Corporate social responsibility (CSR) and share price performance are strategic in nature. As a result, organizations must give disclosure and report such initiatives to stakeholders as well as shareholders. The value is revealed in the share price of the public organizations (Bevan, 2010). The boost in share value of socially responsible companies surpasses companies which don’t involve in any reporting of corporate social responsible activities (Robinson, 2010).
In this report, we will talk about the relationship between share price performance and disclosure of corporate social responsibility in Mark & Spencer (Robert, 2009).
Marks and Spencer is one among the dominant retailers of clothing, home products, food, and financial services of United Kingdom. 10 million people do shopping every week in more than 375 Marks and Spencer stores in the United Kingdom (Goldenberg, 2009). Additionally the Company has 155 stores run under franchises in twenty eight countries, generally in European, the Middle Eastern, Asian and the Far Eastern countries, and stores in the Republic of Ireland, Hong Kong and the United States supermarket group, Kings Super Markets. Marks and Spencer is formed in business units that cover food and general products (Retail Technology, 2012). The general products unit has been further divided into clothing of women, menswear, beauty, home etc.
In proportion to the current focus on the advantages of Corporate Social Responsibility, it is argued that Marks and Spencer’s social commitment with its stakeholders produces resources which create durable benefits for the company (Bookbinder, 2010). In this study, CSR is viewed as an important resource for Marks and Spencer and it makes possible better lasting share price performance. Corporate Social Responsibility is the valuable resource for Marks & Spencer, it is found that CSR-linked shareholder proposals which are implemented by the small margin of votes produce better financial performance (Stokes, 2012).
Table of Contents
1. Introduction
2. Research objectives
3. Research questions
4. Literature Review
4.1 Corporate Social Responsibility
4.2 Corporate Social Responsibility and Capital Markets
4.3 Corporate Social Responsibility Disclosure
5. Methodology
5.1 Types of research
5.2 Primary research
5.3 Secondary research
5.4 Scope of qualitative research approach
5.5 Scope of quantitative research approach
6. Ethical issues in research approach
7. Data sources (income statement of Mark & Spencer
7.1 Profit and dividends
8. Time Framework
Research Objectives and Key Topics
This study aims to analyze the impact of Corporate Social Responsibility (CSR) disclosure on the market value and financial performance of the retailer Marks & Spencer, specifically investigating whether transparency in CSR initiatives correlates with higher share prices and improved investor perception.
- Correlation between CSR reporting and equity market value
- Impact of sustainable practices on stakeholder and employee profitability
- Benefits of CSR strategies for financial performance
- Methodological application of content analysis in corporate reporting
- Capital market reactions to environmental and social disclosures
Excerpt from the Book
Corporate Social Responsibility
Corporate Social Responsibility (CSR) can be broadly understood as the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations (Wier, 2009). CSR is an evolving concept and its underlying construct has changed over time. Such integration must be accomplished in a transparent and accountable manner, thereby leading to the implementation of better practices within the firm, creating wealth and improving society (Hart, 2010). The World Business Council for Sustainable Development describes CSR as the business contribution to sustainable economic development.
Beyond complying with legislation and regulations, CSR typically includes commitments and actions related to (not an all-inclusive list): (Kotler, 2012) corporate governance and ethics; health and safety; environmental stewardship; human rights (including core labour rights); human resource management; community involvement, development and investment; involvement of and respect for Aboriginal peoples; corporate philanthropy and employee volunteering; anti-bribery and anti-corruption measures; accountability, transparency and performance reporting; supplier relations, for both domestic and international supply chains.
These elements of CSR are frequently interconnected and interdependent, and apply to firms wherever they operate (Kotler, 2012). CSR has recently emerged as a critical concern for management. Integrating its actions within a clear CSR strategy helps organizations position themselves to proactively manage risks and take advantage of opportunities, especially with respect to their corporate reputation and broad engagement of stakeholders (Stokes, 2012). The latter can include shareholders, employees, customers, communities, suppliers, governments, non-governmental organizations, international organizations and other organizations affected by Marks & Spencer’s activities (Hart, 2010).
Summary of Chapters
Introduction: Provides an overview of the strategic nature of CSR and its potential to enhance share value for public organizations like Marks & Spencer.
Research objectives: Outlines the specific goals of examining the link between CSR disclosures, market value, and shareholder profitability.
Research questions: Presents the central inquiries regarding whether CSR disclosure advantages accrue from capital markets and higher share prices.
Literature Review: Discusses the theoretical framework of CSR, its integration into capital markets, and the role of transparency in reporting.
Methodology: Details the use of content analysis to examine the financial and CSR data of Marks & Spencer for the 2011-2012 period.
Ethical issues in research approach: Highlights the necessity of objectivity, integrity, and confidentiality in conducting corporate research.
Data sources (income statement of Mark & Spencer: Provides the empirical foundation for the study using annual financial reporting data.
Time Framework: Describes the chronological schedule of the research process from proposal to final submission.
Keywords
Corporate Social Responsibility, CSR, Share Price, Marks & Spencer, Financial Performance, Disclosure, Capital Markets, Sustainability, Stakeholder Engagement, Equity Value, Information Asymmetry, Content Analysis, Retail Sector, Corporate Governance, Accountability.
Frequently Asked Questions
What is the core subject of this study?
The study investigates the relationship between the disclosure of Corporate Social Responsibility initiatives and the share price performance of the UK retailer Marks & Spencer.
What are the primary thematic areas covered?
Key themes include CSR strategy, market value creation, shareholder sensitivity to social engagement, and the role of transparency in reporting.
What is the central research question?
The work primarily questions whether increased levels of CSR disclosure by Marks & Spencer are associated with higher share prices and whether these advantages are recognized by capital markets.
Which research methodology is employed?
The author uses content analysis as the primary research methodology, evaluating annual financial reports and CSR data from the 2011-2012 fiscal period.
What is examined in the main section?
The main section evaluates existing literature on CSR, the impact of CSR on capital market risk profiles, and the specific case of Marks & Spencer’s financial performance relative to their social disclosures.
How are the keywords defined for this work?
The study is characterized by terms linking ethical business practices, such as "Sustainability" and "Accountability," with financial metrics like "Share Price" and "Equity Value."
Why does the author focus on the period 2011-2012?
This specific period was chosen due to the availability of detailed financial data sourced from the stock exchange, allowing for a focused analysis of the company's reporting.
What ethical considerations are emphasized?
The researcher highlights the importance of objectivity, data confidentiality, and maintaining the integrity of findings to ensure the research is not misleading for potential investors.
- Arbeit zitieren
- David Moss (Autor:in), 2012, Relationship between share price performance and disclosure of corporate social responsibility of M&S, München, GRIN Verlag, https://www.grin.com/document/270814
