Local Digital Economy and Corporate Social Responsibility

Abstract

Utilizing the entropy evaluation approach to construct a local digital economy index, this paper investigates the influence of digital economy development on corporate social responsibility (CSR) using a sample of Chinese listed firms from 2011 to 2020. Our findings indicate that the development of the digital economy can facilitate enterprise digital transformation, enhance agency efficiency, and increase online media attention, thereby significantly promoting CSR performance for local firms. Further analysis shows that the local digital economy has varying impacts on distinct dimensions of CSR, with more pronounced effects observed among state-owned enterprises, firms in secondary industries, large-scale and non-digital firms. Overall, these findings suggest that the development of the digital economy fosters the willingness of firms to engage in CSR, resulting in a favorable interaction between firms and stakeholders.