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Political connections and corporate social responsibility reporting in Portugal

Maria Teresa Bianchi (Faculty of Economics, University of Porto, Porto, Portugal)
Patrícia Monteiro (Higher Institute for Accountancy and Administration, University of Aveiro, Aveiro, Portugal)
Graça Azevedo (Higher Institute for Accountancy and Administration, University of Aveiro, Aveiro, Portugal)
Jonas Oliveira (Business Research Unit, University Institute of Lisbon, Lisboa, Portugal)
Rui Couto Viana (Faculty of Economics, University of Porto, Porto, Portugal)
Manuel Castelo Branco (Faculty of Economics, University of Porto, Porto, Portugal)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 7 October 2019

662

Abstract

Purpose

This paper aims to examine the relation between firms’ political connections and corporate social responsibility (CSR) reporting in Portugal. The authors argue that in settings where the existence of political connections are viewed as damaging collective interests of stakeholders, political connected firms can deal with legitimacy issues from such connections by resorting to CSR practices and the reporting thereof.

Design/methodology/approach

Using archival data from a panel sample of 36 firms from Portugal between 2009 and 2012, the authors examine the relationship between political connections and CSR reporting by way of regression analysis.

Findings

The authors find a positive relationship between political connections and CSR reporting.

Originality/value

This study draws on legitimacy theory to highlight that CSR can be used to deal with stakeholder activism and vigilance pertaining to suspicion related to the existence of political connections.

Keywords

Citation

Bianchi, M.T., Monteiro, P., Azevedo, G., Oliveira, J., Viana, R.C. and Branco, M.C. (2019), "Political connections and corporate social responsibility reporting in Portugal", Journal of Financial Crime, Vol. 26 No. 4, pp. 1203-1215. https://doi.org/10.1108/JFC-10-2018-0111

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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