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Essays on The Impact of Corporate Social Responsibility on Firm Value - The Role of Customer Awareness by Servaes and Tamayo Article

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The paper “ The Impact of Corporate Social Responsibility on Firm Value - The Role of Customer Awareness by Servaes and Tamayo” is an impressive example of the article on management. Corporate governance refers to the processes, relations, and mechanisms that companies apply to enact measures of control as well as ensuring that they are well-directed (Shailer, 2004). On an elaborate perspective, as Aziri (2014) argues, it refers to the totality of institutional arrangements, legal rules, as well as corporate practices that determine who controls a company, and who benefits from these perspectives.

For this reason, it entails setting the policy framework for business corporations and incorporates issues like how stakeholders influence policy formulation process, performance accountability, and ensuring that performance standards are applied (Saeidi et al. , 2015). One of the corporate governance issues that organizations deal with their Corporate Social Responsibility (CSR). It owes to the fact that CSR disclosure is affected by the values, motives, and choices of the people involved in taking and formulating decisions in the companies, as well as adopting governance mechanisms including board composition and ownership structure (Khan et al. , 2013).

For this reason, there is a strong relationship between CSR approaches and corporate governance mechanisms adopted by corporations. The current paper outlines and summarizes the arguments presented in the article, “ the impact of corporate social responsibility on firm value: the role of customer awareness, ” by Henri Servaes and Ane Tamayo. It also discusses the context of the reading, as well as the issues the writers point out about corporate governance. Additionally, this paper discusses why the arguments are being made in the media, and finally, it concludes by providing an opinion about these issues. Arguments made in the articleThe article showcases how CSR and firm value are positively related to those firms with high customer awareness forged upon advertising expenditures.

References

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Management Study Guide (MSG), (n.d.). Role of the Media in Championing Corporate Social Responsibility (CSR). [Online] Managementstudyguide.com. Available at: http://www.managementstudyguide.com/role-of-media-and-corporate-social-responsibility.htm [Accessed 7 Mar. 2016].

Michelon, G., Boesso, G. and Kumar, K., 2013. Examining the link between strategic corporate social responsibility and company performance: An analysis of the best corporate citizens. Corporate Social Responsibility and Environmental Management, 20(2), pp.81-94.

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), pp.341-350.

Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), pp.1045-1061.

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Zyglidopoulos, S.C., Georgiadis, A.P., Carroll, C.E. and Siegel, D.S., 2012. Does media attention drive corporate social responsibility? Journal of Business Research, 65(11), pp.1622-1627.

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