Document Type : Original Article
Authors
1
Department of Accounting, Faculty of Economics and Administrative Science, University of Mazandaran, Babolsar
2
Management Department, Faculty of Administrative Sciences and Economics, Arak University, Arak, Iran.
3
Department of Accounting, Payame Noor University, Tehran, Iran
Abstract
This study investigates the impact of corporate social responsibility (CSR) and organizational culture on stakeholders' trust and financial sustainability of companies listed on the Tehran Stock Exchange. Employing a mixed-methods approach, including social network analysis and dynamic questionnaires, the study analyzes stakeholder interactions and the dynamics of their perceptions over time. The statistical population consists of companies active in manufacturing, service, and technology industries, with 64 companies selected through purposive sampling. Data were collected from two main sources: social network analysis using Gephi and UCINET tools to identify stakeholder interaction patterns, and dynamic questionnaires to assess stakeholders’ perceptions over 6-month intervals during an 18-month period. The dependent variables were stakeholders’ trust (measured using a Likert scale) and financial sustainability (evaluated through financial indicators), while the independent variables were CSR (based on ESG indicators) and organizational culture (based on the Denison model). The findings revealed that CSR and organizational culture have a positive and significant impact on stakeholders’ trust. Stakeholders’ trust fully mediates the relationship between CSR, organizational culture, and financial sustainability. Additionally, company size acts as a moderating variable, with small and medium-sized enterprises exhibiting stronger effects. Social network analysis indicated denser stakeholder networks in companies with strong CSR and organizational culture. These findings align with previous studies but provide new insights through the mixed-methods approach and focus on the Iranian market.
Extended Abstract
Introduction
Corporate Social Responsibility (CSR) and organizational culture are fundamental pillars of modern strategic management, playing a pivotal role in shaping stakeholder relationships and achieving long-term sustainability. Given the increasing institutional pressures and global attention to Environmental, Social, and Governance (ESG) criteria, investigating the mechanisms through which these factors influence stakeholders' trust and, consequently, financial sustainability is of paramount importance. Many previous studies have examined these variables separately or used static methods, rarely addressing the temporal dynamics of stakeholder perceptions and the structure of their interaction networks. Therefore, the primary objective of this study is to simultaneously investigate the impact of CSR and organizational culture on stakeholders' trust and financial sustainability of companies listed on the Tehran Stock Exchange (TSE). This study focuses on the mediating role of stakeholders' trust and the moderating role of company size, aiming to fill the existing gap in the literature regarding complex socio-financial interactions in emerging markets, particularly Iran, which faces specific economic and institutional challenges.
Method
This study employs a mixed-methods approach, combining quantitative and qualitative techniques. The statistical population consists of companies active in manufacturing, service, and technology sectors listed on the TSE. Through purposive sampling, 64 companies were selected. Data were collected from two main sources: first, Social Network Analysis (SNA) utilizing data extracted from professional platforms like LinkedIn, official company websites, and annual reports to identify interaction patterns among key stakeholders (managers, employees, customers, and investors). Software tools such as Gephi and UCINET were used to calculate network metrics including degree centrality, density, and modularity. Second, dynamic data collection was conducted through standardized questionnaires distributed over three 6-month intervals during an 18-month period. The independent variables included CSR (measured via ESG indicators and stakeholder questionnaires) and organizational culture (measured using the 60-item Denison model). The dependent variables were stakeholders' trust (measured on a 5-point Likert scale) and financial sustainability (evaluated through ROA, ROE, and debt-to-equity ratios). The sample size for questionnaires was determined to be 200 respondents based on Cochran's formula. To test the hypotheses and analyze the model, Structural Equation Modeling (SEM) using Smart PLS 4.0 software and the bootstrapping method were employed. Furthermore, the validity and reliability of the instruments were assessed using Cronbach's alpha, Composite Reliability (CR), and Average Variance Extracted (AVE).
Results
The findings revealed that both CSR and organizational culture have a significant positive impact on enhancing stakeholders' trust. Specifically, the path coefficient for CSR on trust was estimated at 0.40, and for organizational culture on trust, it was 0.37, both significant at p < 0.001. Additionally, stakeholders' trust demonstrated a strong positive impact on financial sustainability (path coefficient = 0.46). Mediation analysis indicated that stakeholders' trust fully mediates the relationship between CSR and financial sustainability (indirect effect = 0.18) and also fully mediates the relationship between organizational culture and financial sustainability (indirect effect = 0.16). This implies that the effects of CSR and organizational culture on financial performance are primarily transmitted through the enhancement of social capital and stakeholder trust. Moderation analysis showed that company size plays a significant role in these relationships; specifically, the effects of CSR and organizational culture on stakeholders' trust are stronger in small and medium-sized enterprises (SMEs) compared to large companies. For instance, the path coefficient for CSR on trust was 0.46 in small companies, whereas it decreased to 0.34 in large companies. Moreover, SNA indicated that companies with stronger CSR performance and organizational culture possess denser and more cohesive interaction networks among their stakeholders. Model fit indices (R² = 0.64 for trust and R² = 0.59 for financial sustainability) demonstrated the high explanatory power of the proposed model.
Conclusion
This study demonstrates that in the Iranian market, corporate social responsibility and organizational culture serve as the primary pathways to achieving financial sustainability through the creation and strengthening of stakeholders' trust. The results confirm that investing in CSR initiatives and fostering a participative and transparent organizational culture is not only an ethical obligation but also a strategic necessity for gaining competitive advantage and reducing risk in volatile economic environments. The full mediation effect of trust highlights the critical importance of stakeholder relationship management. Furthermore, the findings regarding the moderating role of company size suggest that small and medium-sized enterprises can achieve higher returns from their social and cultural activities by leveraging their agile structures and closer communication channels. This study, by offering a mixed-methods approach based on network analysis and dynamic data, provides new insights into the temporal and structural dynamics of trust in Iranian businesses, assisting managers and policymakers in ensuring long-term organizational sustainability by focusing on the enhancement of social capital.
Funding
No funding was received from any public or
private entity.
Authors’ Contribution
All authors contributed equally to conducting
the research.
Conflict of Interest
No conflicts of interest were reported in this
study.
Acknowledgments
The authors would like to thank all participants who contributed their time and effort to thisarticle. We also express our gratitude to the
reviewers for their valuable comments and suggestions that helped improve the quality of this manuscript. The editor and the personel of magazine are also gartitued for the efforts.
Keywords
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