Determinants of Corporate Social Responsibility Related to CEO Attributes: An Empirical Study

Abstract

The purpose is to explore whether the CEO’s personal and professional attributes affect corporate social responsibility (CSR) disclosure or not in particular context of Pakistan. This article attempts to bridge this gap using the data set of 1,790 firm-year observations comprising of firms listed at the Pakistan Stock Exchange. For this purpose, the logistic regression technique is employed while taking CEO personal and professional attributes as explanatory variables and CSR disclosure as the dependent variable. Results indicate that firm size and CSR disclosure has a positive relationship. The outcomes based on binary logistic regression demonstrate that CEO ownership has a negative impact, whereas CEO tenure, CEO education, CEO age, and CEO compensation are the variables that have a positive impact on CSR disclosure. In addition, duality, ownership, and gender of the CEO are found to be insignificant. Evidence on CEO demographics and their impact on disclosure choice might be helpful for policymakers and regulators. This study lacks generalization due to the unique setting of Pakistan. Our research contributes to the body of knowledge containing upper echelons theory in several ways. First, it answers the call for an extension of research toward social responsibility disclosures and individual’s traits impact on it. Second, our study adds to the scarce literature available on CSR research and practices in developing countries. Third, it is one of the first quantitative studies in the specific context of Pakistan as data for these variables is not available in organized form publicly.

Moderating Role of Negative Earnings on Firm Size and Corporate Social Responsibility Relationship: Evidence from Listed Firms on Nigeria Stock Exchange

“…Hence our dependent variable is binary, implying that the assumptions of classical linear regression cannot hold. Also, our number of observations is 1,200, which is above 100 as recommended by previous studies (Malik et al, 2020;Peng et al, 2002). Therefore, to achieve the aims of this study, two different logit regression models were estimated.…”

“…They found a significant impact of firm size, financial performance on the CSR practice of the firms. Malik et al (2020) also added that the size of firms listed on the Pakistan Stock Exchange positively relates to CSR disclosure. The study by Lins et al (2017) on the impact of profitability on CSR, documented that a positive relationship between high-CSR firms and higher profitability, growth, and sales per employee relative to low-CSR firms.…”

Internal Corporate Responsibility as a Legitimacy Strategy for Branding and Employee Retention: A Perspective of Higher Education Institutions

“…Farooq, Rupp, and Farooq [26] explained that internal CSR relates to those activities dedicated to the conservancy of internal stakeholders, including employees. Fizzah et al [27] studied the effectiveness of CSR activities in Asia and came up with the view that the importance of CSR is well-established worldwide. On the other hand, the conceptualization of CSR is conflicting due to differences in economic, social and cultural factors in different countries.…”

Executive Incentives Matter for Corporate Social Responsibility under Earnings Pressure and Institutional Investors Supervision

“…(The technical CSR is more likely to generate less moral capital, which may embed the interests of the executives into the inner CSR activities [42,43]). Following Mattingly and Berman [9] and Godfrey et al [44], this paper defines INCSRS and INCSRNC as the sum scores of the strengths and concerns items under the institutional CSR category, and TECSRS and TECSRC as the sum scores of the strengths and concerns items under the technical CSR category, respectively. Besides, this paper calculates the net CCSR scores to measure ICSR and TCSR level, denoted by NEINCSR and NETECSR, respectively.…”

“…However, the above literature neglects the analysis of why the executives carry out CSR activities or not and what motives executives' CSR decisions. Although some studies have explored the executives' CSR decisions from the views of education [9], age and tenure [10], and organization identification [11], these are only the personal features of executives. In fact, the executives' strategic decision, e.g., CSR decision, is a kind of interactive behavioral decision mostly influenced by external pressures.…”