...CHAN Ching To (UID 3035102223) To what extent is Corporate Social Responsibility (CSR) beneficial to a company’s performance? An analysis of the relationship between CSR and financial soundness, quality of marketing, people management and long-term investment value. Introduction Since the late 1990s, corporate social responsibility (CSR) has been increasingly discussed in the society and it slowly becomes one of the important components in the business world (Jenkins, 2005). McWilliams and Siegel (2006) interpret CSR as ‘situations where the firm goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”’. In general, CSR is believed to, in long-term, enhance business performance and boost employee morale. Also, CSR could be a tool to improve company image and to prevent crises (Weber, 2008). This essay argues that CSR has a positive relationship with a company’s performance, meaning that it brings benefits to corporate performance to a large extent. To measure one’s performance, three key aspects are considered, namely financial soundness, quality of marketing and people management. These three aspects are chosen from the criteria for Britain's Most Admired Companies 2014 (Management Today, 2014). Effects of CSR on Financial Soundness One of the most crucial criteria to determine a company’s performance is by analysing its financial soundness. Common indicators...
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...Business School, 2011 Academic Conference on Social Responsibility held by the University of Washington Tacoma, and 2012 AAA Auditing Section Midyear Conference for their helpful comments. Corporate Social Responsibility, Audit Fees, and Audit Opinions Abstract Using a sample of U.S. firms from 2000-2008, we examine whether and how their Corporate Social Responsibility (CSR) affects audit fees and the audit opinions. We find that auditors charge lower fees and reduce the propensity to issue going concern qualifications to client firms with superior CSR performance, but increase them for clients with significant CSR concerns. We interpret this finding as suggesting that the auditors use CSR information as an indicator of the client’s audit risk. This interpretation is further strengthened by our finding that the effect of CSR performance on audit fees is stronger in industries with a high average CSR concern and in pollution-prone industries. Our results are robust to the change-specification of the audit fees model, alternative measures of firms’ CSR performance, a categorical analysis of the main CSR dimensions, and...
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...Communication and IT Business Administration Starbucks with Corporate Social Responsibility (CSR) “How Starbucks succeeds in a business world with CSR” 15 Credits Master Thesis (FEAD 01) Thesis Advisor: Bo Enquist Co-reviewer Lars Haglund The Authors: Sornchai Harnrungchalotorn Yaowalak Phayonlerd Karlstads universitet 651 88 Karlstad Tfn 054-700 10 00 Fax 054-700 14 60 Information@kau.se www.kau.se ACKNOWLEDGEMENT Acknowledgements Our thanks go first and foremost to our supervisor, Bo Enquist for his insight support and constructive criticisms during our writing of this thesis. Moreover, we would like to thank Samuel Petros S. for recommending the books and the way to conduct this thesis. We also want to thank the librarian at university for helping us to find the books to run this thesis. Page 2 of 41 ABSTRACT In the today‟s business world, there are many strategies being used to run businesses. In the recent past, the topic of Corporate Social Responsibility (CSR) has grown rapidly. People are starting to demand that companies take their social responsibility seriously. Many companies have started to engage in CSR as a strategy in order to gain benefits that can give them an added advantage over their competitors. There have been increasing numbers of companies engaged in CSR to run their businesses. Nowadays corporate social responsibility (CSR) can drive companies to succeed in business by increasing sales volume and brand awareness. We decided...
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...functions, employ resources and satisfy human wants by offering goods and services. In today’s time, business has emerged as one of the most powerful instituitions on the earth, earning profits will be of no use until and unless the customers associated with the organisations are not happy with the company’s perspective towards helping the society. Therefore, it calls for the need of corporate social responsibility....
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...Jordan PO BOX 45, Postal code 11831 Mohammed R. Abu Awwad Islamic International Arab Bank, Amman, Jordan Emad S. Hajjat Accounting Department, Irbid College, Al Balqa applied university, Irbid, Jordan Abstract This study aims to present a suggested framework for Corporate Social Responsibility (hereafter CSR) and to examine if there is a relationship between (CSR), bank size, the level of risk in the bank and Advertising Intensity (hereafter ADINT) on one hand and the Corporate Financial performance (hereafter CFP) on the other hand in the Jordanian banking companies.As such, this study relied on the financial reports from banking companies listed in Jordanian Stock Exchange for the year 2011 and conducted literatures and empirical studies to obtain the results. statistical techniques are used to analyze data. Throughout this study, it is concluded that there is a significant positive relationship between (CSR), bank size, the level of risk in the bank and ( ADINT) on one hand and (CFP) on the other hand in the Jordanian banking companies.The study has insisted on the importance of adopting (CSR) in the banking sector and the importance of preparing more researches related to (CSR) field. KEYWORDS: CORPORATE SOCIAL RESPONSIBILITY, CORPORATE FINANCIAL PERFORMANCE. 1. Introduction The financial statements are the main tool for external and...
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...corporation standing and brand imagery. BreadTalk who has got processes in China had experienced in Corporate Social Responsibility programme throughout one of the whole world’s mainly horrific tragedy – the Sichuan tremor that occurred on May 12th 2008. This company particularly produced Peace Panda, it is a Panda Bear which was a bun shaped having 4 dissimilar terms which symbolized the fear of the 6.8 scale quake as a helping hand for helping the tragedy. The company gave full part of the earnings from the transaction of “Peace Panda” to the Embassy of China and ‘China Earthquake Appeal Fund’ of Red Cross Society’s. This act of CSR confirmed their pioneering way to utilize their merchandise as an instrument to elevate fund. It in a roundabout way helps in improving the business media exposure and may also create a profound thought into the spirit of its consumers as it depicts kindness and empathy. With the endorsement and commercials of the “Peace Panda”, it also facilitates to increase the earnings also. Corporate Social Responsibility also magnetizes potential workers. Many workers often have a preference to work with corporations with alike principles and this guide to an enhanced work approach and superior output. Worker’s managerial obligation and job agreement might both boost when they understand that not only does the corporation focal point on getting superior...
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...Corporate Social Responsibility – How the new companies’ bill-2013 will affect the lives of people in India. JOSHI BABU.PALLI 13SSMA35 Contents 1. Corporate Social Responsibility (CSR)-Definition 2. CSR history in India 3. Role of CSR in society –Indian perspective 4. Indian companies’ achievements as part of CSR so far 5. Companies bill-2013 6. Benefits and challenges to the society 7. Conclusion 1. Corporate Social Responsibility-Definition There are so many definitions are there which defined the Corporate social responsibility(CSR) in their own way but most acceptable definition is given by Lord holme and Richard watts in the book “making good business sense” i.e. “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” with this definition we can understand that CSR that corporate companies’ contribution to the betterment of society by funding and as well as organizing the social works and fighting against the social evils. Many countries have their own terminology for CSR for example: USA uses corporate citizenship and some other countries use sustainable business etc. The concept of CSR originated in the 1950’s in the USA and the concept came into prominence in public debate during the 1960’s and 1970’s. At that time US had lots of pressing social problems like poverty...
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...* What is CSR? The debate over creating a permanent meaning over the concept Corporate Social Responsibility (CSR) has been going on for over 30 years now. This concept started in the 1950’s where Howard Bowen who was addressed as the Father of Corporate Social Responsibility, published his book Social Responsibility of the Businessman being the first person to come up with defining the concept (Carrol 1999). He stated that “It refers to the obligations of businessmen to peruse those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of society” (Carol 1999). As time evolves so did the definition of CSR and other option were also created such as CSP, CED and more. These options act as contributions to the concept of CSR. Besides the change in time, different countries also have different point of views of CSR. As an example, in the Philippines CSR is a way for businesses to repay their customers for staying loyal to their business while in the United States defined CSR as just by being generous as through their belief that they might gain something in return of their charitable performance (Baker 2004). Moreover, during our research we found an article stating that traditional CSR is how a company interacts outside of the corporation. Other than showing signs of liberality or organizing special events for the public, companies that are or providing job opportunity, earning a large amount of profit...
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...………………………………4 Stakeholders……………………………………………………………………...……5 GRI & UN compact…………………………………………...……………………….5 Social and environment issue………………………………………………….…........6 CSR and Environmental Sustainability………………………………………………..8 Economic performance………………………………………………………………...9 Sustained competitive advantage………………………………………………….....10 Recommendations........................................................................................................12 References……………………………………………………………....13 Appendix A…………………………………………………………….14 Appendix B…………………………………………………………….17 Appendix C…………………………………………………………….18 Executive summary The Coca-Cola Company is the world’s largest non-alcoholic drinks company, controlling over 21% of soft drinks off-trade RTD volumes. Along with Coca-Cola, recognized as the world's most valuable brand, the Company markets four of the world's top five non-alcoholic sparkling brands, including Diet Coke, Fanta and Sprite, and a wide range of other Soft drinks company. In this report, we are working toward expanding our sustainability reporting on topics that are most important to Company and stakeholders. We include increased our discussion of stakeholder engagement, GRI & UN compact, Issues on social and environment, CSR and Environmental Sustainability, Economic performance, Quality of Management, Sustained competitive advantage and give some recommendations to help Coca Cola company to improve more sustainability goals.to We strive to focus our reporting...
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...found in the 1950s and 60s whereby successful companies were trying to link corporate social responsibility to the power that business holds in society. The theoretical progresses were subdivided in ethical and accountability and the stakeholder approach to strategic management. CSR can be distinguished from the three terms which are included in its designation phrase and these words are; ‘Corporate’, ‘social’ and ‘responsibility’. Hence CSR can be explained as being the responsibilities that a company undertakes for the society within which it carry out its operations. To be specific, CSR require a business to identify its stakeholders and include their needs and values in the tactical day to day decision making process of the company. Consequently the society within which a business function and which identify the number of stakeholder to which the organization owe a responsibility can be broad depending on the type industry within which it operate. The different stakeholders to which a company is accountable can be illustrated using the figure below: Figure 1: stakeholder of a business -a business must respond to two aspects which evolve during their operating process and these are: * The quality of management which is represented by the inner cycle and it is both in terms of people and processes. * The nature of and the extent to which...
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...Disclosures About CSR Practices: A Literature Review Kavitha W * and Anita P ** Corporate Social Responsibility (CSR) is now prominent and evident more than ever due to the emphasis laid on businesses regarding environmental, social and ethical issues. The level of CSR activities of the firms is made known to public only through the disclosures. This paper reviews the literature on CSR disclosures and the effect of these disclosures. There are various factors which determine the extent of disclosures like the size of the firm, industry, high visibility, etc. Introduction Corporate Social Responsibility (CSR) is now prominent and evident more than ever due to the emphasis laid on businesses regarding environmental, social and ethical issues. This is because over the recent years, there have been social, political and economic pressures on corporate management to pay attention on social and environmental consequences of corporate activities. These pressures motivated the corporate management to actively participate in a wide range of social welfare activities. CSR now-a-days covers almost all issues like the use of child labor; inequality of employment; environmental impact; involvement in local community; products’ safety; company cultures; brand image and reputation. Apart from this, companies are now disclosing these activities in their annual reports, and one of the parameters to judge the performance of a company is CSR reporting. Corporate Social...
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...Adopting the CSR principles involves costs. These costs might be short term in nature or continuous outflows. These costs might involve the purchase of new environmentally friendly equipment, the change of management structures, or the implementation of stricter quality controls. Since being socially responsible involves costs, it should generate benefits as well in order to be a sustainable business practice. A corporation could not continue a policy that constantly generates negative cash flows. The shareholders invest their money in a corporation, expecting the highest possible risk adjusted return. Therefore, being socially responsible should have bottom-line benefits in order to be sustainable. In many cases, it seems that the time frame...
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...Corporate Social Responsibility (CSR) beneficial to a company’s performance? CSR—A double-edged sword for company’s performance Starting from the refined corporate social responsibility (CSR) strategies issued by the European Commission in 2011, a stinging debate is being aroused on the influence of CSR to the whole society. The most influential critic is Noble Prize winner Milton Friedman, who regards CSR as a waste of stockholders’ money (1970). However, many other articles claim, opposite Friedman, that CSR actually improves companies’ financial performance in the long run (Bagnoli and Watts, 2003; McWilliams and Siegel, 2001). There are plenty of arguments on CSR’s influence on company’s performance. As far as I am concerned, CSR plays as a double-edged sword in company performance. The definition of CSR is quite easy to understand. According to Business for Social Responsibility (BSR), CSR is defined as “achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.” McWilliams and Siegel (2001:117) describe CSR as “actions that appear to further some social good, beyond the interest of the firm and that which is required by law.” These suggest that a socially responsible corporation should take a step forward and adopt strategies and business practices that go beyond the profit requirements and contribute to some social-friendly activities. However, when companies choose to engage in CSR activities, what they are...
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...HEB possess many corporate social responsibilities (CSR) and I believe that the way HEB executes their responsibilities can benefit and improve the Houston Food Bank (HFB). “The meaning of the CSR is to recognize that business firms have not one but many different kinds of responsibilities, including economic and legal responsibilities. Corporations have an economic responsibility to produce goods and services also to provide jobs and good wages to the work force while earning a profit (The Business Cornerstone). “The concept of corporate social responsibility is often expressed as the voluntary assumption of responsibilities that go beyond the purely economic and legal responsibilities of the firm (Scilly).” First, I will discuss the economic values of HEB. The economic part focuses on whether not the company can earn a profit before being a good corporate citizen. HEB focuses on producing the freshest produce and putting their customers first by listening to their customers and helping fulfill their any and every need within their capability. They also focus on maintaining low prices in a competitive market. “Two notable factors spring out: the first is being privately held, the second is its unique position as the only retailer of its scale and size to operate exclusively in one state and across the border in Mexico. Its familial tie to its Texan communities bolsters its sustainability goals and provides a competitive edge (Slott).” HEB thrives on diversity, supports their...
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...Philippine Copyright 2015 By the Researchers and the College of Business Administration Polytechnic University of the Philippines All rights reserved. Portions of this manuscript may be reproduced with proper referencing and due acknowledgement of the author. THE IMPACT OF MCDONALD’S CORPORATE SOCIAL RESPONSIBILITY TO “BAHAY BULILIT” BENEFECIARIESIN MAKATI FOR THE YEAR 2014-2015 A Thesis Presented to the Faculty of the College of Business Administration Polytechnic University of the Philippines Sta. Mesa, Manila In Partial Fulfilment of the Requirements for the Course MARK 4113 Thesis Writing (Research II) by Aquino, Ronnie R. Arellano, Leziel A. Awid, Sharmaine Princess M. Chavez, Casmer Culala, Maria Margarita A. Madali, Alyana M. Panaguiton, Felisa L. March 2015 CERTIFICATION This thesis entitled THE IMPACT OF MCDONALD’S CORPORATE SOCIAL RESPONSIBILITY TO “BAHAY BULILIT” IN MAKATI FOR THE YEAR 2014-2015 prepared and submitted byA RONNIE R. AQUINO, LEZIEL A. ARELLANO, SHARMAINE PRINCESS M. AWID, CASMER CHAVEZ, MARIA MARGARITA CULALA, ALYANA M. MADALI, AND FELISA L. PANAGUITON in partial fulfilment of the requirements for the course MARK4113 has been examined and recommended for Oral Examination. Evaluation Committee ESTELITA E. MEDINA Adviser CRESILDA M. BRAGAS, MBA ELENA M. MAÑO, MPA Member Member MELINDA M. DE GUZMAN, DBA Member ...
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