Abstract

This study investigates the effects of institutional qualities on Corporate Social Responsibility (CSR) engagement from a global perspective. We examine CSR engagement across 83 developed and developing economies focussing on four potential institutional drivers: (a) the rule of law, (b) economic financial development, (c) human capital formation and, (d) exposure to international trade. We find that the level of human capital formation and exposure to international trade is positively associated with CSR engagement in both developing and developed economies. However, the rule of law was only associated with CSR engagement in developing economies while the level of economic financial development was only associated with CSR engagement in developed economies. We conclude that improving the level of human capital formation and encouraging international trade is important for the overall social well-being of all economies while developing economies can further encourage CSR engagement by enhancing their rule of law.

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