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Does Corporate Social Responsibility Reduce Operational Risk? Evidence from Chinese Listed Companies

In: Proceedings of the 2025 5th International Conference on Informatization Economic Development and Management (IEDM 2025)

Author

Listed:
  • Haomin He

    (WeBank Institute of Financial Technology, Shenzhen University)

Abstract

This study investigates the impact of corporate social responsibility (CSR) on the operational risk of Chinese listed companies, using CSR rating scores from Hexun.com (2010-2020) and operational risk data from the CSMAR database. Specifically, it tests two hypotheses: (1) CSR is significantly negatively correlated with operational risk, suggesting that companies with higher CSR engagement face lower operational risks; and (2) different dimensions of CSR have varying effects on operational risk, with shareholder responsibility having the most significant impact. Empirical analysis based on Hexun.com’s CSR rating scores supports these hypotheses. The results show that Chinese listed companies that actively fulfill their CSR obligations can effectively reduce their operational risk to some extent. Furthermore, this study highlights the importance of considering CSR’s multidimensional nature, as each dimension contributes differently to risk mitigation. These findings provide valuable insights for corporate managers and policymakers, emphasizing the role of CSR in promoting sustainable business practices and reducing risk exposure.

Suggested Citation

  • Haomin He, 2025. "Does Corporate Social Responsibility Reduce Operational Risk? Evidence from Chinese Listed Companies," Advances in Economics, Business and Management Research, in: Meilin Zhang & Au Yong Hui Nee & Khurram Shehzad & Sameer Kumar & Ehsan Javanmardi (ed.), Proceedings of the 2025 5th International Conference on Informatization Economic Development and Management (IEDM 2025), pages 311-318, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-724-3_31
    DOI: 10.2991/978-94-6463-724-3_31
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