Abstract
Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm’s ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR’s performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms’ long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms’ long-term growth. This study first explores the impacts of CSR’s different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research.
Highlights
The turbulent changes in today’s business environment, such as economic recessions, discontinuous technologies, non-traditional competitors, and regulatory upheavals, have increasingly attracted attentions to organizational resilience [1]
According to the objectives mentioned above, this paper is structured as follows: First, we present a review of extant literature, which includes how to conceptualize and operationalize organizational resilience as the ability to realize high growth and low financial volatility over time, and how to formulate our hypotheses about the influence of corporate social responsibility (CSR) and its five specific dimensions on organizational
We examine the impacts of CSR and its five specific dimensions on organizational resilience, which results in six independent variables, i.e., total CSR, shareholder, employee, business, environment, and society-related CSR
Summary
The turbulent changes in today’s business environment, such as economic recessions, discontinuous technologies, non-traditional competitors, and regulatory upheavals, have increasingly attracted attentions to organizational resilience [1] Both academics and practitioners have been widely discussing and exploring how companies can effectively respond to environmental changes, so as to maintain high-level financial performance over a long term [2]. According to the objectives mentioned above, this paper is structured as follows: First, we present a review of extant literature, which includes how to conceptualize and operationalize organizational resilience as the ability to realize high growth and low financial volatility over time, and how to formulate our hypotheses about the influence of CSR and its five specific dimensions on organizational. We summarize our research findings, and discuss theoretical contributions, managerial implications, limitations and directions for future research
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