Abstract
Theory offers differing perspectives and predictions about the impact of product market competition on corporate social responsibility (CSR). Using firm-level data on CSR from 2002 through 2015 and panel data on competition laws in 48 countries, we discover that intensifying competition induces firms to increase CSR activities as a strategy for strengthening relationships with workers, suppliers, and customers. The CSR-enhancing effects of competition depend on corporate ownership, with smaller effects among block-holders with shorter horizons (e.g., hedge funds) and among family-controlled firms. Furthermore, the competition-CSR effect is stronger (a) among less financially constrained firms that are better positioned to boost CSR activities and (b) in economies where social norms prioritize CSR activities, as this is where the relationship building effect of CSR are likely to be the greatest.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
