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The Legal Origins of Corporate Social Responsibility

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Abstract

The legal origin literature documents that civil and common law traditions have different impact on rules and economic outcomes. We contribute to this literature by investigating the relationship between corporate social responsibility and legal origins. Consistently with the main differences in historical and legal backgrounds and net of industry specific effects, the common law origin has a significant and positive impact on the Corporate Governance and Community Involvement domains, while the French legal tradition of civil law on the Human Resources domain. We also document that the lack of observable differences in the environmental domain can be explained by firms' progressive convergence to industry sustainability standards.

Suggested Citation

  • Becchetti, Leonardo & Ciciretti, rocco & Conzo, Pierluigi, 2013. "The Legal Origins of Corporate Social Responsibility," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201346, University of Turin.
  • Handle: RePEc:uto:dipeco:201346
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    Cited by:

    1. Xiaomeng Chen & Xiao Liang & Hai Wu, 2023. "Cross-Border Mergers and Acquisitions and CSR Performance: Evidence from China," Journal of Business Ethics, Springer, vol. 183(1), pages 255-288, February.
    2. Farah, Tazrina & Li, Jialong & Li, Zhicheng & Shamsuddin, Abul, 2021. "The non-linear effect of CSR on firms’ systematic risk: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 71(C).
    3. Breuer, Wolfgang & Müller, Torbjörn & Rosenbach, David & Salzmann, Astrid, 2018. "Corporate social responsibility, investor protection, and cost of equity: A cross-country comparison," Journal of Banking & Finance, Elsevier, vol. 96(C), pages 34-55.
    4. Kleemann, Linda & Murphy-Bokern, Donal, 2014. "Reducing greenhouse gas emissions in the food sector: Effects of corporate responsibility," Kiel Working Papers 1967, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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