Can International Standards Discriminate the Corporate Social Responsibility/Irresponsibility? Empirical Evidence from Taiwan

Chih-Hung Chen¹ and Chiu-Ming Hsiao^2,

¹National Institute of Development Administration, Bangkok, Thailand

²Department of Finance, National Yunlin University of Science and Technology, Yunlin, Taiwan, R.O.C.

Cite this paper

Chih-Hung Chen and Chiu-Ming Hsiao. Can International Standards Discriminate the Corporate Social Responsibility/Irresponsibility? Empirical Evidence from Taiwan. Journal of Business and Management Sciences. 2020; 8(1):28-37. doi: 10.12691/JBMS-8-1-5

Abstract

Existing studies have provided numerous guidelines for the implementation of corporate social responsibility (CSR). However, business leaders have been either confused or reluctant to take action largely due to the complicated process of applying CSR. To alleviate this problem, this study examined whether international standards can be considered a benchmark tool to implement CSR. Based on a literature review, four key dimensions that construct CSR were accountability, competitiveness, transparency, and responsibility, while the four main characteristics of international standards were auditing effectiveness, reputation establishment, information symmetry, and consumer awareness. The hypothesized model depicted that certification systems of International Standard (IS) sufficiently reflected the four dimensions of CSR. The results obtained from a discriminant analysis showed that international standards helped stakeholders distinguish between companies with and without CSR goals; in turn, these standards could be regarded as a feasible and optimal tool for companies to demonstrate their commitment to CSR.

Keywords

corporate social responsibility, irresponsibility, international standards, discriminant analysis

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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