Does national culture influence corporate social responsibility on firm performance?

In recent years, the influence of corporate social responsibility (CSR) on firm performance has received increasing attention, with academic research deepening in this field. This study introduces national culture as a moderating variable and explores the relationship between national culture, CSR, and firm performance to determine the role of national culture in the impact of CSR on firm performance. Data of listed companies from 15 different countries, between 2011 and 2020, were collected for empirical analysis. Comprehensive environmental, social and governance (ESG) score was used to measure the degree of CSR fulfillment. The results reveal that CSR hinders firm performance. In terms of national culture, power distance index and uncertainty avoidance have a negative relationship with firm performance, while individualism has a positive impact. Conversely, power distance index can enhance the negative correlation between CSR and firm performance. This study suggests that governments should appropriately intervene in the implementation of CSR and take the initiative to foster a national cultural climate of individualism and democracy.