Article by Jiangyan Li, Juelin Yin, Wei Shi, And Xiwei Yi: “As corporate lists and awards that rank and recognize firms for superior social reputation have proliferated in recent years, the field of CSR is also replete with various types of awards given out to firms or CEOs, such as Fortune’s “Most Admired Companies” rankings and “Best 100 Companies to Work For” lists. Such awards serve to both reward and incentivize firms to become more dedicated to CSR. Prior research has primarily focused on the effects of awards on award-winning firms; however, the effectiveness and implications of such awards as incentives to non-winning firms remain understudied. Therefore, in the article of “Keeping up with the Joneses: Role of CSR Awards in Incentivizing Non-Winners’ CSR” published by Business & Society, we are curious about whether such CSR awards could successfully incentivize non-winning firms to catch up with their winning competitors.
Drawing on the awareness-motivation-capability (AMC) framework developed in the competitive dynamics literature, we use a sample of Chinese listed firms from 2009 to 2015 to investigate how competitors’ CSR award winning can influence focal firms’ CSR. The empirical results show that non-winning firms indeed improve their CSR after their competitors have won CSR awards. However, non-winning firms’ improvement in CSR may vary in different scenarios. For instance, media exposure can play an important informational role in reducing information asymmetries and inducing competitive actions among competitors, therefore, non-winning firms’ improvement in CSR is more salient when award-winning firms are more visible in the media. Meanwhile, when CSR award winners perform better financially, non-winners will be more motivated to respond to their competitors’ wins. Further, firms with a higher level of prior CSR are more capable of improving their CSR and therefore are more likely to respond to their competitors’ wins…(More)”.