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FIBER dimensions determining approaches to corporate social responsibility. Adapted from Quazi and O'Brien (2000).
Source publication
How family firms adopt a certain corporate social responsibility (CSR) approach remains a relatively unexplored matter in family firm and firm ethics research. Hence, we study how and why the CSR approach (broad vs. narrow; benefits vs. costs) differs within family firms, addressing the influence of the socio-emotional wealth (SEW) dimensions, indi...
Context in source publication
Citations
... Moreover, at least here, the 'family control' prediction of SEW aligns with the 'women prioritize family interests' prediction of interdependent self-construal theory. Further research has shown that family firms are heterogeneous with respect to SEW and that, as a result, family firms are heterogeneous in their approach to CSR (e.g., Diéguez-Soto et al., 2021). Indeed, research is taking a more nuanced view of the SEW construct itself, following Kellermanns et al.'s (2012) argument that the SEW dimensions can be positively and negatively valenced. ...
... Besides the firm economic goal, the owners of family firms also search for preservation of socioemotional wealth as non-economic reward from their business (Glover & Reay, 2015). Dieguez-Soto et al. (2021) and Berrone et al. (2012) stated that socioemotional wealth is considered as a unique differentiator that might explain non-identical characteristics of most family firms, exhibiting non-similar behavior and interests. It allows incorporation between firm and family that unfold fundamentals in strategic decision-making (Araya-Castillo et al., 2021). ...
The outbreak of COVID-19 pandemic in early 2020 has inflicted serious financial distresses for most firms in multi-sectoral industries. Each of them was enforced to deal with the economic downturns by working more efficiently. In this case, family and non-family firms might perform differently to protect themselves from bankruptcy. This research aims to measure firm efficiency by employing a total of 52 entities listed on Indonesia Stock Exchange (IDX), 26 entities for each type of firms from 2019 to 2022, reflecting the times before, during, and after the pandemic. At the first stage, date envelopment analysis (DEA) with constant return-to-scale (CRS) input-oriented approach is employed to generate deterministic efficiency scores of each sample which the bias is then corrected using Simar and Wilson’s bootstrap technique. At the second stage, hypothesis testing is conducted to examine whether the difference in efficiency score between both types of firms is significant. The result shows that family and non-family firms do not perform differently during a 4-year of research period (p-value=0.136). Nevertheless, family firms exhibit a significant drop in 2020 (p-value=0.0061), where this condition reversed with a significant increase in 2021 (p-value=0.0002). Non-family firms perform more stably throughout the research years. Finally this research may contribute to the development of organization-related science, business, and strategic management. The way most family firms operate might reflect the socio-cultural attributes of a nation. There is no other similar study found since COVID-19 pandemic is still considered as a relatively new global health crisis.
... To explicate the social interactions of family firms with stakeholders, we consider corporate social responsibility as the research setting and examine what consequences family values can lead to through social interactions of family firms with their stakeholders (e.g., Cennamo et al., 2012;Diéguez-Soto et al., 2021;Segaro et al., 2014). Testing within the CSR setting is advantageous because some types of CSR actions matter in maintaining or enhancing family values, while others do so to a lesser degree (e.g., Diéguez-Soto et al., 2021;Schulze et al., 2001;Verbeke & Kano, 2012;Ye & Li, 2021). ...
... To explicate the social interactions of family firms with stakeholders, we consider corporate social responsibility as the research setting and examine what consequences family values can lead to through social interactions of family firms with their stakeholders (e.g., Cennamo et al., 2012;Diéguez-Soto et al., 2021;Segaro et al., 2014). Testing within the CSR setting is advantageous because some types of CSR actions matter in maintaining or enhancing family values, while others do so to a lesser degree (e.g., Diéguez-Soto et al., 2021;Schulze et al., 2001;Verbeke & Kano, 2012;Ye & Li, 2021). In detail, studies suggest that pro-environmental actions have different impacts on firms' performance compared to other types of CSR such as employee treatment & well-being or donations (Capelle-Blancard et al., 2016;Wardhani, 2020). ...
... Most studies do not report consistent results regarding the extent to which non-market strategy choices and family ownership increase environmental performance and sustainability (Berrone et al., 2010;Cruz et al., 2014;Dekker & Hasso, 2016;Diéguez-Soto et al., 2021;Ernst et al., 2022;Le Breton-Miller & Miller, 2016;Miroshnychenko et al., 2022;Nikolakis et al., 2022;Samara et al., 2018;Terlaak et al., 2018). For instance, while one strand of studies contends that environmental performance increases in family businesses (Agostino & Ruberto, 2021;Berrone et al., 2010;Campopiano & De Massis, 2015;Craig & Dibrell, 2006;Cruz et al., 2014;Dyer Jr & Whetten, 2006; G omez-Mejia et al., 2019; L opez-González et al., 2019), the other strand of studies report that family involvement is negatively correlated with corporate environmental performance (Dekker & Hasso, 2016;Fan et al., 2021;Forés et al., 2022;Sharma & Sharma, 2011). ...
This study examines how family values in a firm can impact non‐market strategies. Given that family members on the board tend to pursue non‐economic, especially family related, values, we attempt to specify how the perspectives, values, and tastes of family members serving on the board can be infused into the firm's environmental performance. Since actions addressing environmental issues are less directly related to family values than other types of CSR actions, such as donations and services to the local community, the family‐value‐infused characteristics of boards that represent family firms' pursuit of socio‐emotional wealth, can make firms less committed to environmental issues. Using our comprehensive sample of large U.S. firms consisting of 15,086 firm‐year observations between 1998 and 2016, we find that when family values are treated as a critical factor for non‐market strategies, family dominated firms are less likely to pursue corporate environmental responsibility. We also find that both external and internal factors can positively moderate the family firm's environmental underperformance by diluting the family values.
... De surcroit, la nature intendante des entreprises familiales laisse les chercheurs à confirmer que ces entités sont plus engagées en matière de la RSE comparativement à leurs homologues non familiales (Arabeche & Ouahba, 2020). Les valeurs éthiques et altruistes, le manque d'opportunisme, la culture d'intendance, le maintien des liens sociaux soudés et forts entre les membres de la famille d'affaire et l'orientation à long terme, sont autant de dimensions rendant les entités familiales comme champs fertiles pour entreprendre des actes de la RSE (Berrone et al., 2012 ;Chrisman et al., 2005 ;Laguir & Elbaz, 2012 ;Diéguez-Soto et al., 2021). ...
Dans la conjoncture actuelle marquée par les crises, un choc externe peut remettre en cause la survie et la pérennité des PME. De ce fait, elles sont censées se doter des pratiques innovantes (comme celle de la RSE objet de cet article) garantissant leur stabilité et leur prospérité. Cependant, la démarche RSE présentant des particularités importantes dans le contexte des PME familiales (PMEF), mérite d’être explorée vu la fertilité de cette thématique.
Cet article se fixe deux objectifs principaux, d’abord l’exploration des manifestations de la RSE au sein des PMEF. Puis nous exposerons les apports de son intégration pour la PME familiale marocaine. Pour répondre à ces objectifs de recherche, nous avons mené une étude qualitative auprès de 4 PME
Familiales marocaines.
Selon les résultats empiriques de ce papier, la RSE est perçue différemment d’un entrepreneur familial à un autre. Quelques uns l’approchent comme un facteur clé de succès et de pérennité des organisations. Cependant, quelques interviewés la considèrent comme des simples actions et initiatives engagées sans prétendre leurs impacts considérables sur les performances de la PMEF. Cette divergence des visions et de perceptions de la politique RSE s’explique d’après nos résultats par de différents facteurs ; individuels, organisationnels et familiaux. De même, de différentes manifestations formelles et informelles de la RSE sont explorées dans notre cible de PMEF étudiées
In the last decade, humanity has had significant upheavals such as the Russia-Ukraine war, the Covid pandemic, and disruptions in global supply chains that triggered global concern about sustainability, particularly the environmental, social, and governance (ESG) issues (Li et al. 2021).
The concept of ESG is to integrate the principles into asset management, capital markets, and portfolio management into investment analysis and decision-making (Pedersen et al. 2021; UN, 2004). Since its inception in 2004, the components of the ESG framework are constantly evolving according to societal needs (de Silva Lokuwaduge & Heenetigala, 2017; Larcker et al. 2022). The United Nations (UN) as a global leading promoter of ESG, constantly promotes the improvement of ESG transparency and collaborates with other stakeholders to drive sustainable development (Gerard, 2019).
Family firms are considered a function of the family’s influence on the firm’s strategic choices by pursuing the family’s vision for the firm. Based on the premise of the socio-emotional wealth (SEW) theory, this study investigates whether they follow CSR as a strategic choice to grow and preserve SEW and embrace social norms. Using a sample of 88 publicly listed founder-controlled firms in India, this study found that more family member participation improves CSR performance. The relationship is more robust when participating members serve as owners and managers. Further, the relationship between family members is augmented when the member is a female participant. The findings of additional analyses show that family members are more attuned to environmental performance than the other two dimensions of CSR (social and governance). Finally, CSR is related to firm performance as assessed by ROA and Tobin Q. The findings support the socio-emotional wealth (SEW) theory as family members’ participation has incentives in choosing CSR as a strategic decision. CSR as a strategic choice offers economic and social benefits for family enterprises.
Purpose
This paper aims to review bright sides of corporate social responsibility (CSR) and touches on its dark sides, providing researchers and CSR-driven lay readers with a starting point for further contributions and discussions. The paper also outlines a conceptual perspective about CSR scale development relevant to the uncertain times Syrian Arab Republic is still facing.
Design/methodology/approach
With a top ten-journal set indexed in social science citation index (SSCI), the current paper reviewed dozens CSR-references. In different search settings, the paper also included other authoritative references relevant.
Findings
CSR, whose bright side is still in the lead, is a significant working philosophy that can keep stakeholders posted on the extent to which organizations can sustain businesses and protect society's welfare at interconnected levels (economic, social, ethical and environmental, among others).
Research limitations/implications
The review at hand has only covered the tip of the CSR iceberg.
Practical implications
Investing in CSR transparently could lead to a promising sustainability.
Social implications
With transparent CSR information, stakeholders (including the public and policymakers) could make an informed decision regarding the extent to which organizations with CSR could protect their well-being.
Originality/value
The current review makes an authoritative reference point new in the CSR literature. In addition, it bridges a research gap not yet studied – by bringing a roadmap outlining a potential CSR-scale development that could cope with the postwar reconstruction phase (an example of which being Syrian Arab Republic).
This study investigates how family continuation, namely family tradition and succession intention, alter the socially responsible behavior of small and medium sized (SME) family firms. Using a unique dataset, we have conducted multiple regressions on survey data from German family SMEs and show a statistically and economically significant increase in Corporate Social Responsibility (CSR) alongside the planning of family succession. However, when analyzing the different facets of CSR, we have found strong variances: While succession intention goes along with an increased community, market, and supply chain engagement this is not the case for CSR directed towards employees, or the environment. Family tradition didn’t correlate with a change in CSR behaviour to a relevant extent. In our theoretical embedding we employed socio-emotional wealth (SEW) theory to explain our findings. Thereby, our study fills a gap in the literature adding the perspective of SME family firms on the use of CSR in the context of family succession and also adding to the theoretical understanding of SEW.
