Differential Effects of Strong Corporate Governance on Both Professional and Voluntary Corporate Social Responsibility Activities of the Firm

Hyung-Deok Shin, Nam-Ryoung Lee and Ji Hyon Park

Emerging Markets Finance and Trade, 2015, vol. 51, issue S4, S2-S10

Abstract: Corporate social responsibility (CSR) has been of interest in the past decade, but prior studies have not investigated the relationship between strong corporate governance and types of CSR activities. This study introduces the concept of professional CSR activities (which means CSR activities pursued in a formal organizational structure over a long period) and voluntary CSR activities (which means CSR activities pursued tentatively and individually) and how strong corporate governance has differential effects on the two types of CSR activities. Our empirical results show that the stronger the corporate governance is, the more professional CSR activities are encouraged.

Date: 2015
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DOI: 10.1080/1540496X.2014.1013860

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