Journal of International Business Studies Vol. 43, No. 9: 834-864.
57 Pages Posted: 20 Aug 2010 Last revised: 19 Jul 2013
Date Written: 2012
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: 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