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Corporate social responsibility in Japan: Family and non-family business differences and determinants

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Abstract

According to previous research, family and non-family businesses differ with respect to corporate social responsibility (CSR) policies in Japan. In this article, we address these differences and explore the main determinants of CSR in Japan, using a sample of 200 Japanese firms drawn randomly from a CSR database. In contrast with this previous research, we find that the characteristics of either family or non-family businesses do not influence CSR policies in general; however, when they do (for example, in human resources management), the influence is less strong for family businesses. We also find that firm size and innovation inclination are explanatory factors for CSR, supporting prior research in contexts other than Japan.

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Notes

  1. Block and Wagner (2010).show that family and founder ownership is associated with a lower level of CSR concerns, whereas ownership by institutional investors is associated with a higher level of CSR concerns and a lower level of CSR initiatives.

  2. In line with one reviewer’ queries, one may wonder whether there is a specific reason why Tôyô Keizai gave high ratings to a company like TEPCO, such as too-cosy relations between Tôyô Keizai and TEPCO, or any corruption. It should be noted that to the best of our knowledge, this is not the case. This high rating may simply be the result of information asymmetry at the expense of the rating agency (though the reduction of information asymmetry is actually the real goal of the rating process). This suggests that ratings, though highly useful and whatever the precautions taken in the process, must still be treated with some caution.

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Amann, B., Jaussaud, J. & Martinez, I. Corporate social responsibility in Japan: Family and non-family business differences and determinants. Asian Bus Manage 11, 329–345 (2012). https://doi.org/10.1057/abm.2012.6

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