| Performance Feedback and Corporate Social Responsibility: A Perspective from the Behavioral Theory of the Firm |
Received:October 13, 2017 Revised:October 13, 2017 |
Key Words: Behavioral theory of the firm, Corporate social responsibility (CSR), Performance feedback |
| Author Name | Affiliation | | Bhagyavi Sandareka Habaragoda* | Huazhong University of Science and Technology | | Zhi Yang0 | Huazhong University of Science and Technology |
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Abstract: |
| Grounded on the behavioral theory of the firm, this study attempts to extend the present understanding of CSR antecedents with behavioral lens. We demarcate CSR into internal versus external CSR and argue that performance feedback adjusts levels of risk taking and triggers different types of CSR activities. A panel data set of 112 listed companies in Sri Lanka for a five years period is used to test the hypotheses. Findings suggest that outperforming feedback triggers internal CSR as an internal sense-making approach while underperforming feedback triggers external CSR as an instrument for turning the poor performance. These relationships are moderated by market competition and organizational slack. |
