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What drives corporate social performance? The role of nation-level institutions

Journal

Journal of International Business Studies

Subject

Strategy and Entrepreneurship

Authors / Editors

Ioannou I;Serafeim G

Biographies

Publication Year

2012

Abstract

ased on Whitley's “national business systems” (NBS) institutional framework, we theorize about and empirically investigate the impact of nation-level institutions on firms’ corporate social performance (CSP). Using a sample of firms from 42 countries spanning seven years, we construct an annual composite CSP index for each firm, based on social and environmental metrics. We find that the political system, followed by the labor and education system, and the cultural system are the most important NBS categories of institutions that impact CSP. Interestingly, the financial system appears to have a relatively less significant impact. We discuss implications for research, practice and policymaking.

Publication Notes

Corporate social responsibility; Business in society; Markets and institutions

Available on ECCH

No


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