The Impact of Greenhouse Gas Emissions on Corporate Social Responsibility in Korea
Abstract
:1. Introduction
2. Model Specification
Co2tosalei,t | GHG emissions measured by tons of CO2 during year t/Sales during year t. |
Co2toasseti,t | GHG emissions measured by tons of CO2 during year t/Total assets at year t. |
3. Data and Descriptive Statistics
4. Empirical Results
5. Discussion and Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
Appendix A. Estimation of KEJI Index
- Calculate the actual value of the indicator based on the formula
- Converts actual value by indicator to 100-point scale according to the scoring guide
- Calculated as final score based on score weighted by indicator
Soundness (25 points) | Soundness of corporate governance | Portion of internal shareholdings |
Degree of professional manager participation | ||
Activities of outside directors | ||
Difference between ownership structure and governance structure | ||
Soundness of investment | Consumption expenditure | |
R&D expenditure | ||
Facility investment | ||
Soundness of corporate financing | Riskiness | |
Capital injection to affiliates | ||
Debt guarantees for affiliates | ||
Fairness (20 points) | Fairness | Economic concentration |
Relationship with partner companies | ||
Observation of financial regulations | ||
Separation of financial sector and industry sector | ||
Transparency | Sincere disclosure of information | |
Appropriateness of business report | ||
Audit committee management | ||
Shareholders’ voting | ||
Social contribution (15 points) | Employment equality | Share of disabled people |
Share of female workers | ||
Growth rate of employees | ||
Government award | ||
Social contribution activities | Donations | |
Social welfare support | ||
Contribution to national finance | Tax payment | |
Consumer protection (15 points) | Protection of consumer rights | Customer satisfaction certification |
Customer satisfaction award | ||
Consumer complaints counseling | ||
Protection of financial consumer | ||
Observation of consumer law | Unfair provisions | |
E-commerce consumer protection law violation | ||
Violation of notification obligation | ||
Compulsion of purchase | ||
Violation of laws related to visiting sales | ||
Violation of laws on the fairness of franchise business transactions | ||
Violation of laws on fair advertising | ||
Consumer safety | Quality and consumer safety certification | |
Environmental management (10 points) | Environmental improvement efforts | Environmental improvement report |
Energy efficiency | ||
Environmental investment | ||
Environmental protection program | ||
Environmental friendliness | Environment related award and certification | |
Violation and contamination | Contamination of water and atmosphere, etc. | |
Employee satisfaction (15 points) | Workplace health and safety | Industrial accidents |
Workplace health and safety certifications and Awards | ||
Human capital development | Educational and training expenses per person | |
Growth rate of educational and training expenses | ||
Wages and benefits | Wage compensation level | |
Benefits | ||
Internal labor welfare fund | ||
Number of working years | ||
Labor-management relation | Labor dispute | |
Share of temporary workers | ||
Labor-management relation improvement program |
Appendix B. Empirical Results with Unadjusted CSR Index
Dep Variable | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t |
---|---|---|---|---|
Co2tosalei,t | 4.456 ** | −100.623 *** | ||
(1.824) | (33.025) | |||
Co2tosalei,t * Sizei,t | 4.970 *** | |||
(1.597) | ||||
Co2toasseti,t | 6.721 ** | −115.815 *** | ||
(3.316) | (42.201) | |||
Co2toasseti,t * Sizei,t | 5.840 *** | |||
(2.043) | ||||
Levi,t | −2.289 ** | −1.896 ** | −2.385 *** | −1.869 ** |
(0.910) | (0.880) | (0.896) | (0.853) | |
MTBi,t | 0.504 * | 0.482 * | 0.506 * | 0.482 * |
(0.295) | (0.263) | (0.294) | (0.269) | |
Sizei,t | 0.711 *** | 0.488 *** | 0.726 *** | 0.495 *** |
(0.138) | (0.097) | (0.142) | (0.115) | |
ROAi,t | −1.595 | −1.048 | −2.157 | −1.427 |
(4.306) | (4.527) | (4.308) | (4.616) | |
Agei,t | −0.073 | −0.095 | −0.079 | −0.094 |
(0.193) | (0.196) | (0.194) | (0.198) | |
Tangiblesharei,t | 0.072 | −0.628 | 0.153 | −0.558 |
(1.025) | (0.941) | (1.039) | (0.981) | |
Salarytoasseti,t | 12.343 *** | 12.374 *** | 11.747 *** | 12.314 *** |
(4.000) | (3.542) | (3.906) | (3.615) | |
Ret Voli,t | −27.686 | −32.829 ** | −28.281 | −32.185 * |
(18.979) | (15.849) | (19.659) | (17.618) | |
Constant | 30.731 *** | 36.350 *** | 30.465 *** | 36.133 *** |
(2.571) | (2.025) | (2.597) | (2.325) | |
N of Obs | 393 | 393 | 393 | 393 |
Adj. R-sq | 0.951 | 0.954 | 0.951 | 0.954 |
Dep Variable | Pre-Revision Period (2007~2010) | Post-Revision Period (2011~2014) | ||||||
---|---|---|---|---|---|---|---|---|
CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | |
Co2tosalei,t | 6.836 *** | −91.450 | 1.742 | −91.413 *** | ||||
(2.513) | (63.089) | (1.677) | (30.624) | |||||
Co2tosalei,t * Sizei,t | 4.598 | 4.448 *** | ||||||
(3.008) | (1.521) | |||||||
Co2toasseti,t | 11.593 ** | −90.138 | 2.204 | −121.685 *** | ||||
(4.798) | (78.100) | (2.784) | (40.396) | |||||
Co2toasseti,t * Sizei,t | 4.793 | 5.956 *** | ||||||
(3.625) | (2.034) | |||||||
Levi,t | −2.378 * | −2.182 ** | −2.258 | −1.934 | −1.371 | −1.010 | −1.418 | −0.849 |
(1.296) | (1.080) | (1.373) | (1.179) | (1.397) | (1.365) | (1.404) | (1.279) | |
MTBi,t | 0.492 | 0.431 | 0.505 | 0.453 | 0.115 | 0.143 | 0.115 | 0.123 |
(0.316) | (0.286) | (0.316) | (0.293) | (0.288) | (0.262) | (0.286) | (0.263) | |
Sizei,t | 0.989 *** | 0.761 *** | 0.994 *** | 0.785 *** | 0.466 *** | 0.265 *** | 0.473 *** | 0.237 *** |
(0.151) | (0.164) | (0.144) | (0.171) | (0.110) | (0.087) | (0.116) | (0.084) | |
ROAi,t | −8.193 ** | −7.535 ** | −8.798 ** | −8.321 ** | 8.567 | 10.046 | 8.301 | 10.920 |
(3.249) | (3.579) | (3.568) | (3.789) | (7.440) | (7.115) | (7.553) | (6.995) | |
Agei,t | −0.628 *** | −0.634 *** | −0.629 *** | −0.636 *** | 0.032 | 0.003 | 0.030 | 0.005 |
(0.235) | (0.208) | (0.239) | (0.215) | (0.199) | (0.212) | (0.199) | (0.215) | |
Tangiblesharei,t | −1.332 | −1.256 | −1.324 | −1.358 | 1.909 * | 0.683 | 1.989 ** | 0.726 |
(1.606) | (1.635) | (1.670) | (1.746) | (0.983) | (0.810) | (0.930) | (0.706) | |
Salarytoasseti,t | 21.400 *** | 18.234 ** | 20.634 *** | 18.775 ** | 8.585 * | 10.286 ** | 8.347 * | 10.527 ** |
(6.359) | (7.017) | (6.807) | (8.063) | (4.439) | (4.366) | (4.356) | (4.358) | |
Ret Voli,t | −60.588 | −53.836 | −63.329 | −59.086 | −12.950 | −25.661 ** | −12.835 | −23.694 * |
(45.107) | (43.021) | (47.319) | (45.480) | (19.055) | (12.096) | (18.805) | (12.206) | |
Constant | 31.262 *** | 35.734 *** | 31.155 *** | 31.868 *** | 57.909 *** | 62.438 *** | 57.841 *** | 56.203 *** |
(2.772) | (2.864) | (2.682) | (3.212) | (2.268) | (1.960) | (2.335) | (2.309) | |
N of Obs | 183 | 183 | 183 | 183 | 210 | 210 | 210 | 210 |
Adj. R-sq | 0.452 | 0.472 | 0.457 | 0.473 | 0.311 | 0.354 | 0.310 | 0.349 |
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Variables | Descriptions |
---|---|
CSR indexi,t | The CSR index compiled on annual base from Korea Economic Justice Institute; |
Co2tosalei,t | GHG emissions to sales ratio, estimated as GHG emissions volume to sales during year t; |
Co2toasseti,t | GHG emissions to assets ratio, estimated as GHG emissions volume to assets at year t; |
Levi,t | Leverage, measured as total liability to total assets ratio at year t; |
MTBi,t | Market to book ratio, estimated as market capitalization divided by book value of equity at year t; |
Sizei,t | Firm size, measured as natural logarithm of total assets at the end of year t; |
ROAi,t | Return on assets, measured as net income to total assets at year t; |
Agei,t | Firm age, estimated as the different between year t and the firm’s establishment year; |
Tangiblesharei,t | Tangible assets to total assets ratio, defined as tangible assets to total assets at the end of year t; |
Salarytoasseti,t | Salary to assets ratio, defined as total salary to assets during year t; |
Ret Voli,t | Return volatility, defined as standard deviation of a firm’s daily stock returns during year t; |
N of Obs. | Mean | Std. Dev. | 25% | 50% (Median) | 75% | |
---|---|---|---|---|---|---|
CSR indexi,t | 393 | 64.5850 | 2.8002 | 62.6790 | 64.2837 | 66.2426 |
Co2tosalei,t | 393 | 0.0392 | 0.0869 | 0.0052 | 0.0121 | 0.0408 |
Co2toasseti,t | 393 | 0.0335 | 0.0577 | 0.0044 | 0.0132 | 0.0386 |
Levi,t | 393 | 0.4466 | 0.1896 | 0.2867 | 0.4294 | 0.5914 |
MTBi,t | 393 | 1.1664 | 0.8329 | 0.5793 | 0.8910 | 1.5565 |
Sizei,t | 393 | 21.3393 | 1.7816 | 19.9490 | 21.0159 | 22.6536 |
ROAi,t | 393 | 0.0482 | 0.0461 | 0.0192 | 0.0443 | 0.0730 |
Agei,t | 393 | 3.5342 | 0.6450 | 3.5264 | 3.7377 | 3.8712 |
Tangiblesharei,t | 393 | 0.4063 | 0.1429 | 0.3050 | 0.3922 | 0.5071 |
Salarytoasseti,t | 393 | 0.0516 | 0.0341 | 0.0255 | 0.0421 | 0.0687 |
Ret Voli,t | 393 | 0.0247 | 0.0092 | 0.0181 | 0.0229 | 0.0292 |
Variables | CSR Indexi,t | Co2tosalei,t | Co2toasseti,t | Levi,t | MTBi,t | Sizei,t | ROAi,t | Agei,t | Tangiblesharei,t | Salarytoasseti,t |
---|---|---|---|---|---|---|---|---|---|---|
Co2tosalei,t | 0.0319 | |||||||||
Co2toasseti,t | 0.0158 | 0.9543 * | ||||||||
Levi,t | 0.0373 | −0.0435 | −0.0453 | |||||||
MTBi,t | 0.2858 * | −0.1443 * | −0.1335 * | 0.1228 * | ||||||
Sizei,t | 0.3913 * | −0.0764 | −0.1247 * | 0.4131 * | 0.1842 * | |||||
ROAi,t | 0.1368 * | −0.0867 | −0.0631 | −0.3985 * | 0.3585 * | 0.0663 | ||||
Agei,t | −0.1391 * | 0.1160 * | 0.1091 * | −0.0839 | −0.2573 * | 0.0267 | −0.0651 | |||
Tangiblesharei,t | −0.0426 | 0.2210 * | 0.2125 * | 0.0928 | −0.0982 | −0.0993 * | −0.1784 * | −0.0084 | ||
Salarytoasseti,t | 0.006 | −0.1663 * | −0.1803 * | −0.2191 * | 0.2004 * | −0.3052 * | 0.0816 | −0.1705 * | 0.0529 | |
Ret Voli,t | −0.0996 * | 0.0326 | 0.0599 | 0.2931 * | 0.1462 * | 0.0005 | −0.1320 * | −0.0046 | 0.0388 | −0.045 |
Dep Variable | CSR Indexi,t | CSR Indexi,t |
---|---|---|
Co2tosalei,t | 5.378 *** | |
(2.040) | ||
Co2toasseti,t | 8.049 ** | |
(3.856) | ||
Levi,t | −2.583 ** | −2.699 ** |
(1.113) | (1.090) | |
MTBi,t | 0.633 * | 0.636 * |
(0.347) | (0.347) | |
Sizei,t | 0.829 *** | 0.847 *** |
(0.180) | (0.184) | |
ROAi,t | −2.768 | −3.440 |
(5.236) | (5.228) | |
Agei,t | −0.112 | −0.119 |
(0.225) | (0.225) | |
Tangiblesharei,t | −0.195 | −0.093 |
(1.249) | (1.265) | |
Salarytoasseti,t | 14.739 *** | 14.007 *** |
(5.074) | (4.954) | |
Ret Voli,t | −36.471 | −37.183 |
(23.873) | (24.638) | |
Constant | 43.777 *** | 43.454 *** |
(3.288) | (3.308) | |
N of Obs | 393 | 393 |
Adj. R-sq | 0.338 | 0.339 |
Dep Variable | CSR Indexi,t | CSR Indexi,t |
---|---|---|
Co2tosalei,t | −106.008 *** | |
(37.098) | ||
Co2tosalei,t * Sizei,t | 5.268 *** | |
(1.791) | ||
Co2toasseti,t | −119.186 ** | |
(48.576) | ||
Co2toasseti,t * Sizei,t | 6.064 *** | |
(2.336) | ||
Levi,t | −2.166 ** | −2.163 ** |
(1.080) | (1.044) | |
MTBi,t | 0.610 * | 0.611* |
(0.314) | (0.322) | |
Sizei,t | 0.592 *** | 0.607 *** |
(0.143) | (0.166) | |
ROAi,t | −2.188 | −2.682 |
(5.482) | (5.570) | |
Agei,t | −0.135 | −0.135 |
(0.227) | (0.229) | |
Tangiblesharei,t | −0.937 | −0.831 |
(1.190) | (1.224) | |
Salarytoasseti,t | 14.772 *** | 14.595 *** |
(4.573) | (4.639) | |
Ret Voli,t | −41.923 ** | −41.237 * |
(20.500) | (22.526) | |
Constant | 49.734 *** | 49.339 *** |
(2.859) | (3.226) | |
N of Obs | 393 | 393 |
Adj. R-sq | 0.367 | 0.362 |
Dep Variable | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t | CSR Indexi,t |
---|---|---|---|---|
Co2tosalei,t | −32.281 | −110.797 *** | ||
(19.635) | (35.136) | |||
Co2tosalei,t * Agei,t | 9.860 * | 2.104 | ||
(5.065) | (6.044) | |||
Co2tosalei,t * Sizei,t | 5.115 ** | |||
(2.069) | ||||
Co2toasseti,t | −40.070 | −139.962 *** | ||
(25.436) | (44.181) | |||
Co2toasset,t * Agei,t | 12.772 * | 7.649 | ||
(6.784) | (6.362) | |||
Co2toasseti,t * Sizei,t | 5.680 ** | |||
(2.673) | ||||
Levi,t | −2.687 ** | −2.200 ** | −2.791 ** | −2.252 ** |
(1.117) | (1.076) | (1.078) | (1.022) | |
MTBi,t | 0.728 ** | 0.631 ** | 0.725 ** | 0.666 ** |
(0.325) | (0.309) | (0.322) | (0.310) | |
Sizei,t | 0.809 *** | 0.595 *** | 0.823 *** | 0.607 *** |
(0.192) | (0.143) | (0.195) | (0.163) | |
ROAi,t | −2.954 | −2.245 | −3.573 | −2.810 |
(5.119) | (5.465) | (5.121) | (5.487) | |
Agei,t | −0.283 | −0.171 | −0.374 | −0.287 |
(0.248) | (0.270) | (0.266) | (0.282) | |
Tangiblesharei,t | −0.257 | −0.928 | −0.273 | −0.892 |
(1.243) | (1.193) | (1.263) | (1.237) | |
Salarytoasseti,t | 14.600 *** | 14.741 *** | 14.083 *** | 14.603 *** |
(5.025) | (4.558) | (4.856) | (4.600) | |
Ret Voli,t | −40.246 * | −42.570 ** | −40.166 * | −42.767 * |
(22.020) | (20.459) | (23.099) | (22.135) | |
Constant | 45.089 *** | 49.840 *** | 45.214 *** | 50.021 *** |
(3.871) | (2.841) | (3.733) | (3.126) | |
N of Obs | 393 | 393 | 393 | 393 |
Adj, R-sq | 0.341 | 0.366 | 0.343 | 0.363 |
© 2017 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Yu, J.; Lee, S. The Impact of Greenhouse Gas Emissions on Corporate Social Responsibility in Korea. Sustainability 2017, 9, 1135. https://doi.org/10.3390/su9071135
Yu J, Lee S. The Impact of Greenhouse Gas Emissions on Corporate Social Responsibility in Korea. Sustainability. 2017; 9(7):1135. https://doi.org/10.3390/su9071135
Chicago/Turabian StyleYu, Jongmin, and Sejoong Lee. 2017. "The Impact of Greenhouse Gas Emissions on Corporate Social Responsibility in Korea" Sustainability 9, no. 7: 1135. https://doi.org/10.3390/su9071135