Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance

Kun Li, Nasrin R. Khalili and Weiquan Cheng
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Kun Li: Business School, Beijing Normal University, Beijing 100875, China
Nasrin R. Khalili: Stuart School of Business, Illinois Institute of Technology, Chicago, IL 60616, USA
Weiquan Cheng: Stuart School of Business, Illinois Institute of Technology, Chicago, IL 60616, USA

Sustainability, 2019, vol. 11, issue 2, 1-19

Abstract: This study analyzes the trends, context, and impact of corporate social responsibility (CSR) initiatives on company’s performance and productivity in China. We use environmental and social responsibility data in 34,000 CSR projects released by 839 companies in 31 provinces from 2006 to 2016. Clustering methods as wells as ordinary least squares and the fixed effects panel regression modeling are performed to provide insights on the context, trends, and impact of CSR projects on companies’ productivity and financial outcomes. Results of data processing and modeling indicate that: (a) most projects focused on improving companies’ environmental sustainability (compared to social); (b) implementation of both environmental and social projects had positive impacts on companies’ performance; and (c) trends, context, and impact of the projects varied with time, company type, and location (provinces). In addition, data suggest that companies operating in regions with lower economic conditions (GDP per capita) seem to be less motivated to implement environmental and social sustainability projects compared to those operating in regions with higher economic conditions. This study is meaningful for both companies that consider adopting CSR initiatives, as well as stakeholders and managers who aim to promote sustainable development in China.

Keywords: corporate social responsibility; cleaner production; company performance; China sustainability; environmental sustainability; social sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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