CURRENT ISSUES IN CORPORATE SOCIAL RESPONSIBILITY: An International Consideration

Abstract

Current Issues in Corporate Social Responsibility. An International Consideration, edited by Samuel O. Idowu, Catalina Sitnikov, Dalia Simion and Claudiu G. Bocean, is reviewed.

CURRENT ISSUES IN CORPORATE SOCIAL RESPONSIBILITY

An International Consideration

Article History

Received: 10 March 2018

Revised: 25 May 2018

Accepted: 28 June 2018

Corporate Social Responsibility (CSR) is a field of managerial practice and academic research that has been flourishing notwithstanding the financial crisis that started in 2007. Maybe even the crisis contributed to the dissemination of practices and public sensitivity about transparency and non-financial reporting, which are constitutive elements of CSR. Many doubts about its own nature, that loomed about in the first years 2000 have been dispelled (we all remember the sceptical Economist's special survey of 2005). The public has become aware of the various facets of corporate behavior. Such awareness has given momentum to CSR and it has even surpassed the initial impulse given by institutions such as the United Nations Global Compact and its ten principles on responsible behavior for international companies. Also, CSR managers within companies have been surpassed and CSR has become a subject for top management to think about. However, the field is still very much debated and a lot of scholarship is spent in analysing what CSR exactly is and how are companies abiding by it. Within this framework a new book has just come out that is of interest: "Current Issues in Corporate Social Responsibility: An International Consideration". The book is a collection of articles edited by Samuel O. Idowu, Catalina Sitnikov, Dalia Simion and Claudiu G. Bocean. In order for us to present the specific contribution of tins book, let us first review the specific content of it. There are fourteen chapter to the book, organized according to an architecture in two parts: part one, "Different dimensions of social responsibility", and part two, "Reporting and validating social responsibility information". Such differentiation is meaningful from the point of view of analysis because it helps orienting the reader as it helped orient the effort of the individual authors and editors. Let us begin with the ten chapters of part one. These chapters tackle issues of corporate practice as well as theoretical issues about CSR. Among the practice chapters we will find the classical issue of the relationship between social responsibility and financial performance. Also, the role of the consumer is dealt with.

Chapter 1 - Tax principles between theory, practice and social responsibility: the case of Romania is authored by Narcis E. Mitu and Cristian Stanciu. The authors are tax gurus take the issue of sustainability in to tax when they argue that for any government to build a sustainable efficient economy, an efficient tax system is required. These scholars studied the Romanian tax policies and note that the tax system of the taxation principles in the country appears to be a form lacking content. This chapter shows how the "race to the bottom" is not effective to create a competitive advantage for a country. It also highlights the role of government and public administration in the CSR of the corporations, and - to some extent - it speaks also of the CSR of government and public administration themselves.

Chapter 2 - Social, environmental and financial information: a proposal for institutional integrated disclosure is authored by Massimo Costa and Patrizia Torrecchia. The authors explore the issue of Institutional Integrated Disclosure. These two scholars looking at non-financial disclosure practices of businesses, argue that by providing nonfinancial information corporate entities fulfill their social and environmental role to their stakeholders. Their chapter delves into the theme of integrated disclosure. The core idea of the chapter is that sustainability performance needs being summarized in a 'single' bottom line, expressed in conventional monetary terms, and not only in the customary triple bottom line, lacking such a comprehensive synthesis.

Chapter 3 - Theoretical perspectives concerning modelling customer behaviour influences on CSR and marketing roles in shaping customer perception is authored by Claudiu Bocean, Catalina Sitnikov and Sorin Tudor. The authors argue that consumers are stakeholders of an organization with a set of complex requirements. Consumers - like other stakeholders - are interested in environmental issues and fair trade, are members of local community, can be employees, relatives or friends of employees, can be shareholders of the organization. Consumers can play an important role in the regulation of entrepreneurial behavior if they are willing to reward socially responsible organizations by changing their purchasing behavior (preferring products and services of those organizations that invest in social responsibility programs). This chapter aims to create a theoretical framework to determine the influence of CSR actions on the purchasing behavior and the impact of marketing and CSR communication on purchasing decisions. Within these bidirectional approaches the chapter focuses on three issues: consumer expectations on CSR activities, the managers' perception on these expectations, and the decisions of managers on CSR actions and marketing tools and channels used for communicating CSR. Since there is a gap between these three aspects, it is highly important not only to evaluate CSR activities but also consumer perceptions over these activities, and the effectiveness of marketing channels and tools used for communicating CSR.

Chapter 4 - Impact analysis of the relationship between intellectual capital, performance and social responsibility of the organization is authored by Dalia Simion and Daniel Tobă. The chapter notes the profound transformations manifested in the complex global environment that have brought about changes in the development strategy of those companies which understand that achieving a sustainable competitive advantage is based on a competitive workforce and increasing labor productivity is possible through the global development of human capital. The components of intellectual capital cannot act individually, but only in tandem with other resources of the company, enabling sustainable value creation. Sustainability is understood as satisfying both economic and non-economic interests of all stakeholders, from shareholders, loan capital providers and employees up to the entire community. Intellectual capital and corporate social responsibility have become powerful factors determining the firms' adaptation to the business environment. This paper analyzes the impact of intellectual capital on company's performance, seen in financial and non-financial terms.

Chapter 5 - Corporate Social Responsibility as a voluntary initiative but a mandatory reporting non-fmancial reporting link between the social and financial performance of Romanian companies is authored by Marian Siminica and Mirela Sichigea. The chapter takes a double perspective: on the one hand, the authors describe a pragmatic research on how Romanian companies practice CSR and disclose information on their CSR actions. On the other hand the chapter presents an empiric research on the connection between the social and financial performance of companies. The chapter draws its conclusion from the study of the corporate websites of 665 Romanian companies. The chapter notes a low interest in terms of the communication of these companies' CSR-related concerns. The study analyzed the companies' causal relation between CSR and CFP. The results of tests show a very weak connection between the turnover index and CSR, while the values of variable coefficients paradoxically suggest a slight trend to disfavor companies showing CSR-related concerns, compared to those which do not have such a focus.

Chapter 6 - Risk governance: basic rationale and tentative findings from the German banking sector is authored by Volker Stein and Arnd Wiedemann. The chapter notes that, over and over again, the occurrence of companies being surprised by unanticipated risks points to a serious deficit. Stein and Wiedemann argue that neither risk management nor corporate governance has been able to avert the incurred damage. "Are these two highly specialized functions unable 'to see the forest for the trees?'" the authors ask. For the sake of overcoming the addressed limitations, the management theory-related search for a solution leads to the proposal of a bridging function: "risk governance". The paper contributes to the development of a generic approach towards the strategic control of risk from the perspective of top management.

Chapter 7 - Internal control and social responsibility is authored by Cerasela Pirvu, Sorin Domnisoru and Sorin Vinatoru. The chapter pursues the purpose of making organizations aware that a rigorous control can actively contribute to an increase in social responsibility regarding all three relevant dimensions associated to it: economic, social and environmental. Pirvu et al note that as a functionality of management, control includes an analytical dimension as well as a field of verification, respectively a "mastering" of contexts, mainly internal, but also external to the organization. Bearing in mind a synthesis and antithesis of the ideas present in the field of expertise associated with control and social responsibility, of regulations provided by various institutions, for example, the GRI - Global Reporting Initiative. From the multitude of indicators presented by the GRI, the chapter focuses on the generation of indicators relevant to analyzed subject, given that there are no indicators specific to the control function. Thus, the authors, consider the selection of those indicators which can contribute, through the mediation of internal managerial control, that of risk management and the internal control environment, to the effective increase of social responsibility and the subsequent reports provided by corporations, all these leading to achieving the desired business leadership goals so as to genuinely consider not only the interests of the shareholders, but the interests of all stakeholders.

Chapter 8 - Using Constructivist Grounded Theory to construct a substantive theory for Corporate Social Responsibility is authored by Petya Koleva and Rodolphe Ocler. The chapter argues that Constructivist Grounded Theory (CGT) has been introduced almost 50 years ago and it has contributed to the emergence of a variety of Grounded Theory strategies. One of these variations is the constructive turn of Kathy Charmaz. In the paper Koleva and Ocler demonstrate two aspects of the theory: the potential of CGT into the scientific inquiry on CSR and how that approach was implemented in order to build a substantive theory for CSR by utilizing a practical example from a recently completed doctoral study by the lead author of the chapter.

Chapter 9 - Cross-generational investigation of ethics and sustainability insights from Romanian retailing is authored by Dan-Cristian Dabija, Cătălin Postelnicu and Vasile Dinu. The chapter notes that when targeting consumers, retailers have to increasingly rely on ethical principles, motivated by the need to achieve a favorable competitive position in the minds of consumers, to exhibit a sustainable behavior and to ensure the aesthetics and the durability of sold merchandise. Business practices such as exploitation of labor, environmental pollution, enforcing inhumane working conditions, are sanctionable worldwide and are key factors for individuals when taking buying decisions. Based on a cross-generational empirical analysis in an emerging market, the chapter examines the consumers' perception level towards ethical principles implemented by fashion, footwear and sportswear retailers when defining a sustainable strategy. The authors argue that the results of their study clearly show that retailers are concerned about respecting ethical principles in emerging markets, where consumers tend to be even more rigorous in their judgments of retailers' actions and strategies. The study notes that regardless of their age, consumers select retailers which implement sustainable strategies, e.g. regarding reduction of pollution, selling green or environment friendly products, respect employees and working conditions.

Chapter 10 - The correlation of corporate governance and financial performance in Romanian Banks is authored by Alina Manta, Roxana Bădîrcea and Pîrvu Ramona. The chapter examines the impact of corporate governance on the financial performances of the banks. The scholars compiled a database which includes 23 commercial banks. Starting from a vast reference literature available, the authors identified three characteristics of the board (dimension, the structure from the point of view of the women and of the non-residents) which might have an impact on the financial performance. These characteristics were used as independent variables. The relationship between bank performance measures and the independent variables was estimated. After the empiric testing, the hypotheses considered within the theoretical section were accepted. Within the first econometric model, the size of the board represented by the supervisory board and the executive board determined a positive and significant impact on the performance. This model showed that a numerous board contributes to the increase of the financial value of the considered banks because it assures an efficient supervisory. The second model confirmed the results provided by the first model, so that the structure of the board determines a positive effect on the performance by means of the non-resident members (the conflicts of interest are reduced) and the presence women in management (new ideas and approaches).

Coming to the second part of the book, "Reporting and validating social responsibility information", it is interesting to note that reporting is an integral part of CSR: how an organizations reports about tis own behavior is an integral part of its own social responsibility.

Chapter 11 - Principles and ethical values in public external audit activity is authored by Nicu Marcu. The author argues that ethics in the public external audit is not an academic subject or one for public debate. The author analyses the impact of ethics in the function of public external audit and the potential consequences of breaching ethics in the exercise of such function. To underline public external auditor's general ethical values and principles, the chapter presents, in general, the conceptual approaches of ethics and, in particular, the activity of the external audit.

Chapter 12 - Integrated Reporting in Small and and Medium Enterprises - issues and perspectives from Italy is authored by Mara Del Baldo. The chapter discusses the most critical issues faced by SMEs in releasing an integrated report and adapting the Integrated Reporting (IR) principles to their needs and features. After presenting the literature framework, the chapter analyses a case-study relative to a medium-sized company belonging to the Italian Network Business Reporting working group, which has been involved in the drafting process of the Guidance for IR in SMEs. Del Baldo's results emphasize the need for simplifying concepts such us materiality, integrated thinking and connectivity and understanding the benefits emanating from the IR adoption. Del Baldo's study has both theoretical and practical implications, since it contributes to nourish a research field which has not been adequately investigated and support the diffusion of IR among SMEs and practitioners, by emphasizing the SMEs' possible approaches toward the IR "journey".

Chapter 13 - Aspects regarding the methodology for determining the profit tax and their implications on the role of accountancy and accounting profession in terms of meeting the public interest and assuming the social responsibility is authored by Valeriu Brabete, Cristian Drăgan and Carmen Maria Dindiri. This chapter focuses on the accountancy profession and Corporate Social Responsibility. The authors argue that a major objective of accountancy, and professionals from the field, consists of supporting the durable economic development by meeting the public interest, under the conditions of observing the ethical principles imposed on the profession. The study is intended to illustrate and analyze certain factors which can perturb the fulfilling of the role of accountancy and accounting profession, seen in terms of meeting the public interest and assuming the social responsibility. In order to meet the proposed objective of the research undertaken, the authors support their reasoning and the ideas expressed starting from the specific problematic of the profit tax, which they consider significant for the given context. In order to intercept some relevant images on the approached topic, they adopted an analysis oriented in double sense, aiming the national rules on the one hand and the international rules regarding the determination and the accounting of profit tax on the other hand.

Chapter 14 - A systematic review on corporate social responsibility literature in the Middle East: conceptual gaps and challenges is authored by Petya Koleva. This final chapter argues that corporate social responsibility is a research area of burgeoning focus for international business and yet it is mostly dominated by its Western perspectives. However, the chapter notes that the CSR movement can have global ramifications and thus it is important to examine its potential variations in different socio-cultural contexts. The chapter utilizes extant secondary sources in the field. The results highlight two interconnected yet contradictory issues: CSR as a concept does not appear to be well-researched or welldeveloped in the Middle Eastern context, however it is highly possible that the CSR movement, as understood in the Western context, may not be particularly relevant in the Middle Eastern socio-cultural context and maybe alternative interpretations of CSR are needed in the context of Middle Eastern communities. Koleva's review identifies gaps in the literature, discusses possible research directions that can enrich people's knowledge of CSR by developing unique nuances that will augment the knowledge domain with new theoretical insights for the phenomenon.

A few concluding remarks are in point. CSR is a field whereby research both evaluates practice and at the same time it defines what CSR should be or it could be. This literature is in itself part of the effort of monitoring and analysing corporate behavior. Such literature can be thought of as a second-tier level of reporting. This book is a clear example of this activity. That is exactly what the series of books on CSR is about: a periodical reflection on what is going on at the corporate level. Providing criticism, insight and a way forward, not only in research and theory, but also in corporate practice. This book is also interesting in other respects. On the one hand, some of the cases show that CSR is not only for corporations, but also for the professions and for public administrations. On the other hand, the book provides specific analyses for quite a number of countries. Such specific country cases provide an update for the tune of CSR in those countries while at the same time providing relevant questions and materials for the assessment of CSR in all countries.

Editors

Samuel O Idowu is a Senior Lecturer in Accounting and Corporate Social Responsibility at London Guildhall School of Business & Law, London Metropolitan University, UK. He researches in the fields of Corporate Social Responsibility (CSR), Corporate Governance, Business Ethics and Accounting and has published in both professional and academic journals since 1989. He has led several edited books in CSR, is the Editor-in-Chief of two Springer's reference books - the Encyclopedia of Corporate Social Responsibility and the Dictionary of Corporate Social Responsibility and an Editor-in-Chief of the International Journal of Corporate Social Responsibility. He is also a Series Editor for Springer's books on CSR, Sustainability, Ethics and Governance. Samuel is a member of the Committee of the Corporate Governance Special Interest Group of the British Academy of Management (BAM). He is on the Editorial Boards of the International Journal of Business Administration, Canada and Amfiteatru Economic Journal, Romania. To date, Samuel has edited several books in the field of CSR, Sustainability and Governance and has written four forewords to books. Samuel has served as an external examiner to the following UK Universities - Sunderland, Ulster, Anglia Ruskin, Plymouth, Robert Gordon University, Aberdeen, Teesside University, Middlesbrough Sheffield Hallam University and Leicester De Montfort University.

Catalina Sitnikov is a Professor at University of Craiova in Romania, at the Faculty of Economics and Business Administration. She holds a Doctorate degree in Management since 2000, Habilitation title in Management since 2014 and since February 2015 been a PhD supervisor in Management. She was for 3 years a Visiting Lecturer at Helsinki University of Technology, Lahti Center in Finland. Since 1995, she has been teaching undergraduate, Master's and PhD students. She teaches Quality Management, Total Quality Management and Management. Her main research areas include: management, strategic management, and mostly quality management, instruments and models specific to the stages of quality planning, control and improvement, quality management strategies, ISO standards, CSR from the perspective of specific standards and instruments.

Dalia Simion is an Associate Professor of Economic and Financial Analysis and of Financial Management at the University of Craiova in Romania, at the Faculty of Economics and Business Administration, Department of Finance, Banking and Economic Analysis.She is a graduate of the Faculty of Mathematics-Informatics, specialization Mathematics, at the University of Craiova. She graduated in 1997 from the Faculty of Economic Sciences, with specialization in Banking and Stock Exchanges. In 2001 she obtained her PhD degree in Cybernetics and Economic Statistics. Since 1997, she has been teaching and researching in the Faculty of Economics and Business Administration of the University of Craiova, with the following areas of interest: Economic and Financial Analysis, Investment Management and Financial Management. She holds the relevant academic experience in teaching and lecturing at both undergraduate and postgraduate levels.

Claudiu George Bocean is a Professor and a PhD supervisor in the Faculty of Economics and Business Administration within the University of Craiova. In 2000, he graduated with a Bachelor's degree with maior in Accountancy and Informatics from the Faculty of Economics, University of Craiova, Romania. In 2004, he obtained a Master's degree in Business Administration, also from the Faculty of Economics, University of Craiova, Romania. In 2007, he obtained his PhD in Economics, from the Faculty of Economics, University of Craiova, Romania. In 2015, he got his Habilitation title in Management, from the Academy of Economic Sciences in Bucharest, Romania. Since 2002 - to the present, he has been teaching and researching in the Faculty of Economics and Business Administration, University of Craiova on topics such as Human Resource Management, Corporate Social Responsibility, Organization Theory, Business Economics, and cooperating with others on projects with national and international universities and organizations.

Sidebar

Please cite this article as:

D'Anselmi, P., 2018. Current Issues in Corporate Social Responsibility. An International Consideration. Amfiteatru Economic, 20(49), pp. 820-826.