Effect of corporate social responsibility disclosure on firms' sales performance: A perspective of stakeholder engagement and theory

Abstract

Corporate social responsibility (CSR) is receiving a supreme interest, and several experts have revealed the outcomes of CSR disclosure (CSRD) toward organizational performance across the globe. Nevertheless, less attention has been paid to empirical contribution with respect to marketing and sales management, especially from developing nations. This study investigates the impact of CSRD practices, that is, internal (ICSRD) and external (ECSRD) to organizational sales performance (OSP). Data were collected from 450 managers within Small and Medium Size Enterprises (SMEs) of Pakistan and analyzed using structural equation modeling. The findings revealed the positive relationships between OSP and disclosure of CSR activities both ICSRD and ECSRD, that is, responsibility to the environment (ER), community (CR), customers (CCR), suppliers (SR), employees (EER), and responsibility to government rules & regulations (GR). The comprehensive analysis unveiled the higher significant effect of ECSRD than ICSRD.The study provides multidimensional insights for strategic management to support CSR notion and to engage stakeholders pursuing such practices to augment OSP dynamically.This study furnishes research possibilities for practitioners and academicians.

The perception of corporate social responsibility and employee engagement: Examining the underlying mechanism

“…The external benefits of CSR have been highlighted in many literary sources (Lee, Cin, & Lee, ; Zappalà, ). For instance, several empirical studies have shown that an indirect positive correlation exists between CSR and firm profitability (Waheed & Yang, ). Furthermore, instead of focusing on the traditional concept of a single stakeholder, companies are required to utilize a multistakeholder approach in the stakeholder theory (Cornell & Shapiro, ; Wang, Hsieh, & Sarkis, ).…”

The impact of corporate social responsibility on buying tendencies from the perspective of stakeholder theory and practices

“…From an international perspective, such theory addresses business and social issues by informing the strategic decision‐making of organizations (Clarkson, ; Harrison et al, ). Although much research has been conducted on CSR, researchers are still striving to reveal the influence of CSR practices; thus, more studies are needed to understand CSR activities in different contexts worldwide (Arrive & Feng, ; Waheed & Yang, ). Additionally, the stakeholder theory suggests conducting more research in an international context, since CSR is a noteworthy global phenomenon, especially in developing countries (Harrison et al, ; Jamali & Neville, ; Waheed & Yang, ).…”

“…Although much research has been conducted on CSR, researchers are still striving to reveal the influence of CSR practices; thus, more studies are needed to understand CSR activities in different contexts worldwide (Arrive & Feng, ; Waheed & Yang, ). Additionally, the stakeholder theory suggests conducting more research in an international context, since CSR is a noteworthy global phenomenon, especially in developing countries (Harrison et al, ; Jamali & Neville, ; Waheed & Yang, ). It is a prominent theory that has been widely considered in CSR studies by distinct experts globally (Clarkson, ; Reverte, ; Roberts, ; Waheed & Yang, ).…”

Corporate financial performance due to sustainable development in Vietnam

“…Experts have revealed the outcomes of CSR disclosure towards organizational performance across the globe, including the aspect of marketing and sales that indirectly contribute to the CFP. The comprehensive analysis carried out by Waheed and Yang () on 450 small and medium enterprises (SMEs) from Pakistan unveiled the significantly higher effect of external CSR disclosure than internal CSR disclosure on marketing and sales performance.…”

“…Experts have revealed the outcomes of CSR disclosure towards organizational performance across the globe, including the aspect of marketing and sales that indirectly contribute to the CFP. The comprehensive analysis carried out by Waheed and Yang (2019) on 450 small and medium enterprises (SMEs) from Pakistan unveiled the significantly higher effect of external CSR disclosure than internal CSR disclosure on marketing and sales performance. Brogi and Lagasio (2019) Although many extant studies focus on the relation between CFP and CSR reporting, less attention has been given to the shifting role of financial performance in CSR reporting in a changing institutional environment.…”