Martin Samy, Godwin Odemilin and Roberta Bampton
This paper attempts to prove that strategically investing in corporate social responsibility (CSR) will maximize profits while satisfying the demands from multiple stakeholders.
Abstract
Purpose
This paper attempts to prove that strategically investing in corporate social responsibility (CSR) will maximize profits while satisfying the demands from multiple stakeholders.
Design/methodology/approach
The paper adopts a quantitative analysis and exploratory approach. It studies the CSR practices of 20 selected UK companies. The analysis of CSR policies is based on the global reporting initiative (GRI) guidelines. The analysis took a further step in examining the trends of earnings per share (EPS) of the selected companies.
Findings
The findings revealed that out of the 20 selected companies, only four achieved all six guidelines as per the GRI. In regression analysis of the variables CSR and EPS, a very weak (causal) but positive relationship was evident (R2=0.147).
Research limitations/implications
The study was applied to 20 selected companies in the UK. Future research should be extended to a larger sample in order to analyze the strength of the relationship between EPS and CSR. The study applied variables of CSR based on GRI. Other measures may reveal different insights.
Practical implications
In the strategic sense, CSR investments are not just another business cost but are essential for a firm's continued survival in the ever increasingly competitive business world of today. This understanding is crucial as there is an escalation of concern by both society and corporations in the modern world. More so, it is increasingly and widely accepted that attempting to isolate business from society is unrealistic and that dichotomising economic and social objectives as distinct and competing is false.
Originality/value
The paper applies the variable EPS and seeks to establish a relationship with the CSR as measured according to the GRI.
Details
Keywords
Juanita Oeyono, Martin Samy and Roberta Bampton
The increasing demand of stakeholders' interests in social performance has put pressure on corporations to undertake social responsibility reporting in their operations in order…
Abstract
Purpose
The increasing demand of stakeholders' interests in social performance has put pressure on corporations to undertake social responsibility reporting in their operations in order to satisfy the demands and to gain public support. Some organisations have already responded, either by publishing a separate report regarding their social activities, or by providing such information in their annual report or on their web site. However, in some developing countries such as Indonesia, there is little or no regulation and with no expectation to follow international standards, corporations in these countries tend not to provide corporate social responsibility (CSR) reports. As there is a lack of regulatory controls in reporting CSR activities in most developing countries, the question of what the “carrot” is for the corporations is the crux of this research. The purpose of this paper is to investigate whether Indonesian corporations are aware of CSR.
Design/methodology/approach
This research aims to investigate the level of CSR conducted by the top 50 corporations in Indonesia based on Global Reporting Initiative (GRI) guidelines, as well as to investigate the relationship between CSR and profitability. The profitability variables chosen are earnings before interest, tax, depreciation and amortisation (EBITDA) and earnings per share (EPS). The GRI guidelines have been chosen for this study to be used as a basis to measure corporations' social responsibility activities. The dataset was based on the years 2003‐2007, and the data collected in 2008.
Findings
This study showed that Indonesian corporations are already aware of the increasing demands and provide CSR information to stakeholders in the emerging economy. The CSR reporting measured as per the GRI indicated that five out of 45 corporations (11 per cent) completed a maximum of six GRI indicators, ten corporations (22 per cent) fulfilled five indicators and 16 corporations (36 per cent) complied with four indicators. The analyses revealed that there is a positive relationship between CSR and profitability, although it is weak (18 per cent for EBITDA and 16 per cent for EPS). Therefore, it can be argued that reporting social responsibility activities is beneficial for corporations in emerging economies such as Indonesia.
Originality/value
From the literature, the authors have concluded that there is no research evidence of a study that analyses the depth or level of CSR reporting among Indonesian corporations, hence there is a contribution to new knowledge as the analysis reveals new findings in relation to a developing country. Although there are studies measuring the relationship between CSR reporting and financial performance such as EPS, this study further explores the correlation by introducing a new variable, i.e. EBITDA.
Details
Keywords
Fadi Alasfour, Martin Samy and Roberta Bampton
This paper investigates how individuals determine their tax morale levels and tax compliance decisions. Using a questionnaire survey and a multivariate tests procedure, the paper…
Abstract
This paper investigates how individuals determine their tax morale levels and tax compliance decisions. Using a questionnaire survey and a multivariate tests procedure, the paper revealed that tax evasion is morally acceptable in Jordan under some circumstances, indeed there could be an affirmative duty to evade taxes since the government is perceived to be highly corrupted. The findings also show that while the extent of the governmental corruption has a positive (negative) effect on tax non-compliance (tax morale), the efficient expenditure of governmental tax revenues has a negative (positive) impact on tax non-compliance (tax morale). The individuals’ tax non-compliance decisions are likewise positively affected by the tax rates and by the taxation system’s being perceived as unjust, but decline with the increase of audit rates and the subsequent penalty rates. The degree and effectiveness of these determinants are dependent on the individual’s level of risk aversion, financial constraints and the surrounding referent groups. The results also confirm that individual factors play a significant role in determining the level of tax morale. Overall, the tax morale level and the compliance decision of an individual are greatly influenced by gender, age, educational level, occupational status and religious background.
Details
Keywords
Henry Ogiri Itotenaan, Martin Samy and Roberta Bampton
Over the last few years, governments in the developed countries have increased their level of involvement in promoting corporate social responsibility (CSR) activities through…
Abstract
Purpose
Over the last few years, governments in the developed countries have increased their level of involvement in promoting corporate social responsibility (CSR) activities through policy making and implementation. Using a qualitative research approach, underpinned by a subjective ontology and an interpretive epistemology, this paper aims to examine the relevant characteristics of CSR frameworks applied across the developed countries, with particular reference to The Netherlands and Sweden.
Design/methodology/approach
The study adopted a thematic analysis and developed a rigorous phenomenological design to reveal the insights to CSR policy making. Semi-structured interviews were conducted with policy makers and implementers. The NVivo 9 software was used to analyse the data.
Findings
The findings indicate that adoption of international guidelines that regulate companies working across borders, active participation of international government bodies, effective government collaboration with stakeholders, and provision of financial and technical support to companies to determine the level of CSR activities.
Originality/value
The study revealed that: voluntary CSR implementation and reporting; transparency; and execution of national policy statement on CSR, are the process indicators of CSR implementation in developed society. The results of this study could have policy implications for both executive and MPs of national governments in developed society for CSR regulatory policies.
Details
Keywords
Martin Samy, Henry Itotenaan Ogiri and Roberta Bampton
The purpose of this paper is to examine the public policy perspective of corporate social responsibility (CSR) implementation in Sub-Saharan Africa. There has been an increase in…
Abstract
Purpose
The purpose of this paper is to examine the public policy perspective of corporate social responsibility (CSR) implementation in Sub-Saharan Africa. There has been an increase in the number of countries adopting a national policy for CSR practice, particularly in the Western society. Despite the growing awareness about the role of government in CSR promotion, governments in Sub-Saharan Africa are yet to evolve policies that could help promote CSR in the region. As drivers of CSR, governments hold resources, like access to regulated parts of society that makes the inclusion of CSR opportunities relevant to strategic and operational management. From the extant literature, the role of government in defining and shaping the field of CSR is gaining wider acceptability.
Design/methodology/approach
Using a qualitative research approach, this paper examines the current status of CSR implementation, particularly from the public policy perspective in selected Sub-Saharan African countries. Semi-structured interviews were conducted with policymakers and policy implementers. The study adopted a thematic analysis and developed a rigorous phenomenological design to reveal the insights to CSR policy-making.
Findings
The findings established that the status of CSR implementation in Sub-Saharan Africa is influenced by absence of national CSR policy, CSR being mainstreamed in government constitution and CSR being a company initiative action to comply with international code of business conduct.
Practical implications
The results of this study could have policy implications for both executive and MPs of national governments for CSR regulatory policies.
Originality/value
In most developing countries, including Sub-Saharan African countries, the aforementioned institutional conditions are often an exception. There are both no legal and regulatory frameworks for Multinational Corporation activities and their socio-ecological impact, or such regulations may exist but are not adequately enforced (Rwabizambuga, 2007). This situation, unfortunately, has created a huge reporting gap between what organisations do and what they report regarding CSR. Hence, this original study adds to the body of knowledge for this region by revealing the central issues around the phenomenon.