The business case for corporate social responsibility during COVID-19 pandemic

Napiórkowska, Anna

doi:10.2478/ijme-2025-0014

Abstract

The COVID-19 pandemic has prompted companies to explore new opportunities and redefine sustainable business models with greater urgency. This health crisis provides a unique opportunity to test the notion that corporate social responsibility (CSR) protects company value during challenging times. This study examines the relationship between CSR drivers, CSR activities, and company performance during the COVID-19 pandemic. A survey of 241 medium and large companies in the fashion, cosmetics, and consumer electronics industries in Poland was conducted. The partial least squares structural equation modeling method was employed to analyze the results and test the research hypotheses. Findings indicate that entrepreneurial orientation, as a CSR driver, has the strongest positive relationship with CSR initiatives related to employee and societal relations, followed by environmental protection. However, no significant relationship was found between CSR initiatives and the financial or nonfinancial performance of the studied companies. This study contributes to the existing CSR literature by exploring the relationship between CSR drivers, CSR activities, and company performance during the COVID-19 pandemic.

References

Aguilera, R., Rupp, D., Williams, C., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836–863. doi: 10.5465/AMR.2007.25275678.
Open DOI Search in Google Scholar Back to article
Albuquerque, R., Koskinen, Y., Yang, S., & Zhang, C. (2020). Resiliency of environmental and social stocks: An analysis of the exogenous COVID-19 market crash. Review of Corporate Finance Studies, 9(3), 593–621. doi: 10.1093/rcfs/cfaa011.
Open DOI Search in Google Scholar Back to article
Bae, K. H., El Ghoul, S., Gong, Z. (Jason), & Guedhami, O. (2021). Does CSR matter in times of crisis? Evidence from the COVID-19 pandemic. Journal of Corporate Finance, 67(December 2020), 101876.
Search in Google Scholar Back to article
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 pandemic digitization lessons for sustainable development of micro and small enterprises. Sustainable Production and Consumption, 27, 1989–2021. doi:10.1016/j.spc.2021.04.035.
Open DOI Search in Google Scholar Back to article
Belak, J., & Rozman, M. P. (2012). Business ethics from Aristotle, Kant and Mill’s perspective. Kybernetes, 41(10), 1607–1624.
Search in Google Scholar Back to article
Broccardo, L., Truant, E., & Zicari, A. (2019). Internal corporate sustainabil- ity drivers: What evidence from family firms? A literature review and research agenda. Corporate Social Responsibility and Environmental Management, 26(1), 1–18.
Search in Google Scholar Back to article
Carrero, I., & Valor, C. (2012). CSR–labelled products in retailers’ assortment. A comparative study of British and Spanish retailers. International Journal of Retail & Distribution Management, 40(8), 629–652.
Search in Google Scholar Back to article
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12, 85–105. Blackwell Publishing Ltd. and British Academy of Management.
Search in Google Scholar Back to article
Chen, M. H. (2019). Understanding the hospitality philanthropy-performance link: Demand and productivity effects. International Journal of Hospitality Management, 80, 166–172.
Search in Google Scholar Back to article
Chowdhury, R. H., Choi, S., Ennis, S., & Chung, D. (2019). Which dimension of corporate social responsibility is a value driver in the oil and gas industry? Canadian Journal of Administrative Sciences, 36(2), 260–272.
Search in Google Scholar Back to article
Chu, K.-M. (2019). Coevolution of environmental sustainability orientation and strategic alliance learning in green supply chain management. International Journal of Management and Economics, 55(1), 3–12. doi: 10.2478/ijme-2019-000.
Open DOI Search in Google Scholar Back to article
Crane, A., & Matten, D. (2021). COVID-19 and the future of CSR research. Journal of Management Studies, 58(1), 278–282.
Search in Google Scholar Back to article
Crane, A., Matten, D., & Spence, L. (2019). Corporate social responsibility: Readings and cases in a global context. Routledge. doi: 10.4324/9780429294273.
Open DOI Search in Google Scholar Back to article
Dai, J., Cantor, D. E., & Montabon, F. L. (2015). How environmental man- agement competitive pressure affects a focal firm’s environmental innovation activities: A green supply chain perspective. Journal of Business Logistics, 36(3), 242–259.
Search in Google Scholar Back to article
Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284–289. doi: 10.1016/j.jbusres.2020.06.008.
Open DOI Search in Google Scholar Back to article
Eggers, F., Kraus, S., Hughes, M., Laraway, S., & Snycerski, S. (2013). Implications of customer and entrepreneurial orientations for SME growth. Management Decision, 51(3), 521–546.
Search in Google Scholar Back to article
Elkington, J. (1999). Cannibals with forks: The triple bottom line of 21st century business. Capstone.
Search in Google Scholar Back to article
Feng, Z. Y., Chen, C. R., & Tseng, Y. J. (2018). Do capital markets value corporate social responsibility? Evidence from seasoned equity offerings. Journal of Banking and Financing, 94, 54–74.
Search in Google Scholar Back to article
Ferrell, A., Liang, H., & Renneboog, L. (2016). Socially responsible firms. Journal of Financial Economics, 122(3), 585–606. doi: 10.1016/j.jfineco.2015.12.003.
Open DOI Search in Google Scholar Back to article
Franco, S., Caroli, M. G., Cappa, F., & Del Chiappa, G. (2020). Are you good enough? CSR, quality management and corporate financial performance in the hospitality industry. International Journal of Hospitality Management, 88, 102395. doi: 10.1016/j.ijhm.2019.102395.
Open DOI Search in Google Scholar Back to article
Friedman, M. (1970). The social responsibility of business is to increase its profits, New York Times Magazine, (SEPTEMBER 13), 32–33.
Search in Google Scholar Back to article
Frynas, J. G., & Yamahaki, C. (2016). Corporate social responsibility: Review and roadmap of theoretical perspective. Business Ethics European Review, 25(3), 258–285.
Search in Google Scholar Back to article
García-Sánchez, I. M., & García-Sánchez, A. (2020). Corporate social responsibility during COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–21.
Search in Google Scholar Back to article
Gond, J. P., El Akremi, A., Swaen, V., & Babu, N. (2017). The psychological microfoundations of corporate social responsibility: A person-centric systematic review. Journal of Organizational Behavior, 38, 225–246.
Search in Google Scholar Back to article
Hair, J. F., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS–SEM) (1st ed.). SAGE Publications, Inc.
Search in Google Scholar Back to article
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19, 139–151.
Search in Google Scholar Back to article
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–121.
Search in Google Scholar Back to article
Hajmohammad, S., & Vachon, S. (2016). Mitigation, avoidance, or acceptance? Managing supplier sustainability risk. Journal of Supply Chain Management, 52(2), 48–65.
Search in Google Scholar Back to article
Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China’s hotel industry: impacts, a disaster management framework, and post-pandemic agenda. International Journal of Hospitality Management, 90, 102636.
Search in Google Scholar Back to article
He, H., & Harris, L. (2020). The impact of COVID-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116(May), 176–182.
Search in Google Scholar Back to article
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Search in Google Scholar Back to article
Javed, M., Rashid, M. A., & Hussain, G. (2016). When does it pay to be good – A contingency perspective on corporate social and financial performance: Would it work? Journal of Cleaner Production, 133, 1062–1073.
Search in Google Scholar Back to article
Jiang, Y., & Wen, J. (2020). Effects of COVID-19 on hotel marketing and management: A perspective article. International Journal of Contemporary Hospitality Management, 32(8), 2563–2573. doi: 10.1108/IJCHM-03-2020-0237.
Open DOI Search in Google Scholar Back to article
Karaibrahimoğlu, Y. Z. (2010). Corporate social responsibility in times of financial crisis. African Journal of Business Management, 4(4), 382–389.
Search in Google Scholar Back to article
Keil, T., Maula, M., & Syrigos, E. (2017). CEO entrepreneurial orientation, entrenchment, and firm value creation. Entrepreneurship Theory & Practice, 41(4), 475–504.
Search in Google Scholar Back to article
Kim, Y., & Statman, M. (2012). Do corporations invest enough in environmental responsibility? Journal of Business Ethics, 105, 115–129.
Search in Google Scholar Back to article
Klosa, E., & Kisperska-Moroń, D. (2017). International scope of operations and the nature of supply chain members’ CSR policy. International Journal of Management and Economics, 53(2), 23–38. doi: 10.1515/ijme-2017-0010.
Open DOI Search in Google Scholar Back to article
Kong, Y., Antwi‐Adjei, A., & Bawuah, J. (2020). A systematic review of the business case for corporate social responsibility and firm performance. Corporate Social Responsibility and Environmental Management, 27, 444–454. doi: 10.1002/csr.1838.
Open DOI Search in Google Scholar Back to article
Lee, S., Singal, M., & Kang, K. H. (2013). The corporate social responsibility – Financial performance link in the US restaurant industry: Do economic conditions matter? International Journal of Hospitality Management, 32(1), 2–10.
Search in Google Scholar Back to article
Li, Y., Chen, M., Lyu, Y., & Qiu, C. (2016). Sexual harassment and proactive customer service performance: The roles of job engagement and sensitivity to interpersonal mistreatment, International Journal of Hospitality Management, 54, 116–126.
Search in Google Scholar Back to article
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. Journal of Finance, 72(4), 1785–1824.
Search in Google Scholar Back to article
Madsen, P. M., & Rodgers, Z. J. (2015). Looking good by doing good: The antecedents and consequences of stakeholder attention to corporate disaster relief. Strategic Management Journal, 36(5), 776–794.
Search in Google Scholar Back to article
Manuel, T., & Herron, T. L. (2020). An ethical perspective of business CSR and the COVID-19 pandemic. Society and Business Review, 15(3), 235–253. doi: 10.1108/SBR-06-2020-0086.
Open DOI Search in Google Scholar Back to article
Mao, Y., He, J., Morrison, A. M., & Andres Coca-Stefaniak, J. (2020). Effects of tourism CSR on employee psychological capital in the COVID-19 crisis: from the perspective of conservation of resources theory. Current Issues of Tourism, 24(19), 2716–2734. doi: 10.1080/13683500.2020.1770706.
Open DOI Search in Google Scholar Back to article
McGoldrick, P. J., & Freestone, O. M. (2008). Ethical product premiums: Antecedents and extent of consumers’ willingness to pay. The International Review of Retail, Distribution and Consumer Research, 18, 2.
Search in Google Scholar Back to article
Mi, C., Chang, F., Lin, C., & Chang, Y. (2018). The theory of reasoned action to CSR behavioral intentions: The role of CSR expected benefit, CSR expected effort and stakeholders. Sustainability, 10(12), 4462. doi: 10.3390/su10124462.
Open DOI Search in Google Scholar Back to article
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.
Search in Google Scholar Back to article
Qiu, S. (Charles), Jiang, J., Liu, X., Chen, M. H., Yuan, X. (2021). Can corporate social responsibility protect firm value during the COVID-19 pandemic? International Journal of Hospitality Management, 93(October 2020), 102759. doi: 10.1016/j.ijhm.2020.102759.
Open DOI Search in Google Scholar Back to article
Quazi, A. M., & O’Brien, D. (2000). An empirical test of a cross–national model of corporate social responsibility. Journal of Business Ethics, 25, 33–51.
Search in Google Scholar Back to article
Rawhouser, H., Cummings, M., & Newbert, S. L. (2019). Social impact measurement: Current approaches and future directions for social entrepreneurship research. Entrepreneurship Theory and practice, 43(1), 82–115. doi: 10.1177/1042258717727718.
Open DOI Search in Google Scholar Back to article
Rettab, B., Brik, A. B., & Mellahi, K. (2009). A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: The case of Dubai. Journal of Business Ethics, 89, 371–390. doi: 10.1007/s10551-008-0005-9.
Open DOI Search in Google Scholar Back to article
Schramm-Klein, H., Morschett, D., & Swoboda, B. (2015). Retailer corporate social responsibility: Shedding light on CSR’s impact on profit of intermediaries in marketing channels. International Journal of Retail & Distribution Management, 43(4/5), 403–431.
Search in Google Scholar Back to article
Vogel, D. J. (2005). Is there a market for virtue? The business case for corporate social responsibility. California Management Review, 47, 19–45.
Search in Google Scholar Back to article
Wang, H., Tong, L., Takeuchi, R., & George, G. (2016). Corporate social responsibility: An overview and new research directions. Academy of Management Journal, 59(2), 534–544.
Search in Google Scholar Back to article
Wen, J., Kozak, M., Yang, S., & Liu, F. (2020). COVID-19: Potential effects on Chinese citizens’ lifestyle and travel, Tourism Review, 76(1), 74–87. doi: 10.1108/TR-03-2020-0110.
Open DOI Search in Google Scholar Back to article
Witek-Hajduk, M. K., & Zaborek, P. (2016). Does business model affect CSR involvement? A survey of polish manufacturing and service companies. Sustainability, 8, 93.
Search in Google Scholar Back to article
Wójcik, P. (2018). The business case for corporate social responsibility: A literature overview and integrative framework. Central European Management Journal, 26(1), 121–148. doi: 10.7206/jmba.ce.2450-7814.222.
Open DOI Search in Google Scholar Back to article
Wu, M., & Kong, K. (2021). Business strategies responding to COVID-19: experience of Chinese corporations. Corporate Governance: The International Journal of Business in Society, 21(6), 1072–1099. doi: 10.1108/CG-10-2020-0475.
Open DOI Search in Google Scholar Back to article
Zaborek, P. (2014). CSR and financial performance: The case of polish small and medium manufacturers. International Journal of Management and Economics, 43(1), 53–73. doi: 10.1515/ijme-2015-0003.
Open DOI Search in Google Scholar Back to article
Zhang, Z., Wang, X., & Jia, M. (2021). Echoes of CEO entrepreneurial orientation: How and when CEO entrepreneurial orientation influences dual CSR activities. Journal of Business Ethics, 169(4), 609–629. doi: 10.1007/s10551-020-04553-x.
Open DOI Search in Google Scholar Back to article
Zhuang, Y., Lee, Y., Chang, X., & Kim, R. B. (2020). Entrepreneurial orientation and corporate social responsibility performance: An empirical study of state-controlled and privately controlled firms in China. Corporate Social Responsibility and Environmental Management, 27, 383–392.
Search in Google Scholar Back to article

The business case for corporate social responsibility during COVID-19 pandemic

Abstract

Paradigm

My account