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The strategic planning of corporate social responsibility: An endogenous perspective

Published online by Cambridge University Press:  23 September 2024

Chung-Jen Chen ,
Yung-Chang Hsiao Open the ORCID record for Yung-Chang Hsiao [Opens in a new window]  and
Kuo-Liang Chen Open the ORCID record for Kuo-Liang Chen [Opens in a new window]
Chung-Jen Chen
Affiliation:
Department of Business Administration, College of Management, National Taiwan University, Taipei, Taiwan, R.O.C. College of Management, Yuan-Ze University, Taoyuan, Taiwan, R.O.C.
Yung-Chang Hsiao
Affiliation:
Department of Business & Management, College of Management, National University of Tainan, Tainan, Taiwan
Kuo-Liang Chen*
Affiliation:
Department of Marketing and Distribution Management, College of Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan
*
Corresponding author: Kuo-Liang Chen; Email: [email protected]
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Abstract

This study addresses endogenous factors related to the strategic planning of corporate social responsibility (CSR). Our findings help explain the paradox: If better CSR always leads to better firm performance, why do so many companies either choose not to engage in CSR or act irresponsibly? Managers may make decisions regarding CSR based on the environment. Some companies may be better served through a proactive CSR strategy; however, others may be unable to achieve better performance through this strategy for a variety of endogenous causes. Our sample included 594 U.S. publicly traded companies with 2,019 firm-year observations. We empirically simulated scenarios where companies selected inappropriate CSR strategies and found that the companies were unable to achieve better firm performance if they did not select appropriate CSR strategies based on their internal and external environment. Practical and theoretical implications are discussed.

Keywords

corporate social responsibilityCSRendogeneityinnovation capabilitymarketing capabilityslackfirm performance
Type
Research Article
Information
Journal of Management & Organization , First View , pp. 1 - 19
Copyright
© The Author(s), 2024. Published by Cambridge University Press in association with Australian and New Zealand Academy of Management.

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