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On the foundations of corporate social responsibility
Liang,Hao Renneboog,Luc
Liang,Hao
Renneboog,Luc
Abstract
Using corporate social responsibility (CSR) ratings for 23,000 companies from 114 countries, we find that a firm's CSR rating and its country's legal origin are strongly correlated. Legal origin is a stronger explanation than “doing good by doing well” factors or firm and country characteristics (ownership concentration, political institutions, and globalization): firms from common law countries have lower CSR than companies from civil law countries, with Scandinavian civil law firms having the highest CSR ratings. Evidence from quasi-natural experiments such as scandals and natural disasters suggests that civil law firms are more responsive to CSR shocks than common law firms.
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Date
2017-04
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Keywords
Corporate social responsibility, legal origins, stakeholder orientation, firm value, G30 - General, K22 - Business and Securities Law, M14 - Corporate Culture ; Diversity ; Social Responsibility, O10 - General, O57 - Comparative Studies of Countries
Citation
Liang, H & Renneboog, L 2017, 'On the foundations of corporate social responsibility', Journal of Finance, vol. 72, no. 2, pp. 853-910. https://doi.org/10.1111/jofi.12487
License
info:eu-repo/semantics/openAccess