Suchergebnisse

This research seeks to determine whether mandated corporate social responsibility (CSR) is value relevant to investors. Specifically, this study is centered around the Companies Act, 2013 passed in India on August 29. The legislation requires companies with a net worth of at least five hundred crore rupees (Rs 5 billion), or with a turnover of at least one thousand crore rupees (Rs 10 billion), or a with a net profit of at least five crore rupees (Rs 50 million) to spend at least 2% of the average net profits of its last three financial years on supporting social initiatives. Using the event study methodology, this study observes the share prices of companies listed in the Bombay Stock Exchange (BSE) around the passing of the legislation. It was found that the cumulative abnormal returns (CAR) surrounding the passing of the legislation are significantly different from zero and negative, indicating, negative reaction from investors. The analysis than focuses on companies that were affected by the legislation. The study tests for difference in CAR of affected companies that were included in the S&P BSE Greenex Index and the S&P BSE Carbonex Index with CAR of affected companies that were not included in these index. These two index include companies that are considered environmentally friendly. The analysis finds that CAR of affected companies included in the S&P Greenex and S&P Carbonex Index are significantly different from CAR of other affected companies. The CAR of companies that are considered environmentally friend is significantly better compared to other affected firms. This finding suggests that mandating CSR is relevant to investors. Furthermore, firms that are already involved in CSR, thus, considered environmentally friendly, are the least affected by the legislation. These companies are large companies that were part of the S&P BSE 100, the 100 largest companies in BSE, hence, are arguably scrutinized more compared to smaller companies. Their asset size, net worth, and ...

Purpose
This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories.


Design/methodology/approach
Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used.


Findings
It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees.


Practical implications
This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide.


Social implications
COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues.


Originality/value
The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.

<em>Post Globalization Indian companies started making CSR a part of their Business strategy rather than merely restricting it to charity or philanthropy. The most significant breakthrough in CSR took place in 2013 with the introduction of idea of 'mandatory CSR'. With an enormous increase in the scope of CSR, the companies are struggling to align their organizational objectives with CSR goals. The companies are focusing on Stakeholder engagement, identifying implementation partners, capacity building, and effective project implementation. What is amiss is impetus on monitoring and evaluation of CSR activities. A number of CSR rating agencies have come up with their own indices, but they lack in adequate transparency on evaluation criteria and methodology. There is also inter-agency divergence with respect to company's evaluation and ranking. This paper proposes a comprehensive and realistic framework which can be implemented in the Indian context for evaluating the CSR activities.<br /> <br /> </em>

Purpose
This paper aims to study the implications of corporate social responsibility (CSR) on employee engagement in selected Indian business giants to which CSR spending is mandatory as per the Companies Act 2013. Researcher also has an intention of preparing working model for increasing employee engagement through CSR.


Design/methodology/approach
Researcher has collected the primary data from HR officials, CSR officials and employees of 23 organisations belonging to 10 main industrial sectors of India. The organisations selected for the data collection belong to India's top 100 organisations as per Bombay Stock Exchange fulfilling a particular criterion. The effect of employee participation in CSR on employee engagement is been studied by identifying four parameters of employee engagement on which the employee participation in CSR may have some effect. The data are analysed with the help of Z test for proportion.


Findings
The major findings of the paper of the study includes that employee participation in CSR positively effects the employee engagement, as it helps in increasing four specifically identified parameters of employee engagement.


Research limitations/implications
The study is limited to the specific area of the effect of employee participation in CSR on employee engagement that too with respect to selected Indian business giants.


Practical implications
On the basis of this study, a theoretical model of CSR and employee engagement is proposed at the end of this paper. The model is expected to work as a guideline to the organisations, which want to improve employee engagement through CSR.


Originality/value
This research is one of its kinds that study the effect of employee participation in CSR on employee engagement. Moreover this research study considers the selected large-scale businesses of India which is the only country having 2% mandatory CSR spending to the organisation fulfilling the specific criteria.

AbstractWe investigate investor sentiment regarding mandatory corporate social responsibility (CSR) as a public policy. Using the event study methodology, we analysed the cumulative abnormal returns (AR) of companies impacted by Section 135 of the Indian Companies Act 2013. Our findings suggest that setting a CSR expenditure threshold may lead companies lagging in CSR to over‐invest, potentially hindering value maximisation. Specifically, we observed that the cumulative AR for companies lagging in CSR are lower than those leading in CSR. Therefore, mandating CSR practices may be counterproductive for value creation. This event study is one of the first to evaluate the impact of mandatory CSR as public policy on CSR‐leading and lagging firms.

AbstractWhile many extant studies focus on the relation between financial performance and corporate social responsibility (CSR) reporting, less attention has been given to the shifting role of financial performance in CSR reporting in a changing institutional environment. The objective of this study is to investigate whether, why, and how institutional transitions affect the role of financial performance in CSR reporting. Using samples of A‐share listed companies from 2008 to 2015, we separately examine the impacts of institutional transitions on firms' propensity to issue standalone CSR reports, the quality of voluntary CSR reports, and the quality of mandatory CSR reports. We find that financial performance buffers against external pressures brought by institutional transitions rather than only serving as a slack resource. By highlighting the buffer role of financial performance, our study provides deeper insights on the relation between financial performance and CSR reporting and contributes to extant institutional research on CSR reporting.

This thesis analyizes the role of corporate social responsibility (CSR) information in capital markets and its use by stakeholders and information intermediaries. On the basis of three studies, the thesis contributes to two streams of literature: literature on the role of ESG and governance ratings in capital markets and literature on real effects following mandatory CSR transparency. In the first study, we examine whether and how information reflected in corporate governance ratings is valuable for investors and how these informational properties of governance ratings vary across instituti...

This thesis analyizes the role of corporate social responsibility (CSR) information in capital markets and its use by stakeholders and information intermediaries. On the basis of three studies, the thesis contributes to two streams of literature: literature on the role of ESG and governance ratings in capital markets and literature on real effects following mandatory CSR transparency. In the first study, we examine whether and how information reflected in corporate governance ratings is valuable for investors and how these informational properties of governance ratings vary across instituti...