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Legal Origins and Corporate Social Responsibility

Author

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  • Leonardo Becchetti

    (Department of Economics and Finance, University of Rome Tor Vergata, 00135 Rome, Italy)

  • Rocco Ciciretti

    (Department of Economics and Finance, University of Rome Tor Vergata, 00135 Rome, Italy)

  • Pierluigi Conzo

    (Department of Economics and Statistics “Cognetti de Martiis”, University of Turin, 10155 Turin, Italy
    Collegio Carlo Alberto, 10122 Turin, Italy)

Abstract

The legal origin literature documents that civil and common law traditions have different impacts on economic outcomes. We contribute to this literature by formulating and testing hypotheses on the effect of legal origins on corporate social responsibility, overall and in different specific dimensions. We find that, net of industry-specific effects, companies in common law countries score higher in corporate governance and community involvement, while those in countries belonging to the French legal tradition of civil law do better in human resources. We also observe no significant differences in terms of environmental protection among companies in civil and common law countries, which we attribute to a progressive convergence towards common industry sustainability standards.

Suggested Citation

  • Leonardo Becchetti & Rocco Ciciretti & Pierluigi Conzo, 2020. "Legal Origins and Corporate Social Responsibility," Sustainability, MDPI, vol. 12(7), pages 1-34, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2717-:d:338920
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    References listed on IDEAS

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    3. Azmi, Wajahat & Hassan, M. Kabir & Houston, Reza & Karim, Mohammad Sydul, 2021. "ESG activities and banking performance: International evidence from emerging economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
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    5. Laura Chiaramonte & Alberto Dreassi & Andrea Paltrinieri & Stefano Piserà, 2020. "Sustainability Practices and Stability in the Insurance Industry," Sustainability, MDPI, vol. 12(14), pages 1-25, July.

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