Corporate social network and corporate social responsibility: A perspective of interlocking directorates

Abstract

This study aims to analyze the role of the corporate social network (CSN) derived from interlocking directors on a firm's corporate social responsibility (CSR) and further investigate the moderating role of economic policy uncertainty (EPU) in the institutional background of China. Empirical results show that an advantageous network position in a CSN can significantly encourage firms to undertake CSR. However, this effect is a nonlinear one. The increase in CSR is at a decreasing rate as CSN increases. Furthermore, the effect of CSN on CSR is less salient when EPU is high. This research guides managers on using the advantages of firms in CSNs and actively undertaking CSR to improve social and environmental sustainability substantially. In addition, this study also helps the government issue reasonable CSR evaluation standards and incentive policies and stabilize macroeconomic policies.