The relationship between corporate social responsibility disclosures and financial performance: a mediating role of empl
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RESEARCH ARTICLE
The relationship between corporate social responsibility disclosures and financial performance: a mediating role of employee productivity Raza Ali Tunio 1
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& Riaz Hussain Jamali & Aamir Ali Mirani & Ghansham Das & Mushtaque Ahmed Laghari & Jin Xiao
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Received: 20 September 2020 / Accepted: 12 October 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract This study is trying to explore the relationship between corporate social responsibility (CSR) disclosures and financial performances (FP) through mediating role of the employee productivity (EP). This study classifies the CSR performances into four contexts, for instance, environment social governance (ESG), environmental improvement activity scores of CSR, social welfare activity score, and governance structure improvement score. The banking performance is classified into three different aspects such as returns on assets (ROA), returns on equity (ROE), and nominal interest margin profit (NIMP). The study covers the data set start from 2008 to 2019 regarding thirty commercial banks of China. The study uses the linear, non-linear, and quadratic techniques to explore the association between CSR disclosures and banking performances. The linear model result shows that the governance score is significant influencing the banking performance. Moreover, the employee productivities are also positive significant affecting the baking performances. The non-linear results of model show that composite score of ESG with employee productivity has significant influence on financial performance. Keywords Corporate social responsibility . Corporate social performance . Corporate environmental improvement score . Social welfare score . Governance improvement score . Banking performances . Employee productivity JEL classification D50 . E10
Introduction The CSR is an ideology that delineates the relationship between a company and its stakeholders. An organization has to offer its shares to the society in terms of its well-being which can, in turn, lead to a common benign relationship between the
firm and the society (Wheelen and Hunger 2012). The early twentieth century marked the outset of CSR ideology in the USA. CSR has been defined in several ways such as, the assimilation of voluntary concerns related to society, the environment in business and with other shareholders (Fahy et al. 2005), business communities using communal practices to
Responsible Editor: Nicholas Apergis * Raza Ali Tunio [email protected] * Jin Xiao [email protected] Riaz Hussain Jamali [email protected] Aamir Ali Mirani [email protected] Ghansham Das [email protected]
Mushtaque Ahmed Laghari [email protected] 1
Business School, Sichuan University, Chengdu, China
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School of Economics, Sichuan University, Chengdu, China
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College of Management, Sichuan Agricultural University, Ya’an, China
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College of Economics, Sichuan Agricultural University, Ya’an, China
Environ Sci Pollut Res
attain mutually beneficial goals (Ren
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