Journal of Business Ethics 118 (2):395-412 (2013)

Abstract
This study examines the determinants of corporate social responsibility (CSR) and its implications on firms’ investment policy, organizational strategy, and performance. First, we find that firms with better performance, higher R&D intensity, better financial health, and firms in new economy industries are more likely to engage in CSR activities, while riskier firms are less likely to do so. We also find U-shaped relation between firm size and CSR, indicating that either very small or very large firms exhibit high levels of CSR strengths and concerns. Next, we find that firms’ CSR strengths relate favorably with their investments, organizational strategy, and performance, whereas CSR concerns and firm attributes are by and large negatively related. Using a 2SLS procedure, we verify that the CSR–performance relation is robust to corrections for endogeneity through reverse causation and/or biases introduced by time varying omitted variables. Finally, we find that the CSR–firm attributes relation is strengthened when the CEO’s incentives are below the sample median, suggesting that CSR participation is especially important when monetary incentives are lower than benchmark levels
Keywords Corporate social responsibility  Firm performance  Investment policy  Organizational strategy
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DOI 10.1007/s10551-012-1594-x
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References found in this work BETA

Corporate Social Responsibility and Firm Size.Krishna Udayasankar - 2008 - Journal of Business Ethics 83 (2):167-175.
Board Composition and Corporate Philanthropy.Jia Wang & Betty S. Coffey - 1992 - Journal of Business Ethics 11 (10):771 - 778.

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