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Abstract

The influence of political institutions on corporate behavior has emerged as a hot topic, with special attention paid to those institutions that shape a country’s level of democracy. Building on institutional and corporate citizenship theories, this study explores how formal (i.e., electoral pluralism, government functioning, civil liberties) and informal (i.e., political culture, citizen participation) political institutions associated with the democratic level of a country impact corporate social responsibility (CSR). Drawing on 27,694 firm-year observations from 2016 to 2023, across 4,072 firms in 63 countries, we find that companies operating in political systems with robust electoral processes, strong civil liberties, and high levels of political participation tend to engage more actively in CSR. These results show the important role of those political institutions that underpin democracy in corporate responsible behavior.

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Biographies

Celia Díaz-Portugal (PhD, University of Burgos) is an assistant professor of Management at the University of Burgos (Spain). She has developed her career in the private sector mainly focusing on management and internationalization of small businesses. Her research interests focus on entrepreneurs’ emotions and resilience, cultural and creative entrepreneurs, and the institutional context of entrepreneurship. She has published in high-impact academic journals such as Creativity and Innovation Management, International Small Business Journal, and Long-Range Planning.
Minerva González (PhD, University of Zaragoza) is an associate professor of management at the University of Zaragoza (Spain). Her research examines strategic decision-making in multinational enterprises and entrepreneurial firms, with a particular focus on economic and political institutions, institutional dynamism, and their implications for firm behavior in international contexts. Her work has been published in high-impact academic journals such as Global Strategy Journal, Journal of World Business, or Small Business Economics and has been presented at several international conferences.
Clara Pérez-Cornejo (PhD, University of Burgos) is an associate professor of management at the University of Burgos (Spain). Her research areas include corporate reputation management, corporate governance, corporate social responsibility, circular economy, and enterprise risk management. She has participated in several international conferences and has published in high-impact academic journals such as the Business Ethics, The Environment and Responsibility, CSR and Environmental Management, European Management Journal, and European Management Review. Clara also contributed to several research projects, focusing on sustainability and enterprise risk management.