Publication Type
Journal Article
Version
acceptedVersion
Publication Date
11-2021
Abstract
Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers. Our findings suggest a unilateral effect on corporate social responsibility (CSR) only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision-making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future sales growth.
Keywords
Corporate social responsibility, Corporate customers, Global supply chains, Economic benefits
Discipline
Corporate Finance | Finance | Finance and Financial Management
Research Areas
Finance
Publication
Journal of Financial Economics
Volume
142
Issue
2
First Page
598
Last Page
626
ISSN
0304-405X
Identifier
10.1016/j.jfineco.2020.01.003
Publisher
Elsevier
Citation
DAI, Rui; LIANG, Hao; and NG, Lilian.
Socially responsible corporate customers. (2021). Journal of Financial Economics. 142, (2), 598-626.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6640
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jfineco.2020.01.003