Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2024
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
Strategy and Organisation; Corporate Governance, Auditing and Risk Management
Publication
Journal of Business Ethics
Volume
192
First Page
285
Last Page
306
ISSN
0167-4544
Identifier
10.1007/s10551-023-05511
Publisher
Springer
Citation
KIM, Changhyun; ZANG, Yoonseok; WANG, Heli; and NIU, Kate.
When do corporate good deeds become a burden? The role of corporate social responsibility following negative events. (2024). Journal of Business Ethics. 192, 285-306.
Available at: https://ink.library.smu.edu.sg/soa_research/2014
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Additional URL
https://doi.org/10.1007/s10551-023-05511
Included in
Accounting Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons, Strategic Management Policy Commons