Understanding the dynamic relationships between CSR and CSIR

Abstract

Purpose

Corporate social responsibility (CSR) and corporate social irresponsibility (CSIR) co-exist within many firms. Yet, without understanding how CSR and CSIR are related, our knowledge of these concepts is incomplete. This study initiatively explores four relationships between prior CSR/CSIR and subsequent CSR/CSIR.

Design/methodology/approach

This study uses the KLD database as the source of measures on CSR and CSIR. The final sample contains 1,820 firms and 14,420 firm-year observations from 1991 to 2013. The Arellano—Bond GMM estimator is used to test the hypotheses.

Findings

The empirical analyses yield the following results: (1) a positive relationship between prior CSR and subsequent CSR, (2) a negative relationship between prior CSR and subsequent CSIR, (3) a positive relationship between prior CSIR and subsequent CSR and (4) a positive relationship between prior CSIR and subsequent CSIR.

Research limitations/implications

This study provides comprehensive evidence of the dynamic relationships between CSR and CSIR by incorporating multiple relationships between these variables into a single study. It also identifies key contexts that shape these relationships and identifies several promising areas of further inquiry.

Originality/value

This study is the first to examine the dynamic CSR – CSIR relationships in a single study. Most previous studies investigate either CSR or CSIR; few studies have incorporated them into one study.

Citation

Shao, F., Murrell, A.J., Zhao, X., Zhang, K. and Hart, T.A. (2021), "Understanding the dynamic relationships between CSR and CSIR", Journal of Strategy and Management, Vol. 14 No. 4, pp. 545-561. https://doi.org/10.1108/JSMA-03-2020-0050