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Clan Culture, Socioemotional Wealth and Family Business Social Responsibility

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  • Yali Zhao
  • Ran Zhou

Abstract

Clan culture, a central element of China's traditional heritage, profoundly influences the corporate social responsibility practices of family businesses, shaping their behavior through deeply ingrained values and philosophical principles. We empirically examine the impact of clan culture on the corporate social responsibility of family businesses listed on China's Shanghai and Shenzhen stock exchanges from 2010 to 2020. The findings show that clan culture encourages family businesses to engage in corporate social responsibility. However, family business operational difficulties weaken the positive impact of clan culture on corporate social responsibility, while the negative public image strengthens this impact. Mechanism testing reveals that socioemotional wealth plays a mediating role in the relationship between clan culture and corporate social responsibility. Specifically, clan culture improves family businesses' focus on restricted, maintained and extended socioemotional wealth, thereby promoting their proactive engagement in corporate social responsibility. Further analysis shows that clan culture has a greater impact on internal corporate social responsibility than on external corporate social responsibility. Additionally, different dimensions of socioemotional wealth affect internal and external corporate social responsibility in distinct ways. Specifically, under the influence of clan culture, family businesses' focus on restricted and extended socioemotional wealth promotes a proactive approach to internal corporate social responsibility. In contrast, an emphasis on restricted and maintained socioemotional wealth drives external corporate social responsibility. Our study enhances understanding of the internal mechanisms driving corporate social responsibility in family businesses from the perspective of clan culture and offers empirical evidence and managerial insights on how to leverage and sustain the spiritual value of clan culture.

Suggested Citation

  • Yali Zhao & Ran Zhou, 2025. "Clan Culture, Socioemotional Wealth and Family Business Social Responsibility," American Journal of Economics and Sociology, Wiley Blackwell, vol. 84(5), pages 653-670, November.
    • Handle: RePEc:bla:ajecsc:v:84:y:2025:i:5:p:653-670
    DOI: 10.1111/ajes.12622
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