The determinants of CSR performance; Evidence from an SEM-PLS approach

Resumen

While the significance of Corporate Social Responsibility (CSR) and its role in businesses are widely acknowledged, the intricacies surrounding the catalysts compelling organizations to undertake the mantle of CSR remain less clear. Despite researchers' endeavors to comprehend the determinants of CSR, certain aspects remain obscured. This paper studies the factors influencing the level of CSR performance through the application of a Structural Equation Modeling (SEM-PLS) framework. To achieve this, a dataset encompassing 39 indicators across 1033 listed companies located in 32 countries was employed, spanning from 2005 to 2016 and seven latent variables were considered. The findings underscore that "country exposure," "corporate governance," and "company profile" positively impact CSR performance. Conversely, "ownership structure" exhibits a negative influence on CSR performance. Consequently, this study furnishes both practical and theoretical implications concerning the intricate interplay between CSR and a gamut of macro and micro-level business variables.