Industry Business Associations and Corporate Social Responsibility

This paper investigates how industry business associations (IBAs) influence the ethical foundations of corporate social responsibility (CSR) in emerging markets. Using a comprehensive panel of Chinese listed firms from 2010 to 2020, we find that firms located in cities with established IBAs exhibit significantly higher CSR engagement than those without such associations. This relationship is more pronounced in regions with weaker market institutions, among non-state-owned enterprises, and in areas characterized by greater spatial competition. Mechanism analyses show that IBAs enhance CSR through reputational and collective-action channels by amplifying government and investor attention and coordinating ethical responses to workplace safety incidents. Moreover, IBA-induced CSR initiatives generate tangible economic outcomes, including improved access to government procurement contracts, enhanced firm performance, and increased bank financing. Overall, our findings highlight IBAs as ethical governance intermediaries that institutionalize responsible business conduct and transform moral commitment into economic and reputational capital within transitional institutional environments.