Saudi Cultural Missions Theses & Dissertations
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Item Restricted Measuring the Variability of ESG: Implications for CSR and Corporate Financial Performance(University of East Anglia, 2024) Aljamaan, Bader; Markellos, RaphaelThis study develops four measures of variability to quantify a firm’s social responsibility performance over time, addressing a significant gap in the literature. Applying these measures on both the overall CSR performance scores, as proxied by ESG scores, and the variability of workforce performance, as scores proxied by workforce scores. While prior studies have extensively examined the impact of the overall CSR performance on corporate financial performance, there is a lack of empirical studies quantifying a firm’s social responsibility performance variability over time and its implications for financial outcomes. Therefore, this study fills this gap by proposing four measures to assess the variability of a firm’s social responsibility performance using ESG scores, and workforce scores and empirically examining their impacts on corporate financial performance. This research seeks to answer two key questions: Does stability in CSR performance improve corporate financial performance? And Does stability in workforce performance enhance corporate financial performance? Using a sample of 379 publicly traded U.S. firms from 2004 to 2022, this study evaluates CSR and workforce performance stability over time through annual ESG scores and workforce scores produced by LSEG (formerly known as Refinitiv, and before that was known as ASSETS4). ESG scores measure a company’s environmental, social, and governance performance, while workforce dimension of social pillar captures how well a firm promotes diversity and inclusion, career development and training, working conditions, and health and safety (Refinitiv, 2021). The study is structured in three parts. First, it develops four measures of stability: (1) coefficients of variation, (2) Beta, (3) temporal trend, and (4) residuals. Second, it applies these measures of a firm’s overall CSR performance using ESG scores, as well as workforce-specific performance using workforce scores. Third, it analyses the relationship between these stability measures and corporate financial performance. The findings reveal that less variability in CSR performance measured by coefficients of variation of ESG (ESGCV) leads to improved firm profitability (ROA). Additionally, Tobin’s q shows significant associations with two stability measures beta of ESG (ESGBETA), a negative impact, indicating that less deviation of CSR performance compared to the market overall CSR performance is rewarded with higher firm value, and CSR temporal trend (ESGTREND), a positive effect, suggesting that improving CSR performance over time in alignment with market trends enhance firm value. However, variability measures do not significantly impact stock returns as one of the corporate financial indicators. Regarding workforce stability performance and its impact of corporate financial performance, the results demonstrate a more pronounced impact on financial performance compared to CSR stability. Higher workforce variability measured by workforce scores coefficient of variation (WFCV) negatively affects both ROA and Tobin’s q, while improving workforce performance over time measured by temporal trend (WFTREND) is associated with marginally higher profitability. Notably, not all stability measures show significant relationships, suggesting that the link between CSR consistency and financial performance may be complex, potentially due to data limitations, measurement challenges or the multifaceted nature of financial performance metrics. Overall, the findings underscore the strategic importance of CSR as a long-term investment, emphasizing the need for continuity and consistency in CSR efforts, particularly in workforce-related initiatives. Firms that sustain or improve CSR performance over time are better positioned to ensure stakeholder satisfaction and secure a sustainable competitive advantage. This study contributes to the literature by introducing new measures of social responsibility stability performance and positioning CSR consistency as a strategic asset. By capturing the variability in both overall CSR and workforce performance, this study highlights the importance of integrating CSR efforts into business operations, with more emphasis on workforce performance as a key component of CSR dimensions. Integrating CSR into organisational strategies has become crucial, reflecting a commitment to ethical behaviour and sustainable efforts. By analysing the stability of CSR performance as a strategic aspect, this study reinforces the view that continuity in CSR efforts, as shown in workforce and overall ESG performance, not only enhances financial performance, but also aligns with the argument that emphasises mutual trust between a firm and its stakeholders. This study therefore provides evidence to support policymakers and managers in prioritising workforce stability as part of CSR, so as to maintain financial performance and generate benefits in the long term.11 0Item Restricted Causes and Effects of Corporate Social Responsibility: An Examination of Corporate Social Responsibility in Saudi Arabia(University of New England, 2024) Alhazzaa, Ateeq Mesfer; Reddy Yarram, Subba; Moss, SupawadeeThe recent adoption of sustainable development goals (SDGs) and the two-decade-long work involved in evolving these goals has led to increased attention to corporate social responsibility (CSR) in developing countries. As a United Nations (UN) member committed to achieving the SDGs by 2030, the Saudi government released its Vision 2030 economic blueprint in 2016, which includes significant environmental targets such as reducing carbon emissions. However, research is still limited because few studies have considered the causes and consequences of CSR, particularly in Saudi Arabia. The current study aims to address this gap in the literature, specifically in the context of emerging economies. This study explores how ownership structure and leadership characteristics influence environmental, social and governance (ESG) practices in the Saudi Arabian context. It also examines the effect of ownership structure, leadership and ESG performance on financial performance. In addition, this thesis focuses on assessing how ESG practices, in conjunction with ownership structure and leadership, affect financial risk in Saudi Arabia. Hypotheses for this study were devised based on various theories, existing literature and the institutional context. Data were collected from Invest ESG and the annual reports of 136 non- finance industry firms listed on the Saudi Stock Exchange between 2016 and 2020, resulting in 647 annual observations. The generalised method of moments technique was employed to manage potential endogeneity issues in panel data analysis. The findings of the first study suggest that foreign, government and managerial ownership positively affect CSR. In contrast, institutional and family ownership of businesses and frequent CEO turnover impede CSR investment. The outcomes from the second study show that institutional, foreign, family and managerial ownership—as well as leadership elements like CEO turnover and leadership experience—are likely to enhance a firm’s value when aligned with ESG practices. Such enhancements in financial outcomes could be attributed to these ownership and leadership groups recognising the value generation potential of ESG and corporate governance. Conversely, investments in environmental and social initiatives might diminish value owing to the associated expenses to make such projects viable. Finally, the third study reveals that risk-taking is reduced in Saudi firms when these firms are participating in CSR practices. Evidence from this study broadly supports the view that CSR engagement leads to diminished risk-taking in Saudi firms.16 0Item Restricted The effect of HRM practices on the CSR integration into organisational culture: A study of the role of HR in developing a socially responsible culture .(Saudi Digital Library, 2023-09-28) Almatrafi, Ghadeer; Ali, BaharCorporate Social Responsibility (CSR) significance in an organisation has been rapidly growing for many years, acknowledging the imperative of addressing Environmental, Social, and Governance concerns in the strategies of business. CSR integration into organisational culture is necessary for sustainable competitive advantage, societal well-being, and stakeholder trust. Human Resource Management (HRM) practices wield a profound influence on the culture, and they can share the CSR principles integration. The empirical investigation on the interaction between CSR and HRM integration is scarce. The study filled the gap by exploring how HRM practices support and contribute to the integration of CSR into organisational culture. The study investigated HR's role in nurturing a socially responsible culture, uncovering key benefits and challenges, and underscoring the importance of aligning both HRM and CSR practices. The research also underscores the HR professional vital contributions and provides insights to foster a socially responsible culture that drives social impact and sustainability, enriching strategic, practical, and academic understandings in the process.35 0Item Restricted Corporate Governance Policies Dedicated to Corporate Social Responsibility: Should CSR be Mandatory to Firms?(2022-09) AlWadadni, Mutlaq; Mollica, VivianaCorporate Governance (CG) policies have a significant impact on how organisations operate and their commitments, mainly because of Corporate Social Responsibility (CSR). The relationship between appropriate CG and CSR allows companies to maintain a good balance for their operations. It may also support and reinforce the organisations' efforts to establish mechanisms and strategies of control and management, which improve the satisfaction of stakeholders and shareholders and increase the value of shareholders. However, it is not clear whether CSR and CG policies are voluntary or mandatory for organisations. As a result, this research focus on disclosing how CSR is not an option for companies. It insists that CSR is an obligation of organisations that aims at responding to emerging market pressure. The paper demonstrates the concepts of CSR, showing how the concepts overlap with each other to facilitate fairness and satisfaction of both shareholders and stakeholders. It further provides an in-depth, comprehensive analysis of how various legal systems and frameworks undertake social responsibilities based on CG policies.15 0