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Corporate social responsibility in a competitive business environment

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  • Carol Newman
  • John Rand
  • Finn Tarp
  • Neda Trifković

Abstract

Using a specially designed survey instrument in combination with a representative sample of Vietnamese enterprises, we explore firm-level efficiency effects of corporate social responsibility. We find a positive relationship between adoption of corporate social responsibility initiatives and firm efficiency, and reveal that the impact is stronger for firms in non-competitive industries. Moreover, we show that local community focused corporate social responsibility initiatives drive the aggregate effect.

Suggested Citation

  • Carol Newman & John Rand & Finn Tarp & Neda Trifković, 2016. "Corporate social responsibility in a competitive business environment," WIDER Working Paper Series wp-2016-7, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2016-7
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    References listed on IDEAS

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    1. Carol Newman & John Rand & Finn Tarp, 2013. "Industry Switching in Developing Countries," The World Bank Economic Review, World Bank, vol. 27(2), pages 357-388.
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    Cited by:

    1. Tuyen, Bui Quang & Phuong Anh, Do Vu & Mai, Nguyen Phuong & Long, To Quang, 2023. "Does corporate engagement in social responsibility affect firm innovation? The mediating role of digital transformation," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 292-303.
    2. , Aisdl, 2020. "Tổng quan lý thuyết về trách nhiệm xã hội và hiệu quả tài chính của doanh nghiệp," OSF Preprints y5xke, Center for Open Science.
    3. , Aisdl, 2020. "Corporate social responsibility and firm financial performance: A literature review," OSF Preprints aymk7, Center for Open Science.
    4. Anteneh Mulugeta Eyasu & Demoz Arefayne, 2020. "The effect of corporate social responsibility on banks’ competitive advantage: Evidence from Ethiopian lion international bank S.C," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1830473-183, January.
    5. Mai, Nhat Chi, 2020. "Corporate social responsibility and firm financial performance: A literature review," OSF Preprints teyxm, Center for Open Science.
    6. Laszlo Goerke, 2022. "Trade unions and corporate social responsibility," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 177-203, March.
    7. Ma Ying & He Shan & Gashaw Awoke Tikuye, 2021. "How Do Stakeholder Pressures Affect Corporate Social Responsibility Adoption? Evidence from Chinese Manufacturing Enterprises in Ethiopia," Sustainability, MDPI, vol. 14(1), pages 1-23, December.
    8. Rita Almeida & José Ángel Pérez-López & Rute Abreu, 2022. "Digital Corporate Social Responsibility Reporting in the Water Industry," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(11), pages 3929-3947, September.
    9. Van Huong, Vu & Mai, Yong & Hau, Bui Duc & Cuong, Ly Kim & Van Dao, Le, 2023. "Do firm characteristics in their local context promote corporate ecological and social responsibility? Evidence from a multi-hierarchical analysis," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 722-743.
    10. Minh, Thanh Nguyen & Quang, Tuyen Tran, 2022. "The effects of corporate social responsibility on firm efficiency: Inside the matrix of corporate finance," Finance Research Letters, Elsevier, vol. 46(PB).
    11. Nguyen, Ngoc Thang & Vu, Van Huong, 2023. "How does adopting occupational health and safety management practices affect outcomes for employees? The case of Vietnamese SMEs," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 629-640.
    12. Forgione, Antonio Fabio & Migliardo, Carlo, 2020. "CSR engagement and market structure: Evidence from listed banks," Finance Research Letters, Elsevier, vol. 35(C).
    13. Alexandra Danila & Maria-Gabriela Horga & Oana Oprisan & Tanase Stamule, 2022. "Good Practices on ESG Reporting in the Context of the European Green Deal," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 847-847, August.
    14. Van, Huong Vu & Ly, Kim Cuong, 2021. "Does rising corporate social responsibility promote firm tax payments? New perspectives from a quantile approach," International Review of Financial Analysis, Elsevier, vol. 77(C).
    15. Minh, Thanh Nguyen & Ngoc, Anh Mai & Tuan, Anh Nguyen & Dao, Tung Nguyen, 2022. "Corporate social responsibility, market rivalry and firm leverage: new evidence from a fixed-effect quantile regression approach," Finance Research Letters, Elsevier, vol. 47(PB).
    16. Mion, Giorgio & Loza Adaui, Cristian R. & Bonfanti, Angelo & De Crescenzo, Veronica, 2023. "Mission statements and financial and sustainability performance: An exploratory study of Benefit Corporations certified as B Corps," Journal of Business Research, Elsevier, vol. 157(C).
    17. Yubin Zheng & Md. Harun Ur Rashid & Abu Bakkar Siddik & Wei Wei & Syed Zabid Hossain, 2022. "Corporate Social Responsibility Disclosure and Firm’s Productivity: Evidence from the Banking Industry in Bangladesh," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    18. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.

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