Straight Talk or Green Talk? Family Firms and the Integrity of CSR Reporting

Abstract

This study investigates whether family firms are less prone to corporate social responsibility (CSR) decoupling. By analyzing 34,588 firm-year observations across 41 countries (2006–2017) using panel regression on STATA 18 software, study finds that family firms exhibit significantly lower levels of CSR decoupling, greenwashing, and brownwashing compared to non-family firms. These findings suggest that family firms prioritize stakeholder interests and maintain greater alignment between CSR disclosure and performance. Moreover, country-level cultural practices moderate this relationship. Grounded in socioemotional wealth theory, the results imply that family firms, driven by long-term stakeholder relationships and reputational concerns, are more likely to engage in transparent and responsible CSR reporting