Does Internationalisation Matter to Corporate Social Performance? An Empirical Study on Chinese Listed Construction Companies

Opportunities in the international markets and Chinese government’s “one belt, one road” initiative drive Chinese construction companies to expand their business across nations’ borders. Operating in a more diversified environment indicates that they are faced with intensified pressures of stakeholders to conduct corporate social responsibility. However, whether internationalisation really matters to corporate social performance (CSP) or not is still a question to explore, especially in the context formed by the Chinese construction companies. The aim of the study is to explore the impacts of internationalisation on CSP and its four dimensions in the construction area. Using a panel data set of 85 Chinese listed construction companies with 499 firm-year observations over the period from 2010 to 2017, the degree of internationalisation is found to have no significant impacts on overall CSP, but has significant positive impacts on the environmental aspect of CSP. The relationship between the degree of internationalisation and the social aspect of CSP is tested to be negative. It is also indicated that a company with better financial performance and larger firm size is likely to perform a better CSP. The findings of the research contribute to the CSR area to further explore the influence of outside environment on the CSR implementation and evaluation from the perspective of internationalisation. With the promotion of “one belt, one road” initiatives, this topic helps understand and interpret the development and CSR strategies of the Chinese construction companies while internationalising.