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Prize or Price? Corporate Social Responsibility Commitment and Sales Performance in the Chinese Private Sector

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  • Cui, Zhiyu
  • Liang, Xiaoya
  • Lu, Xiongwen

Abstract

Studies on the relationship between corporate social responsibilities (CSR) and firm performance have mostly looked at large public firms in developed countries. In this study, we analyze this relationship using a sample of privately owned firms in China, a developing economy context. We hypothesize a negative relationship between commitment to CSR and average sales growth for privately-owned firms operating in weak institutional environments. Further, we hypothesize that smaller firms will show a stronger negative relationship than larger firms. CEO survey data from a sample of 630 Chinese private firms confirm the moderating role of firm size. However, the results are not entirely as expected. The negative relationship is observed in small firms (100 or fewer employees), but the relationship is positive for large firms (greater than 1000 employees), consistent with the literature. We discuss implications for public policy and future research.

Suggested Citation

  • Cui, Zhiyu & Liang, Xiaoya & Lu, Xiongwen, 2015. "Prize or Price? Corporate Social Responsibility Commitment and Sales Performance in the Chinese Private Sector," Management and Organization Review, Cambridge University Press, vol. 11(1), pages 25-44, March.
    • Handle: RePEc:cup:maorev:v:11:y:2015:i:01:p:25-44_00
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    Cited by:

    1. Josep Garcia‐Blandon & David Castillo‐Merino & Nour Chams, 2020. "Sustainable development: The stock market's view of environmental policy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3273-3285, December.
    2. Yang, Yang & Jiang, Yan, 2023. "Does suppliers’ slack influence the relationship between buyers’ environmental orientation and green innovation?," Journal of Business Research, Elsevier, vol. 157(C).
    3. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    4. Yang, Yang & Jiang, Yan, 2023. "Buyer-supplier CSR alignment and firm performance: A contingency theory perspective," Journal of Business Research, Elsevier, vol. 154(C).
    5. Imhanrenialena Benedict Ogbemudia & Ebhotemhen Wilson & Apreala Solomon Ebiladei & Chukwu Benjamin Ibe & Moguluwa Shedrach Chinwuba & Ilo Sylvester Okechukwu, 2022. "The Evolving Strategic CSR Practices in Africa: Exploring the Multidimensional Implications for Telecommunication Firms’ Outcomes in Nigeria," SAGE Open, , vol. 12(2), pages 21582440221, April.
    6. Shen, Huangnan & Liu, Xiaojie, 2017. "A theoretical framework for demystifying the causes of dysfunction and disorder in the Chinese market economy: a Weberian perspective," LSE Research Online Documents on Economics 80238, London School of Economics and Political Science, LSE Library.
    7. Li Ma & Yue Cao & Dake Jiang & Yang Gao & Xiaomin Du, 2020. "Does ethics really matter to the sustainability of new ventures? The relationship between entrepreneurial ethics, firm visibility and entrepreneurial performance," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-23, January.
    8. Shichao Du, 2023. "Childbearing Risk, Job Sectors, and the Motherhood Wage Penalty," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-19, April.
    9. Shu-Yun Du & Xiao-Chen Shao & Alfredo Jiménez & Jeoung Yul Lee, 2022. "Corporate Social Responsibility of Chinese Multinational Enterprises: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    10. Qianqian Hu & Tianlun Zhu & Chien-Liang Lin & Tiejun Chen & Tachia Chin, 2021. "Corporate Social Responsibility and Firm Performance in China’s Manufacturing: A Global Perspective of Business Models," Sustainability, MDPI, vol. 13(4), pages 1-17, February.

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