Family Control and Corporate Social Responsibility

Abstract

Corporate Social Responsibility adoption among organizations continues across different sects. This research explores the extent of Corporate Social Responsibility performance by family firms. Second, the researchers examined the extent of non-family firms' Corporate Social Responsibility performance. The adoption of Corporate Social Responsibility among organizations has continued to take pace. Corporate Social Responsibility involves activities that go beyond a business's everyday operations to focus on achieving social good. For instance, in order to show how companies, place much importance on Corporate Social Responsibility, the findings expressed in different studies show that Corporate Social Responsibility contributes towards increased stock returns, increased access to financing, creates an opportunity for companies to merge, and creates an avenue for firms to reduce on the cost of their capital. However, only a few studies have shown that Corporate Social Responsibility depends on a few determinants such as regulations, characteristics of chief executive officers, political affiliations, and national institutions. The research adopted questionnaire instruments to collect primary data through a survey approach from respondents from family and non-family-controlled companies. The findings showed that family firms recorded lower Corporate Social Responsibility performance than non-family-controlled firms.