Earticle

초록

영어

Controversial industry sectors, such as alcohol, gambling, tobacco, and firearms, have suffered organizational legitimacy problems for a long period of time. This paper examines whether corporate social responsibility (CSR) activities reduce the level of risk for firms in controversial industries over the long term in an attempt to seek organizational legitimacy around the world. Using data covering 32 countries, this study finds that both the systematic and total risk for firms in controversial industries are generally higher than those for firms in uncontroversial industries due to their inherent harmful image. We then show that controversial industry firms’ engagement in CSR initiatives and policies has a substantial risk-decreasing effect, and that might increase the probability of obtaining and maintaining the social license to operate. The documented effect of CSR on firm risk, however, is more pronounced for firms in Europe and North America than in the Asia-Pacific region, suggesting differential CSR-risk association in different region. These results are significant and robust even after potential endogeneity problems are mitigated. Our results further show the longterm impact of controversial industry firms’ CSR engagement on firm risk, which is more pronounced in firms under highly developed financial system for each region. We interpret that our results are supportive of the “harmful image”, “social license to operate”, “differential recognition”, and “long-term risk reduction” explanations.

목차

Abstract.
 Introduction
 Hypotheses Development
 Research Design
 Empirical Results
 Discussion
 Conclusion
 Appendix A
 Appendix B
 References

키워드

저자

• Hoje Jo [ Santa Clara University ]
• Hakkon Kim [ Southwest Jiaotong University ] Corresponding author
• Kwangwoo Park [ Korea Advanced Institute of Science and Technology (KAIST) ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330