Does firms’ corporate social responsibility reduce crime?

Chenwei Sun, Justin Jin, Khalid Nainar and Gerald Lobo

International Review of Economics & Finance, 2024, vol. 96, issue PC

Abstract: This study examines the impact of firms’ corporate social responsibility (CSR) on state crime rates in the U.S. from 2004 to 2020. Our research bolsters the expanding work under the Law and Political Economy Project out of Yale University and Economics of Crime Working Group of National Bureau of Economic Research (NBER). Our empirical results show that states with domiciled firms having better CSR performance exhibit significantly lower crime rates. This lower crime incidence is driven by the environmental, social, and governance dimensions of CSR. Our study is the first to document the societal impact of CSR by analyzing state crime rates, and we conclude that CSR activities have positive externalities on society.

Keywords: Corporate social responsibility (CSR); Environment; Social; And governance (ESG); Crime incidence; Externalities (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:96:y:2024:i:pc:s1059056024007111

DOI: 10.1016/j.iref.2024.103719

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