Do Distinct CSR Categories have Distinct Determinants? The Roles of Market Structure and Firm Size

• Published date: 01 March 2020
• Date: 01 March 2020
• Author: Daniela Rodrigues Acabado,Margarida Catalão‐Lopes,Ana Sofia Branca,Joaquim Pires Pina
• DOI: http://doi.org/10.1111/emre.12341

Do Distinct CSR Categories have Distinct

Determinants? The Roles of Market Structure

andFirmSize

DANIELA RODRIGUES ACABADO,

1

ANA SOFIA BRANCA,

2

MARGARIDA CATALÃO-LOPES

2

and JOAQUIM PIRES PINA

3

1

Instituto Superior Técnico, Universidade de Lisboa, Portugal

2

Centre for ManagementStudies of Instituto Superior Técnico (CEG-IST), Instituto Superior Técnico,

Universidade de Lisboa, Portugal

3

Departamento de Ciências Sociais Aplicadas, CEFAGE-FCT/UNL, Faculdade de Ciências Tecnologia,

Universidade NOVA de Lisboa, Portugal

Despite the existing vast literature on corporate social responsibility (CSR), there is a lack of research on the

determinantsof CSR categories –environment,employees, community,and governance. Why do somefirms dedicate

more effort to community, while others focus on environment or employees? We address these issues with special

attention to the roles of market structure and firm size, controlling for industry, geography, regulatory and

macroeconomic variables. Answers are relevant for firms’strategic decisions, taking into acc ount what rivals l ikely

choose, in a world where CSR is often a competition tool. Public authorities also benefit on choosing focus: lack

of competition;small or large sized firms; which categories are more affected. We find that allCSR categories profit

more froma competitive setup, particularlyemployees and environment,and from larger firms, mainly environment.

Size and market concentration thus contribute in different directions to CSR, contradicting their usually presumed

positive association.

Keywords: corporate social responsibility categories; market structure; firm size; industry; geography; regulatory

and macroeconomic effects

Introduction

In the past years,firms have become increasingly aware of

the importance of corporate social responsibility (CSR) as

a key element in their positioning. Companies respond to

societal pressures, while adopting environmental and

ethical behaviors. Being CSR a multidimensional variable

it is important to carry a consistent CSR engagement

strategy in order to build stakeholder confidence, as the

literature has regularly stressed (e.g., Tang et al., 2012).

A better CSR performance may even lower the firms’

exposure to corruption (Lopatta et al., 2017).

Why do some firms dedicate more of their CSR effort

to the community, while others care especially about the

environment, and still others about their employees?

Which factors determine these choices? The industry in

which the firm is inserted or its level of competition?

The size of the firm or the country where it originates?

The prevailing tax policy or the role of the Government

towards the society? The level of corruption in the society

or the openness t o trade? What var iables can the

authorities manipulate in order to induce firmsto develop

a consistent CSR engagement or a given CSR focus?

Should authorities be more concerned about less

Correspondence: Branca A. S., Centre f or Management Studies of Instituto

Superior Técnico (CEG-IST),Instituto Superior Técnico, Universidadede

Lisboa, Portugal. E-mail anabranca@tecnico.ulisboa.pt

The authors certify that they have NO affiliations with

or involvement in any organization or entity with any

financial interest (such as honoraria;educational grants;

participation in speakers’bureaus; membership,

employment, consultancies, stock ownership, or other

equity interest; and expert testimony or patent-

licensing arrangements), or non-financial interest (such

as personal or professional relationships, affiliations,

knowledge or beliefs)in the subject matter or materials

discussed in this manuscript.

DOI: 10.1111/emre.12341

©2019 European Academy of Management

European Management Review, Vol. 17, –, (2020)7

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