There is much debate as to whether family firms are socially responsible. Leveraging behavioral theories of intertemporal choice, we argue that CSR practices evolve across different stages of succession. As founders approach the later stages of their careers and identify successors, their desire to enhance their legacy becomes more pronounced, leading to an increase in CSR. Founders during this stage benefit from the socioemotional satisfaction they derive from the imminent passing on of a socially responsible business. However, as heirs become more involved in the business, CSR tends to decline as any concern for legacy is more temporally distant, which reduces the urgency to prioritize CSR. Our research on 2,072 listed Chinese family firms supports this multi-stage view, which holds especially true for older and first-born founders and for younger heirs, heirs with shorter tenures, and those without children.
