The object of this study is to examine the influence of Corporate Social Responsibility on the management performance of corporations. In particular, the purpose is to divide the standard of business ethics to perform the ethical management performanc...
The object of this study is to examine the influence of Corporate Social Responsibility on the management performance of corporations. In particular, the purpose is to divide the standard of business ethics to perform the ethical management performance, the basis of the social responsibility activities of the corporations, into two sections; the inner ethical standard and the outer environmental change of ethics and to examine how this would have an influence on the management performance.
For the study sample, the automobile-parts corporations were selected among the corporations which were registered in the Chamber of Commerce in Daegu and Kyungpook area. This industry was chosen because it is representative of Daegu and Kyungpook and also because the study of business ethics being accomplished is focused on the conglomerates and the listed corporations, but is not focused on the specific area and industry.
In addition, in order to obtain more objective data, a survey was conducted for the middle managers to respond and a questionnaire was made based on the research patterns to measure each variable. The contents of a survey were classified into the intention of CEO which is an inner ethical standard, the administration system of ethical management, the corporate culture and the perception of environmental change of corporate ethics which is an outer environmental change of ethics, the government regulations and encouragement, the competitive circumstances, and the management performance of the corporations (financial, social, systematical), and then they were all measured by a scale of 5 points.
SPSS 12.0 was used as a tool for statistical analysis, and an analysis of factors was configured both for the analysis of reliability on the questionnaire and for the proof of validity to confirm that the intention of measured values was practically performed. One particular statistical method, multiple regression analysis, was used to prove the hypothesis.
The detailed results of this study are summarized as follows:
First, the analysis of reliability for the variables and the inner consistency among the factors of SPSS using an estimator of Cronbach's α were examined before the established hypothesis was proved. It was determined that most of the factors had a very high reliability of more than 0.6, but the factor of the inner ethic perception had a relatively low reliability of 0.461 because of the factors to impede the validity of organization. The validity proved that each factor was bound into 4 to 6 detailed categories. As the newly bound factors were examined, the factor of corporate culture, which was a decisive factor for the inner ethical standard, was divided into corporate culture and inner ethical perception. The government regulation and encouragement, which was a decisive factor of the perception of the outer conditions, was divided into the government regulation and the government encouragement, and the competitive conditions were divided into trade transparency and perception of competitive conditions.
Second, in order to prove the hypothesis established in this study, multiple regression analysis was conducted. As a result, it was found that the intention of the CEO and the ethical management system, the inner ethical standard of the corporations, had an influence of justice on the factor of the corporate financial accomplishment (p<0.000) and the organizational accomplishment (p<0.001), the factor of the community expectation (p<0.004) among the perception of the outer conditions had an influence of justice on the social accomplishment of the corporations. Besides, it was true that the corporate culture of the inner ethical standard of the corporations as well as the inner ethical perception and the environmental change of the outer environmental perception, the competitive conditions (the trade transparency and the perception of the competitive conditions) had an influence on the management performance of the corporations, but the rankings were relatively lower than the other factors.
In conclusion, the automobile-parts corporations in Daegu and Kyungpook area should recognize the changes of the global management condition and introduce the ethical management as soon as possible so that they can establish respectable corporate images. Not only would the consistent ethical involvement of the corporations fortify the corporate social responsibility and promote the loyalty of the established investors, the consumers, and the company employees, but also it could encourage the potential consumers and investors and raise the corporate value, which increases management profit. Accordingly, the automobile-parts corporations should appreciate that the ethical management is not an option but an essential factor for business management and reflect it actively in the management.