Religiosity and Corporate Social Responsibility: A Study of Firm-Level Adherence to Christian Values in the United States

Corporate Social Responsibility and Environmental Management, forthcoming

51 Pages Posted: 10 Sep 2021 Last revised: 21 Jul 2023

See all articles by Nebojsa Dimic

Nebojsa Dimic

University of Vaasa

Veda Fatmy

University of Vaasa

Sami Vähämaa

University of Vaasa

Date Written: June 20, 2023

Abstract

This paper examines the hypothesis that religious firms are more socially responsible. By utilizing a novel measure of religiosity that reflects firm-level adherence to Christian values, we find that religiousness is positively associated with the CSR engagement of large U.S. firms after controlling for county-level religiosity and various firm characteristics. The results indicate that religious firms have higher social and environmental responsibility scores. The positive relationship is particularly strong with respect to product responsibility, emissions reduction, and responsible use of resources. While county-level religiosity does not have any incremental effect on CSR above the influence of firm-level religiousness, we document that the positive linkage between firm-level religiosity and CSR engagement is strengthened by local religiousness. Overall, our empirical findings suggest that faith-driven corporate values may encourage socially responsible behavior.

Keywords: religiosity, religious values, corporate social responsibility

JEL Classification: D22, G30, G34, G39, G41, M10, M14, Z12

Suggested Citation

Dimic, Nebojsa and Fatmy, Veda and Vähämaa, Sami, Religiosity and Corporate Social Responsibility: A Study of Firm-Level Adherence to Christian Values in the United States (June 20, 2023). Corporate Social Responsibility and Environmental Management, forthcoming, Available at SSRN: https://ssrn.com/abstract=3903184 or http://dx.doi.org/10.2139/ssrn.3903184

Nebojsa Dimic

University of Vaasa ( email )

Wolffintie 34
Vaasa, 65200
Finland

Veda Fatmy (Contact Author)

University of Vaasa ( email )

P.O. Box 700
FIN-65101 Vaasa, FI-65101
Finland

Sami Vähämaa

University of Vaasa ( email )

P.O. Box 700
Vaasa, FI-65101
Finland
+358 29 449 8455 (Phone)

HOME PAGE: http://www.uwasa.fi/~sami

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
229
Abstract Views
905
Rank
245,062
PlumX Metrics