Influences of economic and legal factors on the understanding of Corporate Citizenship

Cristian Salazar-Concha and Luis J. Camacho
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Cristian Salazar-Concha: Universidad Austral de Chile, Chile
Luis J. Camacho: SUNY Empire State College, USA

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: Corporate Citizenship (CC) has recently emerged as an important term for comprehending the impact of social concerns on the performance of firms. Based on the four-factor model of CC, this study developed a structural equation model to examine the primary factors and interactions that influence economically motivated administrators to observe legal citizenship as an essential element to demonstrate an outstanding social responsibility stance in front of their stakeholders. The purpose of this research was to examine the beneficial direct and indirect effects of economic citizenship on legal citizenship using a model in which ethical and discretionary citizenship serve as mediators. Students' information was collected and evaluated using confirmatory factor analysis and multiple regression. According to the community's perception, economically responsible firms comply with the law, supported by the findings. Furthermore, it demonstrates that stable economic businesses are more likely to undertake aggressively ethical and discretionary acts that benefit the larger society. Finally, this research examines the impact of economic citizenship on legal citizenship via the mediation of ethical and discretionary citizenship. The findings indicate that economic citizenship has direct and indirect beneficial effects on legal citizenship. Additionally, this research reveals that stakeholders' perceptions and social recognition of firms increase if discretionary and ethical citizenship motivate transparent business operations consistent with the organization's legal components. From a theoretical standpoint, this study indicates that mechanisms established by economic results might support firms' mandatory voluntary social duties and legal obligations. Therefore, companies should also develop learning activities to enhance their managers' and workers' economic, legal, ethical, and discretionary citizenship knowledge to emphasize the significance of this issue for its success.

Keywords: economic; legal; factors; Corporate Citizenship (search for similar items in EconPapers)
Date: 2022
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