This paper employs a new perspective for viewing product recall as a way to responsibly manage a firm with a record of corporate social responsibility (CSR) engagement. Firms known for their past CSR performance are assumed to be responsible in recalling defective products when a product-harm crisis occurs. We examine whether the cumulated CSR efforts increase the likelihood of engaging in a voluntary product recall. To further reinforce the perspective, we examine whether the relationship still holds under performance pressure. In addition, this study examines the moderating effect of board characteristics that give a sense of ownership to board members (e.g., a family member of a founder, holding block shares, and voting power) in increasing socially responsible firms' engagement in the voluntary recall. The hypotheses were tested using a sample of 592 public firms in the United States from 2001 to 2014.
|Number of pages||14|
|Journal||Corporate Social Responsibility and Environmental Management|
|State||Published - 1 Jul 2019|
- board characteristics
- product recall
- sense of ownership