You are accessing PhilPapers from Open University (UK), an institution that is not subscribed to PhilPapers. Starting on July 1, 2014, we ask institutions that grant philosophy degrees and are based in high-GDP countries to contribute to PhilPapers' maintenance and development through a subscription. See this page for details. Please show your support by contacting your librarian.

The Causal Effect of Corporate Governance on Corporate Social Responsibility

Journal of Business Ethics 106 (1):53-72 (2012)
Abstract
In this article, we examine the empirical association between corporate governance (CG) and corporate social responsibility (CSR) engagement by investigating their causal effects. Employing a large and extensive US sample, we first find that while the lag of CSR does not affect CG variables, the lag of CG variables positively affects firms’ CSR engagement, after controlling for various firm characteristics. In addition, to examine the relative importance of stakeholder theory and agency theory regarding the associations among CSR, CG, and corporate financial performance (CFP), we also examine the relation between CSR and CFP. After correcting for endogeneity bias, our results show that CSR engagement positively influences CFP, supporting the conflict-resolution hypothesis based on stakeholder theory, but not the CSR overinvestment argument based on agency theory. Furthermore, firms’ CSR engagement with the community, environment, diversity, and employees plays a significantly positive role in enhancing CFP.
Keywords Corporate social responsibility  Corporate governance  Corporate financial performance  Conflict resolution
Categories (categorize this paper)
Options
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
 
Download options
PhilPapers Archive


Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 10,350
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA
Archie B. Carroll (2003). Corporate Social Responsibility. Business Ethics Quarterly 13 (4):503-530.

View all 13 references

Citations of this work BETA

View all 11 citations

Similar books and articles
Paul C. Godfrey, Nile A. Hatch & Jared M. Hansen (2005). Corporate Social Responsibility. Proceedings of the International Association for Business and Society 16:112-117.
Analytics

Monthly downloads

Added to index

2012-02-07

Total downloads

50 ( #30,952 of 1,096,702 )

Recent downloads (6 months)

9 ( #20,403 of 1,096,702 )

How can I increase my downloads?

My notes
Sign in to use this feature


Discussion
Start a new thread
Order:
There  are no threads in this forum
Nothing in this forum yet.