Although interest in Corporate Social Responsibility (CSR) in emerging markets has increased in recent years, most research still focuses on developed countries. The scant literature on the topic, which traditionally suggested that CSR was relatively underdeveloped in emerging markets, has recently explored the context specificity, suggesting that it is different and reflects the specific social and political background. This would particularly apply to local companies, not so much to foreign subsidiaries of multinationals active in emerging markets. Thus far, empirical research (...) that systematically documents a range of CSR activities of local companies and their performance has been scarce. This paper reports the results of a survey conducted among companies in the Mexican auto industry. CSR performance was investigated across three dimensions: environmental, labor, and community, using measures from existing research and global, ' Western' standards of practice, to identify the type of CSR activities and the level of CSR performance that exists, if at all, in the emerging-market context. Results show that local companies do engage in the type of CSR activities commonly associated with CSR in developed countries. To the extent that comparisons could be made, our findings also indicate that CSR activities and levels among the sample are comparable to what is known about CSR in developed-country settings. Moreover, six of the nine CSR dimensions are intercorrelated, which suggests that CSR in the Mexican auto parts industry is more structural than incidental. (shrink)

The debate surrounding the corporate social responsibility (CSR) performance of family firms remains inconclusive. In order to unravel the dynamics that lead to better CSR performance of family firms, accounting for their heterogeneity is essential. While valuable steps in this regard have already been taken, we posit that a central figure is generally overlooked in prior studies, namely the external auditor. Specifically, we argue that the extent of investment made by family firms in their external audit, reflected in (...) the level of audit fees, directly impacts their CSR performance as presented in CSR reports. We contend that this investment enhances the quality of these reports, facilitating a more effective communication of CSR efforts to stakeholders. However, drawing from the willingness-ability paradox, family firm characteristics may modulate the willingness of these firms to leverage this potential. Using a comprehensive sample of publicly listed family firms in the United States, our findings reveal a strong and positive association between the level of audit fees and CSR performance. Notably, this relationship becomes weaker as the degree of family influence within the firm increases but stronger when the company name bears the family's name. These findings shed light on the intricate interplay between external audits, family firm dynamics, and CSR performance, offering valuable insights for academics, practitioners, and policymakers seeking to better understand and promote CSR initiatives in family businesses. (shrink)

Using a worldwide sample, we examine whether corporate social responsibility (CSR) performance has an impact on the value of cash holdings. We find that investors assign a higher value to cash held by firms that have a high CSR rating. This result is consistent with the idea that CSR policies are a means for managers to act in the shareholders’ interests by mitigating conflicts with stakeholders. Finally, we reveal that CSR performance has a positive impact on the value (...) of cash holdings only for firms which operate in countries where shareholders are well protected from expropriation by managers and in countries where the institutional quality is high. (shrink)

Corporate social responsibility has become of great interest to both researchers and practitioners alike with much discussion on whether the costs outweigh the performance implications. CSR has become a firm strategic tool as firms recognize that the customer value proposition and CSR is integrated with the focus on how to differentiate the firm from the view of the customer. We utilized market orientation theory as our foundation for our research as it explains how organizations adapt to their customer environment (...) to develop competitive advantages. With the current customer focus on CSR, MO assists the field in identifying a possible firm differentiation. Our research found that firms that ranked high on CSR correlated positively to performance. We also found our theoretically developed constructs of firm customer orientation and firm market orientation correlated with the firm adopting CSR. The results also indicated that CSR positively mediates CO and MO to firm performance. As past research had mixed results over the direct relation of MO to performance, our research suggests that CSR may be the missing variable to explain the MO/performance relationship. (shrink)

Some institutional investors are exposed to social norms and public scrutiny. Prior research indicates that these norm-constrained institutions engage in negative screening and invest less in firms operating in ‘sin’ industries. We examine whether social norms also motivate these institutions to engage in positive screening—where they invest more in firms with better corporate social responsibility performance—and CSR-related activism—where they promote improvements in the CSR of existing investees. We find that firms with superior CSR performance have greater ownership by (...) norm-constrained institutions, consistent with positive screening, and we use a natural experiment to establish causality. We also find that increases in the shareholdings of norm-constrained institutions are associated with subsequent improvements in CSR, consistent with activism. Further, we rule out an alternative explanation for our results where the positive screening and activism are ‘profit-driven’ rather than driven by social pressure. Thus, our results suggest that the influence of social norms on stock markets is more pervasive than documented in the prior literature. (shrink)

This study examines the effects of corporate social responsibility (CSR) performance of Chinese firms on the formation of cross-border alliances with partners in developed countries. We use signaling theory and the co-evolutionary perspective as bases in proposing that the signaling effects of CSR performance on cross-border alliance formation are subject to the influences of subnational, national, and cross-national institutions. By using a longitudinal data set, we find that the signaling effects of CSR performance on cross-border alliance formation (...) emerged only after a national system of CSR-related institutions had been established. Once this framework was set up, the effectiveness of CSR as a signal was subject to subnational (intra-country) and cross-national (inter-countries) institutional differences. We conclude that combining signaling theory with the co-evolutionary perspective contributes to CSR research in emerging markets. (shrink)

Analyzing a sample of 13,917 US firm–years from 1991 to 2006, we find that more innovative firms demonstrate high corporate social responsibility performance subsequent to a successful innovation. These high-CSR innovative firms enjoy significantly higher valuation post-innovation. These findings imply that firms with demonstrated potential growth opportunities, as evident from the number of registered patents and their citations, benefit by strategically investing more in CSR activities; that is, CSR investment entails ‘doing well by [strategically] doing good.’.

This paper centers on a case study of CSR performativity during the COVID‐19 pandemic. In the extant CSR literature, CSR performativity has focused on “walking the talk” and/or “talking the walk,” wherein narrative and action around CSR are typically treated as two different things with their relationships questioned. We focus on what has been called “t(w)alking” wherein speech is understood to be performative and wherein speech acts and CSR are merged, becoming one and the same thing. Performativity then entails what (...) is (and what is not) said, whereby CSR involves taking responsibility for speech and/or silences. Our thesis is that the COVID‐19 pandemic led to the “presenting” of CSR as performativity, in the presence of Levinas' Other, as noble (speech) acts. We examine what became of CSR performativity in a for‐profit medical services provider when the COVID‐19 pandemic turned fatal for its main client group: the infirm elderly. The performativity of the statement: “The elderly and their carers must be protected” turned out to be crucial and set the stage for the provider's emergency action. Following on insights derived from Nietzsche and Levinas, and more specifically from their views on the particularity of ethical action, we find that CSR morphed into ethical performativity in the case study at hand. Against the backdrop of the views of these thinkers, the research potential of the performativity of “t(w)alking” in future CSR studies emerges and is critically discussed. (shrink)

This study examines how the CSR committee and CSR-linked executive compensation jointly affect CSR performance as governance mechanisms. Prior studies provided mixed results on the CSR committee’s effect on CSR performance. We posit that a CSR committee has both a direct and an indirect positive effect on CSR performance, with CSR-linked compensation playing the role of mediator in the relationship. We base our analysis on a sample of 164 Canadian firms covering the period 2012–2018, for a total (...) of 952 firm-year observations. We propose a regression-based approach for our mediation research design. Our findings reveal that CSR-linked compensation mediates the CSR committee’s positive effect on performance, but the type of mediation depends on whether the performance is social or environmental. We provide evidence of both direct and indirect effects on environmental performance but only a positive indirect effect on social performance. These results suggest that demands from the firm’s internal and external stakeholders are treated differently, with the former receiving priority. (shrink)

We examine the effect of the cross-border merger and acquisition (M&A) activities of Chinese firms on their corporate social responsibility (CSR) performance. We find that Chinese acquirers significantly increase CSR performance and CSR spending following cross-border M&As. The legal origins and social norms of host countries are found to positively affect the acquirers’ CSR performance and CSR spending in the post-M&A period. The results are consistent with Chinese acquirers signaling their commitment toward CSR through cross-border M&As to (...) respond to diverse stakeholder demands and strengthen corporate reputation. We also provide evidence that Chinese firms’ knowledge acquisition through cross-border M&As boosts green innovation. In addition, we show that the financial performance of Chinese acquirers does not suffer in the long term, indicating that strategic CSR investments can be integrated with other corporate investment activities. Our study demonstrates how cross-border M&As affect stakeholder value beyond value for shareholders. (shrink)

We considered the question of how corporate social responsibility differs between Canada and the U.S. Prior research has identified that national institutional differences exist between the two countries [Freeman and Hasnaoui, J Business Ethics 100:419–443, 2011], which may be associated with variations in their respective CSR practices. Matten and Moon [Acad Manag Rev 33:404–424, 2008] suggested that cross-national differences in firms’ CSR are depicted by an implicit–explicit conceptual framework: explicit CSR practices are deliberate and more strategic than implicit CSR practices. (...) We compared Canada and U.S. CSR and examined how CSR strategic alliances, CSR reporting, and CSR performance in the two countries correspond to implicit versus explicit CSR practices, which we link to stakeholder and signaling perspectives. We relied upon a new database, the Sustainalytics Global Platform, and we found a positive association exists between CSR strategic alliances and the number of years that firms have issued standalone CSR reports in both countries. Moreover, we found that CSR scores mediated this association in the U.S., as U.S. firms with high CSR scores typically engage in more CSR strategic alliances. In Canada, we did not find this mediating effect. Our findings suggest that U.S. firms engage in signaling activities that are more strategic and explicit than their Canadian counterparts. This paper closes with implications for practice and theory. (shrink)

The current study investigates whether tournament incentives motivate chief executive officer to be socially responsible. Furthermore, it explores the role of sub-national institutional contingencies [i.e., state-owned enterprises vs. non-SOEs, foreign-owned entities vs. non-FOEs, cross-listed vs. non-cross-listed, developed region] in CEO tournament incentives and the corporate social responsibility performance relationship. Data were collected from all A-shared companies listed in the stock exchanges of China from 2014 to 2019. The study uses the baseline methodology of ordinary least squares and cluster OLS (...) regression. Moreover, firm-fixed effects regression, two-stage least squares regression, and propensity score matching deal with the endogeneity problem and check the robustness of the results. The results provide reliable evidence that tournament incentives motivate CEOs to be more socially responsible. On the other hand, sub-national institutional contingencies positively affect the association between CEO tournament incentives and CSRP. The findings have important implications for companies and regulators who wish to enhance CSP by providing incentives to top managers. (shrink)

Does CEO gender affect family firms’ corporate social responsibility (CSR)? And does this relationship vary between countries based on different levels of social and legal gender bias? Drawing on insights from the literature on female leadership and CSR, we utilize social role theory and institutional theory to explore these issues empirically based on a sample of 1555 family firms from 29 countries. We find that family firms led by female CEOs perform better on both internal and external CSR. However, this (...) relationship is contingent on the social and legal institutional environment. The positive effect of female CEOs is strongest in contexts of legal gender equality and, interestingly, a negative social bias against women. (shrink)

The few studies that analyze the impact of a combined strategy of innovation and corporate social responsibility on firm performance mostly focus on financial performance. In contrast, the current study considers the simultaneous impact of technological innovations and CSR on firm growth, which provides a measure of medium-term economic performance. With a sample of 213 firms and a two-step procedure, this study reveals the differentiated effects of strategic versus responsive CSR behavior on the two technological innovation types, (...) as well as the effects of the two innovation types on growth. The findings thus indicate that firms with strategic CSR achieve growth through both their product and their process innovations. (shrink)

This study focuses on the application of multicriteria decision-making techniques, specifically the analytic hierarchy process (AHP), to identify corporate socialresponsibility information which both companies and stakeholders consider relevant and material. This work explains how the AHP methodology was applied in the selection of material indicators in corporate social responsibility reporting, the interpretation of these indicators and their relative importance. The results of this study are summarized in 60 indicators distributed in four areas: environment, economy, corporate governance and social. As this (...) last area contains the greatest number of indicators, it was divided into four sub-areas (human resources, human rights, product responsibility and society). (shrink)

Many countries have regulations that require firms to engage in minimum levels of corporate social activities in areas such as the environment and social welfare. In this paper, we argue that changes in a firm’s compliance with CS regulations are reflected in its reputation for corporate social responsibility, which affects the firm’s performance. The performance impacts depend on whether the firm’s CSR reputation in the current and prior periods is positive, neutral, or negative. Our theoretical framework draws on (...) the reputation literature and on the concepts of recency bias, which weights the present more heavily than the past, and negativity bias, which weights negative assessments more heavily than neutral or positive assessments. We test our hypotheses on a sample of 7317 banks over 1992–2007 where we compare a bank’s return on assets with its current and prior compliance ratings under the U.S. Community Reinvestment Act. We find that changes in CSR reputation have predictable, asymmetric, and sizeable impacts on firm performance. For example, for an average bank with $1 billion in assets, gaining a positive CSR reputation translates into a rise in profits of 4.04%; gaining a negative CSR reputation results in a drop in profits of − 7.8%. (shrink)

Proactive corporate social responsibility (CSR) involves business practices adopted voluntarily by firms that go beyond regulatory requirements in order to actively support sustainable economic, social and environmental development, and thereby contribute broadly and positively to society. This empirical study examines the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities—shared vision, stakeholder management and strategic proactivity—and financial performance in small and medium enterprises (SMEs). Using quantitative data collected from a sample (...) of 171 Australian SMEs in the machinery and equipment manufacturing sector and employing structural equation modelling, we find that the adoption of practices in each CSR dimension by SMEs is influenced slightly differently by each capability, and affects financial performance differentially. The study also demonstrates the importance of the interaction between the three dimensions of proactive CSR in positively moderating the deployment of each individual CSR dimension to generate financial performance. Paying primary attention to the economic dimension of proactive CSR and selectively focusing on social and environmental elements of proactive CSR that drive and support the economic dimension are of key importance to sustainable long-term financial success for SMEs. (shrink)

We provide evidence of the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in Palestine, a highly unstable political context. Annual reports of all firms listed on the Palestine Exchange (PEX) for the period 2016-2019 were manually content analysed. A checklist of reported CSR items is summarised into four areas: environmental information, human resources, community involvement, and product and customer service quality. Results indicate a robust positive connection between each of the four dimensions and the composite (...) CSR index with three performance indicators: ROA, ROE, and Tobins Q. Results also find better performing companies with a higher degree of community involvement being greatly appealing, while the environmental dimension was the least resilient. We discuss the significance of community engagement for an unstable context like Palestine from a community cohesion standpoint. (shrink)

This study investigates how corporate digital responsibility (CDR) enhances artificial intelligence (AI)-based partner relationship management to drive sustainable firm performance. Drawing on stakeholder, institutional and dynamic capabilities theories, data were collected from bank managers and analysed using partial least squares structural equation modelling (PLS-SEM) and combined importance-performance analysis (cIPMA) techniques. Results show that environmental, economic and technological digital responsibility strengthen AI-based partner relationship management, which in turn improves sustainable performance, while social digital responsibility is non-significant. Contrary to (...) expectations, coercive and normative pressures moderate the link between CDR and AI-based partner relationship management. cIPMA further reveals a necessity–performance paradox: AI-based partner relationship management emerges as the most critical performance driver, yet all four CDR dimensions and all three institutional pressures are necessary conditions for achieving sustainable performance. This study contributes to the literature by highlighting the differentiated roles of CDR dimensions in shaping AI-enabled dynamic capabilities for sustainable development. (shrink)

An extensive work has been done on corporate social responsibly practices that mainly emphasized the larger firms within developed nations. Nonetheless, still work is needed to observe the importance of CSRPs’ and ethical cultural practices in terms of sustainable competitive performance that garnered far less attention by the existing literature. This study explores the impact of CSRPs on SACP with the mediating role of ECL from SMEs of two emerging nations, i.e., China and Pakistan based on stakeholders’ theory and (...) practices. The results using SEM affirmed the positive linkages of CSRPs—environment responsibility, community responsibility, customers' responsibility, suppliers responsibility, employee responsibility, and Govt. rules & regulations’ responsibility —on SACP. It found that CSRPs have positive relationships with ECL whereas ECL further positively correlated with SACP in the context of both countries. The findings revealed the positive mediating influence of ECL between CSRPs and SACP, respectively. This study furnishes insightful information for management on how firms may achieve sustainable performance by incorporating ethical cultural practices and corporate social responsibility practices as the strategic tools. The study reports numerous implications for management together with lines for future directions. (shrink)

Proactive corporate social responsibility (CSR) involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society. Proactive CSR has been less researched in small and medium enterprises (SMEs) compared to large firms; and, whether SMEs are ideally placed to gain competitive advantage through such activity therefore remains a point of debate. This study examines empirically the association between three specified capabilities (shared vision, (...) stakeholder management and strategic proactivity), proactive CSR and financial performance in SMEs. Using quantitative data collected from a sample of 171 SMEs in the machinery and equipment sector of the Australian manufacturing industry, we find that all specified capabilities are positively associated with adoption of proactive CSR by SMEs, and that proactive CSR is, in turn, associated with an improvement in firm financial performance. Evidence of a fully mediating role for proactive CSR on the association between capabilities and financial performance presented in this study aligns with RBV theory that suggests adoption of value-creating strategies that make the most effective use of a firm’s capabilities is essential to financial success. The study contributes to the CSR literature by demonstrating a case for SMEs being able to maximise financial returns whilst proactively making progress towards CSR. (shrink)

This study investigates whether employees attribute different motives to their organization's corporate social responsibility (CSR) efforts and if these motives influence employee performance. Specifically, we investigate whether employees could distinguish between intrinsic and extrinsic CSR motives by surveying 229 employee–supervisor dyads from various industries (companies that have reputable CSR programs in Portugal), and the impact of these perceptions on in‐role and extra‐role performance of subordinates. We found that employee task performance increases when employees attribute both intrinsic and (...) extrinsic motives for CSR. Moreover, when employees perceive that their organization invests in a CSR practice that is both intrinsic and extrinsic, they also tend to exert extra effort in their work. Theoretical and practical implications are also discussed alongside future research directions. (shrink)

In this study, we propose and test the relationship between CSR and firm financial performance, how this relationship differs between firms led by CEOs with political connections and those led by CEOs without political connections, and how this relationship differs between state-owned firms and nonstate-owned firms. Based on a sample of 1645 Chinese listed firms during the period 2011 and 2020 (inclusive), we find that CSR has an inverted U-shaped relationship with firm financial performance. As the level of (...) CSR increases from slight to moderate, CSR is positively related to firm performance; as the level of CSR increases from moderate to great, CSR is negatively related to firm financial performance. Additionally, we find that this inverted U-shaped relationship differs between firms led by CEOs with political connections and those led by CEOs without political connections and differs between state-owned firms and nonstate-owned firms. That is, both the synergic effect (positive effect) of CSR on firm financial performance when the level of CSR is low and the competitive effect (negative effect) of CSR on firm financial performance when the CSR is high are more pronounced for firms led by CEOs without political connections and nonstate-owned firms than for firms led by CEOs with political connections and state-owned firms. The theoretical and managerial implications of these findings are discussed. (shrink)

Firm managers play an important role in the implementation of corporate social responsibility (CSR) actions. Education is emerging as the key factor in developing a sense of moral responsibility amongst the business students who will eventually become company managers and decision makers. The aim of this research is, thus, twofold. First, to analyze the existence of a direct positive correlation between university students’ perception of CSR and its impact on business performance; and second, to examine the extent to which (...) two factors (advantages brought by CSR and responsibilities toward stakeholders) act as mediation variables in the aforementioned correlation. The analysis was performed with a sample of 390 business‐related university students. Amongst the potential contributions made by this study we can highlight the possibility of knowing future managers’ way of thinking and of knowing the aspects where educational centers might improve their CSR teaching. (shrink)

Little is known about when corporate social responsibility (CSR) leads to a sustainability case (i.e., to improvements in environmental and social performance). Building on various forms of decoupling, we develop a theoretical framework for examining pathways from institutional pressures through CSR management to sustainability performance. To empirically identify such pathways, we apply fuzzy-set qualitative comparative analysis (fsQCA) to an extensive dataset from 19 large companies. We discover that different pathways are associated with environmental and social performance (non)improvements, (...) and that pathways to success and failure are for the most part not symmetrical. We identify two pathways to improved environmental performance: an exogenous and an endogenous one. We find two pathways to improved social performance that both involve integrating social responsibility into the core business. Pathways to nonimprovements are multiple, suggesting that failure can occur in a number of ways, while there are only a few pathways to sustainability performance improvements. (shrink)

This study aims to explore how CSR-related messages posted by CEOs on social media are beneficial in fostering social capital, which in turn impacts the FP and online reputation of the firm. The study also examines whether there is any difference in FP due to sharing of CSR-related messages by CEOs before and during the pandemic. Hierarchical regression is used to examine the influence of CEOs CSR related tweets on FP and online reputation. The study reveals that by posting CSR-related (...) messages on Twitter, CEOs can build social capital available on social media, which leads to better FP and online reputation. Findings also indicate that there is no statistically significant difference in FP and online reputation of the firm due to sharing of CSR-related messages by CEOs before and during the pandemic. Our research makes a significant addition to the empirical studies of CSR, social media and social capital theory. (shrink)

Managers' attitudes towards CSR are an important factor influencing activities undertaken by enterprises. Managers may view CSR activities from a cost or benefit perspective. In the scientific literature, there is no compromise on the relationship between managers’ motivators and attitudes towards CSR with organization’s performance. The ambiguity of the results presented in the literature indicates the need for further research on the leaders’ concern for responsibility and sustainability and its relationship with organizationally relevant long-term outcomes. The aim of the (...) research is to identify the impact of managers’ attitude towards CSR, their perception of costs and benefits of CSR activities on organization performance, both financial and non-financial. As a research method, a survey on a sample of 241 medium and large companies from fashion, cosmetics and household appliances, and consumer electronics industries operating in Poland was conducted. To analyse results and verify research hypotheses, PLS-SEM method was used. Results show that there is a relation between managers’ approach to CSR concept, depending on whether it is perceived in terms of benefits or costs. This relationship is different in the case of financial and non-financial results. The study contributes to the existing CSR literature, in particular on the relation between managers approach to CSR and company performance during the challenging period of the COVID-19 pandemic. (shrink)

Organizational restructuring involving mass layoffs is an integral part of the corporate strategic landscape. While aimed at increasing a company’s efficiency and profitability, it often falls short of desired objectives, partly due to negative consequences for remaining employees, the so‐called “survivors”. As workforce reductions may jeopardize a company’s legitimacy, we develop a model that links the change in post‐restructuring employee productivity to the factors that help mitigate legitimacy issues. By using a comprehensive and innovative dataset of restructuring announcements reported by (...) European companies over the post‐crisis period, we analyze the moderating effect of the restructuring extent on the role of corporate social responsibility (CSR) and economic justification as legitimacy tools in counterbalancing the negative effects of job reduction measures. Our findings reveal that in reactive layoffs, induced by financial difficulties, initially high levels of CSR help lessen negative effects of restructuring on employee productivity in low‐extent restructuring events; while in high‐extent restructuring events employee productivity is supported by continuing investments in CSR. We provide evidence that both the level and dynamics of CSR practices play a significant role, and their effect on employee performance is conditional on the restructuring context. (shrink)

This paper explores how responsible leadership, task performance, and intrinsic CSR attribution in organisations are related. Based on the social identity theory and stakeholder theory, we argue that responsible leadership task performance is positively related through employees’ intrinsic CSR attribution. The paper proposes a conceptual framework where intrinsic CSR attribution is a mediator between responsible leadership and task performance. The framework suggests that responsible leadership creates an organisational culture that fosters intrinsic CSR attribution among employees, leading to (...) increased task performance. The paper provides empirical evidence from a survey-based study of employees in various organisations to support the proposed framework. Data from 213 employees was analysed using SEM and the findings indicate that responsible leadership has a significant positive impact on intrinsic CSR attribution and task performance and that intrinsic CSR attribution mediates the relationship between responsible leadership and task performance. The paper concludes with implications for theory and practice, including the importance of responsible leadership in promoting a culture of responsible behaviour and task performance in organisations. (shrink)

This article contributes to the general literature on the relationship between corporate social performance and corporate financial performance, as well as to the emerging HRM–CSR literature, by exploring the curvature of the relationship between HRM–CSP and CFP. We advance conceptual arguments in favor of an inverted U-shaped relationship. Our results demonstrate a significant quadratic relationship between HRM–CSP and CFP. We provide evidence that this relationship is not linear or S-shaped but rather inverted U-shaped.

This study investigates corporate social responsibility of sinful firms, which refer to ones that are operating in controversial industries, including the production and distribution of alcohol, tobacco, gambling, adult entertainment, firearm, military, and nuclear power. We attempt to answer two questions in this study: Do these sinful firms actively advertise their CSR engagements compared to non-sinful firms? And do their advertising efforts really yield increased financial performance? Positing that advertising not only can make sinful firms’ good deeds visible, but (...) also can highlight the contradiction between these firms’ stigma and their prosocial activities, we claim that sinful firms are likely to advertise their CSR engagement to overcome their stigmatized firm image, but these advertising activities will make the firms’ performance vulnerable by inducing skepticism from stakeholders. Using KLD database in conjunction with COMPUSTAT and Center for Research in Security Prices from 1991 to 2010, where 337 firms are involved in the controversial sinful industries, namely tobacco, alcohol, gaming, firearms, military, and nuclear power, we examine the effect of advertising spending of sinful firms’ CSR engagement on performance vulnerability, which is instantiated with idiosyncratic risk. The empirical results indicate that sinful firms increase their advertising expenditure when they engage in CSR programs, but these efforts for advertising CSR tend to increase idiosyncratic risk. This finding indicates that even though sinful firms can benefit from engaging in socially responsible initiatives, advertising their CSR efforts may backfire. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 4, Page 999-1013, October 2022.

The evidence for a positive, direct link between the representation of women on boards of directors and financial performance is tenuous. Given the importance of the gender diversity–financial performance debate, researchers are left to examine how, if at all, the two are linked. The present study takes the position that the link is indirect. Specifically, following stakeholder theory, an argument is made that women on boards’ attunement to stakeholder interests leads them to influence firms’ prosocial actions, which results (...) in higher levels of corporate social responsibility. In turn, following the extant literature, CSR is expected to be positively linked to financial performance. Relying on a sample of Australia’s largest publicly traded firms, the results demonstrate that women on boards are linked to CSR and that CSR is linked to financial performance. However, in the mediation test, CSR appears to fully mediate the link between women on boards and financial performance. The results are discussed along with limitations and future research directions. (shrink)

Possessing slack resources enables businesses to invest in innovative and stakeholder-focused initiatives. Therefore, we posit that higher slack resources encourage businesses to allocate these resources to improve their environmental, social, and governance (ESG) performance. Moreover, as a central sustainability governance mechanism, we hypothesize that the corporate social responsibility (CSR) committee supports investing slack resources in ESG initiatives. Using data from Nasdaq-100 firms, we find initial support for a positive effect of slack resources for ESG. However, further analyses reveal that (...) slack resources become detrimental to ESG after an economically relevant threshold, indicating an inverted U-shaped effect of slack resources. Additionally, despite their generally positive effect, we uncover that CSR committees cannot effectively enhance the benefits of low or moderate slack levels for ESG nor prevent the detriments of elevated slack levels for ESG. Therefore, our study significantly contributes to the ongoing discourse surrounding slack resources, ESG, and the usefulness of CSR committees. These findings hold significant implications for ethical resource allocation, urging firms and their decision-makers to reconsider the dual-edged role of slack resources in the unique ESG context and support the CSR committee in realizing its potential for promoting sustainability and ethical practices within the organization. (shrink)

Although research on the corporate social responsibility (CSR) dimension of corporate image has notably increased in recent years, the definition and measurement of the concept for academic purposes still concern researchers. In this article, literature regarding the measurement of CSR image from a customer viewpoint is revised and areas of improvement are identified. A multistage method is implemented to develop and to validate a reliable scale based on stakeholder theory. Results demonstrate the reliability and validity of this new scale for (...) measuring customer perceptions regarding the CSR performance of their service providers. With regard to this, CSR includes corporate responsibilities towards customers, shareholders, employees and society. The scale is consistent among diverse customer cohorts with different gender, age and level of education. Furthermore, results also confirm the applicability of this new scale to structural equation modelling. (shrink)

This study investigates the phenomenon of corporate social responsibility (CSR) decoupling, wherein firms' CSR disclosures diverge from their actual CSR performance, often resulting in misleading portrayals of environmental and social commitments commonly associated with greenwashing. Drawing on resource dependence and agency theories, the research examines how specific board attributes—board tenure, board-specific skills and board cultural diversity—function as governance mechanisms to reduce CSR decoupling by enhancing board effectiveness in aligning managerial actions with stakeholder expectations. Using a large international sample of (...) 14,004 firm-year observations from 34 countries between 2012 and 2023, the study also explores the moderating role of board gender diversity, an area underexplored in prior research. The results confirm that longer board tenure, greater board-specific skills, and higher board cultural diversity significantly reduce CSR decoupling. However, the presence of female directors unexpectedly weakens these beneficial effects, indicating a complex and nuanced interaction between board gender diversity and other board characteristics in shaping CSR outcomes. These findings contribute to the literature by clarifying how corporate governance mechanisms influence the authenticity of CSR engagement, highlighting the importance of considering gender diversity as a moderator in governance studies. (shrink)

Although CSR research in China has received increasing scholarly attention, employee-centered CSR is still an understudied topic. To fill the void, the purpose of this study is to demonstrate the effects of employees’ CSR perceptions on the quality of employee-organization relationships and workplace performance, as well as the underlying mechanisms explaining such effects, in the Chinese context. Guided by both managerial and relational approaches of corporate social responsibility research, we conducted a survey with employees from a large private company (...) in the electric and energy industry in China. Data were analyzed via path analysis using R packages and results revealed that CSR perceptions can lead to positive employee-organization relationship quality and increase employees’ extra-role performance. We also found that these effects can be further explained by increased employee-organization identification or perceived corporate ability. In addition, a qualitative analysis of employees’ responses showed that the influence of government and Confucianism was reflected in employees’ expectations for their employer’s CSR initiatives. This study contributes to the scant research on employee outcomes and the underlying mechanisms of employee-centered CSR in China. Practically, we add empirical evidence addressing the value of internal CSR for professionals and educators. (shrink)

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. (...) This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant. (shrink)

This study explores the strategic orientations of corporate social responsibility (CSR) and their impact on market and financial performance among firms in China. Using data collected from 602 firms, the study employs content and regression analyses to assess the influence of CSR dimensions—stakeholder focus, area of emphasis, and strategic intent. The findings highlight the critical, yet often overlooked, economic aspects of CSR, advocating for a multidimensional view that integrates stakeholder perspectives with the triple bottom line of sustainability. By demonstrating (...) how strategically oriented CSR practices enhance market performance, brand equity, and customer loyalty, particularly in the dynamic Chinese market, this research provides valuable insights for global brands seeking to develop ethical and responsible supply chains in Asia. The study’s innovative methodology and empirical findings significantly contribute to the understanding of CSR’s role in business ethics and offer a robust framework for leveraging CSR to achieve competitive advantages and ethical brand value. (shrink)

The present study examines how Corporate Social Responsibility culture (CSRC) and Corporate Social Responsibility leadership (CSRL) jointly enhance CSR performance (CSRP) (environmental performance (EP), social performance (SP)) and how CSRP subsequently drives financial performance (FP) through the mediating roles of customer satisfaction (CS) and corporate image (CI). Grounded in an integrative framework of Resource-Based View, Stakeholder Theory, and Knowledge-Based View, this study employs a quantitative, cross-sectional approach. Data from 473 employees in the Ethiopian banking sector were (...) analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4. The findings indicate that CSRC (β = 0.384, p < 0.001) and CSRL (β = 0.332, p < 0.001) significantly predict CSRP, which in turn positively influences FP (β = 0.200, p < 0.001). Customer satisfaction (β = 0.206, p < 0.001) and corporate image (β = 0.189, p < 0.001) fully mediate the CSRP–FP relationship. Therefore, these findings underscore the strategic importance of embedding CSR in leadership and culture to improve societal and environmental impact as well as financial outcomes. This study contributes by (1) being one of the first to empirically examine the instruction of CSRC, CSRL, and multidimensional CSRP in Ethiopian banking and (2) proposing and validating a novel mediated pathway in which CS and CI fully transmit CSRP effects to FP—a mechanism previously unexamined in this context. Implications for managers and policymakers underscore the need to prioritize CSR integration across all organizational levels to achieve sustainable competitive advantage. (shrink)

Previous research has examined the relationship between CSR and innovation and has suggested that the former might positively affect the latter; however, the impact of CSR on innovation success needs further attention. This study aims to develop a deeper understanding of how environmental and social CSR are related to innovation performance and whether the implementation of organizational practices might moderate this relationship. The results are based on an unbalanced panel of 14,313 observations of 3713 firms covering 2011–2015. Using random-effects (...) probit models and the estimation of average marginal effects (AMEs), this paper contributes to the literature on CSR by explaining how CSR dimensions affect innovation success differently and by addressing how this effect is influenced by organizational innovation. The results show that while environmental CSR orientation proves beneficial for the generation of process innovation, social CSR orientation contributes to the generation of both kinds of technological innovations only when internal organizational practices are implemented. This study provides valuable insights for managers aiming to implement a CSR perspective in their strategies to support the pursuit of innovation. (shrink)

This paper enquires into the possibility of establishing a causal link between social performance (SP) and financial performance (FP) in corporate social responsibility (CSR). It shows that this endeavour is limited by several biasing factors (such as time horizons, sample choices and the tools chosen to measure SP and FP) and faces the logical fallacy post hoc ergo propter hoc (after this, therefore because of this), which indicates that a sequence of events does not necessarily establish a causal (...) link. The paper contributes to the methodological literature in CSR currently focused on empirical tests aiming to discern the linkages between SP and FP, both by emphasising the interest in interpreting and justifying SP and by suggesting a redirection of empirical efforts towards the understanding of entrepreneurial preference for a specific type of SP. (shrink)

Employing a time-lagged sample of 371 North American individuals working full time in a wide range of industries, occupations, and levels, we contribute to research on employee outcomes of corporate social responsibility attributions as substantive or symbolic. Utilizing a mediated moderation model, our study extends previous findings by explaining how and why CSR attributions are related with work-related attitudes and subsequent individual performance. In support of our hypotheses, our findings indicate that the relationships between CSR attributions and individual (...) class='Hi'>performance are mediated through person–organization fit and work-related attitudes. Additionally, when CSR is perceived as important, substantive CSR is positively related to, and symbolic CSR is negatively related to, perception of fit with the organization. These findings contribute toward our understanding of the complex effect CSR has on employees’ work outcomes. Practical implications and future research directions are discussed. (shrink)

The establishment or nurturing of a supportive organizational climate encompasses various activities rooted in ethical commitments. This study focuses on the outcome of these activities, exploring how team members’ collective interpretation and evaluation of corporate social responsibility (CSR) initiatives’ presence and authenticity impact team empowerment as a driver of team performance. Drawing on the organizational climate literature, while integrating signaling theory and attribution theory, we hypothesize that the impact of CSR climate on team performance through team empowerment hinges (...) on two key factors. First, teams must perceive the presence of CSR initiatives, denoting CSR climate quality. Secondly, there must be a consensus regarding the authenticity of these initiatives, signifying CSR climate strength. Results from a partial least squares—structural equation modeling analysis of multi-informant data obtained from 537 team members within 73 teams of 35 retail organizations in Belgium support most of our hypotheses. The results reveal that both CSR climate quality and strength are important drivers of team empowerment in support of team performance. (shrink)

In the last two decades, there has been a pronounced growth of CSR rating agencies that assess corporations based on their social and environmental performance. This article investigates the impact of CSR ratings on the behavior of individual corporations. To what extent do corporations adjust their behavior based on how they rank? Our primary finding is that being dropped from a CSR ranking appears to do little to encourage firms to acknowledge and address problems related to their social and (...) environmental performance. Specific rankings appear not to have a widespread effect of influencing firms to acknowledge negative CSR events and publicly present plans and actions to address them. Whether firms are well or poorly ranked, they appear to focus on and publicly discuss their “positive” CSR activities. We discuss the wider significance of these results as well as the overall significance of CSR rankings for a global economy. (shrink)

This study examines the impact of top executives’ art exposure on corporate social responsibility (CSR) through the lens of altruistic motivations. Utilizing data on artistic elements from China’s national intangible cultural heritage (ICH), we find a significant positive relationship between board chairs’ art exposure and CSR performance, particularly when the arts are influential and popular. The effect is more pronounced among female, older, and local board chairs, and in firms with a CSR committee, greater board− CEO cultural proximity, lower (...) corporate risk, and those in culturally vibrant regions. Mechanism analyses reveal that art exposure increases board chairs’ likelihood of engaging with the arts and reduces socially irresponsible behaviors. However, CSR performance in firms led by board chairs with extensive art exposure is negatively associated with firm value. These findings suggest that board chairs with rich art exposure engage in CSR primarily driven by altruistic motives rather than self-interest. Overall, the study underscores the role of artistic engagement in promoting altruism and enhancing CSR, advocating for the integration of the arts into business strategies. (shrink)

This study examines whether corporate social responsibility performance is associated with corporate tax avoidance. Employing a matched sample of 434 firm-year observations from the Kinder, Lydenberg, and Domini database over the period 2003–2009, our logit regression results show that the higher the level of CSR performance of a firm, the lower the likelihood of tax avoidance. Our results indicate that more socially responsible firms are likely to display less tax avoidance. Finally, the results from our additional analysis show (...) that the CSR categories community relations and diversity represent particularly important elements of CSR performance that reduce tax avoidance. (shrink)

Innovating in today’s complex, globalized, interconnected markets requires collaborating in stakeholder value networks. It is increasingly unlikely that a single organization possesses all the required resources, power and competences to effectively conduct the full innovation process on its own (Sarkis et al. 2010). Organizations have to find new forms of collaboration to create more sustainable outcomes of the innovation process and to establish long-term relations with their partners and other stakeholders. This development is enhanced by pressure from all kinds of (...) stakeholders to integrate corporate social responsibility (CSR) into organizations’ innovation efforts. The growing interest in CSR among business firms is evident from the high number of organizations that now participate in evaluative firm rankings that benchmark their CSR performance (Chabowski et al. 2011). A BCG study among executives of globally operating firms found that 70% of the participating firms have placed CSR permanently on their management agenda (BCG 2012). For example, environmentally legitimate firms have been found to incur less unsystematic stock market risks (Bansal and Clelland 2004), investors have also realized the added value of organizational CSR efforts. Likewise, consumers are becoming increasingly aware of the effects of their own choices (Peloza et al. 2013) and stricter legislation on environmental impact and labor rights are other external triggers for increasing CSR efforts. (shrink)