The Effect of Creative Culture on Corporate Social Responsibility

Abstract

We examine how creative culture affects the corporate social responsibility (CSR) records of companies. To measure local creative culture, we use the fraction of the local creative class—including intellectuals and artists—working in knowledge-intensive industries. We argue that companies located in areas densely populated by the creative class should exhibit better CSR records to maintain their legitimacy. Using data from the US Department of Agriculture Economic Research Service, which refines and revises Florida’s (2002a,b) creative class measure, we find firms in areas with strong creative cultures have higher levels of CSR engagement, after controlling for alternative explanations and endogeneity concerns.