The effect of incentive types and organizational value statements on corporate social responsibility decisions

This study examines the effect of incentive types and organizational value statements on corporate social responsibility (CSR) decisions. It used a 2 x 2 between-subject experimental design and analyzed the data using Analysis of Variance (ANOVA). The participants were undergraduate students in the accounting department of a major university in Central Java, Indonesia. The results show that incentives in the form of recognition encourage CSR decisions more than financial incentives. This study also provides evidence that environmental-based value statements encourage managers to make CSR decisions rather than financial-based value statements. This study, however, finds there is no interaction between the type of incentives and organizational value statements on CSR decisions. The implication of the results of this study is the importance of using the types of recognition incentives and value statements that focus on sustainability to promote CSR decisions.