Abstract

Many businesses have implemented corporate social responsibility (CSR) initiatives in the last few decades, spawning a substantial body of research on the drivers of adoption. Yet, firms that adopt can vary tremendously in their post-adoption trajectories. While some firms remain committed, others eventually reduce their support for CSR or disengage entirely. Given the range of possible outcomes following initial adoption, as well as the likelihood that short-lived CSR efforts have little impact, it is important to understand the factors that lead firms to step back from their CSR efforts. In this paper, we propose that a firm’s status or social standing plays a central role in distinguishing firms that reduce or withdraw their support for CSR from those that persist. Drawing on middle-status conformity theory, we argue that higher-status and lower-status firms will be more likely to reduce support for their CSR programs, compared to firms with middling status. We test and find support for our arguments using a unique dataset of law firms’ provision of benefits supporting pro bono work, a major employee-related type of CSR. Overall, our examination of the antecedents of CSR abandonment contributes to a more comprehensive picture of CSR activity in firms.

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