Corporate Social Responsibility and Corporate FraudSocial Responsibility Journal (2018)
This study examines the impact of corporate culture, measured by corporate social responsibility (CSR), on the likelihood and severity of corporate fraud. Based on moral development theory in organization, this study hypothesizes that firms with ethical corporate culture, measured by CSR activities, are less likely to commit fraud and have less severe corporate fraud. Using probit, match-pair, propensity matching, and Heckman regressions on a sample of 152 criminal corporate fraud cases in the U.S. from the US Department of Justice (DOJ) during 2000 and 2010, this study finds that firms with higher CSR and CSR strengths (concerns) scores have lower (higher) likelihood and lower (higher) severity of corporate fraud. This study finds that firms with higher community, employee, environment, and product related CSR have lower likelihood of fraud and firms with higher diversity, employee, environment, and product related CSR have lower fraud severity.
- Corporate Fraud; Cognitive Moral Development; Corporate Culture; CSR
Citation InformationMaretno Agus Harjoto. "Corporate Social Responsibility and Corporate Fraud" Social Responsibility Journal (2018)
Available at: http://works.bepress.com/maretno-harjoto/3/
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