An Evaluation and Measure of the Existence of a Causal Relationship Between Corporate Financial Performance and Corporate Social Responsibility in Mergers and Acquisitions – Estimating the Impact of Globalization

An Evaluation and Measure of the Existence of a Causal Relationship Between Corporate Financial Performance and Corporate Social Responsibility in Mergers and Acquisitions – Estimating the Impact of Globalization

Content Analysis

The research methodology will be applied in line with the fifth objective of the study. The goal focuses on evaluating the role of globalization in modern business organizations, especially mergers and acquisitions. The method applied (content analysis) will be employed in providing answers to the research question. It will make use of qualitative historical data to highlight how globalization has played a critical role in contemporary businesses.The research proposal acknowledges that business is part of modern society, and the society penetrates often and far into the various decisions made within an organization. The relationship is connected and connected. The separation is evident based on the fact that organizational goals differ from those of the local community. Businesses, therefore, seek to gain profit and should, therefore, engage in activities that are geared towards minimizing costs and maximizing benefits.  The communities also expect the enterprise to be responsible through employing the local citizens, being environmentally responsible, offering charities, and paying taxes.

Content Analysis

Neuendorf (2016) explained that content analysis is an essential tool that is vital for conducting CSR research. It is because of this reason that the current study aims to utilize content analysis in carrying out the research and come up with a strategic management approach to CSR. Content analysis research methodology is gaining popularity in CSR studies, and will, therefore, be significant to this study as a research methodology. Generally, Neuendorf (2016) explained that content analysis methodologies employ the usage of coding of text corpora or human reading such as website pages, corporate reports, academic papers, among others. The methodology has been applied in analyzing newspapers, company websites, scholarly articles, and company reports. Neuendorf (2016)further identified another popular method from content analysis, which is software coding, for determining the key themes linked to CSR and the role of globalization in business.

On the same note, Krippendorff (2018) also defined content analysis to mean the quantitative analysis of messages and summary which rely on the academic methodologies, and are not limited to the types of variables which may be measured within the context through which the messages are presented or created. The approach is essential in exploring the role of globalization in modern business with a critical focus on mergers and acquisitions. Content analysis will also enhance data gathering through codifying qualitative information in literary and anecdotal form into different categories with the aim of deriving data..

The relevance of Content Analysis to the Research Objective

Globalization plays a critical role in steering the evolution of CSR practice and discourse across modern business organizations. According to Krippendorff (2018), the differential development of CSR across business organizations is pervasive, and undeniably relates to the modernization, internationalization, and globalization process. Therefore, CSR is a crucial differentiator in the current global business environment since different companies are reluctant to channel their CSR contributions to achieve legitimacy and improve their brand images to pursue long-term profits and higher financial performance. Marquis, Yin, and Yang (2017) asserted that the global trend is encouraging firms to get out of the comfort zones and go beyond “business as usual” and integrate global and local communal and environmental setbacks. Concerning this, if companies pursue CSR intending to gain higher profits, or to safeguard the brand image of the business from public criticism (Marquis, Yin& Yang, 2017).

The linkage between Content Analysis and the Study

Content analysis has been widely applied in the prior studies to evaluate the quantity of CSR, and also established the link between CSR and globalization with regard to modernbusinesses. The fundamental goal of the current research will be to examine the role of globalization in the contemporary business organization, particularly mergers and acquisitions. Therefore, the identified research methodology will be essential in the achievement of the research objective.

Assumptions of Content Analysis Study

1. Content analysis is applicable in investigating CSR disclosure levels of businesses. The units of social disclosure in content analysis rely on word or sentence count.
2. The methodology is subject to a sampling problem.
3. The methodology relies on word meanings and contexts.
4. The frequency of using the method is justified by credibility, regularity, accessibility, and vital information to the reporting of stakeholders.

Reliability of the Research Methodology

The inter-coder reliability is a critical concern in conducting corporate social responsibility using content analysis (Krippendorff, 2018). One of the ways of ensuring inter-coder reliability involves taking precautionary measures, just like Neuendorf (2016)suggested. There is a need to adopt such measures to ensure the reliability of the data collected. The current research needs to discuss the past literature with regard to corporate social responsibility to enhance understanding of the concepts. It is also crucial to conduct a review of past reports that are concerned with globalization, especially business reports that looks at business merger and acquisition, independently and code them. The coded information will then be used to conduct a comparison and identify the errors or discrepancies. The materials analyzed will then be employed to identify the differences to resolve them. The researcher will also examine the remaining literature in order to avoid contradictory and inconsistent results. According to Schrempf-Stirling(2018), in the United States, there are no statutory obligations for businesses to disclose information that is concerned with their CSR activities.

Research Process of Content Analysis

The following are the three critical stages that the research will employ in conducting the content analysis. The stages will be employed to analyze secondary data to look at patterns of information and provide the most significant aspects. The methodology will be applicable after the research has utilized observation to collect secondary data, and after historical data shall have been employed.

1. Selection and Identification of Content Analysis

To better understand the level of responsiveness and understanding that businesses in the globalization index, the research will examine the corporate social responsibility practices of five companies with a critical focus on the annual reports for the past five years (2015/16, 2016/17, 2017/18, 2018/19, and 2019/20). The total number of units to be analyzed will, therefore, be 25 (five companies and five annual reports for each company). The items which the study will look at in analyzing the reports will be:

• The corporate social responsibilities
• Evidence of globalization
• Mergers and Acquisitions

The above strategy will be relevant in achieving the fifth objective of the current study. The list of the companies which will be analyzed will be randomly selected and will be provided in the appendix section of the current research.

1. Units of Content

The research will employ two units for disclosure, i.e., the number of companies engaged in CSR, the role of the companies in impacting globalization. The information will be drawn from the annual reports of the companies identified.Schrempf-Stirling (2018)discussed the relevant unit analysis, which can be employed in Corporate Social Responsibility. The measurement of these units is significant in making judgments and establishing the subjectivity of the research.

1. Content Preparation and Coding

Of the identified annual reports, the research will focus on the Corporate social responsibility section.  The researcher will identify the various forms of corporate social responsibility that the recognized organizations engage in. Each of these social activities with the given cords, for instance, Human Resources (HR), Community Development (CD), Physical resources and environmental contribution (PREC), and Service and Product Contribution (SPC).

The research will also employ a typical content analysis procedure which Neuendorf (2016) proposed, which will involve the use of 25 randomly selected and different units with the aim of making an initial analysis independently. Each of these identified units will be coded based on their identification. The researcher will, therefore, draw a table to integrate the coded units and the coded corporate social activities for comparison. There will also be a list of examples of phrases and terms which will be used to identify the corporate social activities (CD), Human Resources (HR), Service and Product Contribution (SPC), Physical resources and environmental Contribution (PREC), mergers and acquisition (MA), and globalization (G).

1. Analysis

The findings will be tabulated in different tables based on various factors. Each of the tables will depict a means of quantitative analysis (the coded number) to quantify the analysis in numbers. The inferences will be drawn, and the interpretations of the inferences will rely on the aggregated information of the companies identified.

References

Neuendorf, K. A. (2016). The content analysis guidebook. Sage.

Krippendorff, K. (2018). Content analysis: An introduction to its methodology. Sage publications.

Graneheim, U. H., Lindgren, B. M., &Lundman, B. (2017). Methodological challenges in qualitative content analysis: A discussion paper. Nurse education today, 56, 29-34.

Marquis, C., Yin, J., & Yang, D. (2017). State-mediated globalization processes and the adoption of corporate social responsibility reporting in China. Management and Organization Review, 13(1), 167-191.

Schrempf-Stirling, J. (2018). State power: Rethinking the role of the state in political, corporate social responsibility. Journal of Business Ethics, 150(1), 1-14.