Does good governance mean better corporate social performance?: A comparative study of OECD countries
Kaufmann,Wesley Lafarre,Anne
Kaufmann,Wesley
Lafarre,Anne
Abstract
Policymakers are increasingly concerned with enabling sustainable corporate behavior as part of the transition toward a more sustainable society. Yet, it remains unclear to what extent a country’s governance quality impacts on the sustainable behavior of firms. Drawing on the good governance literature, we hypothesize that the quality of different governance dimensions at the nation-level affects corporate social performance (CSP). This reasoning is tested using a longitudinal data set that combines nation-level and firm-level observations. Different model specifications confirm that countries with a better governance quality have higher CSP. In particular, higher levels of voice and accountability, regulatory quality, rule of law, and control of corruption are positively associated with CSP across model specifications. We conclude with a discussion of the implications for research and practice.
Description
Date
2021-12
Journal Title
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Volume Title
Publisher
Research Projects
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Keywords
SDG 12 - Responsible Consumption and Production, SDG 16 - Peace, Justice and Strong Institutions, SDG 17 - Partnerships for the Goals
Citation
Kaufmann, W & Lafarre, A 2021, 'Does good governance mean better corporate social performance? A comparative study of OECD countries', International Public Management Journal, vol. 24, no. 6, pp. 762-791. https://doi.org/10.1080/10967494.2020.1814916