| dc.description.abstract | Introduction: Corporate Social Responsibility (CSR) has become increasingly prominent as companies seek to balance economic performance with social and environmental concerns. However, despite the growing adoption of CSR initiatives, there remains a significant disengagement rate among participating companies. This thesis investigates the determinants of CSR disengagement, focusing on the effect of corruption and comparing the European Economic Region (EEA) and Latin American companies.
Methods: This study examines the influence of corruption levels, company size, and industry sector dynamics on the likelihood of withdrawal from CSR initiatives. Data originates from the United Nations Global Compact (UNGC) database merged with the Control of Corruption Index from the Worldwide Governance Indicators (WWGI) database and the Corruption Perception Index from Transparency International. A Cox proportional hazard model is used to estimate the relationships.
Results: The analysis reveals notable differences between the two regions, highlighting the nuanced relationship between institutional contexts and CSR engagement. In the EEA regions, perceived corruption levels emerge as a significant predictor of CSR disengagement, with companies operating in environments characterised by lower corruption levels exhibiting a reduced likelihood of withdrawal. Moreover, larger firms are found to be less likely to withdraw from CSR initiatives, underscoring the role of organisational size in sustaining CSR commitments. However, the manufacturing sector unexpectedly shows an increased likelihood of disengagement, challenging conventional assumptions about sectoral dynamics.
In contrast, the Latin American region presents challenges, with corruption levels failing to emerge as a significant determinant of CSR disengagement. Instead, the analysis reveals that company size plays a more prominent role, with small and medium-sized enterprises (SMEs) demonstrating a higher likelihood of withdrawal. Additionally, specific sectors, such as financial services and consumer goods, exhibit varying degrees of influence on CSR disengagement, suggesting the need for tailored interventions.
Conclusions and implications: Through the described findings, this research concludes that the institutional context significantly influences CSR behaviours, with corruption levels, company size, and industry sectors playing distinct roles in shaping disengagement patterns. Then, for future work, it is essential to consider assessing such predictor variables in their specific context and be aware of generalisations. These findings have important implications for policymakers, practitioners, and scholars alike. Policymakers are urged to prioritise initiatives aimed at reducing corruption and enhancing transparency. Furthermore, targeted interventions are needed to support SMEs in maintaining long-term CSR commitments, while sector-specific approaches can address different industries' unique challenges. Overall, this study contributes to our understanding of CSR disengagement and underscores the importance of considering regional contexts in shaping CSR behaviours and the impact of regional context on creating strategies to encourage organisations to move towards ethical and sustainable behaviours. | |
