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Socio‐emotional wealth and corporate responses to environmental hostility: Are family firms more stakeholder oriented?
Author(s) -
GarcíaSánchez IsabelMaría,
MartínMoreno Julia,
Khan Sana Akbar,
Hussain Nazim
Publication year - 2021
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2666
Subject(s) - business , stakeholder , corporate social responsibility , scarcity , resource scarcity , hostility , family business , competition (biology) , industrial organization , accounting , marketing , market economy , public relations , economics , management , medicine , clinical psychology , ecology , natural resource economics , political science , biology
Do family firms care more for different stakeholders than nonfamily firms when operating in a hostile business environment? This study addresses this question and fills the existing void in family business research. It shows that family‐controlled firms adopt corporate social responsibility strategies and balance the demands of internal and external interest groups to preserve their socio‐emotional wealth while facing fierce competition, resource scarcity, and penurious economic conditions. More specifically, our analysis of an international sample of 956 listed firms from 2006 to 2014 reveals that family firms show a higher level of corporate social responsibility (CSR) performance and better stakeholder orientation than nonfamily firms. Our findings are useful for managers, policymakers, and responsible investors.