Presentation Outline

12 Suggestions for Future Research

 BACKGROUND OF THE STUDY
Global and Local Issues

Issue of
illegitimacy or
legitimacy gap

Corporate
activities are
under much
scrutiny

Global and local

companies are
suffering from a
crisis of confidence
These additional layers of inhibitor molecules
do not contribute much to the protection
To identify whether industry
sector moderates the To examine whether country
providedToby investigate
the monolayer. They only offer
relationship between size of of origin moderates the
additional resistance towards the supply of
the role of relationship between size of
oxidant and the transport of reaction products, organization, profitability,
external
which results in smalland
changes in inhibition leverage, CSER committee, organization, profitability,
internal factors
efficiency.
ownership structure, CEO leverage, CSER committee,
of organization duality, audit firm and CSER ownership structure, CEO
on CSER reporting duality, audit firm and CSER
reporting
reporting

Research Objectives
 RESEARCH QUESTIONS

?
1 What is the role of external and internal factors of
organization on CSER reporting?

2
Does industry sector moderate the relationship
between size of organization, profitability, leverage,
CSER committee, ownership structure, CEO duality,
audit firm and CSER reporting?

Does country of origin moderate the relationship

3 between size of organization, profitability, leverage,

CSER committee, ownership structure, CEO duality,
audit firm and CSER reporting?
 RESEARCH QUESTIONS

?
1 What is the role of external and internal factors of
organization on CSER reporting?

2
Does industry sector moderate the relationship
between size of organization, profitability, leverage,
CSER committee, ownership structure, CEO duality,
audit firm and CSER reporting?

Does country of origin moderate the relationship

3 between size of organization, profitability, leverage,

CSER committee, ownership structure, CEO duality,
audit firm and CSER reporting?
RESEARCH PROBLEM

Visser, 2008
 RESEARCH PROBLEM

Social issues are given more emphasis than ethical,

environmental, or stakeholder issues (Visser, 2013;
Ahmad & Crowther, 2013)
By Content Theme

The least studied issues referred to internal influences

(e.g., organizational and managerial considerations),
consumer retaliation and boycotts, CSER reporting, and
factors stimulating or obstructing CSER adoption
(Eteokleous, Katsikeas, & Leonidou, 2016)

Human rights, labor, and product responsibility

discussions are at minimal levels (Carroll & Einwiller,
2014)
Developing countries tend to have less CSER practices,
especially in terms of environmental protection
(Brazdauskas & Gaigalaite, 2015)
 RESEARCH PROBLEM

Macro (Institutional) Level Factors

(e.g. Industry Sector, Country of
Origin, Audit Firm)
By Knowledge Type- Empirical

Meso (Organizational) Level Factors

(e.g. Size of Organization,
Profitability, Leverage, CSER
Committee, Ownership Structure)

Micro (Individual) Level Factors

(e.g. CEO Duality)

(Frynas & Yamahaki, 2016; Athanasopoulou & Selsky,

2015; Frynas & Stephens, 2015; Aguinis, Gottfredson,
& Culpepper, 2013; Aguinis & Glavas, 2013; Aguinis
& Glavas ,2012)
 RESEARCH PROBLEM

Size of
Organization

Profitability
By Knowledge Type-

Leverage
Empirical

CSER Committee CSER

Reporting
Ownership
Structure

CEO Duality

Audit Firm

(Alrazi, de Villiers, & Van Staden, 2015; Ali &

Rizwan, 2013)
 RESEARCH PROBLEM (BY KNOWLEDGE TYPE-
EMPIRICAL)

Moderating Effect of Industry Sector & Country of Origin

In view of that, Tien and

Wagner (2010) said Schreck (2011) mentioned Chen (2015) suggested
moderation affects matter in his study that industry that future study should
and that it is indispensable and country of origin are further examines whether
to consider this in future all examples of the corporate social
studies, both in conceptual moderators that could performance relationship
arguments and in influence the relation in a firm can be
empirical analyses, to between corporate moderated by industry
ensure a fuller and characteristics and sector or even country-
improved understanding corporate social level factors (e.g. firm
of CSER. performance. origin from the East vs.
the West).
 Research Problem (By Knowledge Type- Empirical)
Moderating Effect of Industry Sector
⚫ Industry can play a moderating role in social responsibility intensity because of the
presence of industry-specific stakeholder pressures for improved social
responsiveness (Moura-Leite, Padgett, & Galan, 2012) and the response on CSER
strategy would have to be targeted in view of that (Melo & Garrido ‐Morgado,
2012).

⚫ Moreover, sectors represent an important boundary of institutional fields (DiMaggio

& Powell, 2012) in other words industry sector can be used as a moderating variable
to overcome the challenges of studying cross-industry differences in corporate
social or sustainability performance (Chang, Kuo, & Chen, 2013).

⚫ Thus, Wahba and Elsayed (2015) demonstrate that studying the moderating effect of
industry sector is a promising area for future research. Therefore, industry
sensitivity may influences corporate decisions on whether to disclose CSER
information and how much to disclose (Peng, Sun, & Luo, 2015)
 Research Problem (By Knowledge Type- Empirical)
Moderating Effect of Country of Origin

⚫ Emerging literature recognizes that national governance mechanisms, such as

country of origin factor may influence the effectiveness of corporate
governance strategies (Filatotchev et al., 2013).

⚫ Since previous research ignores moderating effects of country of origin

(Filatotchev, Jackson, & Nakajima, 2013) and thus cannot offer a rigorous
understanding about the effectiveness of corporate governance strategies in
different institutional settings (Kumar & Zattoni, 2013).

⚫ Dypdahl (2015) point out that further research is needed to give indications of
how companies respond to local, national and global context which is constantly
changing and thus how country of origin effect can explain variation in firms’
orientation to CSER remains undetected.
RESEARCH PROBLEM (By Knowledge Type-
Methodological)
Future studies should improve and refine methodologies for studying CSER at
multiple levels of analysis (Athanasopoulou & Selsky, 2015; Aguinis, Gottfredson,
& Culpepper, 2013). In the words of Aguinis and Glavas (2012, p. 957), ‘it will be
the incorporation of variables at different levels of analysis that has the greatest
potential to move the [CSER] field forward’.

Apart from this, researches on CSER are frequently incomplete

as many studies suffer from methodological inadequacies
(Aguinis & Glavas, 2012).

Most of studies did not consider

Methods, such as website
the other medium of corporate
reporting analysis, codes of best
communication (Das, Dixon, &
practices analysis or index
Michael, 2015; Muttakin &
analysis are less common (13%)
Subramaniam, 2015; Sufian &
Willi (2014).
Zahan, 2013).

Previous research used only narrative counts for content analysis

while ignoring the visual counts (pictures, graphs, and tables) (Pesci
& Costa, 2014).
 RESEARCH PROBLEM (By Knowledge Type-
Theoretical)
• Theories used
less frequently
• Future multi-level Potential are: institutional
studies should be theories theory, signaling
underpinned by theory, and
multiple theoretical • Hahn and Kühnen (2013)
agency theory
perspectives (Frynas & stated that upcoming
(Eteokleous et
Yamahaki, 2016; studies should discuss the
al., 2016)
Athanasopoulou & potential theoretical
Selsky, 2015; Frynas anchors (signaling and
& Stephens, 2015; institutional theory) which
Aguinis & Glavas, are so far often missing or
2013). only basic existing in
extant research.
Least used
Multiple theories
theoretical
perspectives
 RESEARCH PROBLEM (By Analysis Level-
Regional)

• The results differs in various Maon, Swaen, and

Most of the research in the field
of CSER analyzed the
relationship in developed
countries (Willi, 2014).
• The United Nations
Developing countries
demand more attention to
sustainable issues, both in
environmental and social
dimensions (Laurent, 2014;
United Nations, 2013;
Pearce, Barbier, &
Markandya, 2013).
• Organizations are increasingly
There are limited law and
enforcement for CSER . These
institutional differences in
characteristics make Bangladesh
exclusive from other developing
countries.
cultural and economic contexts and Lindgreen (2015)
different research gaps are acknowledge that
dominated for future research
variation in
(Goyal, Rahman, & Kazmi, 2013)
regional- and
national-level
institutional
Sustainable Development environments is
Summit 2015, has given much not the only aspect
attention to developing that affects CSER
countries' problems such as development;
unsatisfactory work safety, industry- and
social exploitation, climate firm-level factors
change, eco-justice, child
matter
labor and so on (United
Nations, 2015b). significantly.
aware of issues related to
CSER but what motivates
managers’ and thus Developing
companies’ attempts to report
on these activities remains Countries
unexplored (Hossain, et al.,
2015).
RESEARCH FRAMEWORK
 Scope 2
Scope 1
Both local and
DSE (Dhaka Stock foreign organization Scope 3
Exchange) listed residing in
companies Bangladesh Annual reports,
sustainability reports and
companies’ website
(2012-2014)

Scope 4

SCOPE 69 companies
from 13 industry
sectors
 Research Approach by Stages
Problem Structure
Develop a “Model”
Definition Definition

Research Building a set of

Review of prior
questions-“what” assumptions to test the
research , Theories
and “does?” theories

Findi
ngs

Development of Data collection and Do the data

research instruments analysis support the theory?

Research Design Empirical Study Evaluation

 FINDINGS OF THE STUDY (MODEL 1)
Hypotheses Predicted Outcome Decision
Effect
Sign Sign
H1 Larger organizations are likely to disclose greater Significan
levels of CSER information. + + Accepted
t
H2 Profitability has significant positive impact on CSER
Not
reporting.
+ - Significan Rejected
t
H3 Leverage has significant negative impact on CSER
Not
reporting.
- + Significan Rejected
t
H4 CSER committee encourages the organization to Significan
disclose more CSER information. + + Accepted
t
H5a Managerial ownership has significant negative impact Significan
on CSER reporting. - + Rejected
t
H5b Government owners are likely to generate pressures Significan
on organizations to disclose more CSER information. + + Accepted
t
H5c Foreign ownership tends to demand greater levels of Significan
CSER disclosure. + + Accepted
t
H6 Dual role of CEO may offer to disclose less CSER Significan
information. - - Accepted
t
H7 Big 4 audit firms influence companies to disclose Significan
more CSER information. + + Accepted
t
 FINDINGS OF THE STUDY (MODEL 2)
Hypotheses
Effect Decision
H8 The impact of size of organization on CSER reporting will be
Not
moderated by industry sector. Rejected
Significant
H9 The effect of profitability on CSER reporting will be moderated by
industry sector. Not Significant Rejected

H10 The effect of leverage on CSER reporting will be moderated by

industry sector. Significant Accepted

H11 The role of CSER committee on CSER reporting will be moderated

by industry sector. Significant Accepted

H12a The role of managerial ownership on CSER reporting will be

moderated by industry sector. Significant Accepted

H12b The role of government ownership on CSER reporting will be

moderated by industry sector. Significant Accepted

H12c The role of foreign ownership on CSER reporting will be moderated

by industry sector. Not Significant Rejected

H13 The role of CEO duality on CSER reporting will be moderated by

industry sector Significant Accepted

H14 The role of audit firm on CSER reporting will be moderated by

industry sector. Not Significant Rejected
 FINDINGS OF THE STUDY (MODEL 3)
Hypotheses
Effect Decision
H15 The impact of size of organization on CSER reporting will be
moderated by country of origin. Not Significant Rejected

H16 The effect of profitability on CSER reporting will be moderated by

country of origin. Significant Accepted

H17 The effect of leverage on CSER reporting will be moderated by

country of origin. Not Significant Rejected

H18 The role of CSER committee on CSER reporting will be moderated

by country of origin. Significant Accepted

H19a The role of managerial ownership on CSER reporting will be

moderated by country of origin. Not Significant Rejected

H19b The role of government ownership on CSER reporting will be

moderated by country of origin. Not Significant Rejected

H19c The role of foreign ownership on CSER reporting will be moderated

by country of origin. Not Significant Rejected

H20 The role of CEO duality on CSER reporting will be moderated by

country of origin. Significant Accepted

H21 The role of audit firm on CSER reporting will be moderated by

country of origin. Not Significant Rejected
 CONCLUSION
• Understanding of CSER shows discrepancy.

• As companies tend to report CSER only for public relation and not for
accountability purpose,
• Therefore the role of a regulator is to establish infrastructures that support
accountability CSER.
 RECOMMENDATIONS

Tax Policies
⮚ Establish CSER
Hire big Lending body
four Standards
accounting Change ⮚ CSER reporting
firm requirements as
the way
mandatory
companies
Not allowing think Include
the chair and CSER
the CEO from Committee
the Inclusion of
same family Foreign
Directors
 IMPLICATIONS OF THE STUDY
Empirical Perspective
Theoretical Perspective ❖ Answering the call for moderating view of
industry sector and country of origin
❖ This study has ❖ Three conceptually distinct,
extended the but interrelated concepts
applicability and
predictive power of Methodological Perspective
institutional theory,
agency theory and ❖ The use of all possible
signaling theory sources of CSER
information
❖ This study has applied significantly increases
institutional theory that the data comparability
has revealed how and consistency
industry sector and
country of origin ❖ Consider visual counts
moderate the Practical Perspective
❖ Combination of social
relationships
❖ Several policy and environmental
suggestions for BSEC, index
government and business
❖ Un-weighted scoring
organization
 Non-listed SUGGESTIONS FOR
5 companies FUTURE RESEARCH

4 Comparative study
Trend
analysis
3 The
Audit firm as explanator
a mediating y power
variable (R2) in the
2 first model
is 33.24%
1