This study aims to explore how different Hofstede cultural dimensions moderate the impact of corporate social performance (CSR) on firm performance, both before and during the COVID-19 crisis.
This study aims to examine how Hofstede’s cultural dimensions influence the CSR-firm performance relationship, using data from 71,893 observations across 4,229 firms in common law countries from 2006–2022.
The study initially found that CSR investments negatively impacted firm performance both before and during the COVID-19 crisis. However, further analysis revealed that cultural dimensions acted as moderators, influencing this relationship. This suggests that cultural factors significantly affect how CSR initiatives impact a company’s performance, particularly during crises.
This study examines the relationship between CSR and firm financial performance through Hofstede’s cultural dimensions in common law countries, both before and during the COVID-19 crisis. It highlights the critical role of cultural factors in shaping the effectiveness of CSR initiatives across different economic conditions. The findings provide valuable implications for businesses and policymakers, suggesting that CSR strategies should be adapted to cultural contexts, especially in times of crisis.
