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Politically connected firms and corporate social responsibility implementation expenditure in sub-Saharan Africa: Evidence from Ghana

Adomako, Samuel
Nguyen, N.P.
Publication Date
2020-11
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© 2020 The Authors. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons, Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Peer-Reviewed
Yes
Open Access status
openAccess
Accepted for publication
03/06/2020
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Abstract
While previous research has emphasized the role of stakeholder pressures, firm‐specific factors, as well as CEO characteristics as important drivers of corporate social responsibility (CSR) implementation, our understanding of how political connections impact small and medium‐sized enterprises' (SMEs') CSR implementation expenditure is quite limited. In this study, we contribute to filling this gap by investigating the effects of political connections and CSR expenditure and explain the conditions that impact this relationship. Using data from 473 SMEs in Ghana, we find that political connections negatively influence CSR implementation expenditure. However, the negative effect is weakened when a firms' reputation and competitive CSR implementation pressures are high. Implications for theory and practice are discussed.
Version
Published version
Citation
Adomako S and Nguyen NP (2020) Politically connected firms and CSR implementation expenditure in Sub-Saharan Africa: Evidence from Ghana. Corporate Social Responsibility and Environmental Management. 27(6): 2701-2711.
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Article
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