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Political connections and corporate social responsibility reporting in Portugal

Author

Listed:
  • Maria Teresa Bianchi
  • Patrícia Monteiro
  • Graça Azevedo
  • Jonas Oliveira
  • Rui Couto Viana
  • Manuel Castelo Branco

Abstract

Purpose - This paper aims to examine the relation between firms’ political connections and corporate social responsibility (CSR) reporting in Portugal. The authors argue that in settings where the existence of political connections are viewed as damaging collective interests of stakeholders, political connected firms can deal with legitimacy issues from such connections by resorting to CSR practices and the reporting thereof. Design/methodology/approach - Using archival data from a panel sample of 36 firms from Portugal between 2009 and 2012, the authors examine the relationship between political connections and CSR reporting by way of regression analysis. Findings - The authors find a positive relationship between political connections and CSR reporting. Originality/value - This study draws on legitimacy theory to highlight that CSR can be used to deal with stakeholder activism and vigilance pertaining to suspicion related to the existence of political connections.

Suggested Citation

  • Maria Teresa Bianchi & Patrícia Monteiro & Graça Azevedo & Jonas Oliveira & Rui Couto Viana & Manuel Castelo Branco, 2019. "Political connections and corporate social responsibility reporting in Portugal," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 26(4), pages 1203-1215, October.
    • Handle: RePEc:eme:jfcpps:jfc-10-2018-0111
    DOI: 10.1108/JFC-10-2018-0111
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    Cited by:

    1. Pablo Andres & Inigo Garcia-Rodriguez & M. Elena Romero-Merino & Marcos Santamaria-Mariscal, 2023. "Political directors and corporate social responsibility: Are political ideology and regional identity relevant?," Review of Managerial Science, Springer, vol. 17(1), pages 339-373, January.

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