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</script>We argue that the language spoken by corporate decision makers influences their firms’ social responsibility and sustainability practices. Linguists suggest that obligatory future-time-reference (FTR) in a language reduces the psychological importance of the future. Prior research has shown that speakers of strong FTR languages (such as English, French, and Spanish) exhibit less future-oriented behavior (Chen, 2013). Yet, research has not established how this mechanism may affect the future-oriented activities of corporations. We theorize that companies with strong-FTR languages as their official/working language would have less of a future orientation and so perform worse in future-oriented activities such as corporate social responsibility (CSR) compared to those in weak-FTR language environments. Examining thousands of global companies across 59 countries from 1999-2011, we find support for our theory, and further that the negative association between FTR and CSR performance is weaker for firms that have greater exposure to diverse global languages as a result of (a) being headquartered in countries with higher degree of globalization, (b) having a higher degree of internationalization, and (c) having a CEO with more international experience. Our results suggest that language use by corporations is a key cultural variable that is a strong predictor of CSR and sustainability.
Culture, Corporate Finance, Categories, language; future-time-reference; categories; culture; Corporate social responsibility; sustainability, Corporate social responsibility, Language, Business and Corporate Communications, language, Future-Time-Reference, categories, sustainability, culture, Corporate Social Responsibility, Sustainability, future-time-reference, jel: jel:Z11, jel: jel:G28, jel: jel:G3, jel: jel:Z10
Culture, Corporate Finance, Categories, language; future-time-reference; categories; culture; Corporate social responsibility; sustainability, Corporate social responsibility, Language, Business and Corporate Communications, language, Future-Time-Reference, categories, sustainability, culture, Corporate Social Responsibility, Sustainability, future-time-reference, jel: jel:Z11, jel: jel:G28, jel: jel:G3, jel: jel:Z10
| citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 22 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Top 10% | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Top 10% |
