External corporate social responsibility and labor productivity: A S‐curve relationship and the moderating role of internal CSR and government subsidy

Abstract

Prior studies suggest that external corporate social responsibility (CSR) practices could lead to positive responses from employees, but little attention has been paid to its potential negative impacts on employees' responses. To have a comprehensive understanding of the relationship in question, we propose that there is a S‐curve relationship between external CSR and labor productivity. Found on samples of Chinese listed firms during the period from 2011 to 2017, we have drawn some conclusions as follows. First, there is a S‐curve relationship between external CSR practices and labor productivity, with labor productivity declining at low and high levels of external CSR but increasing at moderate level of external CSR. Second, internal CSR will moderate the relationship between external CSR and labor productivity that firms affiliated with high internal CSR are more likely to perform better in terms of labor productivity than firms with low internal CSR. However, the proposed negative moderating role of government subsidy on the relationship in question is not supported. It is the match between government subsidy and external CSR that may predict labor productivity.

Corporate Social Responsibility: Business Responses to Coronavirus (COVID-19) Pandemic

“…For employees' protection, our sampled companies have utilized nine board based mechanisms such as work from home/remote work policy (60%), cleaning conventions and hygiene protocols (56%), use of PPE (40%), health ascended quarantine (24%), and social distancing practices and travel restriction (36%), as well as offering, paid leave and sick pay with health care benefits (48%), premium/bonus (16%), employee volunteerism engagement benefits (36%), and employee relief programs (20%). These internal CSR initiatives demonstrate that employers show respect to their employees during this critical time (Deng et al, 2020). have closed their regular business operations as those are considered non-essential in this critical period.…”

“…The diverse CSR definitions reflect different types of stakeholder groups, such as internal and external stakeholders and society on a large scale (Costa & Menichini, 2013). Deng et al (2020) classify CSR as internal and external CSR. Internal CSR refers to "formal CSR initiatives within which employees can participate and reap developmental benefits which show employers' respect to their employees," and external CSR refers to "the practices focused on stewardship toward the local community, the natural environment, and consumers" (Deng et al, 2020).…”

“…Deng et al (2020) classify CSR as internal and external CSR. Internal CSR refers to "formal CSR initiatives within which employees can participate and reap developmental benefits which show employers' respect to their employees," and external CSR refers to "the practices focused on stewardship toward the local community, the natural environment, and consumers" (Deng et al, 2020). Carroll (1979) argues that a company's social responsibility covers the discretionary, ethical, legal, and economic expectations that humanity has of organizations at a particular point in time.…”

The Effect of Technology Innovation on Corporate Sustainability in Chinese Renewable Energy Companies

“…Soltani-Sobh et al (2017) consider that the government incentives are positively correlated with the Electric vehicle market share growth in the US. Deng et al (2020) divide government subsidies into selective subsidies and non-selective subsidies, suggesting that selective subsidies can help companies maintain high performance, while the effectiveness of non-selective subsidies depends on the intensity of regional legal protection and market competition. Besides, some scholars point out that the government will also promote .…”

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“…Based on stakeholder theory, companies must respond to the needs of stakeholders when making decisions to gain a competitive advantage (Roy and Goll, 2014). Therefore, the focus of stakeholders' concerns will affect the operating direction of companies, especially those that have received government subsidies (Deng et al, 2020). With the increasing attention paid to the environment and society, to obtain government subsidies, companies will carry out more innovative activities to take more environmental and social responsibility, and companies that have received subsidies will also actively indicate to stakeholders that they attach importance to SES .…”