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Corporate social responsibility: Is it a matter of slack financial resources or strategy or both?

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  • Shaista Wasiuzzaman
  • Ali Uyar
  • Cemil Kuzey
  • Abdullah S. Karaman

Abstract

Drawing on slack resources and institutional theories, this study tests the links between liquidity, corporate social responsibility (CSR) strategy, and CSR performance. The results indicate differential effects of liquidity measures on CSR investment. CSR committee and executive CSR compensation individually are significant drivers of higher CSR performance. Moderation analysis to test the interaction effect of liquidity measurements with the CSR committee on CSR performance yields mixed outcomes. Similarly, a second moderation analysis conducted to test the interaction of liquidity measurements with executive CSR compensation on CSR performance produces mixed results. Hence, the results are metric sensitive in terms of liquidity measurements.

Suggested Citation

  • Shaista Wasiuzzaman & Ali Uyar & Cemil Kuzey & Abdullah S. Karaman, 2022. "Corporate social responsibility: Is it a matter of slack financial resources or strategy or both?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2444-2466, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2444-2466
    DOI: 10.1002/mde.3537
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    Cited by:

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    2. Elbardan, Hany & Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2023. "CSR reporting, assurance, and firm value and risk: The moderating effects of CSR committees and executive compensation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 53(C).
    3. Ali Uyar & Ali Meftah Gerged & Cemil Kuzey & Abdullah S. Karaman, 2024. "Renewable energy use, slack financial resources, and board attributes: Does energy efficiency policy matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4935-4957, July.
    4. Yue Vaughan & Yinyoung Rhou & Yoon Koh & Manisha Singal, 2024. "Slack resources and employee-centered corporate social responsibility in restaurant companies," Tourism Economics, , vol. 30(3), pages 592-614, May.
    5. Uyar, Ali & Wasiuzzaman, Shaista & Kuzey, Cemil & Karaman, Abdullah S., 2024. "Dividend payout and corporate transparency: Do CSR governance mechanisms matter?," Research in International Business and Finance, Elsevier, vol. 71(C).
    6. Ali Uyar & Habiba Al-Shaer & Cemil Kuzey & Abdullah S. Karaman, 2026. "Board characteristics and aggressive CSR engagement: Do CSR committees provoke or restrain?," Review of Quantitative Finance and Accounting, Springer, vol. 66(1), pages 269-311, January.
    7. Uyar, Ali & Lodh, Suman & Nandy, Monomita & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Tradeoff between corporate investment and CSR: The moderating effect of financial slack, workforce slack, and board gender diversity," International Review of Financial Analysis, Elsevier, vol. 87(C).
    8. Wei Li & Jie Li & Siwei Sun, 2023. "Influence of public credit risk on private capital in public–private partnership models," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1330-1343, March.
    9. Jiafeng Gu, 2023. "Firm Performance and Corporate Social Responsibility: Spatial Context and Effect Mechanism," SAGE Open, , vol. 13(1), pages 21582440231, January.
    10. Patrick Velte, 2024. "Archival research on sustainability‐related executive compensation. A literature review of the status quo and future improvements," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3119-3147, July.
    11. Tim Heubeck & Annina Ahrens, 2025. "Governing the Responsible Investment of Slack Resources in Environmental, Social, and Governance (ESG) Performance: How Beneficial are CSR Committees?," Journal of Business Ethics, Springer, vol. 198(2), pages 365-385, May.

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