National Culture and Corporate Social Responsibility

Abstract

Objective:

To determine whether national cultural dimensions influence a company’s Corporate Social Responsibility (CRS) performance.

Theoretical Framework:

Hofstede’s cultural dimensions and Stakeholder Theory were used as theoretical bases for the study.

Methodology:

The study uses the multiple linear regression method to analyze data from a sample of 4,598 companies from 41 countries. The data were collected from the CSRHub, Geert Hofstede, Transparency International, and Thomson Reuters websites.

Results:

The findings indicate a country’s cultural dimensions influence business CRS activities. More specifically, companies based in countries with cultures that feature (i) a high power distance, (ii) high individualism, (iii) more femininity, (iv) low uncertainty avoidance, and (v) a long-term orientation exhibit higher CRS performance.

Practical & Social Implications of the Research:

Prior knowledge of expected CRS engagement according to the country’s culture could contribute to formulating corporate strategies to expand a company’s activities to countries other than the one of its origin. This would ensure stakeholders’ expectations are met and improve competitiveness in the domestic market.

Contributions:

The culture of a country may determine whether stakeholders are interested in CRS practices.

Keywords:
Cultural dimensions; Hofstede; CRS performance