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Corruption and social trust: The role of corporate social responsibility

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  • Namporn Thanetsunthorn

Abstract

The importance and benefits of social trust have widely been recognized in the literature. However, there has been increasing concern about corruption in relation to a decline in social trust, and the role of business in this relationship remains largely unknown. This study aims to examine the linkages among corruption, corporate social responsibility (CSR), and social trust. Using a large sample of 6892 corporations from 33 countries over the period 2010–2014, the results demonstrate that corruption generates a highly eroding effect on social trust, whereas CSR has important implications for promoting trust among people in society. The results further suggest the potential role of CSR in mitigating the eroding effect of corruption on social trust. These results are robust across various methods of estimation, falsification tests, and in a different time period (2017–2020). This study makes several contributions to the literature both theoretically and empirically, and offers meaningful implications for businesses and policymakers.

Suggested Citation

  • Namporn Thanetsunthorn, 2022. "Corruption and social trust: The role of corporate social responsibility," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 31(1), pages 49-79, January.
    • Handle: RePEc:wly:buseth:v:31:y:2022:i:1:p:49-79
    DOI: 10.1111/beer.12380
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    7. Ge Ren & Ping Zeng & Tiebo Song, 2022. "Corporate fraud as a negative signal: Implications for firms’ innovation performance," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 31(3), pages 790-808, July.
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