Governance choice for strategic corporate social responsibility: Evidence from Central America

Jorge Rivera, Bryan W. Husted and David B. Allen
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Jorge Rivera: The George Washington University School of Business
Bryan W. Husted: Tecnológico de Monterrey and Instituto de Empresa
David B. Allen: Instituto de Empresa

Working Papers from School of Business, The George Washington University

Abstract: The decision to internalize corporate social responsibility (CSR) activities, to buy (outsource) them in the form of corporate philanthropy, or to collaborate with other organizations is of great significance to the ability of the firm to reap benefits from such activity.Using insights provided by organizational economics and the resource-based view of the firm,this paper describes how CSR centrality affects governance choice. This framework is tested using data collected from Central America.The findings suggest that the higher the centrality of CSR activities to the firms’ mission, the more likely that the firms will engage in CSR internally.The paper discusses directions for future research and concludes with the managerialimplications of this research.

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