Corporate Social Irresponsibility Punishments from Stakeholders—Evidence from China

Feng, Tianli; Yang, Fan; Tan, Biao; Wu, Jihong

doi:10.3390/su14084678

Cited by 3 publications

(4 citation statements)

References 63 publications

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“…Kang et al (2016) [66] find that the insurance mechanism (i.e., CSR ensures against subsequent CSIR) is not supported, but the penance mechanism (i.e., CSR trails the firm's prior CSIR) is supported. However, this study also suggests that "the penance mechanism is ineffective in offsetting negative performance effect due to CSIR" (p. 59).…”

Section: Literature Reviewmentioning

confidence: 72%

“…For instance, Stewart (2016) [57] found that CSIR predicts higher CFP in the subsequent year, as CSIR activities offer firms cost advantages. However, once CSIR is disclosed, these advantages vanish, leading to a negative long-term CSIR-CFP relationship [58,59]. Disclosed CSIR can lead to increased media scrutiny, impaired stakeholder relationships, reputational damage, and financial risks [13,[60][61][62].…”

Section: Literature Reviewmentioning

confidence: 99%

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Sustainable Strategies: Navigating Corporate Social Responsibility and Irresponsibility for Enlightened Self-Interest

Kim,

Liu

2024

Sustainability

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As firms increasingly engage in both corporate social responsibility (CSR) and irresponsibility (CSIR) activities, this study expands the traditional question “does it pay to do more CSR?” to explore the less-studied question “does it pay to do less CSIR?”. We employ stakeholder theory and expectancy disconfirmation theory to outline three sustainable strategies for firms to financially benefit (enlightened self-interest) from CSR/CSIR activities: proactive strategy (increasing CSR, or doing more good), rectification strategy (reducing CSIR, or doing less bad), and aggressive strategy (increasing CSR while reducing CSIR, or doing more good and less bad). Our research objective is to evaluate the financial viability of different CSR/CSIR strategies. We hypothesize that the rectification strategy will surpass the proactive approach, while anticipating that the aggressive strategy will emerge as the most financially advantageous. Our dataset consists of 12,567 firm-year observations (3422 firms) spanning 1994 to 2013, and we conduct rigorous analyses to evaluate these strategies. The findings reveal that the rectification strategy surpasses the proactive strategy, with the aggressive strategy emerging as the most advantageous. The study contributes theoretically and offers managerial insights into these results.

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Section: Literature Reviewmentioning

confidence: 72%

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Strategies: Navigating Corporate Social Responsibility and Irresponsibility for Enlightened Self-Interest

Kim,

Liu

2024

Sustainability

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“…5. Also, specific consequences call for attention as Feng et al (2022) evidence for transaction costs.…”

Section: Notesmentioning

confidence: 99%

“…Antonetti, 2020;Valor et al, 2022), in firms' financial performance as well as in firms' reputation, trustworthiness and moral capital (e.g. Sun and Ding, 2021;Wang and Li, 2019), in firm's transaction costs (Feng et al, 2022) and in workplace deviant behaviors as a form of employee revenge (Abbasi and Amran, 2023). These important and far-reaching consequences may explain the increased interest of researchers and practitioners in understanding CSI antecedents [1].…”

Section: Introductionmentioning

confidence: 99%

Looking at the darker side of the mirror: the impact of CEO's narcissism on corporate social irresponsibility

Riera,

Iborra

2023

EJMBE

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PurposeThe aim of this article is to highlight the major part played by executives in the escalation of corporate social irresponsibility (CSI). Based on the upper echelons theory, the authors developed a model which shows the essential role of CEOs in explaining CSI. The authors proposed that the key personality traits of CEOs—narcissism—, as well as their power, could explain the degree of CSI.Design/methodology/approachDue to the significant methodological challenges when investigating CSI, the authors explored a novel method for measuring CSI in order to assess the degree of irresponsible behaviors. The authors build a CSI scale based on the perceptions of key informants, i.e. experts with diverse professional backgrounds. The authors apply CSI scale in a sample of 84 Spanish companies that were involved in CSI.FindingsThe results of the authors’ empirical study show the positive and significant influence of CEO narcissism and CEO power on the degree of CSI.Research limitations/implicationsOn the one hand, corporate irresponsibility scandals have relevant social consequences and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies.Practical implicationsThe authors’ findings may help CEOs, TMTs and corporate boards to acknowledge potential sources of CSI decreasing its likelihood through counterbalancing CEO's power and considering the dark side of narcissism.Social implicationsOn the one hand, corporate scandals have relevant social and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies.Originality/valueIn this paper, the authors highlight the role of CEOs characteristics and their firms as the key actors for explaining and understanding the degree of CSI.

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Dual Social Responsibility: The Pathway Effects and Mechanisms of Benevolent and Malevolent Actions on Firm Performance

Zhang,

Zhang

2024

Business Ethics Env & Resp

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While doing good things, enterprises may also be subject to subjective or unintentional behaviors of doing bad things, and corporate performance is comprehensively affected by its dual social responsibility. Using data from A‐share listed companies from 2010 to 2020, this paper, grounded in signaling theory, legitimacy theory, and stakeholder theory, analyzes the dual‐path effects, comprehensive effects, and boundary effects of corporate social responsibility (CSR) and corporate social irresponsibility (CSIR) on corporate performance. It innovatively introduces innovation efficiency as a mediating variable to examine its transmission mechanism and pathways in the influence of dual social responsibility on corporate performance. The study finds that CSR and CSIR have independent and heterogeneous effects on corporate performance, with the former exhibiting an inverted U‐shaped relationship with corporate performance and the latter consistently exerting a negative impact. The coexistence and interaction of CSR and CSIR have a comprehensive effect on corporate performance, where CSR performance can mitigate the negative impact of CSIR, and there exists a threshold effect. CSR has a nonlinear impact on innovation efficiency, and innovation efficiency plays a significant mediating role in the process of CSR and CSIR affecting corporate performance. The industrial environment competition plays a moderating role in the relationship between a company's dual social behavior and its performance. The higher the industrial environment competition, the more it will accelerate and intensify the negative impact of CSIR on corporate performance. Additionally, it will steepen the inverted U‐shaped curve of CSR influencing corporate performance and shift the inflection point to the left. This study not only extends the boundaries of research on the impact of CSIR on corporate performance but also provides insights for corporate social responsibility governance and ethical decision‐making in business.

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Corporate Social Irresponsibility Punishments from Stakeholders—Evidence from China

Cited by 3 publications

References 63 publications

Sustainable Strategies: Navigating Corporate Social Responsibility and Irresponsibility for Enlightened Self-Interest

Sustainable Strategies: Navigating Corporate Social Responsibility and Irresponsibility for Enlightened Self-Interest

Looking at the darker side of the mirror: the impact of CEO's narcissism on corporate social irresponsibility

Dual Social Responsibility: The Pathway Effects and Mechanisms of Benevolent and Malevolent Actions on Firm Performance

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