Socially Responsible Corporate Customers

Socially Responsible Corporate Customers

Rui Dai, Hao Liang, Lilian Ng

Series number :

Serial Number: 
560/2018

Date posted :

May 02 2018

Last revised :

July 30 2019
SSRN Share

Keywords

  • Corporate Social Responsibility • 
  • Corporate Customers • 
  • Global Supply Chains • 
  • Economic Benefits

Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers.

Our findings suggest a unilateral effect on CSR only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future sales growth.

Published in

Published in: 
Publication Title: 
Journal of Financial Economics (JFE)

Authors

Real name:
Rui Dai
Real name: 
Research Member
Singapore Management University, Lee Kong Chian School of Business
Real name:
Lilian Ng