The Effect of National Culture on Corporate Social Responsibility: Evidence from Chinese Red Culture
Description
In this study, based on institution theory and social identity theory, we validate the normative role of national culture as an informal institution on corporate social responsibility (CSR) from the perspective of red culture. By analyzing the panel sample of Chinese listed companies from 2012 to 2020, we investigated the effect of red culture on CSR, and the changes in the influence of red culture on CSR under different institutional conditions. Based on the institutional background of China, we find that red culture atmosphere is positive and significantly affects CEO’s CSR behavior. We further find that the market intermediary organizations and legal system environment index and foreign culture shock weaken the positive relationship between red culture and CSR, and the transportation convenience enhances the influence of red culture on CSR, the results are largely confirmed by a series of robustness tests. Our research has contributed to propagandizing the national culture, enhancing cultural confidence, exalting the cohesion and centripetal force of the nation, and improving governance and CSR performance in theory and practice.