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||No keywords specified (fix it)|
|Through your library||Configure|
Similar books and articles
Hoje Jo & Maretno A. Harjoto (2011). Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility. Journal of Business Ethics 103 (3):351-383.
Ye Cai, Hoje Jo & Carrie Pan (2011). Vice or Virtue? The Impact of Corporate Social Responsibility on Executive Compensation. Journal of Business Ethics 104 (2):159-173.
Michael L. Barnett (2005). Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility. Proceedings of the International Association for Business and Society 16:287-292.
Junwei Shi, Haiyan Fu & Lijun Hu (2007). Social Responsibility, Social Capital, and Corporate Competitive Advantage in Transitional China. International Corporate Responsibility Series 3:377-394.
Qi Li, Wei Luo, Yaping Wang & Liansheng Wu (2013). Firm Performance, Corporate Ownership, and Corporate Social Responsibility Disclosure in China. Business Ethics 22 (1):159-173.
Won Yong Oh, Young Kyun Chang & Aleksey Martynov (2011). The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence From Korea. Journal of Business Ethics 104 (2):283-297.
Rama B. Rao (2007). Good Corporate Governance Initiative to Ensure Corporate Social Responsibility. International Corporate Responsibility Series 3:395-414.
Francesco Perrini, Angeloantonio Russo, Antonio Tencati & Clodia Vurro (2011). Deconstructing the Relationship Between Corporate Social and Financial Performance. Journal of Business Ethics 102 (S1):59-76.
Chi-Shiun Lai, Chih-Jen Chiu, Chin-Fang Yang & Da-Chang Pai (forthcoming). The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation. Journal of Business Ethics.
Chung-Hua Shen & Yuan Chang (forthcoming). Ambition Versus Conscience, Does Corporate Social Responsibility Pay Off? The Application of Matching Methods. Journal of Business Ethics.
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.
Diana C. Robertson (2009). Corporate Social Responsibility and Different Stages of Economic Development: Singapore, Turkey, and Ethiopia. Journal of Business Ethics 88:617 - 633.
Rama B. Rao (unknown). Good Corporate Governance Initiative to Ensure Corporate Social Responsibility: A Study of the State of the Art in Rwanda. :395-414.
Robert C. Padgett & Jose I. Galan (2010). The Effect of R&D Intensity on Corporate Social Responsibility. Journal of Business Ethics 93 (3).
Added to index2012-02-07
Total downloads37 ( #31,859 of 548,999 )
Recent downloads (6 months)14 ( #4,483 of 548,999 )
How can I increase my downloads?