When Does Corporate Social Performance Pay for International Firms?

Alan Muller*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

7 Citations (Scopus)
201 Downloads (Pure)

Abstract

How does corporate social performance (CSP) affect financial performance as the firm expands internationally? To address this question, I integrate arguments from the International Business (IB) literature and the literature on CSP to propose that the costs and benefits associated with CSP are unevenly distributed across the range of internationalization. Specifically, I argue that the costs of CSP outweigh the benefits at low levels of internationalization, while the benefits outweigh the costs at high levels of internationalization, leading to a moderated, U-shaped relationship. In addition, I disentangle CSP’s effects further by distinguishing between “do-good” CSP and “do-no-harm” CSP, which have been theorized to evoke different stakeholder perceptions and attributions and can thus be expected to harbor different performance effects across the range of internationalization. Analysis of a panel of 1,056 US-based international firms over the period 1995-2012 lends support to these arguments.
Original languageEnglish
Pages (from-to)1554-1588
Number of pages35
JournalBusiness & Society
Volume59
Issue number8
Early online date12-Dec-2018
DOIs
Publication statusPublished - 4-Nov-2020

Keywords

  • corporate social performance
  • financial performance
  • internationalization
  • FINANCIAL PERFORMANCE
  • INSTITUTIONAL THEORY
  • UNITED-STATES
  • RESPONSIBILITY
  • DIVERSIFICATION
  • LEGITIMACY
  • FOREIGNNESS
  • CSR
  • MULTINATIONALITY
  • REPUTATION

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