This paper aims to examine how firms respond to societal moral degradation in a transition economy from the corporate social responsibility (CSR) perspective.
Based on a survey of 302 firms operating in China and using hierarchical regression, this study explores the effect of societal moral degradation on firm CSR implementation.
The study finds that the amount of CSR performed by firms in a transition market will reduce when they face increased moral degradation in the business field. The authors also find that CSR philanthropy is more significantly deterred by societal moral degradation than CSR sustainability.
These findings reveal that firms conducting CSR initiatives need to strategically consider the great influence of environment. Meanwhile, strategic CSR decisions should be fully aware of the different characters of different CSR forms.
This paper draws on the strategic choice theory and contributes to understanding of the influence of specific environmental factors in transition economies on CSR implementation. Based on two main categories of CSR, this study develops a framework that explores how firms choose different CSR forms when they encounter severe moral degradation in business sector.
