Bouncing Back from Contingency: Pensions Insurance, Corporate Social Responsibility, and Organizational Resilience

Abstract

Numerous researchers acknowledge that occupational pension protects employees. However, the total occupational pension is shared by employees and employers in China, which is a cost. This study aimed to explore the occupational pension on corporate social responsibility (CSR) and organizational resilience. We drew upon insights from cost-stickiness and resource-based theories to develop a model that illuminates how occupational pension affected firms’ stance toward CSR in the context of the COVID-19 pandemic and how this, in turn, has result organizational resilience. This study categorized CSR into strategic and responsive activities based on cost stickiness. We selected a total of 34,145 observations of Chinese listed companies over the period 2010-2023 as a sample to investigate whether occupational pension changes CSR strategies. The results showed that the cost pressure to contribute to occupational pension drove firms to reduce their responsive CSR and boost their strategic CSR. Moreover, strategic CSR improved organizational resilience, but responsive CSR did not. This relationship between occupational pension and CSR was significantly and negatively moderated by the minimum wage and population aging. Whereas, the relationship between CSR and organizational resilience was significantly and positively moderated by digital transformation and marketing capabilities. This study has implications for decision-making regarding high-quality firm development.