| Author: | Shao, Jinan |
| Title: | The impact of corporate social responsibility on operational and financial outcomes : three empirical studies in China |
| Advisors: | Lai, Kee-hung (LMS) |
| Degree: | Ph.D. |
| Year: | 2021 |
| Subject: | Social responsibility of business Social responsibility of business -- China Industrial management Hong Kong Polytechnic University -- Dissertations |
| Department: | Department of Logistics and Maritime Studies |
| Pages: | xi, 179 pages : illustrations |
| Language: | English |
| Abstract: | Over the past decades, corporate social responsibility (CSR) has become increasingly important for firms to satisfy stakeholders' mounting expectations for socially responsible operations. A rapidly growing number of companies have implemented CSR initiatives (e.g., green manufacturing and recycling practices, employees' health and safety programs, and charity activities) to alleviate the negative impact of their operations on the natural environment and society. While some firms have proactively engaged in CSR initiatives, there are many other firms who are hesitant to undertake these initiatives as it remains unclear whether such initiatives contribute to their operational and financial performance. In this thesis, we conduct three interrelated studies to examine the operational and financial performance outcomes of CSR. Study 1 investigates the relationship between CSR performance and corporate financial performance (CFP) as well as the contingency effects of critical firm-specific factors (i.e., state ownership and political connections) and industry-specific factors (i.e., industry munificence, industry dynamism, and industry complexity). Based on a panel dataset of 2,211 Chinese manufacturing enterprises from 2010 to 2017, we find that CSR performance has an inverse U-shaped relationship with CFP. This suggests that there is an optimal level of CSR performance from the CFP perspective, that is, too little or too much CSR effort can be detrimental to CFP. We further observe that state ownership attenuates the curvilinear CSR-CFP relationship whereas political connections have no such influence. Moreover, we find that industry munificence and complexity strengthen this relationship while industry dynamism has no such influence. Study 2 focuses on the employee dimension of CSR performance and examines the impact of employee-related CSR (ECSR) on labor productivity, which is a widely used metric of operational performance in the operations management literature. Furthermore, Study 2 investigates the moderating roles of competitive strategies (i.e., cost leadership strategy and differentiation strategy) and industry safety risk intensity. Using a panel dataset of 2,211 Chinese manufacturing enterprises between 2010 and 2017, we find that ECSR has a positive effect on labor productivity. Additionally, cost leadership strategy reinforces the effect of ECSR on labor productivity, whereas differentiation strategy does not significantly moderate this effect. Moreover, industry safety risk intensity is found to positively moderate the linkage between ECSR and labor productivity, which implies that firms operating in industries with higher safety production risks can achieve greater labor productivity. Study 3 focuses on the environmental dimension of CSR and particularly examines green logistics initiatives (GLIs) implemented by logistics service providers (LSPs). Study 3 investigates the effect of GLIs on LSPs' shareholder value, which is measured by the stock market reaction and can be regarded as an important indicator that reflects firms' anticipated financial performance. It further explores the moderating effects of the types of GLIs (internal versus external) and organization slack (i.e., financial slack and operational slack). We utilize the event study approach to examine LSPs in China over a 14-year time span by analyzing the stock market reaction to their announcements of GLIs. We find that the stock market reacts positively to GLI announcements made by Chinese LSPs, thereby indicating that GLIs convey a positive signal to investors and could bring higher shareholder value for LSPs. Furthermore, such market reaction is stronger for LSPs with a lower level of operational slack, whereas their financial slack has no such influence. In addition, we observe that the market reaction is indifferent to the types of GLIs (internal versus external), which suggests that both internal and external GLIs may be important signals valued by Chinese investors. This thesis contributes to the CSR literature by providing new insights into the curvilinear CSR-CFP relationship and its boundary conditions in the context of China. It also extends the CSR literature by unraveling the effect of ECSR on firms' labor productivity and the contextual conditions under which this effect may vary. Moreover, this thesis sheds light on the environmental management literature by elucidating the impact of GLIs on LSPs' shareholder value and the contingency factors that moderate this impact. Besides its contributions to the relevant literature, this thesis provides important implications for managers and policy makers. |
| Rights: | All rights reserved |
| Access: | open access |
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