Which CSR Activities Are More Consequential? Evidence From the Great Recession

18 Pages Posted: 5 Mar 2018

See all articles by Benjalux Sakunasingha

Benjalux Sakunasingha

Mahidol University International College (MUIC)

Pornsit Jiraporn

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

Ali Uyar

La Rochelle Business School

Date Written: February 24, 2018

Abstract

We exploit the Great Recession of 2008 to study how firms view corporate social responsibility (CSR). When confronted with an adverse exogenous shock, firms are forced to prioritize. Our results show that, during the Great Recession, firms do not lessen their overall CSR investments, suggesting that they recognize the importance of CSR. However, further analysis shows that firms substantially reduce investments in five CSR activities (Community, Employee, Environment, Human Rights, and Product), while increasing investments in two CSR activities (Corporate Governance and Diversity). Firms appear to view some CSR activities as more essential to the strategic direction of the firm than others.

Keywords: Corporate Social Responsibility, Financial Crisis, Great Recession, Sustainability, CSR

JEL Classification: M14, G32

Suggested Citation

Sakunasingha, Benjalux and Jiraporn, Pornsit and Uyar, Ali, Which CSR Activities Are More Consequential? Evidence From the Great Recession (February 24, 2018). Available at SSRN: https://ssrn.com/abstract=3129514 or http://dx.doi.org/10.2139/ssrn.3129514

Benjalux Sakunasingha

Mahidol University International College (MUIC) ( email )

999 Buddhamonthon 4 Road
Salaya, Nakhonpathom, 73170
Thailand

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

Ali Uyar

La Rochelle Business School ( email )

102 rie de Coureilles
Les Minimes
La Rochelle, 17024
France

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