A tale of two forms of CSR: A multi-level approach to compare the impact of implicit and explicit CSR on social performance

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2019-07-11
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en
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During the last few decades, scholars noticed a discrepancy in how firms approach and communicate their corporate social responsibility (CSR) efforts in different countries. Two forms of CSR have been distinguished: implicit and explicit CSR. Based on the implicit-explicit framework, this study aims to find evidence for which of the two forms of CSR has a stronger positive effect on social performance. In addition, this study aims to provide more insights into the role of managers in this framework by testing whether CSR targets in executive remuneration have a moderating effect on the relationship between implicit and explicit CSR and social performance. Based data of 456 firms included in the ASSET4 database, the hypotheses are being tested using multiple regression analysis. The results indicate that explicit CSR has a stronger positive effect on social performance than implicit CSR. As explicit CSR is often pursued in countries where informal institutions are the most powerful stakeholders of a firm, this may have major implications for the role that governments take in stimulating social performance. Contradictory to earlier research, the results show no empirical support for a moderating effect of CSR targets in executive remuneration.
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Faculteit der Managementwetenschappen