We investigate the impact of regional cultural tightness on corporate social responsibility (CSR).
Using Chinese A-share firms from 2010–2021, we employ OLS regressions with industry and year fixed effects and address endogeneity using instrumental variable estimation. We measure CSR using Hexun ratings across multiple stakeholder dimensions.
Cultural tightness is positively associated with CSR, especially toward employees, the environment and the community. Mechanism tests suggest that tightness promotes CSR by fostering the internalization of pro-social values rather than by inducing compliance. Under this logic, the effect is stronger where regions display stronger pro-CSR preferences but weaker under GDP-oriented government policies. Further analyses show more pronounced effects among state-owned enterprises and firms with longer listing histories.
Our findings highlight the role of informal institutions in shaping CSR motivations in China. By conceptualizing cultural tightness as a norm-enforcement differential, we provide new evidence on how informal norms are transmitted into corporate behavior through organizational and cognitive channels.
