Research on the Relationship between Corporate Social Responsibility and Non-executive Employees' Wages in Listed Companies

Abstract

This research examines the impact of CSR (corporate social responsibility) on the wages of non-executive employees the probability of companies reaching the 'sweatshop' target and the multiples of executive compensation Taking Taiwan listed companies in 2018 as a research sample the empirical results of?this research?show that: (1) CSR performance has a significant positive relationship with the wages of non-executive-level employees (2) CSR performance has a significant negative correlation with the wages of non-executive-level employees relative to the industry level (3) CSR performance has a significant positive impact on the probability that the company reaching the target of 'average wages of full-time non-executive-level less than NT $500 000' Whereas it has no significant impact on the probability that company reaching 'EPS earnings performance is better than the industry level while the average wages of full-time non-executive-level are lower' (4) CSR performance has a significant positive relationship with the company's executive pay gap ? The empirical results of this research show that some economically capable companies would indeed invest in corporate social responsibility activities with the starting point of improving the company's brand and reputation Besides these companies are willing to pay higher wages to non-executive-level employees However the wages that paid by these companies are less than those of the industry level and they are more prone to get into the situation of 'sweatshop' which shows that many capable large companies want to deliberately fulfill their social responsibilities through cause-based marketing so that their compensation could filling the gap with that of the industry level This method is for the ultimate goals of long-term profit

Date of Award	2020
Original language	English
Supervisor	Chaur-Shiuh Young (Supervisor)