When and how is corporate social responsibility profitable?

Bhardwaj, Pradeep; Chatterjee, Prabirendra; Dogerlioglu-Demir, Kivilcim; Turut, Özge

doi:10.1016/j.jbusres.2017.11.026

Cited by 128 publications

(94 citation statements)

References 51 publications

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“…CSR can bring potential environmental and economic performance in emergent countries (Al‐Abdin, Roy, & Nicholson, ). However, only under certain conditions, CSR is demonstrated to bring financial values (Bhardwaj, Chatterjee, Demir, & Turut, ). CSR practices can be associated with high profitability, but it was demonstrated only among larger and stock companies (Chang et al, ).…”

Section: Introductionmentioning

confidence: 99%

The role of innovation for performance improvement through corporate social responsibility practices among small and medium‐sized suppliers in China

Zhu

Zou

Zhang

2018

Corp Soc Responsibility Env

106

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Small and medium-sized enterprises (SMEs) in emergent countries have been motivated to implement corporate social responsibility (CSR) practices, whereas innovation is needed or even necessary to gain performance. This paper develops a conceptual model to explore if three types of innovation (technology, management, and marketing) have moderation and mediation effects on relationships between CSR practices and performance. Using 494 samples collected from Chinese SMEs, hierarchical regression analysis results show that technology innovation can improve environmental performance together with employee efforts, and it can also improve social image together with environmental practices and community involvement. Management innovation is necessary to improve stakeholders' satisfaction, and itcan also help bring environmental performance through employees' efforts and improve social image through organizational governance. Marketing innovation is necessary to gain economic performance. Meanwhile, marketing innovation can improve stakeholders' satisfaction together with organizational governance, and it can help to improve environmental performance through community involvement.

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Section: Introductionmentioning

confidence: 99%

The role of innovation for performance improvement through corporate social responsibility practices among small and medium‐sized suppliers in China

Zhu

Zou

Zhang

2018

Corp Soc Responsibility Env

106

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“…In terms of research directions, the research stream of CSR follows in the wake of neoclassicism, meaning that corporate social responsibilities anchored on commercial activities are meant to enhance profits [34], therefore, corporate level performances are examined extensively in the context of CSR. Relevant metrics include firm reputation [35], organizational commitment and employee performance [36][37][38], financial performance and market value [39][40][41]. The interest of consumers to participate in CSR activities has been rising recently [42], thus, researchers start to shift their focus to stakeholders [43][44][45][46].…”

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confidence: 99%

The Corporate Shared Value for Sustainable Development: An Ecosystem Perspective

Yang

Yan

2020

Sustainability

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While corporate social responsibility (CSR) is prevailing, the concept of creating shared value (CSV) by coordinating business activities and social concerns brings a great opportunity to transforming the business model for sustainable development. To better understand the systems comprising corporate shared value chains would be beneficial to economics, society, and sustainability. This study refers to the ecosystem as the theoretical lens in the exploration of the CSV components and contexts, and takes Macy's as a focal case. In terms of academic contributions, this study generalizes the CSV components, including markets, social innovations, social performances, new business models, corporate entrepreneurship, and social network support. The research findings contribute to conceptualize and systemize the concept of CSV. In terms of practical contributions, the contexts for the operation of CSV, as summarized by this study, can serve as a template for corporate planning of CSV activities and sustainable development.Sustainability 2020, 12, 2348 2 of 16 in society [13][14][15][16]. Dubois and Dubois [17] also thought that the concept is part of sustainability and far from the original. To date, the term CSV only appears mostly in magazines or reviews for practitioners, and there is little in-depth analysis available in academic literature [18]. The reason is that there is a lack of a conceptualized measurement method for this fuzzy concept [19], thus, the difference between CSV and CSR remains unclear. Although some studies have been conducted to clarify the relation between the two, for example, Porter and Kramer [20] believed that CSV is different from CSR, and CSV is a transformational model leading to continued change of commercial behavior; Awale and Rowlinson [21] also proposed a CSV-competitiveness conceptual framework by articulating how the combination of CSV, social issues, and business opportunities can create corporate advantages. However, this conceptual explanation is not supported by empirical analysis, nor does it provide a detailed method to achieve any competitive edge with the CSV system. This study seeks to construct the CSV system by identifying the nature of each component in its ecosystem, as based on the open systems perspective, where the purpose is to determine a precise definition of CSV and resolve the conflicting viewpoints in literature.This study attempts to make the following two contributions to the CSV literature. First, this study seeks to construct a CSV system. Based on the ecosystem perspective, the shared value is a system with path-dependent components to create value activities [22]. This study presents an empirical examination of a CSV ecosystem model. Second, the research findings of this study can provide some explanation about CSR and CSV. More importantly, this study intends to provide new insight to the integration of social innovations and value activities into the CSV system.In the remainder of this manuscript, we introduce the theoretical background of CSV, inclu...

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“…CSR performance can bring ethical capital to the company and generate a reputational insurance effect, while reputational insurance can reduce the likelihood and cost of negative events and may reduce the negative impact on firm value when a negative event occurs, thus reducing corporate risk [44]. In addition, CSR practices can increase consumer purchase intentions and sales revenue [45,13], strengthen government-enterprise relations and build government trust in the enterprise [46], which helps companies to enhance firm value and reduce political risks. Accordingly, expectations of future value enhancement and risk reduction also make investors more willing to hold corporate stocks in the hope of achieving greater returns in the future [47], and the risk-sharing of increased shareholding demand will also reduce the cost of equity capital [30].…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Does CSR affect the cost of equity capital: Empirical evidence from the targeted poverty alleviation of listed companies in China

Xie

Zhou

et al. 2020

PLoS ONE

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Social responsibility fulfillment helps modern enterprises achieve sustainable development. Based on empirical data on China's A-share listed companies in 2013-2016, this paper examines the impact of corporate social responsibility performance on a company's financing costs from the perspective of targeted poverty alleviation. Specifically, we find that enterprises' engagement in poverty alleviation social responsibility helps to reduce the cost of equity capital. The result is robust to using alternative indicators of the cost of equity capital, propensity score matching method, change model and sample removed financial sector. Furthermore, we find that the negative relationship between enterprises' engagement in poverty relief and the cost of equity capital is mainly concentrated in private enterprises and in the central and eastern regions of China. Moreover, the negative relationship mainly exists after China's listed companies were forced to disclose information on poverty alleviation. This paper also finds that institutional investors' shareholding plays a partial mediating role in this reduction effect and that enterprises' poverty alleviation efforts help companies improve their financial performance and firm value. This study enriches the relevant literature on corporate social responsibility and the cost of equity capital and has reference value for corporate sustainable development. It also provides a theoretical basis for corporate poverty alleviation work in developing countries and the economic results of CSR. OPEN ACCESS Citation: Yi Y, Xie B, Zhou L, Wei Y (2020) Does CSR affect the cost of equity capital: Empirical evidence from the targeted poverty alleviation of listed companies in China. PLoS ONE 15(2): e0227952. https://doi.org/10.

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When and how is corporate social responsibility profitable?

Cited by 128 publications

References 51 publications

The role of innovation for performance improvement through corporate social responsibility practices among small and medium‐sized suppliers in China

The role of innovation for performance improvement through corporate social responsibility practices among small and medium‐sized suppliers in China

The Corporate Shared Value for Sustainable Development: An Ecosystem Perspective

Does CSR affect the cost of equity capital: Empirical evidence from the targeted poverty alleviation of listed companies in China

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