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Exploring the Determinants of Strategic Corporate Social Responsibility: An Empirical Examination

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  • Sui-Hua Yu

    (Department of Accounting, National Chung Hsing University, Taichung 40227, Taiwan)

  • Wan-Chen Liang

    (PricewaterhouseCoopers Taiwan, Taipei 11012, Taiwan)

Abstract

A growing number of studies propose that the performance outcomes of Corporate Social Responsibility (CSR hereafter) are dependent upon how firms implement CSR. If firms are able to strategically implement CSR, their CSR engagement will not only improve stockholders’ value, but will also contribute to corporate sustainability. However, research on strategic CSR is still incipient. This study aims to examine the determinants of strategic CSR. Taking firms that have published CSR reports for three consecutive years as research samples, this study finds that product market competition does not significantly affect the level of strategic CSR, while corporate reputation and customer awareness do both have significantly positive impacts on the level of strategic CSR. These results suggest that the motivation of a firm’s engagement in strategic CSR is to respond to external stakeholders’ implicit claims rather than to respond to the external competitive pressure.

Suggested Citation

  • Sui-Hua Yu & Wan-Chen Liang, 2020. "Exploring the Determinants of Strategic Corporate Social Responsibility: An Empirical Examination," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2368-:d:333880
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