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For the past twenty years, researchers have extensively debated the determinants of good corporate governance practices and relationship between corporate governance and firm performance. Nevertheless, relationship between corporate governance and corporate social responsibility has received minimal attention in the extant literature. This study thus seeks to fill this dearth by examining the relationship between corporate governance mechanisms and CSR using a sample of 247 US based firms for the period 2007-2011. Using a random-effects panel data model, we find that firms with strong internal corporate governance characteristics – compliant with the corporate governance code – are likely to invest more in their CSR activities. We conclude based on the paper’s findings that, larger firms tend to care more about their external market reputation relative to small firms; whilst the former’s CSR investment is also likely to have a significant positive association with their corporate image. In addition, larger firms tend to have more resources compared to small and medium firms, in terms of capital and talent; and hence they are capable of making huge investments in CSR activities.

Syed Umar Farooq, Subhan Ullah, Danson Kimani. (2015) The Relationship between Corporate Governance and Corporate Social Responsibility (CSR) Disclosure: Evidence from the USA, Abasyn Journal of Social Sciences, Volume-08, Issue-2.
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