CSR and financial performance: complementarity between environmental, social and business behaviours

Cavaco, Sandra; Crifo, Patricia

doi:10.1080/00036846.2014.927572

Cited by 219 publications

(167 citation statements)

References 57 publications

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“…Additionally, it is often asserted that firms with high investments in research and development projects achieve competitive advantages through innovation [110], increasing their corporate financial performance. Many studies examine research and development expenses as a determinant of financial performance and find a positive association [30,109]. Hence, we control for research and development intensity (R&D) assessed by dividing research and development expenses of the firm by its total sales revenue [17].…”

Section: Control Variablesmentioning

confidence: 99%

“…Firstly, while previous studies use a great variety of one-dimensional corporate environmental performance measures mainly focused on toxic substance emissions [13][14][15][16][17] for analyzing the effect of corporate environmental performance on corporate financial performance (see Appendix A), we apply a multidimensional construct of corporate environmental performance which provides a broader perspective of it, as in [18], whose work is focused on the tourism industry. Secondly, previous studies have examined the effect of corporate environmental performance on corporate financial performance for firms located in a single country or region such as United States [19,20], Germany [21], Italy [22], Australia [14], Czech Republic [23], UK [24], Japan [25,26], Egypt [27], Indonesia [28], Brazil [29] and European region [30], while our study includes firms located in several countries around the world as in [16][17][18]. Thirdly, we introduce in our model the effect of the level of economic development of the country where the firm develops its business activities on the relationship between corporate environmental performance (in the broader environmental sense) and corporate financial performance.…”

Section: Introductionmentioning

confidence: 99%

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Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

2017

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Abstract:The relationship between corporate environmental performance and corporate financial performance has been extensively studied in developed countries, and has received less attention in developing countries. For this reason, the main objective of this paper is to examine the effect of corporate environmental performance on corporate financial performance during a global financial crisis, depending on the economic development level of the country where a firm is located. To this end, we obtain data for a sample of 2982 large firms from 2008 to 2015. We apply Petersen's approach to these data, adjusting the standard errors for clustering by both firm and year. The results obtained show that the adoption of environmental practices significantly and positively affects the corporate financial performance in developed and developing countries. However, this effect is stronger for firms located in developing countries than those located in developed countries.

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Section: Control Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

2017

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“…regarding non-ethical business behaviour (especially in the environmental area), are not a feature of the Serbian market, not due to lack of malpractice, but rather because of relatively weak advocacy capacities of the civil society, in combination with pressing economic problems burdening the citizens. On a positive note research has shown that responsible behaviour towards employees (human resources dimension) and towards customers and suppliers (business behaviour dimension) act as complementary inputs of financial performance, leading to mutual benefits and reduced conflict between those stakeholders [7]. Nonetheless, recent research also shows that even more regulated industries such as financial services institutions' have limited understanding on impact they could have by using their network of commercial clients to influence global sustainability, and that the relationship between the firm and its supply chain merits additional study [62].…”

Section: Renamed Into Responsible Business Forum (2015)mentioning

confidence: 99%

Stakeholder management in Serbia's CSR practice

Krstić¹,

Trbovich²

2015

Ekonomika preduzeca

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SažetakU članku se istražuje primena teorije upravljanja zainteresovanim stranama u slučaju Srbije, u kojoj je praksa savremenog društveno-odgovornog poslovanja (DOP) nedavno uvedena, uprkos bogatoj tradiciji zadužbinarstva i dobročinstva. Radi provere teorije, utvrdili smo tri hipoteze, pretpostavljajući da se upravljanje zainteresovanim stranama kao deo DOP prevashodno koristi kao oruđe odnosa s javnošću, da kvalitet korporativnog upravljanja zavisi od funkcije DOP u organizaciji, kao i da u više uređenim industrijama kao što su građevina i bankarstvo postoji naprednije upravljanje zainteresovanim stranama. Hipoteze su ispitivane na osnovu raspoložive literature i sveobuhvatnog empirijskog istraživanja (kabinetsko istraživanje, anketiranje i dubinski intervjui poslovnih rukovodioca, upoređeni sa najboljom evropskom praksom). Ukazano je da finansijski sektor najviše pažnje poklanja klijentima, dok građevina (cementna industrija) u središte poslovanja stavlja zajednicu u kojoj posluje i svoje zaposlene, što odgovara i međunarodnoj praksi. Međutim, služba za odnose s javnošću ili marketinga prevashodno se bave odnosima sa zainteresovanim stranama u Srbiji, iz ugla slike preduzeća u javnosti, bez dovoljnog razumevanja uloge zainteresovanih strana u unapređenju poslovnog učinka preduzeća, što pokazuje niži stepen razvijenosti privrede i rani stepen tranzicije ka najboljim praksama Evropske unije. Ključne reči: zainteresovane strane, društveno-odgovorno poslovanje (DOP), upravljanje, bankarstvo, građevina (proizvodnja betona) AbstractThe article tests the stakeholder management theory in the case of Serbia, a country where modern corporate social responsibility practice was introduced relatively recently, despite rich tradition of philanthropy. To validate the theory, we formulated three hypotheses, assuming that stakeholder management is predominantly used as a PR tool, that stronger corporate governance correlates with developed CSR function within the organisation and that regulated industries such as researched examples of construction and banking demonstrate more advanced stakeholder management. These hypotheses were examined against the available literature review and a comprehensive empirical study (desk research, online survey and in-depth interviews with business managers, compared with best European practice). We have shown that the financial sector places most emphasis on its customers, whilst the construction sector (cement industry) sets the local community and employees in the cornerstone of its business operations, in line with international practice. However, public relations or marketing sector are primarly engaged with stakeholders' relationship in Serbia from a company's image perspective, lacking understanding the stakeholder role in business performance improvement, which indicates a lower level of development and early stage in transition to best European union practices.

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“…One of the possible reasons for not reaching unanimity comes from the effect of the quality-quantity trade-off among each one of the CSR dimensions (Cavaco & Crifo, 2014). A corporate's CSR strategy is multi-dimensional, encompassing environmental, business, and social behaviors.…”

Section: Introductionmentioning

confidence: 99%

Decision Making by Extracting Soft Information From CSR News Report

Lin

Hsu

2018

Technological and Economic Development of Economy

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Abstract. This study examines the impact of corporate social responsibility (CSR) news reports on corporate operating performance forecasting using a large database of publicly-listed electronics firms in Taiwan. Applying text mining techniques and latent topic modelling, we construct and measure the intensity of the CSR-corpus index (ICSRI), which can compress tremendous amounts of CSR textual information content into synthesized meaningful dimensions. By doing so, we are able to break down CSR news reports into multiple dimensions and then examine which dimension(s) affects operating performance. To offer decision-makers with a comprehensive, overarching view of the corporate's operations, this study incorporates balanced scorecards (BSC) and multiple criteria decision analysis (MCDA) to form a final performance rank. The proposed approach, supported by real samples, can assist both internal and external stakeholders in allocating scarce resources to specific CSR dimensions to enhance a corporate's growth potential as well as to achieve a win-win situation.

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CSR and financial performance: complementarity between environmental, social and business behaviours

Cited by 219 publications

References 57 publications

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

Stakeholder management in Serbia's CSR practice

Decision Making by Extracting Soft Information From CSR News Report

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