B3 Unrefereed conference proceedings

Corporate social performance: inter-industry and international differences

Publication Details
Authors: Arminen Heli, Puumalainen Kaisu, Pätäri Satu
Publication year: 2015
Language: English
Title of parent publication: Proceedings of the Global Cleaner Production & Sustainable Consumption Conference
JUFO-Level of this publication: 0
Open Access: Not an Open Access publication

The past two decades have witnessed a growing interest in environmental and social issues, which has put more pressure on companies to meet different stakeholder expectations. There are several explanations for why and how companies address their corporate responsibilities. Although the previous literature on the national embeddedness of corporate social performance (CSP) highlights its context-dependence, the literature has been unable to determine the roles played by different national institutions in contributing to aggregate CSP and its dimensions such as employee relations or environmental performance. Moreover, industries differ with respect to their impacts on various stakeholders, because of which the stakeholders' expectations related to CSP are also different. This affects CSP and the weights given to the different dimensions of CSP in different industries. To date, the empirical studies of institutional effects are relatively rare, and have concentrated on a limited number of countries or industries. Our study aims to fill this gap by examining the institutional effects at both the national and industry levels. In addition to overall CSP, we also analyze the differences across the categories of community, employees, environment and government. To do this, we utilize CSP information from CSRHub. Our results indicate that country-level formal and informal institutions can explain about three to ten per cent of the variation in firm-level CSP. Economic development and postmaterialistic values have positive effects on CSP, especially on the governance and community dimensions of CSP, while their effect on the environment dimension of CSP is weak. Overall CSP is on an average highest in the industry sectors with a large environmental impact (e.g. energy, transportation), but there are large differences between industries in the dimensions of CSP.

Last updated on 2017-27-03 at 11:35