The impact of institutional and social context on corporate environmental, social and governance performance of companies committed to voluntary corporate social responsibility initiatives

Ortas, Eduardo; Álvarez, Igor; Jaussaud, Jacques; Erro, Ainhoa Garayar

doi:10.1016/j.jclepro.2015.06.089

Cited by 171 publications

(122 citation statements)

References 49 publications

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“…Stakeholder demands and institutional constraints increase when companies diversify their operations and access to new markets (Jackson & Deeg, 2008), due to differences in countries' cultural, social, legal, and economic systems (Sharfman, Shaft, & Tihanyi, 2004). Previous research has addressed this in several ways (Ortas, Álvarez, Jaussaud, & Garayar, 2015;Yong, 2008). Some authors (Ringov & Zollo, 2007) describe the influence of cultural differences on companies' ESG performance.…”

Section: National Institutions and Corporate Esg Performancementioning

confidence: 99%

National institutions, stakeholder engagement, and firms' environmental, social, and governance performance

Ortas

Gallego‐Álvarez

Álvarez

2018

Corp Soc Responsibility Env

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This paper studies the influence of different national institutions on corporate environmental, social, and governance (ESG) performance through the varieties of institutional systems approach. This research complements previous research that used traditional approaches such as the national business systems and the varieties of capitalism, because it considers companies in understudied economies in Asia, Africa, Eastern Europe, the Middle East, and Latin America. To that aim, a dataset of 4,751 firms within 52 countries is examined through a multilevel model, which allows establishing three levels of analysis: (a) yearly observations of a firm ESG performance, (b) the companies, and (c) the countries. This technique is useful to address the nested nature of firms' ESG performance within higher level institutional contexts. The results identify which specific national institutions enhance/restrict companies' ESG performance. This provides interesting implications because firms' ESG represent most of the companies' contributions to environmental preservation, social well-being, and community development. KEYWORDS corporate social responsibility, ESG performance, institutional theory, national institutions, stakeholder engagement, sustainable development, varieties of institutional systems

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Section: National Institutions and Corporate Esg Performancementioning

confidence: 99%

National institutions, stakeholder engagement, and firms' environmental, social, and governance performance

Ortas

Gallego‐Álvarez

Álvarez

2018

Corp Soc Responsibility Env

Self Cite

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“…Reference [15], studied ESG performance in three countries, i.e., Spanish, French and Japan. Their result reveals that Spanish and French organizations display comparative levels of social and corporate governance performance, higher than those of Japanese firms.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Empirical studies mostly cover for companies in the US [11], Australia [1], [12], Germany [13], Finland [14] and regions such as the European Union [15]. The understanding of ESG profiles constrained to a couple of nations.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score

Tarmuji¹,

Maelah²,

Tarmuji³

2016

IJTEF

193

110

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Abstract-The aim of this paper is to investigate the impact of Environmental, Social and Governance (ESG) practices on economic performance. We used a sample of non-financial data from two countries (Malaysia and Singapore) for the period of 2010-2014 from ASSET4® database of Data-Stream, by Thomson Reuters Inc., the world's leading source of intelligent information for businesses and professionals. We find the support that social and governance practices significantly influence economic performance. The study contributes to the existing literature on ESG practices and its relationship with economic performance utilizing panel data that expand into international perspective.

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“…The studies suggest that institutional factors and pressure such as government regulations, the legal system, national culture, and corporate governance significantly influence the firm's CSR policies. However, the institutional pressure put on firms is not homogenous due to many factors such as political resources [24], public policies [25], Guanxi (relationship) [26,27], a high level of government involvement [26,27], geographical remoteness [28], and formal and informal institutional environments [28,29].…”

Section: Introductionmentioning

confidence: 99%

Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China

et al. 2019

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This study investigates the relationship between sub-national institutional contingencies and corporate social responsibility performance (CSRP). Sub-national institutional contingencies (SNICs) play a moderating role in the link between CSRP and corporate financial performance (CFP). Using data from all A-share Chinese companies listed on the Shenzhen and Shanghai exchanges for the period 2010 to 2015, ordinary least square (OLS) regression was used as a baseline methodology to draw inferences from the data. The study uses propensity score matching (PSM) to confirm the robustness and to tackle the possible issue of endogeneity. We find reliable evidence that SNICs have a positive and significant effect on CSRP. This positive relationship is more pronounced in cross-listed companies as compared to state-owned enterprises (SOEs) and in companies located in the more developed region. Moreover, SNICs moderate the positive relationship between CSRP and CFP. The relationship is stronger in firms that are non-SOEs, are non-cross-listed, and are from less-developed regions as compared to their counterparts. The findings provide implications for regulators and individual companies. Investment in corporate social responsibility (CSR) helps companies to achieve their primary objective (i.e., financial performance). With respect to practical implications, the study indicates that policymakers, executives, and managers should refrain from “one size fits all” CSR policies. Instead, they need to simultaneously evaluate the effects of regional development, cross-listing, and ownership characteristics. Considering weak social performance by firms that are from less developed regions, are non-cross-listed, and that are non-SOEs, policymakers and the government should improve information transparency and the regulatory framework, and provide these firms with incentives. This study also provides insights for other emerging economies, especially those going through extraordinary government interventions.

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The impact of institutional and social context on corporate environmental, social and governance performance of companies committed to voluntary corporate social responsibility initiatives

Cited by 171 publications

References 49 publications

National institutions, stakeholder engagement, and firms' environmental, social, and governance performance

National institutions, stakeholder engagement, and firms' environmental, social, and governance performance

The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score

Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China

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