IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i15p6426-d1444082.html
   My bibliography  Save this article

How Does Corporate Social Responsibility Affect Corporate Productivity? The Role of Environmental Regulation

Author

Listed:
  • Jinyao Hou

    (Business School, Shandong University, Weihai 264209, China)

Abstract

Corporate social responsibility (CSR) plays a vital role in facilitating sustainable long-term development. Despite its importance, the specific mechanisms through which CSR interacts with business productivity have not been extensively explored. This paper selects 4167 Chinese enterprises from 2011 to 2021 for study to elucidate this mechanism. The results of the study show that (i) CSR has a significant positive effect on enterprise productivity. (ii) Environmental regulation has a negative and significant moderating effect on the effect of CSR. After endogeneity and robustness tests, the findings of (i) and (ii) remain valid. (iii) There is heterogeneity in (i)–(ii) concerning corporate social responsibility, corporate shareholding structure, region, and degree of marketization. Based on these findings, sound recommendations are proposed for enterprise managers and governments.

Suggested Citation

  • Jinyao Hou, 2024. "How Does Corporate Social Responsibility Affect Corporate Productivity? The Role of Environmental Regulation," Sustainability, MDPI, vol. 16(15), pages 1-22, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6426-:d:1444082
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/15/6426/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/15/6426/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    2. Xie, Yu & Wu, Desheng & Li, Xiaoyan & Tian, Suhua, 2023. "How does environmental regulation affect productivity? The role of corporate compliance strategies," Economic Modelling, Elsevier, vol. 126(C).
    3. Isabelle Maignan & David A Ralston, 2002. "Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-presentations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 497-514, September.
    4. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    5. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    6. Smeets, Roger & de Vaal, Albert, 2016. "Intellectual Property Rights and the productivity effects of MNE affiliates on host-country firms," International Business Review, Elsevier, vol. 25(1), pages 419-434.
    7. Mirco Tonin & Michael Vlassopoulos, 2015. "Corporate Philanthropy and Productivity: Evidence from an Online Real Effort Experiment," Management Science, INFORMS, vol. 61(8), pages 1795-1811, August.
    8. Li, Zhenghui & Huang, Zimei & Su, Yaya, 2023. "New media environment, environmental regulation and corporate green technology innovation:Evidence from China," Energy Economics, Elsevier, vol. 119(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chu, Baoju & Dong, Yizhe & Liu, Yaorong & Ma, Diandian & Wang, Tianju, 2024. "Does China's emission trading scheme affect corporate financial performance: Evidence from a quasi-natural experiment," Economic Modelling, Elsevier, vol. 132(C).
    2. Liu, Xianda & Hou, Wenxuan & Main, Brian G.M., 2022. "Anti-market sentiment and corporate social responsibility: Evidence from anti-Jewish pogroms," Journal of Corporate Finance, Elsevier, vol. 76(C).
    3. Shelby D. Hunt, 2017. "Strategic marketing, sustainability, the triple bottom line, and resource-advantage (R-A) theory: Securing the foundations of strategic marketing theory and research," AMS Review, Springer;Academy of Marketing Science, vol. 7(1), pages 52-66, June.
    4. Dorian Aliu & Ayten Akatay & Armando Aliu & Umut Eroglu, 2017. "Public Policy Influences on Academia in the European Union," SAGE Open, , vol. 7(1), pages 21582440176, February.
    5. Sara L. McGaughey & Pascalis Raimondos & Lisbeth La Cour, 2018. "What is a Foreign Firm? Implications for Productivity Spillovers," CESifo Working Paper Series 7109, CESifo.
    6. Shadbegian, Ronald J. & Gray, Wayne B., 2005. "Pollution abatement expenditures and plant-level productivity: A production function approach," Ecological Economics, Elsevier, vol. 54(2-3), pages 196-208, August.
    7. José María Agudo-Valiente & Concepción Garcés-Ayerbe & Manuel Salvador-Figueras, 2017. "Corporate Social Responsibility Drivers and Barriers According to Managers’ Perception; Evidence from Spanish Firms," Sustainability, MDPI, vol. 9(10), pages 1-24, October.
    8. Qiulian Shen & Tao Jin & Dongwei Zhao & Yuxuan Du, 2023. "How Can Multinational Enterprises Effectively Implement Local Consumer-Oriented Corporate Social Responsibility (CSR) Strategies? A Multi-Perspective Study on the Differences in CSR Response Mechanism," Sustainability, MDPI, vol. 15(21), pages 1-16, October.
    9. Hajdu, Anna & Daziano, Marcos F. & Visser, Oane, 2021. "Institutions and individual values motivating corporate social responsibility activities in large farms and agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    10. repec:cte:wbrepe:wb130301 is not listed on IDEAS
    11. Kudla, Nicole & Stölzle, Wolfgang, 2011. "Sustainability Supply Chain Management Research," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(3), pages 263-301.
    12. Heli Wang & Ming Jia & Zhe Zhang, 2021. "Good Deeds Done in Silence: Stakeholder Management and Quiet Giving by Chinese Firms," Organization Science, INFORMS, vol. 32(3), pages 649-674, May.
    13. Wang Shuo & Gao Yuhui, 2016. "What do we know about corporate social responsibility research? a content analysis," The Irish Journal of Management, Sciendo, vol. 35(1), pages 1-16, April.
    14. Austin Chia & Margaret L. Kern, 2021. "Subjective Wellbeing and the Social Responsibilities of Business: an Exploratory Investigation of Australian Perspectives," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(5), pages 1881-1908, October.
    15. Mohammed Mispah Said Omar & Abdelghani Echchabi & Abdullah Mohammed Ayedh & Salim Al-Hajri, 2021. "Determinants of Social and Environmental Reporting Practices Disclosure in Libyan Oil and Gas Industry: A Managerial Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 504-510.
    16. Theophilos P. Michailides & Michael G. Lipsett, 2013. "Surveying Employee Attitudes on Corporate Social Responsibility at the Frontline Level of an Energy Transportation Company," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(5), pages 296-320, September.
    17. Marotta, Giuseppe & Nazzaro, Concetta, 2012. "Social Responsibility and Competitiveness Strategies of Agri-food Enterprises: A Theoretical and Methodological Approach," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144989, International European Forum on System Dynamics and Innovation in Food Networks.
    18. Valerie Priscilla Goby & Catherine Nickerson, 2016. "Conceptualization of CSR Among Muslim Consumers in Dubai: Evolving from Philanthropy to Ethical and Economic Orientations," Journal of Business Ethics, Springer, vol. 136(1), pages 167-179, June.
    19. Pang, Rui-Zhi & Deng, Zhong-Qi & Hu, Jin-li, 2015. "Clean energy use and total-factor efficiencies: An international comparison," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1158-1171.
    20. Zhang, Ming & Zhao, Yingxue, 2023. "Does environmental regulation spur innovation? Quasi-natural experiment in China," World Development, Elsevier, vol. 168(C).
    21. Kenneth Amaeshi & Emmanuel Adegbite & Tazeeb Rajwani, 2016. "Corporate Social Responsibility in Challenging and Non-enabling Institutional Contexts: Do Institutional Voids matter?," Journal of Business Ethics, Springer, vol. 134(1), pages 135-153, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6426-:d:1444082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.