Do political incentives promote or inhibit corporate social responsibility? The role of local officials' tenure.

ABSTRACT: The existing literature on corporate social responsibility (CSR) drivers focuses on firm- and institution-level factors and rarely on the role of political incentives. Public officials control enormous resources in China, and their political incentives substantially shape certain firm behaviors. As CSR is one of the critical measures that the central government uses to evaluate the performance of local government, local officials have the incentive to channel firms into accomplishing their political goals. Correspondingly, local firms may strategically implement CSR to build a good relationship with local governments. This study investigates the impact of local officials' political incentives (measured by tenure) on firms' CSR. Using a panel of publicly listed Chinese firms covering 2009-2

SUBMITTER: Wu Y 

PROVIDER: S-EPMC10022816 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature