From crisis to Stability: How CSR shielded firms during Covid-19 pandemic
Article
Article Title | From crisis to Stability: How CSR shielded firms during Covid-19 pandemic |
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ERA Journal ID | 18553 |
Article Category | Article |
Authors | Arian, Adam, Bose, Sudipta, Karoui, Lotfi and Shams, Syed |
Journal Title | International Review of Economics and Finance |
Journal Citation | 103 |
Article Number | 104470 |
Number of Pages | 27 |
Year | 2025 |
Publisher | Elsevier |
Place of Publication | Netherlands |
ISSN | 1059-0560 |
1873-8036 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.iref.2025.104470 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S1059056025006331 |
Abstract | This study examines the relationship between the COVID-19 pandemic and firm risk, as well as the moderating role of corporate social responsibility (CSR) performance in this relationship. Using 22,451 firm-year observations from 62 countries between 2018 and 2021, the study finds a marked increase in firm risk due to the economic disruptions caused by the pandemic. However, firms with strong CSR performance exhibit greater resilience, highlighting CSR's critical role in crisis management and risk mitigation beyond ethical compliance. Additional analysis shows that the effects of the pandemic and the moderating role of CSR performance vary by country-level business culture and economic environment. The findings highlight the importance of integrating CSR into corporate strategy to enhance resilience and manage risk during crises. We also show that stakeholder management serves as an underlying mechanism linking the interaction between CSR performance and the COVID-19 pandemic to firm risk. The study also advocates for policy support to strengthen CSR initiatives, offering actionable insights for managers and policymakers in fostering corporate preparedness for future challenges. |
Keywords | Risk management; Corporate social responsibility (CSR); COVID-19 pandemic; Stakeholder engagement |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 350299. Banking, finance and investment not elsewhere classified |
Byline Affiliations | Australian Catholic University |
University of Newcastle | |
ISC Paris Business School, France | |
School of Business |
https://research.usq.edu.au/item/zyy7q/from-crisis-to-stability-how-csr-shielded-firms-during-covid-19-pandemic
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