IDEAS home Printed from https://ideas.repec.org/a/qua/journl/v17y2020i1p7-27.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Do corporations care? Corporate Social Responsibility and firm’s engagement

Author

Listed:
  • Eugenia Suarez Moran

    (Universidad Panamericana. Escuela de Ciencias Economicas y Empresariales)

Abstract

What are the firm’s determinants to engage in Corporate Social Responsibility (CSR)? Under what conditions is it likely to occur? Evidence suggests three possible mechanisms that affect a firm’s engagement in CSR the role of growth in value added within an industry, peer effects and workers’ attitudes. Results are consistent with the institutional framework theory, which suggests that firms engage in CSR practices in times of economic prosperity. Further evidence shows that peer effects are also relevant on a firm’s decision to take part in CSR. Regarding workers’ attitudes, this paper provides evidence of a weak link between labor force preferences and a firm’s decision to engage in CSR.

Suggested Citation

  • Eugenia Suarez Moran, 2020. "Do corporations care? Corporate Social Responsibility and firm’s engagement," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 17(1), pages 7-27, Enero-Jun.
    • Handle: RePEc:qua:journl:v:17:y:2020:i:1:p:7-27
    as

    Download full text from publisher

    File URL: https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7147
    Download Restriction: no
    File URL: https://econoquantum.cucea.udg.mx/index.php/EQ/issue/view/697
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    2. Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 419-445, September.
    3. Constantin Belu & Cristiana Manescu, 2013. "Strategic corporate social responsibility and economic performance," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2751-2764, July.
    4. Mark T. Leary & Michael R. Roberts, 2014. "Do Peer Firms Affect Corporate Financial Policy?," Journal of Finance, American Finance Association, vol. 69(1), pages 139-178, February.
    5. Henri Servaes & Ane Tamayo, 2014. "How Do Industry Peers Respond to Control Threats?," Management Science, INFORMS, vol. 60(2), pages 380-399, February.
    6. Alan Pomering & Sara Dolnicar, 2009. "Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?," Journal of Business Ethics, Springer, vol. 85(2), pages 285-301, April.
    7. Daniel Fernández‐Kranz & Juan Santaló, 2010. "When Necessity Becomes a Virtue: The Effect of Product Market Competition on Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 453-487, June.
    8. Tommy Lundgren, 2011. "A Microeconomic Model Of Corporate Social Responsibility," Metroeconomica, Wiley Blackwell, vol. 62(1), pages 69-95, February.
    9. Donald S. Siegel & Donald F. Vitaliano, 2007. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 773-792, September.
    10. Ana S. Branca & Joaquim P. Pina & Margarida Catalão-Lopes, 2012. "Corporate Giving, Competition and the Economic Cycle," Working Papers Department of Economics 2012/15, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patricia Crifo & Vanina D. Forget, 2015. "The Economics Of Corporate Social Responsibility: A Firm-Level Perspective Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 112-130, February.
    2. Patricia Crifo & Vanina Forget, 2013. "La responsabilité sociale et environnementale des entreprises : mirage ou virage ?," Working Papers hal-00830642, HAL.
    3. Mark Bagnoli & Susan G. Watts, 2020. "On the corporate use of green bonds," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 187-209, January.
    4. Wirl, Franz & Feichtinger, Gustav & Kort, Peter M., 2013. "Individual firm and market dynamics of CSR activities," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 169-182.
    5. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers hal-00720640, HAL.
    6. Michael Kopel, 2021. "CSR leadership, spillovers, and first-mover advantage," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(2), pages 489-505, December.
    7. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    8. Aseem Kaul & Jiao Luo, 2018. "An economic case for CSR: The comparative efficiency of for‐profit firms in meeting consumer demand for social goods," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1650-1677, June.
    9. Alberto Galasso & Mihkel Tombak, 2014. "Switching to Green: The Timing of Socially Responsible Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(3), pages 669-691, September.
    10. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    11. Wang, Peiwen & Chen, Minghua & Wu, Ji & Yan, Yuanyun, 2023. "Do peer effects matter in bank risk? Some cross-country evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    12. Paul Pecorino, 2016. "A Portion of Profits to Charity: Corporate Social Responsibility and Firm Profitability," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 380-398, October.
    13. Görg, Holger & Hanley, Aoife & Hoffmann, Stefan & Seric, Adnan, 2016. "When Do Multinational Companies Consider Corporate Social Responsibility? A Multi-Country Study in Sub-Saharan Africa," KCG Working Papers 1, Kiel Centre for Globalization (KCG).
    14. Markus Kitzmueller, 2008. "Economics and Corporate Social Responsibility," Economics Working Papers ECO2008/37, European University Institute.
    15. Chen, Shihua & Chen, Yulin & Jebran, Khalil, 2021. "Trust and corporate social responsibility: From expected utility and social normative perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 518-530.
    16. Mark Bagnoli & Susan G. Watts, 2017. "Voluntary Assurance of Voluntary CSR Disclosure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 205-230, February.
    17. Percy Marquina & Vincent Charles, 2021. "A Bayesian resampling approach to estimate the difference in effect sizes in consumer social responses to CSR initiatives versus corporate abilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1680-1699, November.
    18. Victor Hiller & Natacha Raffin, 2017. "Corporate social responsibility and workers’ motivation at the industry equilibrium," Post-Print hal-02366298, HAL.
    19. Daniel Elfenbein & Raymond Fisman & Brian McManus, 2009. "Reputation, Altruism, and the Benefits of Seller Charity in an Online Marketplace," NBER Working Papers 15614, National Bureau of Economic Research, Inc.
    20. Nickolay Gantchev & Oleg R Gredil & Chotibhak Jotikasthira, 2019. "Governance under the Gun: Spillover Effects of Hedge Fund Activism," Review of Finance, European Finance Association, vol. 23(6), pages 1031-1068.

    More about this item

    Keywords

    Business cycle; Corporate Social Responsibility; institutional economics.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qua:journl:v:17:y:2020:i:1:p:7-27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sandra Ivett Portugal Padilla (email available below). General contact details of provider: https://edirc.repec.org/data/dmudgmx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.