Manager see manager do: the impact of geographic herding on corporate social responsibility

What is it about?

This paper examines the geographic herding behavior of Corporate Social Responsibility (CSR). We find a comovement between local firms' CSR scores operating in the same industry after controlling for known regional determinants. Furthermore, our results are most robust for firms headquartered in concentration areas, suggesting that local firms set similar CSR policies to attract top local talent. Overall, these results show that location significantly impacts firm CSR behavior.

Featured Image