Management & Information Systems Review (경영과정보연구)

Daehan Academy of Management Information Systems (대한경영정보학회)
권호 표지
DOI QR코드

DOI QR Code

Does Social Responsibility Activities Keep Future Earnings Sustainability?

사회적 책임활동은 기업의 이익을 지속시키는가?

  • Park, Sung-Jin (Department of Business Administration, Sungshin Women's University) ;
  • Sun, Eun-Jung (Department of Accounting, Hannam University)
  • 박성진 (성신여자대학교 경영학과) ;
  • 선은정 (한남대학교 회계학과)
  • Received : 2019.08.13
  • Accepted : 2019.09.23
  • Published : 2019.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

Companies shall hold social responsibility as a member of the social community. Corporate social responsibility uses corporate resources, yet it plays important roles in reducing social imbalance. Their responsibilities are highly associated with the corporate sustainability. Many earlier studies on the association between corporate social responsibility and corporate sustainability have been attempted. Yet it should be mentioned that they do not show a variety of realities as linearity between dependent variables and independent variables were assumed. Thus, this study aims to analyze Markov blanket, a node of minimum descriptive variables that relieve a rigid assumption among variables and affect corporate sustainability by using Bayesian network. Sensitivity analysis was used to elicit how other variables affect by reflecting the complex reality when real factors are changed. As an important result of this study, the firm's future earnings sustainability is naturally related to operating earnings, and as the corporate governance structure is sound, the firm is able to steadily fulfill its social responsibility. However, the fact that the size of a company is large does not mean that it is in good compliance with corporate laws. This would not be unrelated to the fact that many of today's companies are not complying with the law and are suffering social condemnation. Results from this study will serve as a useful analytic tool when investors and creditors showing interests in corporate sustainability for assessing the value of companies and making investment decisions. Moreover, they can be used as references for relevant agency supervising capital markets to establish or improve appropriate institutions aimed at improving corporate sustainability.

기업은 사회의 구성원으로서 사회적 책임을 다해야 하는 의무가 있다. 비록 기업이 사회적 책임을 완수하기 위해서 기업의 자원을 일정 부분 소비하지만 이러한 기업의 사회적 책임활동은 사회적 불평등을 해소하는데 도움을 주고 있다. 한편, 기업의 사회적 책임활동은 기업의 지속적 성장과 관련이 높을 수 있다. 많은 선행연구들은 기업의 사회적 책임활동과 기업의 지속가능성에 대해 관심을 가지고 있다. 그러나 기존의 선행연구들은 변수들간의 관계를 단순하게 선형이라고 가정하고 있기 때문에 복잡한 현실세계를 반영하지 못하는 한계점 또한 존재하고 있다. 따라서 본 연구에서는 마코브 블랭킷을 통해 변수들간 최소한의 상관관계를 도출하고 베이지안 네트워크를 통해 다양한 현실세계 속에서 변수들간의 관련성을 분석하고자 한다. 또한 본 연구에서 사용한 민감도분석은 복잡한 현실세계에서 다양한 변수들간의 변동성을 파악하는데 유용하게 활용될 수 있을 것이다. 본 연구는 기업의 지속가능성에 관심이 많은 투자자와 채권자들에게 유용한 정보를 제공할 수 있을 것이다. 왜냐하면, 그들은 기업의 가치에 관심이 많은데 사회적 책임활동은 기업의 가치에 긍정 또는 부정적인 영향 모두 미칠 수 있기 때문이다. 본 연구의 중요한 결과로 기업의 미래이익지속성은 당연히 영업이익과 밀접한 관련이 있으며, 기업의 지배구조가 건전할수록 기업은 안정적으로 사회적 책임을 완수하는 모습을 보였다. 그러나 기업의 규모가 크다고 하여 기업 관련 법규를 잘 준수하는 것을 아니라는 것이 나타났다. 이는 최근의 많은 기업들이 법규를 준수하지 않아 사회적 지탄을 받는 일과도 무관하지 않을 것이다. 한편, 기업의 지속가능성이 자본시장에 미치는 영향을 고려할 때 이러한 자본시장을 감독하는 관계당국도 본 연구의 결과를 활용하여 정책을 입안하거나 규정을 정비하는데 도움을 받을 수 있을 것이다.

Keywords

References

  1. Ameer, R., and Othman, R.(2012), "Sustainability Practices and Corporate Financial Performance: A Study Based on the Top Global Corporations", Journal of Business Ethics 108(1), 61-79. https://doi.org/10.1007/s10551-011-1063-y
  2. Baesens, B., G. Verstraeten, D., Michael, E. P., Kenhove, P. V., and Vanthienen, J. (2004), "Bayesian Network Classifiers for Identifying the Slope of the Customer Life Cycle of Long Life Customers", European Journal of Operational Research 156(6), 508-523. https://doi.org/10.1016/S0377-2217(03)00043-2
  3. Barnea, A., and Rubin, A.(2006), "Corporate Social Responsibility as a Conflict between Shareholders", Journal of Business Ethics 97(1), 71-86. https://doi.org/10.1007/s10551-010-0496-z
  4. Bebbington, J., and Gray, R.(2000), "An Account of Sustainability: Failure, Success and a Reconceptualization", Critical Perspectives on Accounting 12(5), 557-587. https://doi.org/10.1006/cpac.2000.0450
  5. Bernstein, L. A., and Siegel, J. G.(1979), "The Concept of Earnings Quality", Financial Analysis Journal 35(4), 72-75. https://doi.org/10.2469/faj.v35.n4.72
  6. Borzaga, C., and Defourny, J.(2001), "Conclusions: Social Enterprises in Europe: A diversity of Initiatives and Prospects", The Emergence of Social Enterprise, London and New York Routledge, 350-370.
  7. Bouckaert, R.(1995), "Bayesian Belief Networks: From Construction to Inference", Doctorial Dissertation, University of Utrecht, Netherlands.
  8. Brammer, S., Brooks, C. a,nd Pavelin, S.(2006), "Corporate Social Performance and Stock Returns: UK Evidence from Disaggregate Measures", Financial Management 35(3), 97-116. https://doi.org/10.1111/j.1755-053X.2006.tb00149.x
  9. Byun, S. Y., and Nam, H. J.(2017), "Globalization, Corporate Social responsibility and Corporate Financial Performance: Evidence from Korea", Management Information System Review 36(1), 127-146.
  10. Choi, S. B.(2017), "A Study of the Effects of CSR on Financial Performance", Korean Review of Corporation Management 8(1), 149-174. https://doi.org/10.20434/KRICM.2017.02.8.1.149
  11. Crainer, S.(2012), "Social Enterprise: The Quiet Revolution", Business Strategy Review 23(4), 14-21. https://doi.org/10.1111/j.1467-8616.2012.00890.x
  12. Dechew, P. M., and Dichov, I. D.(2002), "The Quality of Accruals and Earnings: The Role of Accural Estimation Errors", The Accounting Review 77(1), 35-59. https://doi.org/10.2308/accr.2002.77.s-1.35
  13. Dees, J. G., and Anderson, B. B.(2003), "For-Profit Social Ventures", International Journal of Entrepreneurship Education 2(1), 1-26.
  14. Drucker, P.(1984), "Converting Social Problems into Business Opportunities: The New Meaning of Corporate Social Responsibility", California Management Review 26(2), 53-63. https://doi.org/10.2307/41165066
  15. Fairfield P. M., and Yohn, T. L.(2001), "Using Asset Turnover and Profit Margin to Forecast Changes in Profitability", Review of Accounting Studies 6(4), 371-385. https://doi.org/10.1023/A:1012430513430
  16. Gunasekaran, A., and Spalanzani, A.(2012), "Sustainability of Manufacturing and Services: Investigation for Research and Applications", International Journal of Production Economics 140(1), 35-47. https://doi.org/10.1016/j.ijpe.2011.05.011
  17. Harjoto, M., and Jo, H.(2015), "Legal vs. Normative CSR : Differential Impact on Analyst Dispersion, Stock Return Volatility, Cost of Capital, and Firm Value", Journal of Business Ethics 128(1), 1-20. https://doi.org/10.1007/s10551-014-2082-2
  18. Hart, S. L.(1997), "Beyond Greening: Strategies for a Sustainable World", Harvard Business Review 75(1), 66-76.a
  19. Herremans, I. M., P. Akathaporn, and McInnes, M.(1983), "An Investigation of Corporate Social Responsibility Reputation and Economic Performance, Accounting", Organization and Society, 18(7), 587-604.
  20. Hillman, A. J., and Keim, D.(2001), "Shareholder Value, Stakholder Management, and Social Issues: What's the Bottom Line?", Strategic Management Journal 22, 125-130. https://doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H
  21. Jang, J. I. and Choi, H. S.(2010), "The Relation between Corporate Social Responsibility and Financial Performance", Korean Journal of Business Administration 23(2), 633-648.
  22. Jee, Y. I., Kim, C. J. and Kim, H. G.(2017), "The Influence of Employees' Perceived CSR on Job Attitude-Focusing on the Mediating Effect of Organization Identity-", Management Information System Review 36(4), 167-185. https://doi.org/10.29214/DAMIS.2017.36.4.010
  23. Jensen, F. V.(1996)., An Introduction to Bayesian Networks, London, UCL Press, London, UK.
  24. Jensen, M.(2002), "Value Maximization, Stakeholder Theory, and the Corporate Objective Function", Business Ethics Quarterly 12(2), 234-256. https://doi.org/10.2307/3857812
  25. Jun, J. M.(2003), "An Empirical Test of the Earnings Persistence and the Quality of Accounting Earnings", Journal of Business Research 18(1), 271-288.
  26. King, A. A., and Lenox, M. J.(2001), "Does It Really Pay to be Green? An Empirical Study of Firm Environmental and Financial Performance", Journal of Industrial Ecology 5(1), 105-116. https://doi.org/10.1162/108819801753358526
  27. Korb, B. K., and Nicholson, A. E.(2010), Bayesian Artificial Intelligence, CRC Press Company, Boca Raton.
  28. Kormendi, G., and Lipe, R.(1987), "Earnings Innovations, Earnings Persistence, and Stock Returns", The Journal of Business 60(3), 323-345. https://doi.org/10.1086/296400
  29. Lev, B.(1989), "On the Usefulness of Earnings and Earnings Research: Lessons and Directions from Two Decades of Empirical Research", Journal of Accounting and Research 27(s), 153-192. https://doi.org/10.2307/2491070
  30. McWilliams, A., and Siegel, D. S.(2000), "Corporate Social Responsibility and Firm Financial Performance", Strategic Management Journal 21(5), 602-609.
  31. Moea, S. J., Haandea, S., and Couture, R. M.(2016), "Climate Change, Cyanobacteria Blooms and Ecological Status of Lakes : A Bayesian Network Approach", Ecological Modeling 337, 330-347. https://doi.org/10.1016/j.ecolmodel.2016.07.004
  32. Nelling, E., and Webb, E.(2009), "Corporate Social Responsibility and Financial Performance: The 'Virtuous Circle' Revisited", Review of Quantitative Finance and Accounting 32(2), 197-209. https://doi.org/10.1007/s11156-008-0090-y
  33. Oh, H. T.(2010), "Corporate Sustainability Management and The Sustainability Evaluation", Journal of Business and Economics 33(1), 44-77.
  34. Pava M., and Krausz, J.(1996), "The Association between Corporate Social Responsibility and Financial Performance: The Paradox of Social Cost", Journal of Business Ethics 15(3), 321-357. https://doi.org/10.1007/BF00382958
  35. Pearl, J.(1988), Probabilistic Reasoning in Intelligent Systems: Networks of Plausible Inference, Morgan Kaufmann Publishers Inc., San Francisco, CA, USA.
  36. Perrini, F., and Tencati, A.(2006), "Sustainability and Stakeholder Management: The Need for New Corporate Performance Evaluation and Reporting Systems", Business Strategy and The Environment 15(5), 296-308. https://doi.org/10.1002/bse.538
  37. Posnikoff, J.(1997), "Disinvestment from South Africa: They did well by doing Good", Contemporary Economic Policy 15 (1), 76-86. https://doi.org/10.1111/j.1465-7287.1997.tb00456.x
  38. Shrivastava, P.(1995), "The Role of Corporations in Achieving Ecological Sustainability", The Academy of Management Review 20(4), 936-960. https://doi.org/10.5465/amr.1995.9512280026
  39. Seo, G. S., and Choi, M. H.(2017), "Corporate Social Responsibility Performance, CEO Turnover and Tax Avoidance", Management Information System Review 36(3), 255-268. https://doi.org/10.29214/damis.2017.36.3.015
  40. Swanson, D. L(1999), "Toward an Integrative Theory of Business and Society: A Research Strategy for Corporate Social Performance", Academy of Management Review 24, 506-521. https://doi.org/10.5465/amr.1999.2202134
  41. Waddock, S. A., and Graves, S. B.(1997), "The Corporate Social Performance-Financial Performance Link", Strategic Management Journal 18(4), 303-319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
  42. Wright, P., and Ferris, S.(1997), "Agency Conflict and Corporate Strategy: The Effect of Divestment on Corporate Value", Strategic Management Journal 18(1), 77-83. https://doi.org/10.1002/(SICI)1097-0266(199701)18:1<77::AID-SMJ810>3.0.CO;2-R
  43. Yang, S. K., and Song, E. G.(2018), "A Study on the Influence of CSR and Corporate Ability on Purchase Intention-Focused on the mediating effects of product attitude and the moderating effects of corporate reputation-", Management Information System Review 37(2), 1-21.