What Drives Corporate Social Performance? The Role of Nation-level Institutions

Journal of International Business Studies Vol. 43, No. 9: 834-864.

57 Pages Posted: 20 Aug 2010 Last revised: 19 Jul 2013

Ioannis Ioannou

London Business School

George Serafeim

Harvard University - Harvard Business School

Multiple version iconThere are 2 versions of this paper

Date Written: 2012

Abstract

Based on Whitley’s “National Business Systems” (NBS) institutional framework (Whitley 1997; 1999), we theorize about and empirically investigate the impact of nation-level institutions on firms’ corporate social performance (CSP). Using a sample of firms from 42 countries spanning seven years, we construct an annual composite CSP index for each firm based on social and environmental metrics. We find that the political system, followed by the labor and education system, and the cultural system are the most important NBS categories of institutions that impact CSP. Interestingly, the financial system appears to have a relatively less significant impact. We discuss implications for research, practice and policy-making.

Keywords: Corporate Social Performance, Corporate Social Responsibility, Environmental, Corporate Governance, International Institutions

JEL Classification: M00, M1, M14, M41, D82, D83, D84

Suggested Citation

Ioannou, Ioannis and Serafeim, George, What Drives Corporate Social Performance? The Role of Nation-level Institutions (2012). Journal of International Business Studies Vol. 43, No. 9: 834-864.. Available at SSRN: https://ssrn.com/abstract=1661925

Ioannis Ioannou

London Business School ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom
02070008748 (Phone)

HOME PAGE: http://www.ioannou.us

George Serafeim (Contact Author)

Harvard University - Harvard Business School ( email )

381 Morgan Hall
Boston, MA 02163
United States

HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=ovr&facId=15705

Paper statistics

Downloads
1,286
Rank
11,558
Abstract Views
24,033