The Impact Of Market Competition On Corporate Social Responsibility Of Employees

Corporate social responsibility has been a hot topic in recent years among academic circles, to some extend, CSR behavior as a kind of economic activity may seen as a response to specific market conditions and competitive environment, So CSR behaviors are not only affected by internal factors but also by the impact of external environment just like market competition. Employees have been one of the most important stakeholders to thecorporate, so this article will investigate the impact of market competition on employee’s CSR based on the stakeholder theory.Using micro-level China manufacturing data, the paper applies Probit Model to investigate the impacts of market competition on CSR to employees. The main conclusions are market competition becomes more intense, enterprises will decrease investment in staff training and fitness facilities. The results are further confirmed using several alternative measures of market competition. Moreover, we find that the impact of market competition on employee’s CSR shows industrial heterogeneity. Specifically, the market competition decreases enterprises’ investing in both staff training and fitness facilities in low value-added sectors, but these impacts are just the opposite in high value-added sectors.