Failure to obtain definitive results regarding the influence of corporate social responsibility (CSR) on corporate financial performance (CFP) has prompted scholars to investigate mechanisms behind this relationship. This paper follows the same path and distinguishes two dimensions of CSR (social and environmental) to expand the pool of potential mediators on the basis of natural-and social resource-based view (RBV) of the firm. In a unique dataset comprising seven potential mediators for 300 companies, a direct relationship only existed between environmental CSR and CFP, in contrast to the "new road" from social CSR to CFP that goes through external reputation and innovativeness-variables that form an opposing mediation. 1 | INTRODUCTION Corporate social responsibility (CSR) is an increasingly common subject of research, especially in the areas of management and finance. CSR activities are increasingly common among managers (Horváth et al., 2017) and "firms have greatly increased the amount of resources allocated to [CSR] activities" (Barnea & Rubin, 2010, p. 71). This gives rise to questions on the relationship between CSR and corporate financial performance (CFP). As Wang, Sewon, and Claiborne (2008) noted, CSR needs economic justification, because without evident benefits for companies, CSR may not continue to flourish. CSR programs are costly and must compete for companies' limited financial resources. Although empirical research on the CSR-CFP relationship spans nearly 50 years,1 the findings are ambiguous, as repeatedly demonstrated in literature reviews (De Bakker, Groenewegen, & Den