Abstract
Although corporate social responsibility (CSR) has attracted increasing attention in recent years, systematic studies on the CSR of Chinese enterprises are absent from academic publications. This study examines the effects of family involvement in the CSR of private enterprises. Using private enterprise data in China, the article reveals that, on the one hand, family involvement will improve CSR investment toward community stakeholders; on the other hand, family involvement has a negative effect on the CSR of contractual stakeholders. With the influence of “chaxu geju,” the author argues that Chinese families tend to shift between different logics of behavior when faced with people with whom they have different types of relationships and incorporate this behavioral mode into company practices when they engage themselves in management and business affairs.
Highlights
In recent years, corporate social responsibility (CSR) has drawn increasing social concern and academic interest in China due to the frequent occurrence of public events, such as the environmental movement, food safety incidents, and labor protests
One of the most representative characteristics is explained by the theory of socioemotional wealth (SEW), which suggests that compared with nonfamily businesses, family businesses pay more attention to socioemotional wealth and are more active in fulfilling CSR (Gómez-Mejía et al 2011)
Since the interest demands of the two groups of stakeholders are not the same, the family in charge of the enterprise will decide how to perform the corresponding social responsibility based on different motives, resulting in the diversification of the influence of family involvement on CSR
Summary
Corporate social responsibility (CSR) has drawn increasing social concern and academic interest in China due to the frequent occurrence of public events, such as the environmental movement, food safety incidents, and labor protests. One of the most representative characteristics is explained by the theory of socioemotional wealth (SEW), which suggests that compared with nonfamily businesses, family businesses pay more attention to socioemotional wealth and are more active in fulfilling CSR (Gómez-Mejía et al 2011). This argument is supported by some empirical studies (Dyer and Whetten 2006; Zhou 2011). Since the interest demands of the two groups of stakeholders are not the same, the family in charge of the enterprise will decide how to perform the corresponding social responsibility based on different motives, resulting in the diversification of the influence of family involvement on CSR. Based on the research results, we will further discuss the influence of Chinese families and the internal characteristics of Chinese society on the behavior of private enterprises in China
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