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|Do corporations care? Corporate Social Responsibility and firm’s engagement
|Business cycle;Corporate Social Responsibility;institutional economics;D22;E32;L21;M14;M51
|Universidad de Guadalajara
|What are the firm’s determinants to engage in Corporate Social Responsibility (CSR)? Under what conditions is it likely to occur? Evidence suggests three possible mechanisms that affect a firm’s engagement in csr: the role of growth in value added within an industry, peer effects and workers’ attitudes. Results are consistent with the institutional framework theory, which suggests that firms engage in CSR practices in times of economic prosperity. Further evidence shows that peer effects are also relevant on a firm’s decision to take part in csr. Regarding workers’ attitudes, this paper provides evidence of a weak link between labor force preferences and a firm’s decision to engage in CSR.
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