Digital transformation and corporate social responsibility engagement: Evidence from China

This study explores the impact of digital transformation (DT) on corporate social responsibility engagement (CSR) in Chinese manufacturing firms by using a staggered difference-in-differences model. The results indicate that CSR engagement significantly improves after DT, primarily affecting shareholder and social responsibility. Internal dynamics, such as decreased information asymmetry and irrational decision-making, and external pressures to gain media and analyst attention, are critical pathways through which DT promotes CSR engagement. The promotion of CSR engagement through DT is influenced by both corporate-level factors (pre-information base and internal control quality) and regional-level factors (digital economic environment and government regulation intensity). Additionally, investors can effectively identify DT to enhance CSR engagement, leading to a positive market response. This study provides new empirical insights for firms seeking to promote digital technology in stakeholder management and internal governance and has significant theoretical and practical implications for CSR engagement in the digital era.