 Political corruption and Corporate Social Responsibility (CSR)Ashrafee Tanvir Hossain and Lawrence Kryzanowski Journal of Behavioral and Experimental Finance, 2021, vol. 31, issue C Abstract: In this study we investigate the relationship between political corruption and corporate social responsibility (CSR) strengths. We provide evidence that firms situated in U.S. states with higher levels of corruption exhibit poorer CSR strengths. Our results survive an array of robustness and endogeneity tests. We identify a positive (negative) effect on a firm’s CSR reporting or disclosure practices (the rater’s assessment of the firm’s CSR activities and policies) after state-level exogenous shocks from political scandal revelations for firms headquartered in the scandal states. We show that firms with higher political connections obtained through campaign contributions rely less on CSR strengths for a given level of corruption. Additionally, we find that the influence of corruption on CSR is larger than that of other traditional external societal norms, namely, social capital and religiosity. Keywords: Corporate Social Responsibility (CSR); Political corruption; Political connections; Campaign contributions; Social capital and religiosity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:31:y:2021:i:c:s2214635021000824 DOI: 10.1016/j.jbef.2021.100538 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.