Corporate social responsibility and corruption risk: a global perspective

Krishnamurti, Chandrasekhar and Shams, Syed and Velayutham, Eswaran (2018) Corporate social responsibility and corruption risk: a global perspective. Journal of Contemporary Accounting & Economics, 14 (1). pp. 1-21. ISSN 1815-5669


This paper extends our knowledge on corporate corruption risk by examining whether and to what extent corporate social responsibility (CSR) affects firm-level corruption risk. Using a cross-country sample of major multinational firms, we find that firm-level CSR mitigates corruption risk. On closer examination, we find that the relationship between CSR and corruption risk is mediated by country-level variables such as institutional quality, protection of minority shareholders’ rights, stock market development and freedom of the press. Further, we find that in emerging countries, CSR mitigates corruption risk only when the country-level institutional quality is high and citizens enjoy press freedom. Our findings suggest that both formal institutions and the quality of civil society influence the effect of CSR on corruption risk. Our results remain robust to controls for endogeneity and potential sample selection bias.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published online 10/02/2018. Permanent restricted access to ArticleFirst version in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 21 Feb 2018 01:02
Last Modified: 18 Jun 2018 02:31
Uncontrolled Keywords: corruption risk; corporate social responsibility; moral capital; shareholders’ rights; press freedom
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
Socio-Economic Objective: B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
Identification Number or DOI: 10.1016/j.jcae.2018.02.002

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