The Impact of Covid-19 on the Corporate Social Responsibility Performance and Disclosures of US Corporations

Abstract

The COVID-19 pandemic resulted in economic and financial hardships on firms, forcing them to make tough decisions regarding their social and ethical behavior. The purpose of this study is to examine whether the COVID-19 pandemic affected the corporate social responsibility (CSR) performance and disclosures of the US S&P 500 firms. In particular, this study examined the relationship between both CSR performance and COVID-19 and the relationship between CSR disclosures and COVID-19 along with the dimensions of environmental, social, and governance. Using t-tests and panel data analysis for the years 2018 through 2021, we found that CSR performance and CSR disclosure increased after the start of the pandemic for total CSR and for the dimensions of environmental, social, and governance. We also found that CSR performance was impacted by a larger change than CSR disclosures for all dimensions of CSR. This study is one of the first to examine the impact of COVID-19 on CSR and helps stakeholders understand the role that it played on firm decisions. The results further illustrate the importance that firms’ managements place on CSR performance and disclosures, even during a time of significant challenge and uncertainty.

Citation

Mahoney, L.S., Brickner, D.R., LaGore, W. and Lewis, P.A. (2024), "The Impact of Covid-19 on the Corporate Social Responsibility Performance and Disclosures of US Corporations", Shawver, T.J. (Ed.) Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 26), Emerald Publishing Limited, Leeds, pp. 79-99. https://doi.org/10.1108/S1574-076520240000026004