Does managerial short-termism always matter in a firm's corporate social responsibility performance? Evidence from China

Using data on Chinese A-share listed firms from 2008 to 2017, we explore how corporate social responsibility (CSR) performance is affected by managerial short-termism and what factors influence the association between the two. First, by employing text analysis in conjunction with machine learning, we construct a new managerial short-termism indicator. Using panel fixed models, we find that managerial short-termism has an adverse impact on CSR performance, and the results are consistent in a series of robustness checks. The heterogeneous test results show that the negative effect is significant only for firms with lower internal corporate governance, for firms in less competitive industries, for firms with less analyst attention, and for state-owned enterprises (SOEs). Additionally, a better institutional environment weakens the negative impact of managerial short-termism on CSR performance. The findings shed light on policy implications for emerging countries.

Did Corporate Social Responsibility Vaccinate Corporations Against COVID-19?

Using an international setting consisting of 5410 corporations domiciled in 24 countries, we test the insurance-like effect of corporate social responsibility (CSR) performance in the era of the pandemic and confirm that CSR performance increases socially responsible companies' resilience against the adverse effects of the crisis. Comparing stakeholders' responses to CSR activities during the pandemic and normal periods, we observe that the link between CSR performance and firm value is stronger during the crisis period. We also realize that the social aspect of CSR performance is the main driver for the mentioned effects. Finally, comparing the resilience of highly committed socially responsible companies with those with moderate and very low CSR ratings, we observe that best-in-class companies enjoy the greatest buffering effects, implying that the insurance-like effect of CSR performance is non-linear against systematic crises. Findings are robust to ceremonial CSR activities, extreme values of market-based instruments, endogeneity concern, etc.

Exploring The Role of Guanxi in CSR performance and Knowledge Management of a Stakeholder Network: A Case of iStone, China

Background

CSR performance is significantly affected by the degree of knowledge exchange. As Chinese firms have increasingly engaged in CSR activities, significant attention has been paid to how groups of stakeholders share and exchange knowledge resources strategically to increase their CSR performance. A guanxi network is an important facilitator in the mobilization of knowledge in CSR activities. This study explores how stakeholders strategically leverage their guanxi and structural holes to affect the efficacy of knowledge exchange to increase CSR performance.

Methods

A mixed-methods research approach was employed to gather data from the stakeholders of a Chinese digital firm iStone. Specifically, 325 questionnaires and social network analyses were collected as well as 55 semi-structured interviews were conducted to test the hypotheses.

Results

As a result, structural holes impede knowledge exchange among stakeholders in their guanxi network, but guanxi moderates this impeding effect. In addition, knowledge exchange promotes CSR performance.

Conclusion

By developing a mechanism to reveal how stakeholders' structural hole filling behavior influences their CSR performance, our study places an emphasis on reciprocal resource exchange which generates several implications for CSR performance enhancement. In addition, by demonstrating how structural hole controllers' become 'structural hole fillers' under the moderating influence of guanxi, this study recognizes the cultural contingency that conditions the effect of structural holes on knowledge exchange. This study also suggests stakeholders to cultivate guanxi with their network members who own yet-to-be-filled structural holes to fill their holes and increase firms sustainable performance by giving renqing, returning renqing, earning mianzi and giving mianzi.