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The transmission of socially responsible behaviour through international trade

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  • Newman, Carol
  • Rand, John
  • Tarp, Finn
  • Trifkovic, Neda

Abstract

We investigate the relationship between corporate social responsibility (CSR) practices of domestic Vietnamese firms and their engagement with foreign markets. We develop a measure of CSR that combines compliance with labour standards, management commitment to CSR, and corporate community related actions; and find a strong relationship between this measure and participation in international markets. Results suggest that both exporting and importing firms engage in more CSR activities. Conditional on exporting, we show that Vietnamese exporters to China are less involved in CSR related activities, and that exporters to the US engage in more community related CSR. This may reflect differences in stakeholder preferences across markets.

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  • Newman, Carol & Rand, John & Tarp, Finn & Trifkovic, Neda, 2018. "The transmission of socially responsible behaviour through international trade," European Economic Review, Elsevier, vol. 101(C), pages 250-267.
  • Handle: RePEc:eee:eecrev:v:101:y:2018:i:c:p:250-267
    DOI: 10.1016/j.euroecorev.2017.10.013
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    Cited by:

    1. Nguyen Thi Canh & Nguyen Thanh Liem & Phung Anh Thu & Nguyen Vinh Khuong, 2019. "The Impact of Innovation on the Firm Performance and Corporate Social Responsibility of Vietnamese Manufacturing Firms," Sustainability, MDPI, Open Access Journal, vol. 11(13), pages 1-14, July.
    2. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series wp-2018-126, World Institute for Development Economic Research (UNU-WIDER).
    3. Semrau, Finn Ole & Hanley, Aoife, 2019. "Stepping up to the mark? Firms' export activity and environmental innovation in 14 European countries," Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203635, Verein für Socialpolitik / German Economic Association.
    4. Barić, Andrija & Omazić, Mislav Ante & Aleksić, Ana, 2019. "Corporate Social Responsibility and Stakeholders’ Management of Export Companies in Foreign Markets," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2019), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, pages 160-167, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    5. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Corporate social responsibility; Trade; Spill overs; Vietnam;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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