Revisiting the relationship between corporate social responsibility and national culture

Abstract

The purpose of this study is to explore the relationship between corporate social responsibility (CSR) at the macro-level and well-established dimensions of national culture offered by Hofstede's framework. Design/methodology/approach: We employ a composite index for quantifying CSR proliferation and present new findings on the role of cultural specificity-proxied by Hofstede's dimensions-on CSR endorsement among national business sectors. Findings: Results indicate that cultural perspectives pertaining to 'long-term versus short-term orientation' as well as 'indulgence versus restraint' affect positively the composite CSR index, while 'uncertainty avoidance' has a negative impact. In contrast, the effect of 'power distance', 'individualism' and 'masculinity' is found to be insignificant. Originality/value: The study offers new insights to institutional and culture theorists and political economy researchers for a deeper investigation of informal institutions, such as culture, which shape national or regional specificities of CSR and retain a moderating effect on the voluntary/self-regulation activities of business entities.

How to achieve sustainability?—Employee's point of view on company's culture and CSR practice

“…Given that the findings on the relationship between CSR and company culture are complex because these were modified by the national specificity of CSR influenced by national, cultural, socioeconomic, and political dynamics (Halkos & Skouloudis, 2017), this study focused on one country and one industry. Jones (1999) noted that "in part, then, social responsibility as it manifests in actions by firms appears to be a function of the industry in which said firms are embedded" (p. 167).…”

Understanding corporate social responsibility with cross‐cultural differences: A deeper look at religiosity

“…In light of Hofstede's (1984Hofstede's ( , 2001 model, the line between individual and group is blurred in collectivistic society. According to most of the researchers, companies originated from higher power distance countries display a low level of social performance, and the relationship between power distance and environmental performance is also negative (Halkos & Skouloudis, 2017;Peng, Dashdeleg, & Chih, 2014;Thanetsunthorn, 2015). Different cultures have a variety of association with CSR disclosure.…”

“…For instance, extant literature supports a negative correlation between CSR disclosure and power distance. According to most of the researchers, companies originated from higher power distance countries display a low level of social performance, and the relationship between power distance and environmental performance is also negative (Halkos & Skouloudis, 2017;Peng, Dashdeleg, & Chih, 2014;Thanetsunthorn, 2015). However, the correlation between power distance and CSR may also be positive (Ho, Wang, & Vitell, 2012).…”

The Inclusion of Socially Irresponsible Companies in Sustainable Stock Indices

“…Throughout the last decades, investors have increased pressure on companies to consider the environmental and the social impact of their activities, while simultaneously maintaining economic performance and profitability [1]. Sustainable development, understood as economic growth that is sensitive to the environmental and social aspects of companies, has become part of the main agenda of companies, investors and governments [2][3][4][5]. Many investors believe that economic growth must be the solution rather than the problem, helping to increase people's quality of life and preserving the environment.…”