Publication Type

Journal Article

Version

publishedVersion

Publication Date

8-2023

Abstract

This study investigates the differential roles of corporate social responsibility (CSR) in the context of negative events. By categorizing CSR and negative events by their respective stakeholder groups, primary and secondary stakeholders, we theorize and test differential impacts of CSR and their interaction effects with different types of negative events. We propose that, while CSR toward secondary stakeholders offers the monotonous risk-tempering effect, CSR toward primary stakeholders has heterogeneous effects when facing negative events. Specifically, the effect of CSR toward primary stakeholders varies with the type of negative events. When negative events are associated with secondary stakeholders in the domain of morality, CSR toward primary stakeholders presents a risk-amplifying effect. When the negative events are associated with primary stakeholders in the domain of capability, however, CSR toward primary stakeholders does not present a significant risk-amplifying effect. In contrast, CSR toward secondary stakeholders presents the risk-tempering effect regardless of the type of negative events. We find general support for these arguments when we analyze the market responses to the news events of RepRisk, which provides data of various corporate negative events covered by the media.

Keywords

Corporate Social Responsibility, Information-processing mode, Negative events

Discipline

Accounting | Business Law, Public Responsibility, and Ethics | Corporate Finance | Strategic Management Policy

Research Areas

Corporate Governance, Auditing and Risk Management; Strategy and Organisation

Publication

Journal of Business Ethics

First Page

1

Last Page

22

ISSN

0167-4544

Identifier

10.1007/s10551-023-05511-z

Publisher

Springer

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Additional URL

https://doi.org/10.1007/s10551-023-05511-z

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