Firm Internationalization and Corporate Social Responsibility

Najah Attig (), Narjess Boubakri (), Sadok El Ghoul and Omrane Guedhami ()
Additional contact information
Najah Attig: Saint Mary’s University
Narjess Boubakri: American University of Sharjah
Omrane Guedhami: University of South Carolina

Journal of Business Ethics, 2016, vol. 134, issue 2, No 1, 197 pages

Abstract: Abstract Using a large sample of 3,040 U.S. firms and 16,606 firm-year observations over the 1991–2010 period, we find strong evidence that firm internationalization is positively related to the firm’s corporate social responsibility (CSR) rating. This finding persists when we use alternative estimation methods, samples, and proxies for internationalization and when we address endogeneity concerns. We also provide evidence that the positive relation between internationalization and CSR rating holds for a large sample of firms from 44 countries. Finally, we offer novel evidence that firms with extensive foreign subsidiaries in countries with well-functioning political and legal institutions have better CSR ratings. Our findings shed light on the role of internationalization in influencing multinational firms’ CSR activities in the U.S. and around the world.

Keywords: Corporate international diversification; Corporate social performance; Institutional environments (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (125)

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DOI: 10.1007/s10551-014-2410-6

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