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Socio‐emotional wealth and corporate responses to environmental hostility: Are family firms more stakeholder oriented?

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  • Isabel‐María García‐Sánchez
  • Julia Martín‐Moreno
  • Sana Akbar Khan
  • Nazim Hussain

Abstract

Do family firms care more for different stakeholders than nonfamily firms when operating in a hostile business environment? This study addresses this question and fills the existing void in family business research. It shows that family‐controlled firms adopt corporate social responsibility strategies and balance the demands of internal and external interest groups to preserve their socio‐emotional wealth while facing fierce competition, resource scarcity, and penurious economic conditions. More specifically, our analysis of an international sample of 956 listed firms from 2006 to 2014 reveals that family firms show a higher level of corporate social responsibility (CSR) performance and better stakeholder orientation than nonfamily firms. Our findings are useful for managers, policymakers, and responsible investors.

Suggested Citation

  • Isabel‐María García‐Sánchez & Julia Martín‐Moreno & Sana Akbar Khan & Nazim Hussain, 2021. "Socio‐emotional wealth and corporate responses to environmental hostility: Are family firms more stakeholder oriented?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1003-1018, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:1003-1018
    DOI: 10.1002/bse.2666
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    Cited by:

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    2. Stefania Veltri & Romilda Mazzotta & Franco Ernesto Rubino, 2021. "Board diversity and corporate social performance: Does the family firm status matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1664-1679, November.
    3. Saier Su & Fei Zhu & Haibo Zhou, 2022. "A Systematic Literature Review on Ownership and Corporate Social Responsibility in Family Firms," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    4. Miroshnychenko, Ivan & De Massis, Alfredo, 2022. "Sustainability practices of family and nonfamily firms: A worldwide study," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Chii-Shyan Kuo, 2022. "Family firms, tax avoidance, and socioemotional wealth: evidence from tax reform in Taiwan," Review of Quantitative Finance and Accounting, Springer, vol. 58(4), pages 1535-1572, May.
    6. Isabel-María García-Sánchez & Lázaro Rodríguez-Ariza & María-del-Carmen Granada-Abarzuza, 2021. "The Influence of Female Directors and Institutional Pressures on Corporate Social Responsibility in Family Firms in Latin America," JRFM, MDPI, vol. 14(1), pages 1-20, January.

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