The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness

Servaes, Henri; Tamayo, Ane

doi:10.1287/mnsc.1120.1630

Cited by 1,831 publications

(1,360 citation statements)

References 44 publications

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“…We also find evidence that firms with higher advertising intensity are less likely to donate. This result may suggest that when donation is somewhat coercive or demanded by the government, it does not function as a complement to advertising like it does in developed economies (Servaes and Tamayo 2013). Finally, the percentage of firms that donated in the same industry and the average amount of donation in the same industry are positively associated with the likelihood and amount of donation respectively, indicating an imitation effect.…”

Section: Level Of State Monopolymentioning

confidence: 93%

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Zhang

Marquis

Qiao

2016

Organization Science

306

348

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D o political connections buffer firms from or bind firms to the government? To examine this theoretical puzzle, we distinguish two types of managerial political connections, ascribed and achieved, and theorize that these different types of ties either buffer firms from or bind firms to government demands. Furthermore, we propose that these effects are contingent on both industrial and regional institutional conditions. We test our framework with a unique panel data set of privately controlled listed firms' charitable donations in China from 2001 to 2012. We find that firms whose executives have ascribed bureaucratic connections are more likely to use their connections as a buffer from governmental donation pressure, particularly in competitive industries and less market-oriented regions, whereas in state-monopolized industries this buffering effect is reduced. In contrast, achieved political connections are more likely to serve a binding function that facilitates donation, particularly in state-monopolized industries and more market-oriented regions, but in less marketoriented regions, they buffer firms from the pressure to donate. Our research contributes to the literatures on the effects of political connections, the institutional contingencies of political connections, and the relationship between corporate social responsibility (CSR) and corporate political activities (CPA).Keywords: political connections; corporate charitable donation; resource dependence; institutional environment History: Published online in Articles in Advance September 29, 2016. IntroductionAs institutional linkages that span firms and governmental authorities, firms' political connections are a key component of corporate political strategy in both developed and emerging economies (Hillman 2005, Hillman et al. 1999, Peng and Luo 2000. However, the effects of political connections on firm behavior and outcomes are not clear (Sun et al. 2012). Many studies focus on the benefits from such linkages and indicate that political connections have a "buffering" effect; that is, they provide a buffer for the organization from competitive and regulatory forces via access to information, influence, and legitimacy (Hillman 2005, Hillman et al. 1999, Lester et al. 2008, Peng and Luo 2000. Research has shown that firms can employ their political capital to shield themselves from unwanted political interference, unfavorable regulations, and/or various forms of government rent expropriation (Mellahi et al. 2016). Even in the United States, political connections have been shown to help firms when they deal with regulators (Correia 2014, Yu andYu 2011). In emerging markets, such a buffering effect is seen as an effective mechanism to protect firms from government rent-seeking behavior (Chen et al. 2011, Dieleman andBoddewyn 2012).In contrast, other studies consider these connections from the perspective of the government and emphasize the necessary costs of such linkages for the firm. From this perspective, political connections have a "binding" effect, ...

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Section: Level Of State Monopolymentioning

confidence: 93%

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Zhang

Marquis

Qiao

2016

Organization Science

306

348

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“…Higher levels of advertising increase customers' brand awareness and may stimulate customers to become further informed about the brand, including its CSR policies. Advertising specifically related to CSR may improve consumer awareness of a brand's CSR, thus enhancing the impact of CSR, although advertising featuring CSR may also backfire (Servaes and Tamayo 2013;Yoon et al 2006).…”

Section: Conceptual Developmentmentioning

confidence: 99%

The impact of corporate social responsibility on customer attitudes and retention—the moderating role of brand success indicators

et al. 2017

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Although many studies report positive effects of corporate social responsibility (CSR) on customer attitudes, recent literature shows that the effectiveness of CSR initiatives critically varies among consumers, brands, and companies. Using 1375 customer responses about 93 brands in 18 industries, we examine how perceived CSR relates to customer attitudes and actual retention 2 years later, and specifically how this relationship may be contingent on brand characteristics. Our results indicate that perceived CSR can indeed compensate for the absence of a strong brand or smaller advertising budgets, but not for lack of innovativeness. Companies that simultaneously do good and innovate are rewarded with more positive customer attitudes and higher levels of customer retention.

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“…These measures have been criticized due to their reduced ability of using for comprehensive performance measurement. Value based management system came up with an innovation in the form of indicator EVA (Sharma & Kumar, 2010).…”

Section: Financial Business Performance Measurement Systemmentioning

confidence: 99%

Influence of business performance measurement systems and corporate sustainability concept to overal business performance: “save the planet and keep your performance”

Rajnoha¹,

Lesníková²,

Krajčík³

2017

E+M

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The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness

Cited by 1,831 publications

References 44 publications

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

The impact of corporate social responsibility on customer attitudes and retention—the moderating role of brand success indicators

Influence of business performance measurement systems and corporate sustainability concept to overal business performance: “save the planet and keep your performance”

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