Investigating corporate social irresponsibility: Explaining the effect of compliance and integrity

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2024-07-02

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en

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This study investigated the effect of compliance and/or integrity on Corporate Social Responsibility (CSiR) accusations. With more focus on long-term social value than short-term economic value (Hussain et al., 2023), Corporate Social Responsibility (CSR) or “doing good” (Carroll & Shabana, 2010), gained much attention in academic literature (Carroll & Shabana, 2010; Freeman & Hasnaoui, 2011). Regardless of CSR commitment, organizations are often associated with CSiR (Lin-Hi & Müller, 2013; Strike et al., 2006). Although, empirical evidence has revealed the existence of irresponsible behavior and its consequences, little focus on CSiR in academic research remains (Riera & Iborra, 2017). How CSR is embedded in the core activities of an organization determines to what extend ethical behavior is encouraged (Treviño et al., 1998). Therefore, this study aimed to investigate the effect of a compliance and/or integrity strategy on CSiR accusations. For this purpose, five panel analyses were conducted with secondary data of organizations over a time period of five years. The findings revealed no significant relation between compliance and/or integrity and CSiR accusations or evidence that this relation is moderated by firm size. This study contributes to the existing literature by providing statistical evidence that the relation between compliance/integrity and CSiR accusations (Pain, 1994; Treviño et al., 1999) and the moderation of firm size in this relation (Wickert, 2016), might not be as straightforward as prior research has suggested. Nonetheless, statistical evidence is provided for additional factors influencing CSiR accusations as suggested in academic literature (Redding, 2005; Campbell, 2007; Bruton et al., 2010; Sweeney & Coughlan, 2008). Furthermore, the limitations of this study consisted of data availability, interpretation of the retrieved data, used methods and additional analysis for fixed and random effects. Lastly, the directions for further research include extending the research to other countries outside the EU and providing a deeper exploration of the institutional context to explain differences across countries and industries.

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Faculteit der Managementwetenschappen