Corporate Social Responsibility, Advertising Intensity, and Performance: The Importance of National Philanthropic Environments

Abstract

This study investigates the relationships among Corporate Social Responsibility (CSR), advertising intensity, and performance in different national philanthropic environments. National philanthropic environment is defined as the propensity of a nation to be philanthropic. Employing institutional theory, we hypothesize that (1) advertising intensity mediates the CSR/performance relationship, (2) national philanthropic environment moderates the relationship between CSR and advertising intensity, and (3) national philanthropic environments moderate the relationship between advertising intensity and performance. Using a sample of 262 firms from 10 countries, the results support the moderated mediation model. We demonstrate that the success of CSR programs depends on their effective integration with advertising intensity. However, this dynamic is relevant only in countries with higher levels of national philanthropic environment. Thus, strategic managers should increase advertising intensity as CSR increases to ensure a positive effect on performance, but only in countries with high national philanthropic environments.