DOI QR코드

DOI QR Code

The Effect of Corporate Social Responsibility Activities on Financial Performance in Public Institutions

공공기관의 사회적 책임 활동이 재무적 성과에 미치는 영향

  • Jang, Ji Kyung (Department of Global Business Administration, Dongseo University) ;
  • Kim, Soo Kyun (Department of Computer Engineering, Jeju National University)
  • 장지경 (동서대학교 글로벌 경영학부) ;
  • 김수균 (제주대학교 전기전자통신컴퓨터공학부)
  • Received : 2021.08.25
  • Accepted : 2021.09.09
  • Published : 2021.09.30

Abstract

Purpose: The purpose of this study was to examine the corporate responsibility activities and investigate the effects of these activities on financial performance in public institutions. Methods: The collected data using annual performance evaluation for the year 2017-2019 were analyzed using multi-regression analysis. The corporate social responsibility activities for this study were divided into three dimensions such as social value, efficiency, and welfare. Results: The results of this study are as follows; first, public institutions with high evaluation in social value and welfare had a significant positive effect on financial performance factors such as ROA and ROS. Second, we find that there is a significant negative relation between social value activities and debt ratio. This result means that the higher social value activities, the lower debt ratio. It was also found that the activities for enhancing social value made statistically significant positive influence on BIS performance. Conclusion: These results can be interpreted that public institutions trying various social contribution activities does not necessarily bring negative results for financial performance. In conclusion, it means that socially responsible activities and ethical management in the desirable direction can be beneficial to both public institutions and the society to which they belong.

Keywords

Acknowledgement

본 연구는 과학기술정보통신부 및 정보통신기획평가원의 SW중심대학지원사업의 연구결과로 수행되었음(2018-0-01863). 이 논문은 2019년도 정부(교육부)의 재원으로 한국연구재단의 지원을 받아 제주대학교 기초과학연구소 자율운영중점연구지원사업에서 수행된 기초연구사업임(2019R1A6A1A10072987).

References

  1. Barmmer, S., Millington, A., and Ratyton, B. 2007. The Contribution of Corporate Social Responsibility to Organizational Commitment. The International Journal of Human Resource Management 18(10):1701-1719. https://doi.org/10.1080/09585190701570866
  2. Barnea. A. and Rubin, A. 2010. 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
  3. Carroll. A. B. 1991. The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons 34(4):39-48. https://doi.org/10.1016/0007-6813(91)90005-G
  4. Carroll. A. B. 1999. Corporate Social Responsibility: Evolution of a Definitional Construct. Business and Society 38(3):268-295. https://doi.org/10.1177/000765039903800303
  5. Choi, Woonyoul, Lee, Hoseon, and Hong, Chanson. 2009. Corporate Social Responsibility and Firm Value: Focused on Corporate Contributions. Korean Management Review 38(2):407-432.
  6. Frederick, W. C., Davis. K., and Post. J. E. 1988. Business and Society: Corporate Strategy, Public policy, Ethics. New York: Sixth edition, Mcgraw Hill Book Company.
  7. Jang, Jikyung. 2015. The Relation between Corporate Social Responsibility and Firm Value. Journal of Korea Contents Association 15(6):455-462. https://doi.org/10.5392/JKCA.2015.15.06.455
  8. Kim, Chulju and Lee, Sangyeop. 2012. A Study on Development Strategy for Social Responsibility of Public Institutions - Focusing on the case of the Korean Racing Authority. Social Enterprise & Policy Studies 2(1):41-80.
  9. Kim, Gwangsub and Lee, Byungyong. 2007. A study for International Guidelines for Corporate Social Responsibility and Corporate Reporting for Sustainable Development. Journal of Korean Society for Quality Management 35(3):47-54.
  10. Kim, Indong and Choi, Jongin. 2011. The Empirical Study on Implementation Effect of the Public Companies' Moral Management. Korean Journal of Human Resources Development 14(1):49-73.
  11. Kim, Seonim, Yoon, Jungyong, Son, Sedo, and Lee, Hunsang. 2020. Impact of Public Institutions' Sustainability Management Activities on Financial Factors : Focused on Public Enterprises. Journal of Industrial Economics and Business 33(4):1283-1303. https://doi.org/10.22558/jieb.2020.8.33.4.1283
  12. Lee, Jongwoon and Ree, Sangbok. 2007. Business Ethics Evaluation Model for the Improvement of Enterprise Value. Journal of Korean Society for Quality Management 35(2):53-62.
  13. Lim, Jinhan. 2014. A Study of the Effect of Corporate Social Responsibility on Corporate Performance : Focusing on Public Enterprises. PhD diss., Seoul National University.
  14. Park, Saukhee and Lee, Sunyoung. 2016. The Impacts of the Ethical Management System on Managerial Performance of Public Bodies in Korea. Seoul Association For Public Administration 26(4):1-26.
  15. Sangle, S. 2010. Critical success factors for corporate social responsibility: A public sector perspective. Corporate Social Responsibility and Environmental Management 17(1):2050-2124.
  16. 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