Does good governance mean better corporate social performance? A comparative study of OECD countries

Wesley Kaufmann, Anne Lafarre

Research output: Contribution to journalArticleScientificpeer-review

20 Citations (Scopus)

Abstract

Policymakers are increasingly concerned with enabling sustainable corporate behavior as part of the transition toward a more sustainable society. Yet, it remains unclear to what extent a country’s governance quality impacts on the sustainable behavior of firms. Drawing on the good governance literature, we hypothesize that the quality of different governance dimensions at the nation-level affects corporate social performance (CSP). This reasoning is tested using a longitudinal data set that combines nation-level and firm-level observations. Different model specifications confirm that countries with a better governance quality have higher CSP. In particular, higher levels of voice and accountability, regulatory quality, rule of law, and control of corruption are positively associated with CSP across model specifications. We conclude with a discussion of the implications for research and practice.
Original languageEnglish
Pages (from-to)762-791
JournalInternational Public Management Journal
Volume24
Issue number6
DOIs
Publication statusPublished - Dec 2021

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