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Family Firms’ Corporate Social Performance: A Calculated Quest for Socioemotional Wealth

Author

Listed:
  • Réal Labelle

    (HEC Montréal)

  • Taïeb Hafsi

    (HEC Montréal
    Walter-J.-Somers Chair in International Strategic Management)

  • Claude Francoeur

    (HEC Montréal
    Stephen A. Jarislowsky Chair in Governance)

  • Walid Ben Amar

    (University of Ottawa)

Abstract

This study investigates the engagement of family firms in corporate social responsibility. We first compare their corporate social performance (CSP) to non-family firms. Then, following recent evidence on the heterogeneity of family firms, we examine two factors that may influence CSP within family firms: the level of family control and the governance orientation of the country in which they operate. This research is based on a theoretical framework which considers both agency and socioemotional wealth (SEW) influences on family firms CSR engagements. Overall, we find that family firms exhibit lower CSP than non-family firms. But when focusing on family firms, our analyses show a curvilinear relationship between family control and CSP. At lower levels of control, family owners invest more in social initiatives to protect their SEW. Beyond a threshold level of control that we estimate at 36 % in our sample, economic considerations prevail over SEW and social performance starts decreasing. We also find that family firms operating in stakeholder-oriented countries are more attentive to social concerns than those operating in more shareholder-oriented countries.

Suggested Citation

  • Réal Labelle & Taïeb Hafsi & Claude Francoeur & Walid Ben Amar, 2018. "Family Firms’ Corporate Social Performance: A Calculated Quest for Socioemotional Wealth," Journal of Business Ethics, Springer, vol. 148(3), pages 511-525, March.
    • Handle: RePEc:kap:jbuset:v:148:y:2018:i:3:d:10.1007_s10551-015-2982-9
    DOI: 10.1007/s10551-015-2982-9
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