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Journal of Business Ethics

Erschienen in:

17.12.2015

Family Firms’ Corporate Social Performance: A Calculated Quest for Socioemotional Wealth

verfasst von: Réal Labelle, Taïeb Hafsi, Claude Francoeur, Walid Ben Amar

Erschienen in: Journal of Business Ethics | Ausgabe 3/2018

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Abstract

This study investigates the engagement of family firms in corporate social responsibility. We first compare their corporate social performance (CSP) to non-family firms. Then, following recent evidence on the heterogeneity of family firms, we examine two factors that may influence CSP within family firms: the level of family control and the governance orientation of the country in which they operate. This research is based on a theoretical framework which considers both agency and socioemotional wealth (SEW) influences on family firms CSR engagements. Overall, we find that family firms exhibit lower CSP than non-family firms. But when focusing on family firms, our analyses show a curvilinear relationship between family control and CSP. At lower levels of control, family owners invest more in social initiatives to protect their SEW. Beyond a threshold level of control that we estimate at 36 % in our sample, economic considerations prevail over SEW and social performance starts decreasing. We also find that family firms operating in stakeholder-oriented countries are more attentive to social concerns than those operating in more shareholder-oriented countries.

Vorheriger Artikel Ethical Reputation of Financial Institutions: Do Board Characteristics Matter?

Nächster Artikel A Bi-Directional Examination of the Relationship Between Corporate Social Responsibility Ratings and Company Financial Performance in the European Context

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Barnea and Rubin (2010) argue that corporate social performance should be positively related to the expenditure level on CSR initiatives. Furthermore, they contend that the association between socially responsible expenditures and firm value is non-monotonic (page 72). At lower levels of spending, CSR should positively affect firm financial performance and valuation. But, beyond a certain level, managers may be seen as over-investing in CSR.

We are grateful to an anonymous reviewer who pointed at this possibility and suggested this approach.

All statistical analyses were conducted with the Stata software.

For robustness check, we also ran weighted least squares (WLS) and generalized linear model (GLM) regressions and obtained similar results.

As a robustness check, we also run the regression on the non-family subsample and found the results to be similar.

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Titel: Family Firms’ Corporate Social Performance: A Calculated Quest for Socioemotional Wealth
verfasst von: Réal Labelle
Taïeb Hafsi
Claude Francoeur
Walid Ben Amar
Publikationsdatum: 17.12.2015
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 3/2018
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-015-2982-9

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