Does community environment matter to corporate social responsibility?

Wu, Dejun; Lin, Chen; Liu, Sibo

doi:10.1016/j.frl.2016.04.010

Cited by 35 publications

(23 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Studies have also found an association between local religiosity and CSR engagement (Brammer et al , 2007; Chatjuthamard-Kitsabunnarat et al , 2014; Wu et al , 2016). For example, Wu et al (2016) document that firms with headquarters in localities with higher level of religiosity engage more in CSR activities. Overall, prior studies suggest that locality characteristics, such as political leaning and religiosity, may cause coercive pressures and influence a firm’s decision to become a B Corporation.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…For example, Rubin (2008) finds that firms headquartered in states with more Democratic voters tend to have better social performance than those with more Republican voters[5]. Studies have also found an association between local religiosity and CSR engagement (Brammer et al , 2007; Chatjuthamard-Kitsabunnarat et al , 2014; Wu et al , 2016). For example, Wu et al (2016) document that firms with headquarters in localities with higher level of religiosity engage more in CSR activities.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Why do companies obtain the B corporation certification?

Harjoto

Laksmana

2019

SRJ

View full text Add to dashboard Cite

Purpose This study identifies the factors that influence companies to obtain the B corporation certification. Drawing from institutional isomorphism, gender socialization theory, the ethics of care and social identity theory, the authors examine the impact of geographic locality, product market competitions and owners’ demographic characteristics on a firm’s decision to be a certified B Corporation. Design/methodology/approach Using two sets of data, a hand-collected sample of 743 small businesses receiving a B Corporation certification between 2007 and 2014 and a sample of 902 firms participating in a B Lab survey from 2011 to 2013, the authors examine factors that influence firms’ decision to obtain the B Corporation and their environment, social and governance (ESG) performance. Findings Firms in states that are democratic-leaning, have a lower hourly wage rate or have a greater religious population are more likely to be early adopters and leaders of the B Corporation movement than those in other states. On average, states with a higher unemployment rate and more democratic-leaning voters have more B Corporation certified firms in each year and over the years. Additionally, product market competition is positively associated with firms’ likelihood of obtaining B Corporation certification and their ESG scores. Practical implications This study brings new insights to the understanding of purpose-driven enterprises and factors that influence firms’ decision to go through the B Corporation verification and certification process. Originality/value This study establishes a theoretical foundation that becoming a B Corporation is a corporate social responsibility (CSR) action and shows that existing theories explaining the factors motivating companies to engage in CSR can also be applied to explain firms’ motivation to become B Corporations.

show abstract

Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

Why do companies obtain the B corporation certification?

Harjoto

Laksmana

2019

SRJ

View full text Add to dashboard Cite

show abstract

“…Following prior CSR studies (e.g. Stuebs and Sun, 2010;Sun and Stuebs, 2012;Wu et al, 2016), we control for firm size (SIZE), firm performance (ROA), leverage ratio (LEV ), market to book ratio (MTB) and advertising activities[2] (ADV ). We also control for the age of long-term assets[3] (ASSETAGE) because managers in firms with old assets are less responsive in CSR activities than those in firms with young assets (Cochran and Wood, 1984).…”

Section: Empirical Specificationmentioning

confidence: 99%

“…Jo and Harjoto (2012) find that firms with stronger corporate governance or internal control demonstrate better CSR performance. Wu et al (2016) document that firms located in counties with more senior residents or in more religious counties display better CSR performance.…”

Section: Determinants Of Csrmentioning

confidence: 99%

“…Consistent with prior research (e.g. Deckop et al, 2006;Dhaliwal et al, 2011;Kim et al, 2012;Jo and Harjoto, 2012;Sun and Stuebs, 2012;Wu et al, 2016), we subtract total concerns from total strengths and assign equal weight to each area in calculating the CSR index score. Thus, our CSR measure (using seven CSR components [1]) is computed as follows:…”

Section: Measuring Corporate Social Responsibility (Csr)mentioning

confidence: 99%

See 1 more Smart Citation

CEO power and corporate social responsibility

Harper

Sun

2019

AJB

View full text Add to dashboard Cite

Purpose The purpose of this paper is to examine the impact of chief executive officer (CEO) power on corporate social responsibility (CSR) performance. Design/methodology/approach The authors use regression analysis to investigate the research question. Findings Using a 23-year panel sample with 1,574 unique US firms and 8,575 firm-year observations, the authors find a significant and negative relation between CEO power and CSR, suggesting that firms with more powerful CEOs engage in less CSR activities. Originality/value The results reveal that more powerful CEOs become less responsive to the needs of stakeholder groups, confirming the validity of the stakeholder theory of CSR.

show abstract

Board gender diversity and ESG decoupling: Does religiosity matter?

2023

View full text Add to dashboard Cite

In this paper, we examine the relationship between board gender diversity and environmental, social, and governance (ESG) decoupling and the moderating effect that religiosity has on this relationship. We utilise an international sample of 26,176 firmyear observations that cover the period from 2005 to 2019. Consistent with the upper echelon theory and the gender socialisation theory, we provide evidence that firms with a more gender-diversified board of directors tend to engage less in ESG decoupling, and this relationship is more pronounced among firms domiciled in countries with a low level of religiosity. We also find that the effect of religiosity on the relationship between board gender diversity and ESG decoupling is more pronounced for firms that engage in greenwashing and those operating in controversial industry sectors. Our study contributes to the growing debate on ESG decoupling, offering policy insights to regulators and policymakers into the role of board gender diversity and religiosity in reducing unethical managerial behaviour.

show abstract

Does community environment matter to corporate social responsibility?

Cited by 35 publications

References 29 publications

Why do companies obtain the B corporation certification?

Why do companies obtain the B corporation certification?

CEO power and corporate social responsibility

Board gender diversity and ESG decoupling: Does religiosity matter?

Contact Info

Product

Resources

About