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CSR disclosure against boycotts: evidence from Korea

Jiwon Yang () and Jay Hyuk Rhee ()
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Jiwon Yang: Korea University
Jay Hyuk Rhee: Korea University

Asian Business & Management, 2020, vol. 19, issue 3, No 6, 343 pages

Abstract: Abstract While corporate behavior is greatly influenced by the institutional environment, research on corporations’ socially unacceptable behavior in the context of Asian countries remains relatively scarce. Furthermore, how the public reacts against corporations’ bad deeds may vary across regions. Using a sample of 1023 boycott events with 93 targeted firms in Korea over the period 2006–2016, we investigate whether the public’s use of boycotts affects the targeted organization’s CSR disclosure speed. We also examine whether the effect of boycotts on CSR disclosure speed may vary depending on the magnitude of the potential loss resulting from failing to act or from reacting too slowly in response to such boycotts. We find that boycotts positively affect CSR disclosure speed and that this relationship is moderated by the business environment. Taken together, this study reveals CSR disclosure as a risk-reduction mechanism against boycotts.

Keywords: Boycott; CSR (corporate social responsibility) disclosure; CSiR (corporate social irresponsibility); Institution theory; Stakeholder theory (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1057/s41291-019-00063-5

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