Which country characteristics support corporate social performance?

As a growing number of firms are investing in social and environmental sustainability, academics and practitioners are increasingly becoming concerned with studying the factors that drive firms to achieve higher corporate social performance (CSP). This paper aims to contribute to the literature investigating country‐level characteristics that influence the magnitude of firm CSP based on the framework of the antecedents of green innovation. By conducting a cross‐lagged analysis of more than 370 European B Corps—a growing form of social enterprise, this paper investigates how firm CSP is impacted by the regulatory framework, the technological capacity, and the demand pressures of the country in which it is embedded. Our findings support that the presence of technological and innovation capacities and of demanding, conscious customers are the two most important country‐level factors impacting CSP. Results bespoke of the importance to develop a policy approach that supports the development of technological skills at the firm's level and the awareness at the demand level, rather than emphasizing a stricter regulation.