The Impact of National Culture on Firms’ Socially Responsible Policy
The country institutional context, depending on national culture and partially reflected in the legal system, determines firm’s socially responsible behavior towards each stakeholders group. Our study is carried on the firms belonging to 23 countries and confronts the Vigeo-Eiris social ratings with the cultural behavior measures of Hofstede. Firms in individualistic and feminine countries show a higher sensitivity towards their direct non-financial stakeholders. Firms belonging to countries with a large power distance and a strong uncertainty avoidance take more care about their community involvement. Finally, countries which are more tolerant towards uncertainty require, above all, a good financial governance.