Does Entrepreneurial Society Undermine Corporate Social Responsibility?

Previous studies on institutional determinants of Corporate Social Responsibility (CSR) have contributed to our understanding of the ceteris paribus effect of specific elements of institutional environments (e.g., rules, norms) on CSR. However, the contingencies that enhance or diminish the impact of these elements on CSR have not been explored in previous studies. To fill this gap, current study focuses on how entrepreneurial institutions (entry regulations and entrepreneurial culture) interact with social institutions (labor regulations and empathy) to affect the social performance of firms embedded within different institutional settings. The results show that labor regulations are less efficient in improving social performance when firms are located in countries with entrepreneurship-friendly entry regulations. Results have implications for theory, practice and efficient cross-sectorial policy making.