CSR, social ties and firm performance
ISSN: 1472-0701
Article publication date: 18 July 2019
Issue publication date: 19 November 2019
Abstract
Purpose
This paper aims to explore the effect of social ties on the relationship between corporate social responsibility (CSR) and firm performance in Korea.
Design/methodology/approach
Social ties were measured from firm disclosures of 318 Korean firms from 2012 to 2015. Propensity score matching and regression analysis were used to investigate the moderating effects of social ties on the relationship between CSR and firm performance.
Findings
The result shows that social ties have more negative moderating effects on the relationship between CSR and firm performance in Chaebol firms than in non-Chaebol firms.
Practical implications
Firms need to enhance the monitoring of social ties within board members to assure the proper oversight of CSR.
Originality/value
This paper contributes to the CSR literature by providing empirical evidence of the negative aspects of social ties on the relationship between CSR and firm performance in Korea.
Keywords
Citation
Jang, S.S., Ko, H., Chung, Y. and Woo, C. (2019), "CSR, social ties and firm performance", Corporate Governance, Vol. 19 No. 6, pp. 1310-1323. https://doi.org/10.1108/CG-02-2019-0068
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited