Global CSR, drivers and consequences: a systematic review

Abstract

Purpose The purpose of this paper is to provide a systematic review of research studies on the drivers and consequences of corporate social responsibility (CSR). Design/methodology/approach This paper used a systematic literature review using research papers published on the drivers and consequence of global CSR from 2010 to 2020. Findings The findings of this paper show that the principal themes of published research articles on the drivers and consequences of CSR are internal drivers, external drivers and consequences of CSR. Publications on the drivers and consequences of global CSR have been dominated by studies that used quantitative approach and cross-sectional design. A significant number of studies also used secondary data source with most of these studies not being sensitive to sectorial influences. More importantly, this study revealed that the emphasis of CSR on actions that demonstrate social responsibility is more associated with overall financial performance and firm value when contrasted against ethical statements of social responsibility which is associated with weaker firm financial performance and outcomes. Moreover the review indicated that the level of CSR engagement and disclosure has been associated with higher share prices whereas low level of CSR disclosure in sensitive industries results in lower share prices. In addition, employees’ intention has been identified as a critical driver for CSR activities. Furthermore, it was also identified that firms engage in CSR because of internal institutional factors such as ethical corporate culture and top management commitment, whereas external drivers of CSR include socio-political factors, globalisation and environmental accountability. Practical implications CSR is an area that can be harnessed to contribute to sustainable solutions to global challenges. It also provides an added advantage of ensuring that the perpetuation of the relationship between businesses and society are more complementary. Originality/value This review is one of the few studies focussed on highlighting the drivers and consequences of global CSR. This review also provides proof of the areas of research that need attention and provides recommendation on future areas of study on the drivers and consequences of global CSR.