Family firms and corporate social responsibility (CSR): Preliminary evidence from the French stock market

Abstract

This paper examines the CSR practices of family firms listed in the French financial market and distinguishes between those managed by a family member CEO and those managed by a competent external CEO. We adopt an exploratory approach and begin with a content analysis of the annual reports from family firms listed in the CAC 40 index during the 2005-2011 period. We then conduct various statistical techniques (e.g., Pearson correlation analysis and ordinary least squares regression analysis) to study the relationships among social performance and family involvement. This paper is the first to provide a preliminary assessment of French family firms' CSR practices in the current economic context. The study suggests that family firms intensify their CSR efforts during the 2005-2011 period. Our study also reveals that family firms managed by competent external CEOs show better social performance than those managed by family member CEOs. Indeed, the empirical results consistently show a negative and statistically significant association between family involvement and corporate social performance.