The Effect of Firm Maturity on Corporate Social Responsibility (CSR): Do Older Firms Invest More in CSR?

10 Pages Posted: 9 Jul 2015

See all articles by Pornsit Jiraporn

Pornsit Jiraporn

Pennsylvania State University - School of Graduate Professional Studies (SGPS)

Pradit Withisuphakorn

National Institute of Development Administration (NIDA)

Date Written: July 7, 2015

Abstract

Motivated by the literature on corporate life cycles, we explore the effect of firm maturity on corporate social responsibility (CSR). Our results based on over 26,000 observations across 21 years reveal that more mature firms invest significantly more in CSR. Furthermore, we find that the effect of firm maturity is not uniform across different categories of CSR. As firms get older, they become much more responsible in terms of diversity and environmental awareness, whereas the effect of firm aging is much weaker in terms of human rights and product safety. Our study is the first to link corporate life cycles to corporate social responsibility.

Keywords: corporate social responsibility, CSR, corporate life cycles, corporate aging, firm age

JEL Classification: M14, G30

Suggested Citation

Jiraporn, Pornsit and Withisuphakorn, Pradit, The Effect of Firm Maturity on Corporate Social Responsibility (CSR): Do Older Firms Invest More in CSR? (July 7, 2015). Available at SSRN: https://ssrn.com/abstract=2627951 or http://dx.doi.org/10.2139/ssrn.2627951

Pornsit Jiraporn (Contact Author)

Pennsylvania State University - School of Graduate Professional Studies (SGPS) ( email )

30 E. Swedesford Road
Malvern, PA 19355
United States
(484) 753-3655 (Phone)

HOME PAGE: http://www.personal.psu.edu/pxj11/index1.html

Pradit Withisuphakorn

National Institute of Development Administration (NIDA) ( email )

118 Seri Thai Road
Bangkok, 10240
Thailand

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