CSR

1052 Words3 Pages
bulb-icon

Recommended: CSR and company performance

5.1 Limitations During our research, there are several limitations for our project and those limitations influence our results. 5.1.1. Sample size These samples are selected from the Oxfam, and there is just two years’ relative researching for the citable companies to our project. These citable samples only cover 29 companies listed on Hong Kong stock market for year 2007 and 2008 respectively, because in Hong Kong, doing CSR reporting is not as popular as the western countries. Even through a few numbers of companies prepared the CSR reporting, they just prepared the CSR report for a few years. Therefore, the sample size is too small and limited. 5.1.2. Sample bias The result of our sample data is not normally distributed. All the firms in our sample are component stock of Hang Seng Index, which means they are large firms listed in the HKEx. Therefore, our sample is not very representative and our research results may not be generalized to other firms. 5.1.3. Sample years The research data of sample firms are selected from the year 2007 and 2008, as the source of the CSR Ranking are only published in those years. Therefore, whether our research results can be generalized in other years is open issues since that the result from limited sample size is not represent the overall results. 5.1.4. Abnormal Return In calculating abnormal returns, the CAMP model is used to calculate estimated stock return. A few issues: • CAPM Model The CAPM is sometimes unrealistic because of the limitations on which it is based; therefore it is important to detect these issues. There are some limitations about using CAPM. The investors hold diversified portfolios, it means that investors hold some stocks in different industries. Thus, unsystematic risk... ... middle of paper ... ... is not much affected by the three independent variables of SIZE, LEVERAGE and GROWTH. Based on the regression results, we had found that there is no relationship between CSR activities and financial performance in simple regression analysis and no results by adding three control variables in multiple regression analysis based on our limited evidence. Since the coefficient is insignificant in our findings, there is a high probability that the value of estimated coefficient is different from the true value. Thus, we cannot conclude that the foreign countries’ findings may apply to Hong Kong firms in results. There are certain limitations in our research and will consider in our future research discussion. We also recommend the Oxfam conducts more CSR Ranking report and encourage more firms to conduct more CSR report; it would be easier for us to do further research.

Show More
Related

  • Clarkson Lumber Company

    1794 Words  | 4 Pages

    Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.

    Read More

  • csr

    1954 Words  | 4 Pages

    Corporate social responsibility (CSR) invaded the corporate world over the last few decades. This concept has become an essential need for competitive advantage unlike its original role as a nicety. The companies have seen the business benefit of the initiative and stakeholders have appreciated the initiative. This has led to the wide application in the firm’s operational agenda.

    Read More

  • Critical Analysis Of Lenovo

    735 Words  | 2 Pages

    In recent years, more people begin to accept the concept of corporate social responsibility. Companies also pay more attention to the activities of CSR and investment. In addition to face the pressure of the environment and the social moral level, the enterprise managers also have the responsibility of the company 's performance and the value of the shareholder 's wealth. Therefore, enterprises need to pay more attention to the relationship between corporate social responsibility and financial performance.

    Read More

  • Corporate Social And Environmental Reporting

    1552 Words  | 4 Pages

    The concept explores underlying motivations for CSR reporting with cautious reference to the engagement of the companies. Engagement-based CSR efforts draw conclusions on surveys and interviews and offer valuable insights towards internal structures as well as views from reporters (Adams, 2002). In such r...

    Read More

  • The Effects of Corporate Social Responsibility on International Business

    1540 Words  | 4 Pages

    Eua-anant, P., Ayuwat, D., & Promphakping, B. (2011). Relations between positive impacts of CSR, external support, CSR knowledge and the degree of CSR practices in thai small and medium enterprises. The International Business & Economics Research Journal (Online), 10(11), 17-n/a. Retrieved from http://search.proquest.com/docview/1418717814?accountid=63189

    Read More

  • General Electric's Corporate Social Responsability

    1774 Words  | 4 Pages

    According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...

    Read More

  • Corporate Social Responsibility Analysis: Wells Fargo

    958 Words  | 2 Pages

    An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.

    Read More

  • Essay On Capital Asset Pricing Model

    1344 Words  | 3 Pages

    From my perspective, the usefulness of CAPM is directed towards efficient investment decision making and strategic management. Moosa (2013) remarks CAPM to be a supportive model in ‘evaluating the performance of managed portfolios and for investment purposes’.

    Read More

  • What Are The Pros And Cons Of Social Accountability

    1136 Words  | 3 Pages

    Since over 1000 Fortune 1000 companies utilize CSR into their organization’s business practices, there are many different ways to measure their effectiveness.

    Read More

  • Corporate Social Responsibility Activities of Unilever

    3393 Words  | 7 Pages

    Virakul, B., Koonmee, K. and McLean, G., 2009. CSR activities in award-winning Thai companies. Social responsibility journal, 5(2), pp.178--199.

    Read More

  • Nike: Company Financial Analysis

    1135 Words  | 3 Pages

    ...is model wouldn’t fit into this case simply because it does not take the growth factor into consideration and therefore, it is considered inconsistent here and should be not used in computing the cost of capital.

    Read More

  • Article Review: The Importance Of Corporate Social Responsibility

    1093 Words  | 3 Pages

    A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed

    Read More

  • What is the Stakeholder Theory?

    1076 Words  | 3 Pages

    ...t in becoming more socially responsible corporations. For example, Pos Malaysia through their CSR practices, this corporation had focuses on a dual-pronged approach that is aimed at bringing value to the community and nation at large by the means of enhancing education particularly towards the enhancement of human capital development mainly in underprivileged areas and also Enriching Communities in which Pos Malaysia seeks to promote commerce and entrepreneurship within the communities they serve particularly in rural areas. The above CSR themes are aligned with Pos Malaysia mission to constantly strive to be a caring corporate citizen by supporting nation building and community services. This CSR will focused on the meeting the need and interest stakeholder of an organization by becoming more socially responsible and as well as to improve their image and reputation

    Read More

  • Importance Of Corporate Social Responsibility

    1000 Words  | 2 Pages

    It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add

    Read More

  • Essay On Business Ethics And Social Responsibility

    853 Words  | 2 Pages

    Now-a-days it is considered that CSR is one of the major concerns of organization’s business ethics. Companies increasingly increase their corporate social responsibility (CSR) and ethical management accepting the positive impact on the bottom line. The vast bulk of Standard & Poor’s 500 companies publish sustainability reports unfolding their program challenges and achievements. These pre-emptive efforts can pr...

    Read More

More about CSR

Open Document