Religiosity and Corporate Social Responsibility

40 Pages Posted: 10 Sep 2021 Last revised: 7 Jul 2022

See all articles by Nebojsa Dimic

Nebojsa Dimic

University of Vaasa

Veda Fatmy

University of Vaasa

Sami Vähämaa

University of Vaasa

Date Written: July 6, 2022

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. Our results indicate that religious firms have higher social and environmental responsibility scores. The documented positive relationship is particularly strong with respect to product responsibility, emissions reduction, and responsible use of resources. 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 (July 6, 2022). 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.univaasa.fi/~sami

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