The effect of national culture on corporate social responsibility in the hospitality industry

Abstract

PurposeThis study aims to examine the effects of different dimensions of national culture on corporate social responsibility (CSR) activities of hospitality firms, including lodging, casino and restaurant firms.Design/methodology/approachThis study performs a panel regression analysis to examine the effect of Hofstede’s national culture dimensions on the total CSR score, positive CSR score and negative CSR of the sampled hospitality firms. The sample period spans fiscal years 1993 to 2011and 365 firm-year observations are used for the study’s analysis.FindingsThis study finds a positive and significant effect of uncertainty avoidance on the total CSR score. Further, the study’s results show a positive and significant effect of power distance both on positive and negative CSR scores, while individualism appears to have a negative and significant effect both on positive and negative CSR scores. Masculinity reveals a negative and significant effect on the positive CSR score.Research limitations/implicationsAlthough the study’s results may not be generalizable to private or non-hospitality firms, according to the findings, multinational hospitality firms are encouraged to conceive a CSR portfolio consisting of localized CSR strategies that consider the effects of national culture on CSR.Originality/valueThis study contributes to the body of hospitality literature by filling the void regarding the relationship between national culture and CSR. At the same time, the findings of this study serve as guidelines for multinational hospitality firms’ implementing CSR activities.