ESCP Europe

Langue

English

Publication year

01/09/2025

With the growing complexity of institutional environments, firms strategically develop their social responsibility initiatives to meet the evolving demands of societal and political stakeholders. This study examines the impact of a government-initiated corporate social responsibility (CSR) program on firm performance under the setting of firms’ voluntary participation in the Targeted Poverty Alleviation (TPA) program in China. We find that TPA participation significantly improves firm performance by enhancing social visibility and promoting corporate productivity. Moreover, heterogeneity tests reveal that the impact is more pronounced among firms with weaker social images and greater resource constraints. This study contributes to non-market strategy research by illustrating the beneficial role of aligning CSR concerns with government expectations in securing legitimacy and optimizing resource integration.