<p>While strong brand equity is often associated with higher profitability and market value, its impact on corporate social performance, particularly corporate social irresponsibility (CSI), remains underexplored. Drawing on prospect theory, this study examines how brand equity influences CSI through a risk- and pressure-based lens. Using panel data from Chinese listed firms, we find a U-shaped relationship between brand equity and CSI. This effect is steeper with higher managerial ownership but flatter with greater strategic deviance and stronger government intervention. The findings advance brand literature by revealing the dual role of brand equity in negative social performance, provide managerial insights by highlighting the moral risks associated with brand accumulation, and guide policymakers in designing balanced institutional mechanisms to curb socially irresponsible brand behaviour. Overall, the study underscores the importance of integrating ethical considerations into brand management to safeguard social well-being.</p>

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Brand equity and corporate social irresponsibility: evidence from an emerging market

  • Siyu Hou,
  • Zhaoyang Guo,
  • Xiaohui Sun

摘要

While strong brand equity is often associated with higher profitability and market value, its impact on corporate social performance, particularly corporate social irresponsibility (CSI), remains underexplored. Drawing on prospect theory, this study examines how brand equity influences CSI through a risk- and pressure-based lens. Using panel data from Chinese listed firms, we find a U-shaped relationship between brand equity and CSI. This effect is steeper with higher managerial ownership but flatter with greater strategic deviance and stronger government intervention. The findings advance brand literature by revealing the dual role of brand equity in negative social performance, provide managerial insights by highlighting the moral risks associated with brand accumulation, and guide policymakers in designing balanced institutional mechanisms to curb socially irresponsible brand behaviour. Overall, the study underscores the importance of integrating ethical considerations into brand management to safeguard social well-being.