• The Journal of Industrial Distribution & Business
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• v.11 no.1
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• pp.19-28
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• 2020

Purpose: This research aims to empirically investigate the motivation of corporate voluntary disclosure by exploring the impact of historical loss on corporate social responsibility disclosure (CSRD). Research design, data, and methodology: This paper takes Chinese A-share listed firms that issued standalone social responsibility reports during the period of 2009-2017 as a sample. Drawing on extant literature, this paper defines historical loss firms as firms with net profit greater than or equal to 0 and undistributed profit less than 0. The tendency score matching method (PSM) is used to find matching samples for historical loss firms. Then OLS regression is conducted to investigate the relationship between historical loss and corporate social disclosure. Results: The results show that historical loss has a significant positive impact on the quality of corporate social responsibility disclosure. After changing the measurement of independent and dependent variables as well as adopting different matching methods to screen the control group, the results still hold. Further research indicates that the relationship between historical loss and CSRD is influenced by corporate financing constraints and industry competition. Conclusions: This research supports the resource motivation hypothesis of corporate social responsibility disclosure, and provides empirical evidence for regulators to strengthen supervision on corporate disclosure.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.3
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• pp.243-253
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• 2020

As economic profits and social influences of firms grow with economic development and their organizational expansion, consumers increasingly require firms to have their social responsibility. Because social responsibility strongly influences corporate reliability, consumers' intention to purchase, customer loyalty to the products and the recognition of an ethical firm have gained attention as a concept of strategical importance. The prosperity of society should be proceeded for the sustainable development of a firm and the necessity of social responsibility should be emphasized to achieve virtuous circle structure that promotes growth. Additionally, the social responsibility should be proceeded to form trust on a firm. It is very important to change the recognition of consumers to purchase products and increase the profit of a company. This study aims to analyze how social responsibility properties of firms (economic, ethical, discretionary, and legal aspects as low-level factors of social responsibility which Carroll (1979) defined) affect corporate reliability and purchase intention. The analysis found that consumers trust in firms are positively influenced by ethical responsibility (0.391), economic responsibility (0.293), legal responsibility (0.251), and discretionary responsibility (0.248). The relationship between sub-factor of social responsibility and purchase intention is not significantly influenced by other explanatory variables. Corporate trust exerts a direct influence on purchase Intention (0.456). The social responsibility of a firm didn't influence a direct purchase intention. It was found that it brought positive effect on the purchase intention in the course of forming trust. This study suggests that firms should make efforts to understand the relationship between corporate trust and purchase intention along with the characteristics of social responsibility that consumers recognize and improve management strategies for mutual complementary interests.

• Journal of Distribution Science
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• v.16 no.5
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• pp.31-43
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• 2018

Purpose - We examine how a Korean retail firm's social responsibility is related to its financial performances. The traditional view of corporation expects a negative relationship, while the stakeholder theory expects a positive one. Research design, data, and methodology - We adopt the ESG score, published by Korean Corporate Governance Service to measure the level of socially responsible activity for the Korean retail firms. The ordinary least square method is adopted to investigate this relationship. The publicly traded retail firms are examined from 2011 to 2016. Results - We find that the total ESG score is negatively related to ROE but shows no statistically significant relationship with ROA and Tobin's Q value. However, a firm's environmental score is negatively related with both of ROE and ROA. Its social score is no conclusive relationship with the performance measures. The governance score is negatively related to the value of Tobin's Q. Conclusions - This paper generally supports the traditional view of corporate theory, especially in terms of ROE. This evidence is not well aligned with the existing study for Korean corporations generally documenting positive relationships. We find almost no empirical evidence supporting the stakeholder theory of corporation in the Korean retail industry.

• Asia Marketing Journal
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• v.19 no.4
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• pp.1-14
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• 2018

Social networking service(SNS) helps users manage, share and delivery a vast information as a communication tool. When users read crisis news in SNS, they communicate the information with others by considering not only their belief (i.e., cognitive risk perception) but also emotion (i.e., affective risk perception). However, few researches have been interested in the construct of communication behaviors of crisis in SNS. This study aimed to explore the role of risk perception (cognitive and affective risk perception) between crisis responsibility and communication behavior through dual processing theory. As a result of the empirical analysis, crisis responsibility had a positive effect on cognitive risk perception and affective risk perception. In addition, cognitive risk perception had no significant effect on communication behavior whereas affective risk perception had influence on communication behavior positively. Thus, our findings may predict that the affective risk perception through crisis responsibility is more potentially important to communication behavior such as sharing information rather than cognitive risk perception. The results give insightful ideas why marketer should reduce perceived emotion caused by risk to strengthen prospective SNS users understanding of communication behavior intention.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.161-169
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• 2020

The condition of mining companies that exploit natural resources in their business processes underline this research to emphasize on social and environmental issues. After twelve years of government regulation on CSR practices, this study investigates the factors that influence mining companies in disclosing information about corporate social responsibility based on legitimacy, stakeholders, and agency theory. Thus, independent variables are foreign ownership, company size, leverage, and the board of commissioners. The dependent variable is the corporate social reporting disclosure that is measured using GRI indexing. For sampling, we have used thirty-four Indonesian mining companies listed in IDX during the 2014-2018. out of which only fifty-two companies meet the sample criteria. All data should pass the classical assumption test to get the best estimator. Multiple linear regression is used to test the hypothesis, and the results show that the model is good, and can explain 60% of the dependent variable. Based on F-test, all four variables affect CSR practices simultaneously. The findings of this study suggest that foreign ownership and firm size influences CSR disclosure in a positive direction. However, this study did not support the hypothesis that leverage negatively affects CSR disclosure and board size measures positively affect CSR disclosure.

• Journal of Distribution Science
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• v.17 no.2
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• pp.5-11
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• 2019

Purpose - This paper examines how corporate social responsibility of the Korean retail industry affects the degree of asymmetric information. Recent theories predict that a firm's active engagement in socially responsible activities lowers the degree of asymmetric information of the firm. Research design, data, and methodology - This paper uses the sum of environmental and social scores (ES), published by the Korean Corporate Governance Service in order to proxy the degree of socially responsible management practices of Korean retail firms. This paper uses the ordinary least square method to investigate the above predictions. The publicly traded Korea retail firms listed in the Korean Exchange are analyzed from 2011 to 2016. To measure the degree of asymmetric information, this paper adopts the analyst dispersion and price impact measures. Results - This paper shows that the ES score has significantly positive relationships with these two measures of information asymmetry. The environmental score seems to increase the analyst dispersion measure and the social score appears to raise the price impact measure mores significantly. Conclusions - The results do not support the prior theory expecting a negative relationship between corporate social responsibility and the degree of asymmetric information. Environmental and social scores are found to affect the measures of information asymmetry differently.

• Journal of Distribution Science
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• v.12 no.8
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• pp.31-42
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• 2014

Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies' CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies' CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers' recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.59-71
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• 2023

Purpose - The purpose of this study is to investigate the effect of corporate social responsibility (CSR) on firm performance in China, plus the moderating effects of advertising intensity and environmental pollution. Design/methodology/approach - We analyzed our dataset that consists of 188 public Chinese firms drawn from the Shanghai and Shenzhen exchanges during 2010-2020. Findings - Based on the stakeholder theory and signaling theory, we proposed the positive relationship between the CSR level and the firm performance. Further, we configured consumers and the government as major stakeholders in China, suggesting positive moderating effects of advertising intensity and environmental pollution, respectively. Research implications or originality - The results show that the CSR level increases the firm performance. The advertising intensity positively moderates the relationship between the CSR level and the firm performance, but there was no significant moderating effects of environmental pollution. The findings confirm the importance of consumers for the CSR stakeholders. While the Chinese government strongly reinforces environmental regulation, CSR itself does not seem to be the fine-aligned action prioritized for mitigating environmental pollution.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.2
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• pp.681-688
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• 2010

As the concerning about Corporate Social Responsibility(CSR) is increasing, corporate's expenditure about Corporate Social Responsibility is increasing year and year. As for this, we need the research about the effect of the expenditure about corporate social responsibility on financial performance. So, lot's of empirical researches have been tested in order to prove the relations between Corporate Social Responsibility and Financial Performance. But their results of study different from those of researchers due to the reasons of different methodologies and varieties of variables measuring. Therefore, in this article, setting two hypotheses with sampling 600 corporate firms from 2003 to 2005,first we analyzed financial performance of corporate which is carrying execution into corporate social responsibility and which is not. Second, we analyzed corporate which is carrying execution into corporate social responsibility before and after. In results of this paper, carrying execution into corporate social responsibility affects financial performance badly in short term. That's why we need to study for further more long term periods such as after 5-years or so. And financial performance of corporate which is carrying execution into corporate social responsibility is higher than others, accepting the second hypothesis just as this paper has set.

• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.5-16
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• 2009

Corporate social responsibility (CSR) activities have been shown to be potential factors that can improve corporate image and increase the ability of corporations to compete. However, most previous studies related to CSR activities investigated how these activities influence product and corporate evaluation, as well as corporate image. In addition, some researchers treated consumers' perceptions of corporate motives as moderator variables in evaluating the relationship between corporate social responsibilities and consumer response. However, motive-based theories have some weaknesses. Corporate social responsibility activities cause two motives(egoistic vs. altruistic) for consumers, but recently, Vlachos et al. (2008) argued that these motives should be segmented. Thus, it is possible to transform the original theory into a modified theory model (persuasion knowledge model, PKM). Vlachos et al. (2008) segmented corporate social responsibility motives into four types and compared the effects of these motives on customer loyalty. Prior studies have proved that CSR activities with positive motives have positive influences on customer loyalty. However, the psychological reasons underlying this finding have not been determined empirically. Thus, the objectives of this research are twofold. First, we attempt to determine why most customers favor companies that they feel have positive motives for their corporate social responsibility activities. Second, we attempt to measure the effects of consumers' reciprocity when society benefits from corporate social responsibility activities. The following research hypotheses are constructed. H1: Values-driven motives for corporate social responsibility activities have a positive influence on the perceived reciprocity. H2: Stakeholder-driven motives for corporate social responsibility activities have a negative influence on the perceived reciprocity. H3: Egoistic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H4: Strategic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H5: Perceived reciprocity for corporate social responsibility activities has a positive influence on consumer loyalty. A single company is selected as a research subject to understand how the motives behind corporate social responsibility influence consumers' perceived reciprocity and customer loyalty. A total sample of 200 respondents was selected for a pilot test. In addition, to ensure a consistent response, we ensured that the respondents were older than 20 years of age. The surveys of 172 respondents (males-82, females-90) were analyzed after 28 invalid questionnaires were excluded. Based on our cutoff criteria, the model fit the data reasonably well. Values-driven motives for corporate social responsibility activities had a positive effect on perceived reciprocity (t = 6.75, p < .001), supporting H1. Morales (2005) also found that consumers appreciate a company's social responsibility efforts and the benefits provided by these efforts to society. Stakeholder-driven motives for corporate social responsibility activities did not affect perceived reciprocity (t = -.049, p > .05). Thus, H2 was rejected. Egoistic-driven motives (t = .3.11, p < .05) and strategic-driven (t = -4.65, p < .05) motives had a negative influence on perceived reciprocity, supporting H3 and H4, respectively. Furthermore, perceived reciprocity had a positive influence on consumer loyalty (t = 4.24, p < .05), supporting H5. Thus, compared with the general public, undergraduate students appear to be more influenced by egoistic-driven motives. We draw the following conclusions from our research findings. First, value-driven attributions have a positive influence on perceived reciprocity. However, stakeholder-driven attributions have no significant effects on perceived reciprocity. Moreover, both egoistic-driven attributions and strategic-driven attributions have a negative influence on perceived reciprocity. Second, when corporate social responsibility activities align with consumers' reciprocity, the efforts directed towards social responsibility activities have a positive influence on customer loyalty. In this study, we examine whether the type of motivation affects consumer responses to CSR, and in particular, we evaluate how CSR motives can influence a key internal factor (perceived reciprocity) and behavioral consumer outcome (customer loyalty). We demonstrate that perceived reciprocity plays a mediating role in the relationship between CSR motivation and customer loyalty. Our study extends the research on consumer CSR-inferred motivations, positing them as a direct indicator of consumer responses. Furthermore, we convincingly identify perceived reciprocity as a sub-process mediating the effect of CSR attributions on customer loyalty. Future research investigating the ultimate behavior and financial impact of CSR should consider that the impacts of CSR also stem from perceived reciprocity. The results of this study also have important managerial implications. First, the central role that reciprocity plays indicates that managers should routinely measure how much their socially responsible actions create perceived reciprocity. Second, understanding how consumers' perceptions of CSR corporate motives relate to perceived reciprocity and customer loyalty can help managers to monitor and enhance these consumer outcomes through marketing initiatives and management of CSR-induced attribution processes. The results of this study will help corporations to understand the relative importance of the four different motivations types in influencing perceived reciprocity.