摘要：This study investigates the dynamic causality relationship between Corporate Social Responsibility (CSR) and the
Corporate Political Activity (CPA). We employed the Vector AutoRegression (VAR) model in the Generalised Method
of Moments (GMM) framework and considered all time-invariant characteristics of every organisation. We studied a
sample consisting of 100 of the World Most Admired Companies (WMAC) that listed in the Fortune list in the period
ranging from 2007 to 2016. This study offered empirical evidence that showed that the CPA negatively affected the
CSR; however, an increased CSR did not guarantee an increase in the CPA. The results of this paper were in direct
contrast to the notion based on the hypothesis of the virtuous circle that described a positive correlation and mutual
reinforcement between the CPA and CSR.
