The impact of corporate social responsibility on inventory management: empirical evidence from China’s A-sector enterprises

Purpose The significance of corporate social responsibility (CSR) in business operations has increasingly been recognized, with research indicating that socially responsible initiatives can improve multiple facets of firm performance. However, the impact of CSR on inventory management, a critical component of operational efficiency, remains underexplored. This study aims to investigate the influence of CSR on inventory management. Design/methodology/approach The analysis is based on 8,385 firm-year observations from 645 Chinese A-type listed companies from 2010 to 2022. The study employs fixed-effect, panel EGLS and system GMM models to ensure the results robustness. Findings The study finds that CSR positively influences inventory management, as firms with higher CSR engagement achieve better inventory turnover ratios. In addition, asset tangibility, firm size and firm efficiency contribute to improved inventory management. Practical implications Corporate managers should integrate CSR into core business strategies to enhance inventory management and overall operational efficiency. CSR-driven firms can achieve better inventory turnover while contributing to social and environmental goals, reinforcing the business case for responsible practices. Originality/value To the best of the authors’ knowledge, this study is among the rare studies empirically examining the impact of CSR on inventory management specifically within the context of Chinese A-type listed companies.

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