Constraints on "Doing Good": Financial constraints and corporate social responsibility

Using a propensity score matched sample of firms, we find that financially constrained firms have significantly higher CSR concerns, which significantly impairs their overall CSR performance. Firms facing financial constraints may prioritize by strengthening their CSR performance in employee relations, corporate governance and the environment. Despite such prioritization, financial constraints significantly impair overall CSR performance in all CSR dimensions, except human rights.