Wages and corporate social responsibility: entrenchment or ethics?

Patricia Crifo, Marc-Arthur Diaye () and Sanja Pekovic
Additional contact information
Marc-Arthur Diaye: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Purpose In this article the authors examine how corporate social responsibility (CSR) affects the wage policy of firms. At the first glance, one may think that socially responsible firms want to attract employees via ethical concerns and corporate culture, thereby inducing a negative link between CSR and wages. On the other side, socially responsible firms can be expected to increase wages as social entrenchment strategies. Design/methodology/approach In order to correct for potential endogeneity bias, the authors employ a simultaneous equation model (SEM) on a French data set that includes 13,186 employees. Findings The authors show that CSR has an ambiguous impact on corporate wage policy depending on the type of monetary incentives and employee's occupation considered. Originality/value The authors extend prior research on the CSR–wage relationship by distinguishing between different forms of monetary incentives: the base wage, total wage and premium wage. Their results draw attention to the fact that the employees' occupation do matter. The evidence confirms that the effect of CSR on the wage is not to be taken for granted: it is wage form and occupation specific.

Date: 2022-12-05
References: Add references at CitEc
Citations:

Published in Employee Relations, 2022, 49 (1), pp.99-122. ⟨10.1108/ER-03-2022-0154⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Wages and Corporate Social Responsibility: Entrenchment or Ethics? (2024)
Working Paper: Wages and corporate social responsibility: entrenchment or ethics? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-03897930

DOI: 10.1108/ER-03-2022-0154

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().