Environmental dynamics and corporate social responsibility: An empirical analysis based on Chinese manufacturing listed companies

Environmental dynamics is a significant situational factor affecting corporate strategic decisions. Taking China's listed manufacturing companies from 2010 to 2019 as a research sample, based on organizational ethics theory, this study explores the impact of environmental dynamics on corporate social responsibility (CSR). It analyses the impact of autonomy (CEO duality) and life experience (returnee CEO) of the CEO, the subject of CSR decision making, on the above relationship. The study shows that firms in uncertain external environments will reduce CSR activities, i.e., the greater dynamic in the external environment, the worse the CSR performance, while CEO duality and returnee CEO will weaken the above relationship. Further study finds that amongst the four dimensions of CSR, environmental dynamics is negatively and significantly related to the remaining three dimensions, except for the technique (T) dimension. The weakening effect of CEO overseas study experience on the negative relationship between environmental dynamics and CSR is stronger. The negative impact between environmental dynamics and CSR is more significant in SOE groups. High-growth firms have a weakening effect on the negative relationship between environmental dynamics and CSR.