Impact of CSR on Organizational Performance (original) (raw)
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The Role of CSR Reporting Instruments in Increasing the Organization's Management Performance
Sustainability Reporting, Ethics, and Strategic Management Strategies for Modern Organizations, 2021
This integrated approach implies a broad approach to monitor the performance of the organization both during its life cycle and on the different social dimensions, from the perspective of the conformity of the management processes in relation to the economic, social, and environmental principles. Currently, the social responsibility reporting is a major challenge for the management of organizations in the context where honesty, transparency, business ethics, are values shared by an entire community. The research involves a process through which a series of correlations between the CSR reporting tools and the organization performance management can be analyzed by highlighting the role of the different reporting variables in the architecture of the performance indicators of the organization. The chapter addresses how a set of CSR reporting indicators can be identified and be integrated into the performance indicators which characterize the sustainability of a company.
Study on the Relationship between CSR and Financial Performance
Sustainability, 2019
This study analyzed whether a systematic relationship exists between corporate social responsibility (CSR) performance and corporate financial performance using 191 sample firms listed on the Korea Exchange. The Korea Economic Justice Institute (KEJI) index of 2015 was used to measure CSR performance; profitability and firm value were used to measure corporate financial performance. Return on assets was used as a proxy for profitability, and Tobin’s Q was used as a proxy for firm value. The correlation between these variables and CSR performance was examined through correlation and regression analysis. The results confirm that CSR performance has a partial positive correlation with profitability and firm value. These results are partly consistent with those of previous studies reporting a positive relationship between CSR and Korean firms’ financial performance using the KEJI index before 2011. In the relationship between CSR performance and profitability, only social contribution y...
Exploring the Multiple Benefits of CSR on Organizational Performance: Case of Lebanon
Journal of Social Sciences (COES&RJ-JSS), 2012
Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage. In Lebanon, there is a consistent need for the Lebanese community to live in a safe, clean and healthy environment. Companies can no longer act as isolated entities that can run separately from the society and the environment in which they operate and with which they interact, disregarding the impact of their activities on the economy, the society, and the environment; these companies are assuming and acknowledging their responsibility not only towards shareholders through profit maximization but also towards all stakeholders through enhancing the welfare of the society and adopting environmentally-based behavior. However, there exists a substantial lack of awareness of CSR among Lebanese companies. The current practices in Lebanon have suffered from the lack of responsible behavior towards the employees, the economy, the society, and the environment. Consequently, the current research addresses the urgent managers’ need to understand what CSR is and assess the multiple benefits of its programs, and how they may help and end up in a win-win situation if CSR is implemented adequately. This research is exploratory in nature and uses a survey questionnaire distributed to a convenient sample of Lebanese managers and employees working in Lebanon. The purpose is to assess the knowledge and the implementation of CSR programs at selected number of Lebanese firms. This research attempts to define the gap between the existing socio-economic and environmental problems and the responsiveness levels of Lebanese firms to such problems.
How Organisational Performance is Affected by Strategic Corporate Social Responsibility (CSR)
Journal of corporate governance, insurance and risk management, 2016
This paper aims to report as a study that contributes to the understanding of the roles of strategic corporate social responsibility (CSR) in overall organisational performance. The approach to the paper was by the review of acclaimed researches with linkages between corporate social responsibility, more specifically strategic corporate social responsibility and organisational performance. Strategic CSR undertaken by various organisations were analysed to find how significant they affect to performance metrics. The researchers had difficulties unearthing previous tangential and empirical research as there had not been a wealth of research in the area of CSR relationships especially with regards to strategic CSR practices and performance and at the same time, previous research on CSR mostly focuses on its nature and impact on society and how customer loyalty can be gained with CSR. The study thus revealed that, although some organizations to some extent confuse CSR with philanthropic reasoning, they are aware of how rewarding it is for both societal stakeholders and the firm and intensively work towards integrating CSR with other business undertakings. This research contributes to one's understanding of the impact that strategic CSR has on organisational performance when instituted in the business. Additionally, the study analyses how business performance may be affected either positively or negatively depending on the level of integration that strategic CSR has been implemented by organisations. The outcome of the study ultimately, will help top level management to amend shortcomings by implementing strategic CSR techniques as well as build formidable business performance.
The issue of social responsibility and how HR plays an important role in executing CSR has become prevalent in the Malaysian government agenda. The combination of HRM in CSR activities is important to be seen as a pioneer and major prerequisite for the realization of national mission and improve the welfare of society. Corporate bodies should take note that CSR is not just helping and giving back to employees only but covers all responsibilities including community life around. Bursa Malaysia commissioned CSR Asia conducted a CSR survey and analysed a random sample of company responses to give an overall picture of where listed companies in 2007 found that companies received low scores and lag far behind, lacking awareness and understanding of CSR concepts as well as CSR issues relevant to their operations. To ensure CSR awareness exists among organizations, the role of HRM should be emphasized. HR managers should be the main actors to make things right CSR activities that are designed to operate successfully. With the ability, resources and expertise of the organization, HRM can hone CSR activities put to good use to support CSR activities. Therefore, this study aims at investigating the contribution of the HRM capabilities in driving CSR practices among public listed companies (PLC) in Malaysia towards organizational performance. To achieve the objectives, five key research questions of this study attempts to answer. This study will apply two types of data analysis software namely Partial Least Squares (PLS) with SmartPLS M3 2.0 (2010) and Statistical Package for Social Sciences (SPSS) version 22. Therefore, the sampling frame of this study is derived from the list of 930 public listed companies in Bursa Malaysia. From the analysis, 17 hypotheses that have been tested showed that 9 hypotheses out of 17 hypotheses are supported. For analysis of Importance-Performance Matrix (IPMA) showed that three highest performances belong to Customer responsibilities CSR Statement and Environment Responsibilities. However, the variables with the highest importance for Organizational performance adaptations are different namely CSR-HR Capabilities, Environment responsibilities and CSR Vision. The findings also indicated that CSR-HR capabilities mediate the relationship between CSR Policies, CSR Orientation and Organizational Performance. Two dimension of CSR policies namely CSR Vision and Equal employment opportunity are found significant relationship but for Code of Ethics, CSR Statement are not significant. For CSR orientation, two dimension also found the relationship namely environmental responsibilities and community responsibilities but for Employee responsibilities and Customer responsibilities are not significant. This study aims at investigating the contribution of the HRM capabilities in driving CSR practices among public listed companies (PLC) in Malaysia towards organizational performance. This study make both theoretical and practical contributions, especially in identifying the relationship between CSR practices, CSR-HR capabilities and organizational performance. Therefore, this study focuses on the role of the combination of Research Based View and Stakeholder Theory which contribute to a new view in understanding the concept of Corporate Social Responsibilities and Human Resource Management.
Journal of Social and Development Sciences
The trends of organizations are changing and demanding satisfied employees rather than dissatisfied employees. This paper provides factors through which employee’s performance can be increased to achieve organizational goals and objectives. To attract the motivated employees and building relations, CSR can perform for society which will change the thoughts of stakeholders. Quality of work life has impact on organization’s effectiveness which is essential for firms to be healthy and productive. Firms should adopt employee oriented policies which satisfies them to achieve organizational objectives. This study also indicates that effective organizational structure is necessary for improving the performance of employees and the organization. The structure is a source of success or failure because it empowers the employee which will increase the sense of responsibility. For the improvement in the organization and removing stress of the employees management must consider the hygiene f...
CSR and financial performance: Evidence from Pakistani Banks
SMART Journal of Business Management Studies, 2019
This research intends to explore the relation between the practices of Corporate Social Responsibility (CSR) and the financial performance of Bank,s using the measures of ROA and ROE. This research would help to improve the knowledge of managerial practices. The current study used Pakistan's banking industry as the empirical setting. The methodology of the study was based on the creation of a 34-item scale CSR Disclosure Index, to measure CSR and then regression results were applied to the models. The study concluded that all Banks in Pakistan view CSR practices as a strategic activity and they are included in the annual reports of banks. Also, public banks in Pakistan executed more CSR activities than private banks. Though there was strong positive association between CSR and ROA, there was only moderate positive association between CSR and ROE. Overall, Banks that implemented CSR practices tended to increase their profitability.
Relationship between CSR and Financial Performance - Companies within ZSE CROBEX10® Index
Journal of corporate governance, insurance and risk management, 2016
The main objective of this research paper is to examine the relationship between corporate social responsibility (CSR) and financial performance (FP) of the companies included in the official share index of the Zagreb Stock Exchange. CROBEX10® includes shares of 10 companies traded at the regulated market in Croatia. Corporate social responsibility is a factor having an important role in the consumer selection of products and services. Thus, CSR is increasingly gaining in importance because it creates organizational value for a company by giving the ability to differentiate the company from its competitors. All successful companies in the world have recognized the importance of CSR, but not all are equally successful in its implementation. Although many empirical studies found a link between the quality of CSR and the company performance measured by financial indicators, there is still a lot of inconsistency in the results of previous research, mainly due to the factors influencing this relation. The paper starts from the general premise that there is no relationship between CSR and FP, for companies included in CROBEX10®. In this paper common indicators such as the measure of the financial performance (such as ROA and ROE) are determined by using document analysis method. Levels of CSR indicators are evaluated by using content analysis. The relationship between CSR and financial performance is interpreted using descriptive statistics, method of simple regression analysis and factor analysis.
How Does CSR Impact Company Performance? A Quantitative Study from Indonesia
2021
Previous studies highlight that corporate social responsibility (CSR) should be integrated into the company’s strategy. CSR integration, according to existing literature, could improve the company performance. Due to a lack of empirical studies on how CSR and company strategy can be integrated, the purpose of this study is to investigate how CSR and company strategy are integrated at the strategic level as well as the impact of that integration on company performance. With survey data from 342 Indonesian manufacturing companies and using structural equation modelling (SEM), the results reveal that CSR alignment and communication have a significant impact on financial and employee performances. The findings of this study provide empirical evidence of CSR practices in the manufacturing industry, particularly in developing countries