THE STUDY OF THE PREDICTIVE RELATIONSHIP BETWEEN CORPORATE SOCIAL ENTREPRENEURSHIP AND CORPORATE ECONOMIC SUSTAINABILITY OF THAI FIRMS
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Abstract
This research examined the predictive relationship between corporate social entrepreneurship and corporate economic sustainability of the Stock Exchange of Thailand. The 3-year average data for 2012 to 2014 of 402 listed companies in all 8 sectors of Stock Exchange of Thailand (SET) was used in the analysis. Descriptive statistics and Partial Least Squares regression analysis were performed. The new quantitative variables for corporate social entrepreneurship of this study were developed. The results showed that (1) capital market had good profitability based on return on equity and return on assets were positive, (2) the social or environmental operation of companies in the stock market was not high, (3) the latent variables of this research had convergent validity (AVE > 0.5) while measurement model assessment by reliability analysis was acceptable (Cronbach’s alpha > 0.7), (4) corporate social entrepreneurship had positive significant effect on corporate economic sustainability (path coefficient = 0.324) and 10.5% of total variance of corporate economic sustainability was predicted by corporate social entrepreneurship, and (5) the important variables of corporate social entrepreneurship consisted of 8 variables included numbers of a collaboration with other parties, identifying societal orientation or sustainability orientation on president’s letter, promoting employees to participate in social/environmental activities, having a social/environmental/sustainability report, numbers of the information channel for stakeholders, having a social mission in strategic plan or business goal, numbers of social/environmental activities, and corporate governance rating.
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