With great pleasure, the Department of Administrative Studies & Politics, Faculty of Economics and Administration, cordially invites you to the following seminar:
IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON AUTOMOTIVE FIRM PERFORMANCE
by
Dr. Lin Woon Leong
9 March 2020 (Monday), 10 am
Postgraduate Conference Room (Third Floor), Block H12, Faculty of Economics and Administration, University of Malaya
Abstract:
Prevailing studies on the economic implications of corporate social responsibility (CSR) for companies have, for the most part, emphasised the positive facets of CSR, failing to see that firms also espouse behaviours and initiatives which can be termed as negative CSR. In view of this, this study presents a framework connecting positive as well as negative CSR to firm performance. Acknowledging societal needs and having effective dialogue with shareholders and stakeholders regarding firms' social profiles as well as risk management practices are likely to reduce the firm risk, shape firms' reputation and enhance profitability. These are indeed valuable in the wake of the scandals for car maker’s continuity and enhancing shareholder value. It is argued that effective competitive action and innovation are likely to encourage more CSR activities, reputation and risk management, which in turn is expected to improve stock prices, profits, enhance firm value and reduce return volatility. This study examines the potential relationship between CSR (Positive CSR and Negative CSR), firm performance, firm risk levels, and corporate reputation. It contributes toward a better understanding of the influence of internal competitive action and innovation mechanisms on positive and negative CSR and their substantive consequences on firm performance. Examining 132 top automotive firms, this study uses the dynamic panel data system Generalise Moment of Method (GMM) estimates to analyse the relationship between positive CSR, negative CSR and firm performance (e.g., corporate financial performance (CFP), firm risk and corporate reputation); this study also examined the moderating role of competitive action and innovation on the CSR-FP relationship. Based on an investigation of secondary information of 132 global automotive firms, over the period of 2011–2017, this study found evidence supporting the relationship between positive CSR and negative CSR and firm performance and showed that CSR significantly impacted firm performance, with positive CSR improving it and negative CSR harming it. Correspondingly, the outcomes indicated that there was no guarantee of the augmentation in firm performance from positive CSR, with firms possessing high degrees of competitive action and innovation experiencing higher firm performance. The results also suggested that higher positive CSR score reduced uncertainties of firm risk, improved firm’s profitability and provided investors with valuable information to assess financial assets and monitor management practices. This was reflected as an improvement to Goodwill, Return on Assets and Return on Equity and reduction to return volatility with the presence of competitive action and innovation.
Speaker:
Woon Leong, Lin is a senior lecturer at the Faculty of Business and Law, Taylor’s University. Since completing his PhD from Universiti Putra Malaysia, and his MBA from East Anglia University, UK, Lin’s research focus has been in the areas of corporate political strategy, business ethics, and corporate social responsibility. Within ethics, he explores factors influencing business and organizational ethics, and ethical behaviour. His other key research area in corporate social responsibility focuses on green environmental practices and its relationship to organizational practices and performance. He has published more than 19 articles in refereed journals, including journals indexed by Thomson Web of Science (SSCI) and Scopus. His publications include Business Strategy and Environment, Corporate Social Responsibility and Environmental Management, The North American Economics and Finance, Sustainability, International Journal of Economics and Management, International Financial Study, Industrial Marketing Management, Administrative Sciences, Journal of Cleaner Production, Geojournal, and Environmental Science and Pollution Research.
Free Admission
All are welcome
Calendar of FEA seminars:
|
6 Mar 2020 (Fri, 3pm) |
Sana Malik |
Policy Framework and Institutional Arrangements: Case of Affordable Housing Delivery for Low-Income Groups in Punjab, Pakistan |
|
9 Mar 2020 (Mon, 10am) |
Lin Woon Leong |
Impact of Corporate Social Responsibility on Automotive Firm Performance |
|
11 Mar 2020 (Wed, 10.30am) |
Erkki Karo |
Can Entrepreneurial Discovery be Organized by the Government? Lessons from Central and Eastern European experiments with Smart Specialization Policy |
Nov 05, 2020 10.00 AM - 12.00 AM Department of Administrative Studies & Politics, Faculty of Economics and Administration Postgraduate Conference Room, Level 3, Postgraduate Building, Faculty of Economics and Administration