CSR Longevity: Evidence from Long-Term Practices in Large Corporations

Multiple pressures are today propelling the private sector towards greater incorporation of sustainability in firms’ business models and strategies: actions and innovations that demonstrate committed corporate social responsibility (CSR). Achieving success with CSR is often a long-term process, taking years to fully develop, institute and pay off financially. Yet most current research is based on a short time horizon and shows mixed results in linking CSR to profitability and aspects of good governance. In this paper we introduce the concept of CSR longevity, meaning consistent engagement with CSR over an extended timeframe. We examine previously unexplored linkages between CSR longevity and the internal governance factors of executive compensation and taxes paid. Our findings demonstrate a considerable amount of support for the notion that firms committed to socially responsible behavior for an extended period also seem to restrain executive compensation and increase tax contributions, while also exhibiting better financial performance. Implications for research and practice, along with limitations of our study, are discussed. Corporate Reputation Review (2013) 0, 1–28. doi:10.1057/crr.2013.17