Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Convergence of Corporate Governance and CSR:A View from the Boardroom of Indian Commercial Banks


Affiliations
1 University Business School, Panjab University, Chandigarh, India
     

   Subscribe/Renew Journal


This paper attempts to study the relationship between corporate governance and corporate social responsibility (CSR) reporting practices among the Public and Private commercial banks of India. For the purpose of the research, data has been collected through secondary sources for a three year period 2013-2016. Content analysis has been done to collect data related to the CSR reporting practices from the annual reports of the banks. However, corporate governance variables have been determined using the CMIE Prowess database. TOBIT Regression model has been used to study the relationship between the dependent and independent variables. The findings provide some evidence supportive of the fact that corporate governance impacts CSR disclosure practices of commercial banks in India. Board size and banks’ financial performance were found to be significantly affecting the CSR reporting practices among the Indian commercial banks.

Keywords

Corporate Governance, Corporate Social Responsibility (CSR), Commercial Banks, India.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adams, C., & Zutshi, A. (2004). Corporate social responsibility: Why business should act responsibly and be accountable. Australian Accounting Review, 14(34), 31-39.

  • Aguilera, R. V., Williams, C. A., Conley, J. M., & Rupp, D. E. (2006). Corporate governance and social responsibility: A comparative analysis of the UK and the US. Corporate Governance: An International Review, 14(3), 147-158.

  • Arora, P., & Dharwadkar, R. (2011). Corporate governance and corporate social responsibility (CSR): The moderating roles of attainment discrepancy and organization slack. Corporate Governance: An International Review, 19(2), 136-152.

  • Barnea, A., & Rubin, A. (2010). Corporate social responsibility as a conflict between shareholders. Journal of Business Ethics, 97(1), 71-86.

  • Bear, S., Rahman, N., & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation. Journal of Business Ethics, 97(2), 207-221.

  • Beyer, A., Cogen, D. A., Thomas, Z. L., & Walther, B. R. (2010). The financial reporting environment: review of the recent literature. Journal of Accounting and Economics, 50(2-3), 296-343.

  • Cormier, D., Ledoux, M., & Magnan, M. (2011). The informational contribution of social and environmental disclosures for investors. Management Decision, 49(8), 1276-1304.

  • Dey, A. (2008). Corporate governance and agency conflicts. Journal of Accounting Research, 46(5), 1143-1181.

  • Ghoul, S. E., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388-2406.

  • Gibson, K., & O’Donovan, G. (2007). Corporate governance and environmental reporting: An Australian study. Corporate Governance: An International Review, 15(5), 944-956.

  • Gill, A. (2008). Corporate governance as social responsibility: A research agenda. Berkeley Journal of International Law, 26(2), 452-478.

  • Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30(4), 425-445.

  • Goh, B. W. (2009). Audit committees, boards of directors, and remediation of material weaknesses in internal control. Contemporary Accounting Research, 26(2), 549-579.

  • Gray, R. H., Kouhy, R., & Lavers, S. (1995b). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing and Accountability Journal, 8(2), 47-77.

  • Grove, H., Patelli, L., Victoravich, L. M., & Xu, P. (2011). Corporate governance and performance in the wake of the financial crisis: Evidence from US commercial banks. Corporate Governance: An International Review, 19(5), 418-436.

  • Guest, P. M. (2009). The impact of board size on firm performance: Evidence from the UK. European Journal of Finance, 15(4), 385-404.

  • Ibrahim, N. A., Howard, D. P., & Angelidis, J. P. (2003). Board members in the service industry: An empirical examination of the relationship between corporate social responsibility orientation and directorial type. Journal of Business Ethics, 47(4), 393-401.

  • Jamali, D., Safieddine, A. M., & Rabbath, M. (2008). Corporate governance and corporate social responsibility synergies and interrelationships. Corporate Governance: An International Review, 16(5), 443-459.

  • Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), 601-615.

  • John, K., & Senbet, L. W. (1998). Corporate governance and board effectiveness. Journal of Banking & Finance, 22(4), 371-403.

  • Kolk, A., & Pinkse, J. (2010). The integration of corporate governance in corporate social responsibility disclosures. Corporate Social Responsibility and Environmental Management, 17(1), 26-150.

  • Lourenco, I. C., Branco, M. C., Curto, J. D., & Eugenio, T. (2012). How does the market value corporate sustainability performance? Journal of Business Ethics, 108(4), 417-428.

  • Mackenzie, C. (2007). Boards, incentives and corporate social responsibility: The case for a change of emphasis. Corporate Governance: An International Review, 15(5), 935-943.

  • Matten, D. (2006). Why do companies engage in corporate social responsibility? Background, reasons and basic concepts. The ICCA handbook on corporate social responsibility. West Sussex: Wiley.

  • Money, K., & Schepers, H. (2007). Are CSR and corporate governance converging? A view from boardroom directors and company secretaries in FTSE100 companies in the UK. Journal of General Management, 33(2), 1-11.

  • OECD. (1999). OECD principles of corporate governance. Paris: OECD Publications Service.

  • Pathan, S., & Skully, M. (2010). Endogenously structured boards of directors in banks. Journal of Banking & Finance, 34(7), 1590-16060.

  • Reverte, C. (2009). Determinants of corporate social responsibility disclosure ratings by Spanish listed firms. Journal of Business Ethics, 88(2), 351-366.

  • Salama, A., Anderson, K., & Toms, J. S. (2011). Does community and environmental responsibility affect firm risk? Evidence from UK panel data 1994-2006. Business Ethics: A European Review, 20(2), 192-204.

  • Sapienza, P., & Zingales, L. (2012). A trust crisis. International Review of Finance, 12(2), 123-131.

  • Scholtens, B. (2008). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86(2), 159-175.

  • Smith T. H. (2002). Comments of Social Investment Forum on S7-36-02 and S7-38-02. Retrieved from http://www.sec.gov/rules/proposed/s73802/ tihsmith1.htm [23 May 2003].

  • Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97-109.

  • Tobin, J. (1958). Estimation of relationships for limited dependent variables. Econometrica, 26(1), 24-36.

  • Tuggle, C., Sirmon, D., Reutzel, C., & Bierman, L. (2010). Commanding board of director attention: Investigating how organizational performance and CEO duality affect board members’ attention to monitoring. Strategic Management Journal, 31(9), 946-968.

  • Vanhamme, J., Lindgreen, A., Reast, J., & van Popering, N. (2012). To do well by doing good: Improving corporate image through cause-related marketing. Journal of Business Ethics, 109(3), 259-274.


Abstract Views: 335

PDF Views: 0




  • Convergence of Corporate Governance and CSR:A View from the Boardroom of Indian Commercial Banks

Abstract Views: 335  |  PDF Views: 0

Authors

Priya Kaushal
University Business School, Panjab University, Chandigarh, India

Abstract


This paper attempts to study the relationship between corporate governance and corporate social responsibility (CSR) reporting practices among the Public and Private commercial banks of India. For the purpose of the research, data has been collected through secondary sources for a three year period 2013-2016. Content analysis has been done to collect data related to the CSR reporting practices from the annual reports of the banks. However, corporate governance variables have been determined using the CMIE Prowess database. TOBIT Regression model has been used to study the relationship between the dependent and independent variables. The findings provide some evidence supportive of the fact that corporate governance impacts CSR disclosure practices of commercial banks in India. Board size and banks’ financial performance were found to be significantly affecting the CSR reporting practices among the Indian commercial banks.

Keywords


Corporate Governance, Corporate Social Responsibility (CSR), Commercial Banks, India.

References