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Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance

Author

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  • Kun Li

    (Business School, Beijing Normal University, Beijing 100875, China)

  • Nasrin R. Khalili

    (Stuart School of Business, Illinois Institute of Technology, Chicago, IL 60616, USA)

  • Weiquan Cheng

    (Stuart School of Business, Illinois Institute of Technology, Chicago, IL 60616, USA)

Abstract

This study analyzes the trends, context, and impact of corporate social responsibility (CSR) initiatives on company’s performance and productivity in China. We use environmental and social responsibility data in 34,000 CSR projects released by 839 companies in 31 provinces from 2006 to 2016. Clustering methods as wells as ordinary least squares and the fixed effects panel regression modeling are performed to provide insights on the context, trends, and impact of CSR projects on companies’ productivity and financial outcomes. Results of data processing and modeling indicate that: (a) most projects focused on improving companies’ environmental sustainability (compared to social); (b) implementation of both environmental and social projects had positive impacts on companies’ performance; and (c) trends, context, and impact of the projects varied with time, company type, and location (provinces). In addition, data suggest that companies operating in regions with lower economic conditions (GDP per capita) seem to be less motivated to implement environmental and social sustainability projects compared to those operating in regions with higher economic conditions. This study is meaningful for both companies that consider adopting CSR initiatives, as well as stakeholders and managers who aim to promote sustainable development in China.

Suggested Citation

  • Kun Li & Nasrin R. Khalili & Weiquan Cheng, 2019. "Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:2:p:354-:d:196967
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    9. Candy Lim Chiu & Jingxin Zhang & Mingrui Li & Siyu Wei & Shengnan Xu & Xiaotong Chai, 2020. "A study of environmental disclosures practices in Chinese energy industry," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 5(1), pages 1-21, December.
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    13. Carrai, Maria Adele, 2021. "Adaptive governance along Chinese-financed BRI railroad megaprojects in East Africa," World Development, Elsevier, vol. 141(C).
    14. Feifei Zhang & Jin-young Jung, 2020. "Changes in the Influence of Social Responsibility Activities on Corporate Value over 10 Years in China," Sustainability, MDPI, vol. 12(22), pages 1-17, November.
    15. Danping Shao & Erhua Zhou & Peiran Gao & Lirong Long & Jie Xiong, 2019. "Double-Edged Effects of Socially Responsible Human Resource Management on Employee Task Performance and Organizational Citizenship Behavior: Mediating by Role Ambiguity and Moderating by Prosocial Mot," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    16. Lin, Fengyi & Lin, Sheng-Wei & Fang, Wen-Chang, 2022. "Impact of CEO narcissism and hubris on corporate sustainability and firm performance," The North American Journal of Economics and Finance, Elsevier, vol. 59(C).
    17. Ruixin Su & Weizhou Zhong, 2022. "Corporate Communication of CSR in China: Characteristics and Regional Differences," Sustainability, MDPI, vol. 14(23), pages 1-17, December.
    18. Kun Li & Chaohua He & Wassim Dbouk & Ke Zhao, 2021. "The Value of CSR in Acquisitions: Evidence from China," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    19. Dongyong Zhang & Shuhui Lu & Stephen Morse & Lingyi Liu, 2022. "The impact of COVID-19 on business perspectives of sustainable development and corporate social responsibility in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8521-8544, June.

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