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How do firms achieve corporate social performance? An integrated perspective

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  • Walid Ben‐Amar
  • Claude Francoeur
  • Sylvain Marsat
  • Aida Sijamic Wahid

Abstract

This study provides an integrated view of the combined direct and indirect effects of the main drivers of CSR performance, at country, firm and CEO levels respectively. We extend prior literature by showing that the institutional context, firm CSR governance practices, and CSR‐related compensation incentives have impacts of different magnitudes on CSR performance, as well as significant combined effects. Using an international sample of 1272 observations over 20 countries, we document significant indirect cascading effects of the institutional setting and firm‐specific governance practices on CSR performance. From a managerial perspective, we find that firms operating in countries that are less oriented towards satisfying the needs of the stakeholders still have the ability to counterbalance this institutional impact and achieve relatively high CSR performance by implementing sound firm‐level CSR governance practices and incentives.

Suggested Citation

  • Walid Ben‐Amar & Claude Francoeur & Sylvain Marsat & Aida Sijamic Wahid, 2021. "How do firms achieve corporate social performance? An integrated perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1078-1090, May.
    • Handle: RePEc:wly:corsem:v:28:y:2021:i:3:p:1078-1090
    DOI: 10.1002/csr.2107
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    2. Nguyen, Linh Thi My & Nguyen, Phong Thanh, 2023. "The board profiles that promote environmental, social, and governance disclosure–Evidence from S&P 500 firms," Finance Research Letters, Elsevier, vol. 55(PA).
    3. Hyeong Joon Kim & Seongjae Mun & Seung Hun Han, 2023. "Corporate social responsibility and the alignment of CEO and shareholders wealth: Does a strong alignment induce or restrain CSR?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 720-741, March.

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