In this paper, we explore how the adherence to Sharia principles in non-financial firms impacts on Corporate Social Responsibility (CSR) aptitudes, proxied by Environmental, Social and Governance (ESG) scores. By employing a worldwide dataset of 4,725 entities from 2002 to 2018, we find that Sharia-compliant firms are more likely to engage in sustainable and responsible practices, especially towards the environmental dimension. Evidence from a set of quasi-natural experiments, built around a range of significant natural disasters and social events, reveals a greater response of Sharia firms to CSR engagement, confirming the role played by faith-based business ethics in Islamic entities. Our results offer precious insight to policymakers and investors, suggesting that the integration of ethical and religious-oriented incentives can improve sustainability practices and resilience of firms.

Hassan, M. K., Chiaramonte, L., Dreassi, A., Paltrinieri, A., Pisera, S., The religious fringe of Corporate Social Responsibility, <<INTERNATIONAL REVIEW OF ECONOMICS & FINANCE>>, 2022; 80 (N/A): 243-265. [doi:10.1016/j.iref.2022.02.003] [https://hdl.handle.net/10807/220044]

The religious fringe of Corporate Social Responsibility

Paltrinieri, A.
Writing – Review & Editing
;
2022

Abstract

In this paper, we explore how the adherence to Sharia principles in non-financial firms impacts on Corporate Social Responsibility (CSR) aptitudes, proxied by Environmental, Social and Governance (ESG) scores. By employing a worldwide dataset of 4,725 entities from 2002 to 2018, we find that Sharia-compliant firms are more likely to engage in sustainable and responsible practices, especially towards the environmental dimension. Evidence from a set of quasi-natural experiments, built around a range of significant natural disasters and social events, reveals a greater response of Sharia firms to CSR engagement, confirming the role played by faith-based business ethics in Islamic entities. Our results offer precious insight to policymakers and investors, suggesting that the integration of ethical and religious-oriented incentives can improve sustainability practices and resilience of firms.
Inglese
Hassan, M. K., Chiaramonte, L., Dreassi, A., Paltrinieri, A., Pisera, S., The religious fringe of Corporate Social Responsibility, <<INTERNATIONAL REVIEW OF ECONOMICS & FINANCE>>, 2022; 80 (N/A): 243-265. [doi:10.1016/j.iref.2022.02.003] [https://hdl.handle.net/10807/220044]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/220044
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