As more and more multi-national companies expand their operations globally, their responsibilities extend beyond not only the economic motive of profitability but also other social and environmental factors. The objective of this article is to examine the impact of national culture and geographic environment on firms' corporate social performance (CSP). Empirical tests are based on a global CSP database of companies from 49 countries. Results show that the Hofstede's cultural dimensions are significantly associated with CSP. In addition, European companies are found to outperform other regions and countries in CSP.

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Purpose Firm size has been identified as one of the most important correlates with corporate social performance (CSP). Both conceptual and empirical research has been done to try to explicate and determine this relationship; however, the results from both theoretical and empirical research have indicated a mixed and sometimes inconsistent relationship because of endogeneity between firm size and CSP. This paper aims to add to the body of knowledge by identifying and addressing some of the limitations in determining the relationship between firm size and CSP. Design/methodology/approach Using the Arellano–Bond method to control for the endogeneity, this study tests the relationship between CSP and firm size using a panel of 380 public companies of various sizes; in various industry types; and across 19 countries in North America, Europe and Asia over a six-year period. Findings The results of the study show that firm size positively influences CSP and its subcomponents when endogeneity has been controlled for. Research limitations/implications This study lends support for the theory of the firm framework that CSP attributes are embedded in the production process that leads to higher economies of scale, and the resource-based view of firms where firms that possess valuable and inimitable resources in CSR can lead to a sustainable competitive advantage over competitors. This suggests that as firms grow in size, they can leverage their resources to achieve greater economies of scale that will lead to better CSP over time. Originality/value This study addresses the potential endogeneity problem between firm size and CSP and offers a broader testing context.

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PurposeThe purpose of this research is to empirically test the interrelationship between corporate social performance and financial‐based brand equity. This paper proposes that social performance leads to enhanced brand equity and, conversely, brand equity positively influences social performance. Firm size is hypothesized to play a moderating role in the interrelationship.Design/methodology/approachThis paper uses cross‐sectional, secondary data of global brands. A system of equations is proposed and estimated using seemingly unrelated regression.FindingsPrior social performance has a positive effect on brand equity, but brand equity only impacts future social performance among very large firms. The positive effect of prior social performance on brand equity is amplified in smaller firms.Practical implicationsManagers can increase brand equity by using corporate social responsibility as a strategic tool for positioning differentiation. To maintain competitive parity in social positioning and preserve brand equity, very large firms will likely need to ensure that they achieve comparable social performance as their global peer competitors.Originality/valueThis research offers a new perspective that looks at corporate social responsibility as a source and outcome of brand equity. The paper is the first empirical study that tests the interrelationship between social performance and financial‐based brand equity. The work offers global managers an improved understanding on how social responsibility relates to brand equity.