Corporate social responsibility and performance: Evidence from the water industry

Abstract

The aim of this research is assessment of the relationship between the adoption of social responsibility practices and the performance of the water sector companies. The complexity of challenges in the water sector means that innovative solutions are required, in the manner businesses are conducted and operated. In order to integrate sustainability into business companies, this investigation identifies performance indicators that recognise the main difficulties facing the water industry and contributes to define strategies sustainability for these companies, since the water market and the inherent value of water as a public good embrace all stakeholders. On the other hand, the financial crisis introduces in society, in general, the demand for greater interest on practices of Corporate Social Responsibility (CSR); for this reason, the authors defend the implementation of CSR strategies to get sustainable success in the water sector.

Influence of selected company characteristics on voluntary disclosure of intangible assets in listed companies

“…(Li & Minor, 2015); Sveiby, (2000) argues that intangible assets have been generally accepted as those innate potentials usually acquired by a company through research, training and development of the human capital within a structure in an organization and the relational capabilities with varied stakeholders. (Omoye, 2013OECD, 2012Spence, 2003) argues that intangible assets cover all long term outlays by forms aimed at increasing future performance other than by the purchase and use of fixed assets. (Morariu, 2012;Silvie & Tomas, 2012) addressed the challenges of OECD as they posits that the factors contributing significantly to the growth of a company which are not included in the annual corporate financial report as fixed assets should be recognized and disclosed as intangible assets.…”

“…However, (Omoye, 2013) reiterated that the discretionary disclosure may not be so important to creditors a company has as they are to the other stakeholders and even potential investors in particular. Also, (Striukova et al, 2008) expressed that debt level in the capital structure is not a factor that may determine the voluntary disclosure of R & Ds while a negative and weak correlation exists between the level of debt in the capital structure and IAs disclosures practice.…”

“…In the same vein, (Broberg et al, 2010;Omoye, 2013;White et al, 2010); attributed that the creation of more time to build and establish excellent customers' relationships, better network of suppliers, good retirement plan, contribute towards community social responsibility, set up good grounds for research centers alliances would provide a good platform for sound and better disclosure practice for the benefit of different segments of the society. (Hannifa et al, 2002;Habbash et al, 2016) reiterated that firms that are older are prone to disclosing more news adding that they are much more comfortable to absorb R & D costs as against newer firms that would likely run from such costs as they lack the capacity to carry such.…”

“…Companies are not statutorily obliged to abide by them but are motivated to embark on as a result of the inherent advantages thereon. Some of the advantages of voluntary disclosures are: lower cost of capital, gaining investors' confidence, improving marketability of shares (Bontis, 2013;Omoye, 2013), used as a device for reducing information gap between directors and other stakeholders and enhance the credibility of financial reports (Abeywardana et al, 2016). However, (Asogwa et al,) highlighted that mandatory disclosures are those disclosures which are in line with applicable rules, laws, regulations and standards prevalent at such point in time.…”

“…(Ferreira et al, 2012;Onyekwelu, 2015) observed a drastic paradigm shift from the time of archaic dependence on physical resources or tangibles, manufacturing and processing outfits to an era that are fundamentally based on knowledge and other intangible resources (An et al, 2011). Within the past few decades, these ideas are uppermost in managers mindset as their belief are hinged on the fact that what controls or drives the organization to the next level are the reporting of intangible resources, (Omoye, 2013) and their disclosure controls the tangible resources for a quicker positive result. The disclosure of intangible assets (IAs) or resources in whole or in parts bridges the information gap between the principal and the agents (Singh, 2008).…”