Corporate social responsibility and corporate political activity: what does data tell us?

Woon Leong Lin (), Jo Ann Ho (), Siong Hook Law and Murali Sambasivan ()
Additional contact information
Woon Leong Lin: Universiti Putra Malaysia
Jo Ann Ho: Universiti Putra Malaysia
Murali Sambasivan: Thiagarajar School of Management

Economics Bulletin, 2019, vol. 39, issue 3, 2237-2246

Abstract: This study investigates the dynamic causality relationship between Corporate Social Responsibility (CSR) and the Corporate Political Activity (CPA). We employed the Vector AutoRegression (VAR) model in the Generalised Method of Moments (GMM) framework and considered all time-invariant characteristics of every organization. We studied a sample consisting of 100 of the World Most Admired Companies (WMAC) that listed in the Fortune list in the period ranging from 2007 to 2016. This study offered empirical evidence that showed that the CPA negatively affected the CSR; however, an increased CSR did not guarantee an increase in the CPA. The results of this paper were in direct contrast to the notion based on the hypothesis of the virtuous circle that described a positive correlation and mutual reinforcement between the CPA and CSR.

Keywords: Corporate social responsibility (CSR); corporate political activity (CPA); panel vector autoregression (VAR); generalized method of moments (GMM); Granger causality (search for similar items in EconPapers)
JEL-codes: G3 M2 (search for similar items in EconPapers)
Date: 2019-09-30
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P210.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-18-00852

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().