The And Social Issues ( Brammer & Quot )

1564 Words Mar 25th, 2016 7 Pages
Furthermore, different industries have different levels of significance to different social issues (Brammer & Millington, 2008). Therefore, a firm which adopts unrelated diversification strategy, operates its businesses in several different industries that are widely different in stakeholder demands and social issues. In opposite, a related diversified firm, which conducts its businesses within an industry, has much coherent stakeholder demands and social issues. In consequence, an unrelated diversified firm deals with more diverging stakeholder demands and social issues, whilst, a related diversified firm remains focus on relatively narrow range of social concerns (Kang, 2013). Moreover, {Jackson, 2010 #356@@author-year{Chiu, 2011 …show more content…
Furthermore, Investment in social issues, which relate to CSP, helps firms create market intangible assets, such as reputation, brand and customer (Kang, 2013; Luo & Bhattacharya, 2009; McWilliams & Siegel, 2001; Y.-R. Park, Song, Choe, & Baik, 2015; Wood, 2010). Market intangible asset is particularly more relevant to an unrelated diversified firm, who needs a more easily transferrable brand across diverse products, than a related diversified firm (Kang, 2013; C. W. Park, Milberg, & Lawson, 1991). Considering these reasons, we may argue that the relation between related diversification and CSP will be negative and the relationship between unrelated diversification and CSP will be positive. Regarding the above discussion, we propose three hypotheses.
H1: There is a significant relationship between total diversification and CSP
H2: There is a negative and significant relationship between related diversification and CSP
H3: There is a positive and significant relationship between unrelated diversification and CSP
3. Methods
This part describes about sample, data sources, variables and measurement.
3.1 Sample and Data Source
This study uses purposive sampling of 139 listed manufacturing companies from Indonesia Stock Exchange (IDX). Furthermore, because CSP is a long term oriented indicator, one year lag regression model was applied in this study to anticipate the effect of

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