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CSR disclosure against boycotts: evidence from Korea

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Abstract

While corporate behavior is greatly influenced by the institutional environment, research on corporations’ socially unacceptable behavior in the context of Asian countries remains relatively scarce. Furthermore, how the public reacts against corporations’ bad deeds may vary across regions. Using a sample of 1023 boycott events with 93 targeted firms in Korea over the period 2006–2016, we investigate whether the public’s use of boycotts affects the targeted organization’s CSR disclosure speed. We also examine whether the effect of boycotts on CSR disclosure speed may vary depending on the magnitude of the potential loss resulting from failing to act or from reacting too slowly in response to such boycotts. We find that boycotts positively affect CSR disclosure speed and that this relationship is moderated by the business environment. Taken together, this study reveals CSR disclosure as a risk-reduction mechanism against boycotts.

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  1. School of Business Administration, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul, Republic of Korea

    Jiwon Yang & Jay Hyuk Rhee

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This work was supported by Korea University Business School Research Grant as well as by National Research Foundation of Korea (NRF) Grant funded by the Korean Government (NRF-2018-Global Ph.D. Fellowship Program).

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Yang, J., Rhee, J.H. CSR disclosure against boycotts: evidence from Korea. Asian Bus Manage 19, 311–343 (2020). https://doi.org/10.1057/s41291-019-00063-5

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