Does a Religious Atmosphere Impact Corporate Social Responsibility? A Comparative Study between Taoist and Buddhist Dominated Atmospheres

Abstract

The impact of religion on business has attracted cross-academic attention in recent years. Does the religious atmosphere impact corporate social responsibility (CSR)? This study addressed this question using a sample of Chinese-listed companies from 2010 to 2018. Our findings reveal that firms in regions with a Taoist-dominated religious atmosphere are more charitable and less environmentally invested. In contrast, firms with a Buddhist-dominated religious atmosphere are more ecologically engaged and less charitable. This study extends the literature on the impact of the informal institutional environment on corporate social responsibility by distinguishing the heterogeneity of the impact of Buddhist- and Taoist-dominated religious atmospheres on CSR. It also provides a new perspective for enterprises to formulate corporate social responsibility strategies based on the regional cultural environment. And it also enriches the application of informal institutional theory to the fields of management and religion.