Socially responsible corporate customers

By Rui Dai, Hao Liang, Lilian Ng. Journal of Financial Economics, 2020

460 citations recorded by the source corpus.

Abstract Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers. Our findings suggest a unilateral effect on corporate social responsibility (CSR) only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision-making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future sales growth.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c912ca7541441fa505d659bf5ac1409c06121437

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Citations in the corpus

The Role of Corporate Social Responsibility (CSR) Information in Supply-Chain Contracting: Evidence from the Expansion of CSR Rating Coverage (2021, background): “The visibility of Asset4 is also reflected in academic research that frequently employs Asset4 CSR and ESG data (e.g., Lys et al., 2015; Ferrell et al., 2016; Liang and Renneboog, 2017; Dyck et al., 2019; Dai et al., 2020).”
Does CSR matter in times of crisis? Evidence from the COVID-19 pandemic (2021, unknown): “2 Some studies document positive valuation effects of CSR (e.g., Deng et al., 2013; Flammer, 2015, 2020; Ferrell et al., 2016; Cao et al., 2019; Dai et al., 2020; Gao et al., 2020); others suggest that CSR is unrelated to firm value, or can even reduce value due to agency costs (e.”
Rewriting History II: The (Un)Predictable Past of ESG Ratings (2020, background): “…of corporate social responsibility Management Science Cousins et al. (2020) Shareholder wealth effects of modern slavery regulation Management Science Dai et al. (2020) Socially responsible corporate customers Journal of Financial Economics Ding et al. (2020) Corporate immunity to the COVID19…”
Mandatory CSR and sustainability reporting: economic analysis and literature review (2019, methodology): “CSR reporting could also serve as a disciplining tool for the supply chain (e.g., Spence and Rinaldi 2014; Dai et al. 2020; Darendeli et al. 2021).37 Moreover, Gao et al. (2014) find that managers from CSR-conscious firms engage less in self-serving insider trading and, if they do engage, reap…”
ESG Ratings and Stock Performance during the COVID-19 Crisis (2021, background): “[36] document that CSR efforts increase a firm’s operational efficiency and its firm value.”