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The effects of political orientation on corporate social (ir)responsibility

Nara Jeong (Department of Management, College of Business, San Francisco State University, San Francisco, California, USA)
Nari Kim (Department of Economics and Business, Lehman College, Bronx, New York, USA)

Management Decision

ISSN: 0025-1747

Article publication date: 14 November 2019

Issue publication date: 14 January 2020

607

Abstract

Purpose

The purpose of this paper is to examine the effects of political orientation on corporate social (ir)responsibility. In specific, it investigates CEO political liberalism, and its moderation with government political liberalism on corporate social responsibility (CSR) and corporate social irresponsibility (CSIR).

Design/methodology/approach

Panel regression analysis was conducted using 3,136 firm-year observations of 751 CEOs in the USA.

Findings

Results show that the effects of CEO liberalism are positive on CSR and negative on CSIR. During the reign of a democrat president, however, CEO political liberalism shows different impacts on CSR and CSIR. Interactions between the same political orientations are negatively associated with CSR, but not significantly associated with CSIR.

Originality/value

The primary contribution of this paper is in presenting the interactive effects of external environment and CEO attributions on CSIR.

Keywords

Citation

Jeong, N. and Kim, N. (2020), "The effects of political orientation on corporate social (ir)responsibility", Management Decision, Vol. 58 No. 2, pp. 255-266. https://doi.org/10.1108/MD-06-2019-0713

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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