the difference in the intensity of CSR involvement across types of goods is explained by the consumers' perception of a firm's involvement in CSR as a valuable signal of the firm's reliability and its commitment to quality and honesty.…”

Section: Csr Effect On Performance In Service Firms Vs Goods Firmsmentioning

confidence: 99%

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The differentiated effects of CSR actions in the service industry

Casado‐Díaz

Nicolau

Ruiz‐Moreno

et al. 2014

Journal of Services Marketing

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Corporate Social Responsibility (CSR) is becoming a common strategy within medium and large companies, which explains the growing number of studies and disciplines focusing on it. One stream of research examines the effects of CSR on a firm's performance, such as its market value, suggesting that the financial performance outcomes of responsible corporate behavior may vary depending on firm-specific and industry-related factors. This study attempts to explain why the impact of CSR initiatives may be different and/or more firm performance that is higher for service firms than for product-based firms. As for practical implications, these findings suggest that CSR may be an especially valuable tool for differentiation in the service context.

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“…Despite the increased CSR awareness among Malaysian companies and noteworthy efforts to go beyond the standard industry and Bursa Malaysia reporting requirements, the quality of CSR disclosures within Malaysian annual reports is dismal to the normal scope of corporate financial reporting (MaSRA, 2013). Previous studies have suggested the importance of company-specific characteristics as proxies in inducing their disposition and responsiveness in disclosing additional CSR information voluntarily (Lan et al, 2013;Gamerschlag et al, 2011;Siegel and Vitaliano, 2007;Orlitzky et al, 2003). Thus, this study seeks to determine the pre-existing influence of company-level variables on the level of sustainability reporting preceding the transitional implementation period of the G4 Sustainability Reporting Guidelines in 2014 and 2015. In addressing the internal organisational factors of sustainability reporting, extensive literature search indicated dearth of quantified measures on board experience as an antecedent to CSR disclosure levels.…”

Section: Literature Reviewmentioning

confidence: 98%

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Tong

2017

SHS Web Conf.

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This study aims to comparatively assess the effects of company-specific variables on the level of corporate social responsibility (CSR) information disclosed in publicly-traded companies from United Kingdom (UK) and Malaysia. Content analysis was applied to sampled reports from the FTSE 100 Index and FTSE Bursa KLCI against inferred meanings from the Global Reporting Initiative (GRI)-derived coding base to identify similarities and/or differences in CSR disclosure practices. The Spearman's correlation coefficients and multiple linear regressions (MLR) analyses further gauged the associations between the variables and total quantity of CSR disclosure (TQCSR); and, determined the predictive determinants on sustainability reporting. The Spearman's correlation has identified a negative association on leverage with TQCSR for UK companies. In contrast, the TQCSR in the Malaysian sample was positively associated with directors' CSR-related experiences and profitability but negatively associated with company size. Results from MLR analyses presented company size as a significant determinant on sustainability reporting in the UK model, while directors' experiences were indicated as the crucial determinant in the Malaysian model. This first, direct cross-market sustainability reporting study highlights the importance of board of directors' CSR-relevant experience in influencing the level of CSR disclosures in publicly-traded companies.

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An Empirical Analysis of the Strategic Use of Corporate Social Responsibility

Abstract: We thank Joshua Intriligator and Jennifer Silverstein for capable research assistance.

Cited by 259 publications

References 26 publications

Signaling Product Quality Information in Supply Chains via Corporate Social Responsibility Choices

Signaling Product Quality Information in Supply Chains via Corporate Social Responsibility Choices

The differentiated effects of CSR actions in the service industry

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

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