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Corporate social responsibility and social capital

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  • Jha, Anand
  • Cox, James
Abstract
When corporations make an effort to be socially responsible beyond what is required by the law, this effort is often described as strategic—made mainly for the shareholders’ or managers’ benefit. A large body of literature corroborates this belief. But, could the incentives for corporate social responsibility (CSR) come from an altruistic inclination fostered by the social capital of the region in which the firm is headquartered? We investigate whether this phenomenon exists by examining the association between the social capital in the region and the firm’s CSR. We find that a firm from a high social capital region exhibits higher CSR. This result suggests that the self-interest of shareholders or mangers does not explain all of the firm’s CSR, but the altruistic inclination from the region might also play a role.

Suggested Citation

  • Jha, Anand & Cox, James, 2015. "Corporate social responsibility and social capital," Journal of Banking & Finance, Elsevier, vol. 60(C), pages 252-270.
    • Handle: RePEc:eee:jbfina:v:60:y:2015:i:c:p:252-270
    DOI: 10.1016/j.jbankfin.2015.08.003
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    More about this item

    Keywords

    Corporate social responsibility; Social capital; Culture;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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