Political Views and Corporate Decision-Making: the Case of Corporate Social Responsibility

Abstract:     
This paper conducts an empirical analysis of the relationship between corporate social responsibility (CSR) and political beliefs in the United States. By analyzing the 2004 presidential election results of communities in which corporate headquarters are located, we establish a correlation between the political beliefs of corporate stakeholders and the CSR rating of their firms. Companies with a high CSR rating tend to be located in Democratic, or "blue" states and counties, while companies with a low CSR rating tend to be located in Republican, or "red" states and counties.

Number of Pages in PDF File: 31

Keywords: Decision-Making, Politics, CSR, Elections, Headquarter

JEL Classification: G30, M14

working papers series