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Sales order backlog and corporate social responsibility

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  • Sun, Li
  • Walkup, Brian
  • Wu, Kean

Abstract

We examine the impact of sales order backlog, an important leading indicator of firm performance, on corporate social responsibility (CSR) performance (measured as responsible and irresponsible CSR performance). We rely on the stakeholder and resource availability views of CSR to develop our hypotheses. Under the stakeholder view, we posit a positive relation between sales order backlog and CSR performance. Under the resource availability view, we posit this relationship to be negative. Our empirical evidence shows a significant positive relation between order backlog and irresponsible CSR performance, suggesting that firms with higher order backlog demonstrate lower overall CSR performance. This evidence is consistent with the resource availability view that engaging in CSR activities consumes valuable firm resources, and thus, firms with limited resources are less likely to invest in CSR initiatives. Firms with high levels of unfulfilled sales orders must focus on fulfilling those orders, and may not be able to devote resources to CSR.

Suggested Citation

  • Sun, Li & Walkup, Brian & Wu, Kean, 2019. "Sales order backlog and corporate social responsibility," Advances in accounting, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:advacc:v:47:y:2019:i:c:s0882611019300100
    DOI: 10.1016/j.adiac.2019.100444
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    References listed on IDEAS

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    Cited by:

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    3. Du, Shuili & Xu, Xiaolu & Yu, Kun, 2020. "Does corporate social responsibility affect auditor-client contracting? Evidence from auditor selection and audit fees," Advances in accounting, Elsevier, vol. 51(C).

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    More about this item

    Keywords

    Sales order backlog; Corporate social responsibility; Responsible CSR performance; Irresponsible CSR performance;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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