Are emerging country firms (EFCs) with the highest financial performance relative to industry more likely to incur in human rights controversies (HRCs) than low performing firms? What moderates this relationship? Using original panel data of a sample of 245 large public companies from Brazil, China, India, Malaysia, Mexico, Russia, South Africa and Thailand, we find that the positive relationship between EFCs performance and the likelihood to be involved in HRCs is negatively moderated by host countries’ rule of law pressures and by these firms’ intensity of adoption of corporate social responsibility policies, while it is stronger for State-Owned Enterprises (SOEs) than for non-SOEs.
Explaining organizational wrongdoing by emerging country firms
A. Vezzulli;
2018-01-01
Abstract
Are emerging country firms (EFCs) with the highest financial performance relative to industry more likely to incur in human rights controversies (HRCs) than low performing firms? What moderates this relationship? Using original panel data of a sample of 245 large public companies from Brazil, China, India, Malaysia, Mexico, Russia, South Africa and Thailand, we find that the positive relationship between EFCs performance and the likelihood to be involved in HRCs is negatively moderated by host countries’ rule of law pressures and by these firms’ intensity of adoption of corporate social responsibility policies, while it is stronger for State-Owned Enterprises (SOEs) than for non-SOEs.
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