Do Peer Firms Affect Firm Corporate Social Responsibility?

Abstract

Peer-firm strategies are a critical factor for corporate finance, and corporate social responsibility (CSR) is the main trend for evaluating the behavior of firms. On the basis of the connection between peer strategy and CSR, this paper explores the CSR strategies employed by a sample of Chinese firms during the 2008-2015 period. Our two main empirical findings are as follows. First, the CSR strategies of firms have a positive effect on their CSR behavior. Second, when there is the CSR gap between firms and peer firms, firms will feel the pressure from stakeholders and the public and improve the level of CSR performance. Our paper enriches empirical research on the CSR behavior of Chinese firms.

Does religion benefit corporate social responsibility (CSR)? Evidence from China

“…Academically, CSR also has drawn more and more attention. Existing studies on CSR have mainly focused on the affecting factors and economic consequences of CSR (Gavana et al, ; Ting & Yin, ; Yang et al, ). In line with the aims of this study, I mainly review the determinants of CSR practice.…”

“…In the academe, Carroll () records the first formal definition of and defines CSR as “the obligation of a company to pursue the value according to the value or objective of our society.” CSR is regarded as a signal of a company's quality to stakeholders (Shahab et al, ). CSR can reduce a firm's information asymmetry and enhance firm reputation, image, and competitive advantage (Yang, Ye, & Zhu, ), and thus is viewed as a firm's strategic decision making, which is essential for the company's long‐term sustainable development (Pan, Sha, Zhang, & Ke, ; Ting & Yin, ). It is of great theoretical and practical significance to analyze the determinants of CSR.…”

“…To enhance a company's sustainable growth, it is important to identify the determinants of CSR. Existing studies on CSR are mainly focused on how corporate governance or finance factors affect CSR (Gavana, Gottardo, & Moisello, ; Yang et al, ) while neglecting the effects of institutions. The recent literature has shown that institutional theory can largely explain company behaviors.…”

“…First, from the perspective of informal institutions (e.g., religion), this paper provides new evidence on the determinants of CSR in China. Existing research on the determinants of CSR has mainly focused on finance or corporate governance factors (Gavana et al, ; Yang et al, ). Relatively few studies have addressed these issues from the macroscopic level, especially informal institutions.…”

Female Directors and Corporate Social Responsibility: Evidence from the Environmental Investment of Chinese Listed Companies

“…The motivation of enterprises to actively undertake social responsibility and carry out environmental investment activities is obvious. Having good corporate social responsibility helps to improve corporate transparency and reduce the information asymmetry between business and stakeholders [5] and to improve long-term corporate value [6]. According to the quaternity indicator system in Research Report on Corporate Social Responsibility of China, social responsibility includes four aspects: management responsibility, market responsibility, public welfare responsibility and environmental responsibility.…”