Strategic management of corporate social responsibility in Chinese listed companies : the nexus of corporate governance, CSR reporting, and economic performance

Abstract

This dissertation investigates the strategic management of Corporate Social Responsibility (CSR) in Chinese listed companies, focusing on how governance structures, leadership dynamics, and ESG practices are integrated into corporate strategy. Against the backdrop of China’s rapid economic growth and increasing global expectations for sustainability and accountability, the study explores how Chinese firms evolve from compliance-driven CSR to strategically embedded sustainability frameworks that align with both national priorities and international standards. The research develops a robust conceptual framework that integrates measurable ESG performance indicators with CSR’s ethical and stakeholder-centered principles. This integrated CSR–ESG model moves beyond traditional, fragmented approaches by offering a cohesive system that unites compliance, strategy, and cultural adaptation. The framework aims to bridge operational realities with theoretical imperatives, enabling companies to navigate complex sustainability challenges while maintaining competitive advantage. A key contribution of the dissertation is the creation of a data-driven typology of CSR strategies. Companies are classified into distinct categories - Leaders, Developers, and Minimalists - based on their intensity and focus of CSR engagement across key dimensions such as environmental protection, employee welfare, corporate governance, and ethical business conduct. The typology provides a practical tool for benchmarking and allows firms to assess their CSR maturity relative to industry peers. The empirical component of the research examines how board characteristics - such as size, independence, CEO duality, meeting frequency, and the presence of specialized committees - affect ESG performance and sustainability reporting. The findings reveal that board independence and active CSR committees are consistently linked to improved ESG transparency and accountability, whereas factors like CEO duality and board size produce mixed effects. These insights challenge assumptions drawn from Western governance models and highlight the need for context-specific approaches in emerging markets. Another innovative aspect of the dissertation is its focus on managerial overconfidence and its influence on ESG outcomes. The study finds that overconfident executives tend to drive more ambitious CSR agendas, particularly in the social and environmental pillars, though the magnitude of their impact varies across firms. This result provides a nuanced understanding of how leadership psychology intersects with sustainability performance, underscoring the need for balanced governance mechanisms that both empower and monitor executive decisions. The research also delves into the relationship between ESG performance and financial outcomes, confirming that environmental, social, and governance components exert distinct and significant effects on profitability. Notably, the study identifies regional disparities within China: ESG-driven financial gains are more pronounced in economically less developed regions, while firms in coastal and highly regulated areas display more modest financial returns from CSR investments. This regional analysis offers valuable insights for both policymakers and investors aiming to tailor sustainability strategies to local contexts. Additionally, the dissertation examines the intersection of CSR, internal control systems, and board gender diversity. Contrary to some existing literature, the findings indicate that increased female representation on boards does not uniformly strengthen internal controls in high-CSR firms within China. This suggests that cultural and institutional factors may moderate the expected positive impacts of gender diversity on governance outcomes, inviting further research into how gender dynamics operate in different socio-economic environments. The study’s methodological approach combines system analysis, normative research, comparative methods, and rigorous empirical techniques. Panel data regression models, cluster analysis, and robustness tests are applied to ensure the validity and reliability of the findings. The research design emphasizes both breadth and depth, integrating macro-level policy considerations with firm-level governance and operational data. Building on these empirical insights, the dissertation introduces a strategic CSR management model specifically tailored to the Chinese corporate landscape. This model is anchored in six core pillars: strategic alignment with corporate vision; robust governance and accountability structures; seamless operational integration of CSR principles; transparent performance measurement using standardized ESG metrics; active stakeholder engagement; and continuous improvement through innovation and benchmarking. By embedding CSR into each layer of corporate governance and operations, the model provides a roadmap for firms seeking to institutionalize sustainability as a core business function rather than a peripheral obligation. The dissertation also offers actionable recommendations for various stakeholders. For corporate leaders, it provides practical tools for designing and implementing CSR systems that enhance transparency, foster stakeholder trust, and create long-term business value. For investors, it highlights governance quality as a key indicator of genuine sustainability commitment, assisting in more accurate risk assessment and investment decision-making. For policymakers, the research underscores the importance of strengthening regulatory frameworks that promote consistency, comparability, and integrity in CSR reporting, which in turn can enhance market confidence and drive broader adoption of responsible business practices. In summary, this dissertation advances both theoretical and practical understanding of CSR management in China. It provides an empirically grounded, context-sensitive framework that bridges governance and sustainability, offering fresh insights for academics, business leaders, investors, and policymakers. By emphasizing the importance of integrated CSR strategies, effective governance, and leadership accountability, the study contributes to the ongoing evolution of sustainable business practices in China and offers lessons applicable to other emerging economies facing similar challenges.controls in high-CSR firms in China, suggesting that the impact of gender diversity on CSR and corporate governance may be shaped by local cultural and institutional factors. This analysis enriches the discourse on CSR by providing insights into how cultural and institutional specifics influence transparency and accountability practices within Chinese companies. Overall, the dissertation aims to contribute to the development of a robust CSR framework that balances regulatory compliance, stakeholder expectations, and sustainable growth. This work contributes to the academic discourse on CSR practices by providing an empirically grounded analysis of how governance structures, political affiliations, and cultural factors shape CSR engagement in China. By distinguishing between different types of political and governance influences, and by examining their specific effects on CSR alignment and accountability, the study offers a refined perspective that broadens the understanding of CSR dynamics in emerging markets. This approach allows for a more nuanced consideration of CSR’s role in balancing regulatory demands and stakeholder interests, especially within socio-political contexts distinct from Western frameworks. Through these contributions, the study aspires to help shape a future CSR framework in China that supports sustainable corporate growth, ethical governance, and strengthened accountability.