Abstract: | This article empirically investigates how Chinese executives and managers perceive and interpret corporate social responsibility
(CSR), to what extent firms’ productive characteristics influence managers’ attitudes towards their CSR rating, and whether
their values in favour of CSR are positively correlated to firms’ economic performance. Although a large proportion of respondents
express a favourable view of CSR and a willingness to participate in socially responsible activities, we find that the true
nature of their assertion is linked to entrepreneurs’ instincts of gaining economic benefits. It is the poorly performing
firms, or rather, firms with vulnerable indicators – smaller in size, State-owned, producing traditional goods and located
in poorer regions that are more likely to have managers who opt for a higher CSR rating. Managers’ personal characteristics
per se are not significant in determining their CSR choice. Moreover, controlling for other observed variables, we find that managers’
CSR orientation is positively correlated with their firms’ performance. The better-off a firm is, the more likely its manager
is to get involve in CSR activities. Firms with better economic performance before their restructuring would sustain higher
post-restructuring performance. |