Is social responsibility driven by industry or firm‐specific factors?

Purpose – This study aims to revisit the relative importance of industry and firm level effects on corporate social responsibility (CSR), with the objective of clarifying their diverse effects on CSR. Design/methodology/approach – The authors suggest that CSR is a shared strategic asset based on insights from the industrial organization and institutional schools, taking into account that there are determinants of CSR that may be operating inside the corporation according to the resource‐based view. They employ a variance components method and a sample compiled of 495 US firms from 19 industries using five‐year periods. Findings – The study indicates that firms retain considerable self‐determinism regarding their CSR trajectories, but the latter also represent a shared strategic asset. Thus, these results combined imply that CSR needs to be examined on both levels simultaneously. Practical implications – The results of this study can provide non‐governmental organizations and governmental and regulatory institutions with an indicator that explains the performance variation levels of each dimension of CSR, and can help improve tools designed to promote it. Furthermore, the authors' research provides managers with evidence of CSR variability among CSR dimensions that could help in strategic decision‐making. In addition this research can provide assistance and give perspective regarding selection criteria for investment portfolios in responsible investment funds. Originality/value – The industry effect is an important factor to consider in CSR intensity. The variation in firm and industry effects on CSR strategies has not been extensively studied; hence, explaining the sources of performance differences regarding industry and firm factors is a key theoretical and empirical issue in the field of management.