This study examined the different accounting theories and how they applied to corporate social responsibility (CRS). The accounting theories are stakeholder theory, social contract theory, legitimacy theory and signalling theory. These theories were explained and discussed from a corporate social responsibility point of view, this was done by identifying the conditions that best suits these theories. From the review done on these theories, the stakeholders theory applied to corporate social responsibility by explaining that a company is not just responsible to shareholders but to other groups of people who are affected or are been affected by the activities of the company and at that they should be responsible to them as well. The social contract theory pointed out that there is an invisible contract between the business enterprise and society and the contract contains some indirect obligations to be performed by the business organisation to the society and these obligations can be show cased through the corporate social responsibility report. This means that whether the company likes it or not the wellbeing of the society is part of their responsibility. The legitimacy theory expects that organisations should be legit in their business operations. They should always provide corporate social responsibilities activities to the society in which they operate, as it is through that means they will be obtaining approval to continue operations in that society and finally the signalling theory explains that there is a reward for reporting corporate social responsibility information voluntarily to the capital market, because the reported information could motivate investors and potential investors to invest in the company.
Corporate Social Responsibility (CSR) Practices in Coffee Producer Farmers’ Cooperative Unions: The Case of Bench-Maji, Kaffa, and Sheka Zones, South Western Ethiopia. (Published)
Cooperative enterprise is one of the business enterprises with its peculiar characteristics of solving its members’ economic, social, and cultural problems where individuals couldn’t solve alone. The seventh ICA principle of “concern for community” clearly urges the cooperatives to carry out sustainable community development activities. Even though the cooperatives are serving the community directly or indirectly, their sight to the concept Corporate Social Responsibility (CSR) is not clearly considered by their members, academicians, and the government. The objective of this study was to assess the practices performed by Coffee Producer Farmers’ Cooperative Unions regarding Corporate Social Responsibility for community development at the study area. For this study both primary and secondary data source were used. The size of respondents was 395 members of Cooperative Society and 50 Government officials. The data was analyzed using MS Excel and SPSS version 20. The finding shows that there are job creation, supply of agricultural input, and expansion of coffee processing industry for serving both members and non-members, whereas drawback on the awareness creation to the community, absence of participation of community during planning, implementing, and evaluating community concerned project, limited and inconsistent allocation of community concerned fund, non-representing Corporate Social Responsibility financial statements at unions’ offices for CSR budget. It is recommended as such management body of the unions should participate the community during planning, implementing, and evaluating socially responsible projects, cooperative social responsibility practices should be thoroughly supervised and supported by the government, cooperatives from their annual surplus should allocate community development fund, both GOs and NGOs working on sustainable development activity at that area must work with cooperatives, and Cooperatives have to maintain separate book of account to record financial activities of cooperative social responsibility practices.
Owing to the on-going exhaustion of the natural environment and its consequences on the society, the present environmental state of Bangladesh, a populated country with inadequate resources, has become enormously alarming. The human health, ecosystems and economic growth are threatened by severe environmental pollutions and encroachments. Bangladesh is facing several natural catastrophes such as floods, cyclones, and tidal-bores every year because of the environmental externalities which cause severe socio-economic and ecological damage. Thus, this study aims to highlight various ecological difficulties that Bangladesh is currently facing and that pose obstacles to implementing environmental CSR for sustainable development. The review of the literature reveals that several environmental pollutions, climate change and the loss of biodiversity are continuously degrading the natural environment of Bangladesh and its resources. Consequently, these detrimental impacts are threatening the socio-economic growth of Bangladesh and its environment. Hence corporate social responsibility (particularly environmental) can play a significant role to control the current environmental degradation of Bangladesh. The government should, at the same time, undertake several initiatives to protect environmental degradation, foster the environmental CSR activities within all the business sectors and increase environmental awareness which is mandatory to attain sustainable development.
This research aims, firstly, to initiate the reader by the concept of social responsibility of firms. Our paper provides some historical background and perspective. In addition, it provides a brief discussion of the evolving understandings of CSR and some of the long-established, traditional arguments that have been made both for and against the idea of business assuming any responsibility to society beyond profit-seeking and maximizing its own financial well-being. Finally, the goal is also to discuss the empirical aspect of CSR policies.
Over the last few years, corporate social responsibility (CSR) has become an essential issue for academics as well as for businesses in a similar way. These days, many organizations deem CSR as a primary corporate tactic for attaining a long-lasting competitive advantage. Also, organizations are benefited through CSR practices by satisfying their various stakeholders including employees. Hence, this study makes an effort to discover the impact of CSR on employee’s job satisfaction in MNCs, Bangladesh. Four dimensions of Carroll’s (1979) CSR such as economic, legal, ethical and philanthropic responsibilities of CSR are considered as the IV’s and employee job satisfaction as the DV of this study. Stakeholder theory has been used as a theoretical framework to provide guidance to this study. A structured questionnaire with 7 points Likert scale was used to collect the primary data by conducting the survey. The sample size was 120 and the respondents were selected on a convenient basis from MNCs, Chittagong city. Data were analysed using SPSS software (version: 17). The result of the study showed that philanthropic, ethical and legal responsibility of CSR significantly and positively influenced employee job satisfaction where economic CSR was showing the negative relationship with employee job satisfaction. In general, employee job satisfaction is positively affiliated with organisation’s CSR practices in Bangladesh’s MNCs.
How do financial institutions in Pakistan operate on corporate social responsibility standards? (Published)
This article has been based on the analysis of CSR practices of financial institutions in Pakistan and their evaluation on the performance of organizations. The objectives of this article are: a) analyzing the literature regarding CSR practices in the financial industry, b) evaluating the CSR practices followed by organizations in financial industry in Pakistan, c) identifying the perceptions of customers and general public towards CSR practices of organizations in Pakistan and d) proposing suggestions to organizations in Pakistan for improving their CSR practices. For evaluating the objectives of study, primary data has been used in this study. For this purpose, the researcher targeted a sample of 170 employees of financial institutions from Rawalpindi. This sample was selected through random sampling technique. 152 appropriately filled questionnaires were obtained and it resulted in 89.41% response rate. Through statistical analysis of study, it was found that environmentally sustainable practices, philanthropic practices and stakeholder relations are positively related with the organizational performance. On the other hand, this study also concluded that legal compliance has not been related with the organizational performance. This article concluded that CSR practices do influence organizational performance in Pakistan’s financial industry. This study provided a foundation to future researchers to take a large sample of organizations and expand scope of the current study
The concepts of ethical behavior and corporate social responsibility have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing. These two concepts can bring significant benefits to a business. The idea that business enterprises have some responsibilities to society beyond that of making profits for shareholders has been around for centuries. The paper addresses the concepts of business ethics and corporate social responsibility. From the perspectives of MBA students and managers, it came out that business ethics and social responsibility are very important for organizational growth and success. Specifically, they consider business ethics to lead to positive employee, customer and community relations. Not only that but also, they perceive that better public image/reputation; greater customer loyalty; strong and healthier community relations can inure to the benefit of corporations that are socially responsible. Implications of the findings are finally drawn.
This study examines the implementation of the policy of corporate social responsibility (CSR), particularly with respect to the operationalization of corporate social responsibility to local communities in Riau province around the area of operations of PT. Chevron Pacific Indonesia (PT. CPI), PT. Riau Andalan Pulp and Paper (PT. RAPP) and PT. Indah Kiat Pulp and Paper (PT. IKPP). While the purpose of this study is to describe and analyze and explore permasalahaan relating to implementation of the policy of Corporate Social Responsibility (CSR) in the province of Riau. Based on the characteristics of the problem and research objectives, this study used a qualitative approach, using participatory observation and in-depth interviews to a number of informants and conducting focus group discussion (FGD). The results showed the company to have the view that society is an important partner and principal, so that operation of corporate social responsibility to the community devoted much about the company’s operations. While local communities in response to the presence of the company, is already a natural thing and the company’s obligation to carry out CSR activities to the public, because the company has been exploiting natural resources ‘belonging to’ the public. But the pattern of this CSR has spawned a pattern dependency aid community is a pattern of relationships that have been structured, as a result of the previous aid practices that tend to make people dependent on corporations and not independent. This suggests there are still problems such as a standard aspect and policy objectives are not clear, the attitude or disposition implementing less support, resources are inadequate, communication between organizations is still low, the characteristics of the implementing organization that has not been coordinated and social environment of political economy policies very complex. CSR policy implementation should be organized by developing a model of corporate social responsibility program participation based on the potential and needs of local communities. Companies must undertake CSR activities in an honest, open, and accountable (accountable) in every process of its CSR activities to all stakeholders.
ADOPTION OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES- A STUDY OF CONSTRUCT DEVELOPMENT AND SCALE CREATION (Published)
Research issues: Corporate Social Responsibility (CSR) has been given emphasis by literature, in particular, shows positive affect of organization on their stakeholders. Although CSR has been extensively discussed in the literature, CSR measurement is still problematic issue. A number of limitations are associated with a number of methods provides by literature utilized in measuring adoption level of CSR practices within the organization. This research seeks to provide original construct and scale measurement of adoption CSR practices, while also reflecting the business roles towards different stakeholders with respect to economic performance. Research Results: A qualitative interpretive research methodology was adopted, based on in-depth interviews conducted with the board members and executive’s managers in two companies operating in Saudi Arabia, with the findings developed the new scale for measuring the adoption of CSR practices. The new construct and scale were developed by six-dimensional structure of CSR, measuring the companies’ community, environment, shareholders, employees, customers, and supplier practices. Theoretical Implications: This study builds important contribution to CSR literature by developing a new construct and scale of adoption of CSR practices in developing country. This construct was developed based on the finding of qualitative case studies, in order to provide empirical evaluation of the adoption level of CSR practices in the Saudi listed companies. Therefore, this construct is a multidimensional construct that comprised the six CSR practices that communicated and engaged with six company’s main stakeholders namely: environment, customer and product, employee, shareholders, community and finally supplier. Practical Implications: This study can improve board members and managers’ awareness in how to evaluate CSR contributions within their organizations. A newly developed scale for the adoption of CSR practices can be considered as a broad self-constructed index consisting of six main stakeholders that covered 17 CSR practices. The implication of CSR self-constructed index has two practical contributions at organizational and national levels. At the organizational level, it helps directors and executives in Saudi companies listed in industrial sectors that have high sensitivity to CSR issues within their operational activities, in managing and rating the adoption level of CSR practices within their organization. Additionally, the developed self-constructed index generates significant CSR guidelines for those companies to formulate effective corporate practices on CSR issues.
INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) INTO CORPORATE GOVERNANCE: NEW MODEL, STRUCTURE AND PRACTICE: A CASE STUDY OF SAUDI COMPANY (Published)
This paper seeks to explore the integration of corporate social responsibility (CSR) into corporate governance (CG) structure and system. To obtain this objective, this paper firstly reviews the extensive literature of CG and CSR. Second, it investigates the conception and understanding of interrelationship between CG and CSR within case study context of petrochemical company operates in Saudi Arabia. A qualitative case study was adopted by conducting in-depth interviews with participants at various levels of board and management in petrochemical company operates in Saudi Arabia. The findings suggested that the majority of participants consider CG as an essential foundation for sustainable CSR activities. The significance of the findings can be found in the fact that the previous trend of focusing solely on CG in developing countries has been reverted and more attention is dedicated to CSR. The current study contributes to existing body of CSR and CG literature by presenting the new CSR governance model. Two important implications can be found in this study. At organizational level, board members and managers can improve the corporate policy and practice in context of engaging with stakeholders. At the national level, the policy makers within developing countries can build on the conclusion drawn in this paper and enhance capacities of their regulatory and judicial systems to protect stakeholder’s interest.
CONSUMER IDENTIFICATION AS A RESULT OF ECONOMIC AND PHILANTHROPIC CORPORATE SOCIAL RESPONSIBILITY IN SAFARICOM LIMITED COMPANY OF KAJIADO COUNTY, KENYA (Published)
Consumers’ identification (CI) has become a focus for many companies. Consumer’s self expression is indeed vital and has to be understood by organizations, who are jostling for a share of consumers’ identity. Significant changes in marketing in the last ten years have brought dramatic changes in which consumers’ can express their identities. The main driver has been one on one marketing and mass customization. This study sought to establish the effect of economic and philanthropic corporate social responsibility on Consumer identification among Safaricom Company limited consumers in Kajiado County. The study was based on the hypothesis that there is no relationship between economic CSR and consumer identification and that Philanthropic CSR has no effect on Consumer Identification. Cluster sampling was used to obtain a sample size of 325 respondents who were used in the data collection procedure by use of questionnaires. The study found out that both economic CSR and philanthropic CSR had a positive significant relationship with consumer identification rejecting the applied Hypothesis
VOLUNTARY DISCLOSURE ON CORPORATE SOCIAL RESPONSIBILITY: A STUDY ON THE ANNUAL REPORTS OF PALESTINIAN CORPORATIONS (Published)
This is an exploratory study designed to investigate the extent and nature of social and environmental reporting in the annual reports of the 48 corporate that were listed on the Palestine Exchange(PEX) in 2012. Specifically, we examine the relationship between Corporate Social Responsibility(CSR) disclosure and the variables which may determine. In order to do this, we have developed and utilized a disclosure index to measure the extent of disclosure made by companies in corporate annual reports also by using the guidelines (Global Reporting Initiative (GRI-G3)) . This study reports significant differences in levels of social and environmental disclosure, as measured by the mean values of the social and environmental disclosure index in Palestine. This study indicates that the level of CSR disclosure is fairly low in Palestine corporations. The findings show that there is correlation between CSR disclosure level and the size of the firm. also there are differences in the level of disclosure of CSR of the firms due to the kind of economic sector. However, that the level of disclosure CSR evidence a statistically did not significant association with the profitability of the firms are listed on the PEX.