Doing "Good" to Offset "Bad": The Moderating Role of Stakeholders

We identify corporate social irresponsibility (CSIR) as an important impetus to corporate social responsibility (CSR), supplemental to the impetuses depicted in CSR literature. Drawing on stakeholder perspective, we develop a model on the influences of stakeholders on the choice of two CSR strategies to address CSIR such as pollution, a direct CSR strategy through investments on pollution control and an indirect CSR strategy through corporate philanthropy. We propose a positive association between CSIR and CSR. Moreover, the degree of family shareholding strengthens the effect of CSIR on corporate philanthropy while government linkage intensifies the effect of CSIR on pollution control. Local community and international community also positively moderate the effect of CSIR on both dimensions of CSR. But the moderating effect of international community is stronger than that of local community.