scholarly journals MNC CSR in Emerging Economy Conflict Zones– A Case Study of HUL's North-East Operations in India

2013 ◽  
Vol 38 (4) ◽  
pp. 69-82 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Financial Performance ◽  
Emerging Economies ◽  
Developing Economies ◽  
Sustainable Growth ◽  
Conflict Zones ◽  
Conflicting Objectives ◽  
Corporate Social

For multinational corporations (MNCs) operating in emerging markets, the fast-growing wealth represents a tremendous opportunity. At the same time, these emerging markets also present a huge challenge to the MNCs due to underdeveloped institutional environment, weak public governance, widespread bribery and corruption, and lack of regulatory legislations and rules, public transparency, and respect for human rights. MNCs are likely to view foreign direct investment (FDI) in emerging economies as a major component of their cost minimization policies. As such, corporate social responsibility (CSR) initiatives, which are used by MNCs as a key source to gain sustainable competitive advantage in developed countries may get diluted in emerging economies. Such a myopic view may enhance short-term profits, but would not ensure long-term sustainability. Most of the research on CSR has focused on the strategies of companies in the developed world. The literature on MNCs in developing economies and CSR is still embryonic. As CSR becomes increasingly important to MNCs, it is crucial to understand how MNCs' subsidiaries approach CSR in emerging markets so as to realize the challenges MNCs' subsidiaries face in aligning their CSR approach with local practices. The questions of how MNCs' subsidiaries approach CSR in emerging markets and how they adapt to local CSR practices remain largely under-explored. Another area of recent research pertains to MNC CSR in ‘conflict zones’ and their potential. Can the otherwise mutually conflicting objectives of Corporate Social Responsibility and Corporate Financial Performance be seen going hand in hand in such ‘conflict zones’ Can a cause-effect relationship be posited, especially in such conflict zones, with the success of the latter riding on a satisfactory performance of the former? This paper analyses the CSR practices followed by HUL in its unit in DoomDooma, Assam in the period 2001–2004, a period which was one of the most tumultuous periods in the history of HUL operation in India. The largest personal care products factory set up in DoomDooma to take advantage of the government's concessions to encourage the region's development, witnessed serious challenges in the form of local bandhs (closures), followed by an attack by the militant group, ULFA. Yet, the productivity contribution of the Assam factory was one of the highest and in fact was responsible for the company's top line growth. It is suggested that the financial performance was due in no small measure, to the corporate responsibility measures undertaken internally and externally by the company. The former consisted of the measures undertaken vis-a-vis the key stakeholders, viz. employees, consumers, ecosystem, and business partners while the external CR measures were with respect to the specific CSR initiatives undertaken keeping in mind the needs and expectations of the local community. Thus, the company's CR initiatives helped in sustainable growth.

scholarly journals Sustaining the Oil and Gas Multinationals’ Operations Through Corporate Social Responsibility Practices

2021 ◽  
Author(s):  
Ama Twumwaa Gyane ◽  
Edward Kweku Nunoo ◽  
Shafic Suleman ◽  
Joseph Essandoh-Yeddu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Economies ◽  
Oil And Gas ◽  
Scientific Data ◽  
Data Set ◽  
The Sustainable Development ◽  
Key Aspects ◽  
Corporate Social

Abstract The objective of this study is to provide empirical evidence from the perspective of prudent corporate social responsibility practices by oil and gas multinationals in emerging economies on how investments in and disclosure of the practices can enhance financial sustainability. Accounting-based measures on investments, financial performance, disclosures of activities and panel data set on company size (total assets) over a 10-year period (t) were analysed. Findings show that multinationals with interests in emerging economies take key aspects of their corporate social responsibility practices seriously. There was a significant positive relationship (p=0.0035<0.05) between investments in corporate social responsibility practices and sustainability of financial performance. No significant relationship (p=0.4409 > 0.05) was established between disclosure and financial performance. The paper concludes, by supporting the preposition with scientific data, that functional corporate social responsibility practices yield sustained dividend by presenting a stronger financial outlook for multinational oil and gas companies who engage in it. This is prudent for poverty alleviation initiatives and key to achieving the sustainable development goals and targets in emerging economies where they operate.

scholarly journals Sustaining the Oil and Gas Industry through corporate social responsibility practices by multinational oil and gas companies in emerging economies.

2021 ◽  
Author(s):  
Ama Twumwaa Gyane ◽  
Edward Kweku Nunoo ◽  
Shafic Suleman
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Economies ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Data Set ◽  
Key Aspects ◽  
Corporate Social ◽  
Oil And Gas Companies

Abstract The objective of this study was to provide empirical evidence from the perspective of corporate social responsibility practices by multinational oil and gas companies in emerging economies on how investments in and disclosure of this practice could enhance financial sustainability. Accounting-based measures on investments, financial performance, disclosures of activities and panel data set on company size (total assets) over a 10-year period (t) were analysed. Findings show that oil firms with interest in emerging economies take key aspects of corporate social responsibility practices seriously. There was significant positive relationship (p = 0.0035 < 0.05) between investment in the practice and sustainability in financial performance. No significant relationship (p = 0.4409 > 0.05) was established between disclosure and financial performance. Functional corporate social responsibility practices were envisaged to yield sustained dividend in terms of a stronger financial outlook for oil and gas companies for poverty alleviation and to achieve key sustainable development goals and targets in emerging economies.

scholarly journals Corporate Social Responsibility and Ethical Banking for Developing Economies

2013 ◽  
Vol 5 (11) ◽  
pp. 777-785 ◽  
Author(s):  
N Dorasamy
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Institutions ◽  
Developing Economies ◽  
Sustainable Growth ◽  
Allocation Of Resources ◽  
Diverse Range ◽  
Stakeholder Interests ◽  
Multiple Stakeholder ◽  
Corporate Social

Corporate social responsibility is being increasingly considered vital for organizational success and sustainable growth, especially in view of corporations operating in an environment with multiple stakeholder interests. Investment in CSR should not been seen as an expense, but rather the allocation of resources to strengthen relationships with stakeholders in an endeavour to reap the multifaceted benefits of such investments Financial institutions like banks need to be seen as leading organizations who engage in social activities that uplift society, the environment and economy. The article analyses significant areas of corporate social responsibility for banks which are integral for customers, government, suppliers, citizens, employees and global partners for enhancing the responsibility of banks to a diverse range of stakeholders who have an interest in the banks. This ‘common good’ reputation can provide several advantages to banks which further impacts on the performance of banks.

scholarly journals STAKEHOLDERS’ IMPACT ON THE ENVIRONMENTAL RESPONSIBILITY: MODEL DESIGN AND TESTING

2007 ◽  
Vol 8 (3) ◽  
pp. 213-223 ◽  
Author(s):  
Rasa Smaliukienė
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Developing Economies ◽  
Qualitative Content Analysis ◽  
Environmental Issues ◽  
Theoretical Research ◽  
Environmental Responsibility ◽  
Corporate Social

The study is based on comparative theoretical research into the concepts of corporate social and environmental responsibilities. Multinational enterprises (MNEs) are responsive to the stakeholders’ needs. Therefore, environmental business management was integrated into model of corporate social responsibility. This demonstrates that social processes influencing corporate social responsibility are of equal importance for the development of environmental responsibility. Simultaneously, this theoretical integration leads to an understanding that corporate environmental responsibility may be also introduced into other theoretical models of social responsibility, which assess impacts of stakeholders and other social influences. The empirical research demonstrates that environmental expectations of stakeholders are different in economically different countries. In addition, the stakeholders differently see the functions of business in environmental issues. Qualitative content analysis disclosed what form of environmental responsibility is proper in countries of developed, developing and emerging economies. In developing economies, donations are demanded most of all; in emerging economies exposed to various transformations, there is a need for social investments; in developed economies full business co‐operation is preferred on environmental issues. Most important environmental outcomes of MNEs, as reflected in their annual statements, demonstrate business adaptation to different stakeholders’ expectations built in economically different countries.

scholarly journals Corporate social responsibility in emerging markets: case studies of Spanish MNCs in Latin America

2015 ◽  
Vol 27 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Belen Lopez ◽  
Gaston Fornes
Keyword(s):  
Latin America ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Financial Performance ◽  
Case Studies ◽  
Positive Relation ◽  
Content Type ◽  
Depth Analysis ◽  
Corporate Social

Purpose – This paper aims to analyse corporate social responsibility (CSR) initiatives in emerging markets (EMs) from developed countries-based multinational companies (MNCs). Design/methodology/approach – The analysis is based on eight case studies with data collected through in-depth interviews with senior managers of the companies representing 85 per cent of the Spanish foreign investments in Latin America. Findings – The findings tend to indicate that instrumental theories of CSR seem to apply for Western MNCs operating in EMs. CSR initiatives from these companies seem to be guided by instrumental theories, as they use these initiatives as a strategic tool to achieve economic objectives, seek a positive relation between them and their financial performance and use them to strengthen their reputation. Research limitations/implications – The results of this article resulted from an in-depth analysis of case studies with data collected from a carefully selected theoretical sample with data analysed by following well-established methods like coding, triangulation and pattern matching. This combination was designed to minimise possible concerns in these areas, and as a consequence to strengthen the research design and, therefore, the conclusions of the paper. Measures were taken to minimise possible concerns in this area. The companies were selected for theoretical, not statistical, reasons with the aim to replicate or extend emergent theories, which is one of the main objectives of the research. Practical implications – Companies are using CSR in EMs as a strategic tool to achieve economic objectives (the main principle behind instrumental theories). MNCs seek a positive relation between CSR initiatives in EMs and their financial performance (also a key principle within instrumental theories). Companies in the sample develop CSR initiatives, including those in EMs, to increase their legitimacy as part of their global reputation rather to deal with host country challenges. Finally, MNCs actively manage stakeholders to strengthen their local reputation as a means to improve financial performance. Social implications – Instrumental theories of CSR seem to apply for Western MNCs operating in EMs. These findings highlight the need to continue the study of CSR from Western MNCs in Ems, as the vast majority of academic literature relates to the characteristics of social responsibility initiatives in developed economies. Originality/value – Instrumental theories apply in a global market for MNCs; in this case, Spanish companies operating in more than 30 countries with a global strategy in CSR and similar objectives.

scholarly journals Sustaining oil and gas multinational operations through corporate social responsibility practices

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Ama Twumwaa Gyane ◽  
Edward Kweku Nunoo ◽  
Shafic Suleman ◽  
Joseph Essandoh-Yeddu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Economies ◽  
Oil And Gas ◽  
Scientific Data ◽  
Data Set ◽  
The Sustainable Development ◽  
Key Aspects ◽  
Corporate Social

AbstractThe objective of this study is to provide empirical evidence from the perspective of prudent corporate social responsibility practices by oil and gas multinationals in emerging economies on how investments in and disclosure of the practices could enhance financial sustainability. Accounting-based measures on investments, financial performance, disclosures of activities and panel data set on company size (total assets) over a 10-year period (t) were analysed. Findings show that multinationals with interests in emerging economies take key aspects of their corporate social responsibility practices seriously. There was a significant positive relationship (p=0.0035 < 0.05) between investments in corporate social responsibility practices and sustainability of financial performance. No significant relationship (p=0.4409 > 0.05) was established between disclosure and financial performance. The paper concludes, by supporting the preposition with scientific data, that functional corporate social responsibility practices yield sustained dividend by presenting a stronger financial outlook for multinational oil and gas companies who engage in it. This is prudent for poverty alleviation initiatives and key to achieving the sustainable development goals and targets in emerging economies where they operate.

Pengaruh Kinerja Keuangan Dan Corporate Social Responsibility (CSR) Terhadap Nilai Perusahaan Perbankan Di Bursa Efek Indonesia

2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Firm Value ◽  
Research Method ◽  
Quantitative Research ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Corporate Social

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV

Sign in / Sign up

Export Citation Format

Share Document