Family Firms and CSR Composition: Internal Versus External Practices in Latin America

Abstract

Corporate social responsibility (CSR) is central to debates on the legitimacy and competitiveness of family firms, yet evidence on ownership effects remains inconsistent. While socioemotional wealth perspectives highlight reputational motives, capability-based views suggest that resource constraints may limit substantive internal investments. Most prior studies focus on aggregate CSR levels and on Europe or North America, leaving unanswered whether ownership shapes the composition of CSR activities in under-represented contexts such as Latin America. This article examines 315 listed firms in Argentina, Brazil, Chile, Colombia and Mexico between 2019 and 2023. Using environmental, social and governance ratings and generalised linear models with size, age, country and sector controls, this study tests whether family ownership predicts internal versus external CSR outcomes. The authors find that non-family firms outperform in capability-intensive internal CSR, while external CSR and governance show parity. These results highlight a visibility–capability trade-off and suggest that Latin American family firms must enhance their operational capabilities to address CSR gaps.