The Corporate Social-Financial Performance Relationship

Preston, Lee E.; O'Bannon, Douglas P.

doi:10.1177/000765039703600406

Cited by 1,146 publications

(949 citation statements)

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“…The most widely accepted theoretical framework treating the existence and nature of the relationship between CSR and firm performance is to be found in the work of Preston and O'Bannon (1997). They establish six possible relationships between the two variables.…”

Section: Theorical Frameworkmentioning

confidence: 99%

Corporate Social Responsibility and Financial Performance: The Spanish Case

Madorran

Garcia

2016

Rev. adm. empres.

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The enormous interest aroused by corporate social responsibility both in the academic and the business worlds forms the background for this study. Its objective is to analyze the relationship between corporate social responsibility and financial performance in view of the debate in the literature on the subject. The study focuses on a sample of Spanish companies taken from the IBEX 35 stock market index, using panel data methodology, which offers advantages in comparison to methodologies used in other studies. We analyzed the period from 2003 to 2010. Our findings suggest that there is no obvious relationship between corporate social responsibility and financial results, at least in the case of Spain.KEYWORDS | Corporate social responsibility, panel data, performance, Spanish firms, IBEX 35. [2003][2004][2005][2006][2007][2008][2009][2010]. Los resultados sugieren que la relación entre responsabilidad social y resultados no es tan obvia, al menos para el caso español. RESUMO O enorme interesse gerado pela responsabilidade social corporativa tanto no mundo acadêmico quanto no empresarial forma o pano de fundo para este estudo. Seu objetivo é analisar a relação entre a responsabilidade social corporativa e o desempenho financeiro em vista do debate existente na literatura sobre o tema. O estudo concentra-se em uma amostra de empresas espanholas tomadas do índice IBEX 35, da bolsa de valores de Madri, utilizando a metodologia de dados em painel, que oferece vantagens em comparação com metodologias utilizadas em outros estudos. Analisamos o período que abrange os anos de 2003 a 2010. Nossas conclusões sugerem que não há relação óbvia entre a responsabilidade social corporativa e os resultados financeiros, ao menos no caso da Espanha. PALAVRAS-CHAVE | Responsabilidade social corporativa, dados em painel, desempenho, empresas espanholas, IBEX 35. RESUMEN El enorme interés que despierta la responsabilidad social corporativa tanto en el ámbito empresarial como académico da sentido a este trabajo. El objetivo del trabajo es analizar la relación entre la responsabilidad social corporativa y sus resultados financieros, ya que existe debate en la literatura académica sobre esta cuestión. La cuestión de análisis se aplica a una muestra de empresas españo-las que cotizan en el IBEX 35, utilizando una metodología de datos de panel que aporta novedades a otros análisis realizados. El período de análisis abarca desde PALABRAS CLAVE | Responsabilidad social corporativa, datos de panel, resultados, empresas españo-las, IBEX 35. RAE-Revista de Administração de Empresas | FGV/EAESPDOI INTRODUCTIONIt is a well-known fact that businesses are currently incorporating corporate social responsibility (henceforth, CSR) criteria into their activities. The demands of a changing environment have led firms to pay ever greater attention to their influence over it, both in economic and social terms and those of the environment.In this context, firms have also been seeking competitive advantages sustainable on a long-term basis in a turb...

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Section: Theorical Frameworkmentioning

confidence: 99%

Corporate Social Responsibility and Financial Performance: The Spanish Case

Madorran

Garcia

2016

Rev. adm. empres.

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“…Enterprises with high social performance have good social image, thereby stakeholders will take concrete action to support, and thus enhance the company's financial performance. It is namely social impact hypothesis, scholars support this hypothesis [15]. Numbers of operational variables have significant impact on financial performance and social performance in Table I listed above.…”

Section: E Hypotheses Hypothesis Established In This Study Is: Therementioning

confidence: 78%

Model of Sustainable Business for Business-Evidence forTaiwan

Huang¹,

Chen²

2013

IJTEF

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Abstract-This study presents the model of sustainable business for business that integrates many ideas of scholars with gains of this study. It shows that nowadays enterprises should have social practice and economic practice for their managial idea and goal, and merges both into managerial policy to get the achievement of sustainable business. It describes the interreaction of social performance and financial performance, influence degree got from operating variables. In addition to ordinary least squares model (OLS), this paper uses the research approach of three-stage least squares model (3SLS) for considering endogeneous variables. Then we can construct the unbias, consistency and validity model, and offer companies the bases of business decision. From empirical results, this paper shows that more operating variables are significant influence on social performance and financial performance, and there is the positive and apparent influence for corporate social performance on corporate financial performance. The financial performance has positive influence on social performance too, and shows that the good financial performance contributes to the push of corporate social practice. These offer good foundation for business to construct the model of sustainable business. While getting profit, business can facilitate the progress of social responsibility.

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“…The authors suggested that attempts to reduce implicit costs of socially irresponsible actions would lead to an increase in explicit costs. Preston and O'Bannon (1997) provided a "social impact hypothesis" that links the ability to know the expectations of various stakeholders to a positive impact on financial performance. The positive relation may be justified with the assumption that costs incurred for CSP programs are only minimally comparable to potential benefits.…”

Section: The Relationship Between Csp-cfpmentioning

confidence: 99%

The "Virtuous Circle" Between Corporate Social Performance and Corporate Financial Performance in the European Banking Sector

Bussoli¹,

Conte²

2018

IJBA

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This paper analyses the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP) in the European banking sector. The good management approach and the slack resources approach have been tested, and the paper aims to verify the existence of a "virtuous circle" between the two performance measures. The econometric analysis, based on panel data, is performed on a sample of 71 listed banks (EU28) in the period between 2011 and 2015. The main findings show a positive influence of CSP on CFP, confirming the good management approach. However, the results demonstrate a negative influence of CFP on CSP, which generates the impossibility of confirming the theoretical assumptions of the slack resources approach. Therefore, the existence of a "virtuous circle" deriving from the integration of the two approaches is not supported.

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The Corporate Social-Financial Performance Relationship

Cited by 1,146 publications

References 10 publications

Corporate Social Responsibility and Financial Performance: The Spanish Case

Corporate Social Responsibility and Financial Performance: The Spanish Case

Model of Sustainable Business for Business-Evidence forTaiwan

The "Virtuous Circle" Between Corporate Social Performance and Corporate Financial Performance in the European Banking Sector

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