2016
DOI: 10.1111/emre.12098
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Corruption, Corporate Social Responsibility and Financial Constraints: International Firm‐level Evidence

Abstract: This study examines the relationship between firm‐level factors including corporate social responsibility (CSR) performance and financial constraints, and the firm‐level risk of corruption. Facing a measurement challenge referring to firm‐level risk of corruption, we define a corruption score based on corporate disclosures of corrupt activities. We show that, first, CSR performance is negatively related to the risk of corporate corruption. Second, a firm's vulnerability to financial constraints is positively r… Show more

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Cited by 66 publications
(118 citation statements)
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References 110 publications
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“…Consistent with expectations, we found a positive relationship between GHRM and adopting CSR practices. This result consistent with the findings of many studies that investigate the critical role of HRM in making organizations more socially and environmentally responsible (Peña‐Vinces and Delgado‐Márquez, ; Tariq et al ., ; Breitbarth et al ., ; Szczepańska‐Woszczyna, ; Consoli et al ., ; Gholami et al ., ; Pinzone et al ., ; Shnayder et al ., ; Teixeira et al ., ; Lopatta et al ., ; Masri and Jaaron, ; Nejati et al ., ).…”
Section: Discussionmentioning
confidence: 99%
“…Consistent with expectations, we found a positive relationship between GHRM and adopting CSR practices. This result consistent with the findings of many studies that investigate the critical role of HRM in making organizations more socially and environmentally responsible (Peña‐Vinces and Delgado‐Márquez, ; Tariq et al ., ; Breitbarth et al ., ; Szczepańska‐Woszczyna, ; Consoli et al ., ; Gholami et al ., ; Pinzone et al ., ; Shnayder et al ., ; Teixeira et al ., ; Lopatta et al ., ; Masri and Jaaron, ; Nejati et al ., ).…”
Section: Discussionmentioning
confidence: 99%
“…This ownership separation may create conflict between the two parties, with managers' self-interest giving rise to informal and illegal activities. Short-term opportunistic managers are likely to be involved in unlawful and corrupt behavior that may damage a firm's reputation and governance ability [49,50]. Therefore, external directors are required to monitor the activities of insiders and to communicate with stakeholders.…”
Section: Theoretical Background and Hypothesesmentioning
confidence: 99%
“…Being CSR a multidimensional variable it is important to carry a consistent CSR engagement strategy in order to build stakeholder confidence, as the literature has regularly stressed (e.g., Tang et al, ). A better CSR performance may even lower the firms' exposure to corruption (Lopatta et al, ).…”
Section: Introductionmentioning
confidence: 99%