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Board interlock and the diffusion of corporate social responsibility among Chinese listed firms

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  • Haoyuan Ding

    (Shanghai University of Finance and Economics)

  • Yichuan Hu

    (East China Normal University)

  • Xiyi Yang

    (ShanghaiTech University)

  • Xiaoyu Zhou

    (ShanghaiTech University)

Abstract

This study explores the effect of board interlock on the diffusion of corporate social responsibility (CSR) among firms. While existing CSR literature has theorized a variety of institutional and organizational factors that drive CSR, what is lacking is a deeper understanding of how meso-level inter-firm relationships shape firms’ CSR. Using a series of pairwise regressions to examine Chinese listed firms’ CSR activities from 2008 to 2015, we find that board interlock leads to a higher probability of CSR adoption in both firms, and convergence of CSR structures. This interlock effect is however conditioned by some institutional and firm-level factors that enhance/impede the exchange of information between interlocked firms. This study contributes to the CSR literature by filling the theoretical gap on a meso-level mechanism of CSR diffusion and provides some managerial implications for corporate executives who are responsible for designing firms’ social programs.

Suggested Citation

  • Haoyuan Ding & Yichuan Hu & Xiyi Yang & Xiaoyu Zhou, 2022. "Board interlock and the diffusion of corporate social responsibility among Chinese listed firms," Asia Pacific Journal of Management, Springer, vol. 39(4), pages 1287-1320, December.
    • Handle: RePEc:kap:asiapa:v:39:y:2022:i:4:d:10.1007_s10490-021-09767-9
    DOI: 10.1007/s10490-021-09767-9
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