ABSTRACT
Although numerous organizational researchers have acknowledged that COVID-19 shocks reduced the tourism industry’s financial performance, relevant literature remains scarce. Do tourism firms reduce corporate social responsibility (CSR) investments to decrease costs? The answer is unclear. This study fills the gap between stakeholder and cost stickiness theories. Based on a quasi-natural experiment of listed Chinese tourism companies from 2017 to 2021, the study finds that the COVID-19 shock caused tourism firms to increase strategic and decrease responsive CSR. In addition, tourism firms that adopted cost leadership strategies trimmed responsive CSR more than strategic CSR. Tourism firms with differentiated leadership strategies increased strategic and decreased responsive CSR. Tourism firms with higher levels of political connections increased responsive CSR, while tourism firms with higher organizational resilience increased strategic CSR. At the theoretical level, this study reveals the theoretical mechanism of the COVID-19 epidemic’s shock on tourism firms' adjustment of CSR from the perspective of cost stickiness. On a practical level, it helps inform tourism firms’ decision-making regarding CSR adjustments for sustainable development when they face widespread crisis scenarios.