The impact of corporate social responsibility and irresponsibility on firm performance: New insights to an old question

Salaiz, Ashley; Evans, Klavdia; Pathak, Seemantini; Vera, Dusya

doi:10.1016/j.orgdyn.2019.01.004

Cited by 11 publications

(7 citation statements)

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“…Moreover, CSR, for external stakeholders, may help the firm develop a favorable reputation and increase customer satisfaction levels; it may also enhance a firm's future and intangible stock market value (Kang et al , 2010; Singal, 2014). Thus, firms that are reliant on stakeholder goodwill, tend to invest in CSR (Salaiz et al , 2020). Firms implement socially and environmentally responsible actions and still pursuit their economic goals by creating value for all the stakeholders (Freeman et al , 2004).…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate social responsibility and firm performance: does institutional quality matter?

Karmani

Boussaada

2021

JAAR

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PurposeThe purpose of this paper is to investigate whether institutional quality influences the corporate social responsibility (CSR) and firm performance (FP) relationship.Design/methodology/approachThis paper uses a large sample of 814 European firms from roughly 2008 to 2017. In order to resolve the problem of endogeneity and heterogeneity the system generalized method of moment is performed.FindingsFirst, the effect of CSR on FP is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. Second, we found that the institutional quality matters, as corruption significantly decreases the FP, while government stability law and order exert a positive impact. Third, results suggest, similarly, that FP benefits from the interactional relationship between CSR and institutional quality. Finally, as for firm specifics, we found that the lagged performance and growth rate of sales significantly increase the European FP. However, FP is negatively sensitive to the leverage ratio.Research limitations/implicationsThis study aims to fill the gap in the CSR-FP interrelation and institutional context. Since we have a large number of firms (814) compared to a relatively small temporal dimension (10 years), the dynamic panel data analysis, and more precisely, the SGMM approach, is the most appropriate to resolve the problem of endogeneity and heterogeneity.Practical implicationsThe institutional environment affects the firm's CSR response and results. The strong institutional quality may result in increased regulatory pressures placed on the firm related to social responsibility compliance and can thereby enhance the CSR–FP relationship.Originality/valueTo the best of our knowledge, this is the first study that explored the relationship between CSR–FP and institutional quality in the European context. Indeed, this paper shows that institutional quality mediates the relationship between CSR practices and FP.

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Section: Literature Reviewmentioning

confidence: 99%

Corporate social responsibility and firm performance: does institutional quality matter?

Karmani

Boussaada

2021

JAAR

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“…They believed that firms mirror their institutional situations, and that coordinated market economies systematically maintain larger CSR, lower CSI and financial wages matching the types of corporate behavior society wants. Salaiz et al [12] demonstrated that CSR and CSI are both whole parts of the broader concept of corporate social performance, and provided some insight for directors making cardinal determinations on how to assign resources to CSR and CSI, and react to the desires of their shareowners and other shareholders. They suggested that the primal thing to better a company's situation may lie in maximizing CSR rather than in minimizing CSI.…”

Section: Corporate Social Responsibility and Corporate Social Irrespomentioning

confidence: 99%

“…That is to say, CSR coexists with CSI, and there is a focus on resources and attention to assist the improvement of corporate social performance [9][10][11]. However, it is not always easy for firms to balance between promoting CSR and preventing CSI [12]; more specifically, a firm may have a good strategy on diversity and equality of opportunity, but it may be weak in its commitment to address environmental pollution. Given that the firm is satisfying some communities while ignoring others, exploring the ramifications of the coexistence of CSI and CSR is essential.…”

Section: Introductionmentioning

confidence: 99%

Optimal Decisions and Coordination in a Socially Responsible Supply Chain with Irresponsibility Risk

Wang

Zhong

2019

Sustainability

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Many companies make some stakeholders pleased but others cannot. To help understand why, it is very important to study the coexistence of corporate social responsibility (CSR) and corporate social irresponsibility (CSI). This paper considers a manufacturer with irresponsibility risk in a centralized and decentralized socially responsible supply chain, and uses a Stackelberg game to investigate the optimal policies on price and CSR investment level. This paper also examines the influence of consumer responsibility awareness and CSR investment efficiency on the decision behaviors of the manufacturer and retailer. Moreover, we developed a new mechanism to coordinate the decentralized supply chain system, which consists of the retailer participating in CSR and revenue sharing. Our results indicate that the manufacturer’s and retailer’s optimal decisions may not be significantly influenced by consumer responsibility awareness, but the effect of CSR investment efficiency is significant. Our results also show that if the degree of retailer participation and the proportion of revenue sharing are of moderate size, then not only can the contract mechanism coordinate the decentralized socially responsible supply chain, but it can ensure that a win–win situation can be achieved by the supply chain members.

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“…According to a KPMG study, more than 90% of the world's largest companies applied corporate social responsibility (CSR) in the last eight years, in 2017 more than 60% of all companies in each industry sector [2]. Consequently, a large number of studies have focused on the mechanisms through which the implementation of CSR measures leads to better business results.…”

Section: Introductionmentioning

confidence: 99%

Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market

et al. 2019

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In recent decades, the novel fact of considering corporate social responsibility (CSR) as part of the corporate strategy of companies has resulted in interest groups demanding the disclosure of such information. Likewise, considering their importance of transparency and governance today, it is necessary to make an approximation on the study of the divulgation of CSR information on companies listed on the Spanish stock market. The aim of this work is to determine whether the disclosure of the measures taken by the companies on CSR influences business profitability. Applying PLS-SEM on the information extracted from the sustainability reports of 103 companies listed on the Spanish continuous market, it is found that the disclosure of CSR measures improves business profitability in its social and economic dimensions, with no effect being found between the disclosure CSR in its environmental dimension on business profitability.

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The impact of corporate social responsibility and irresponsibility on firm performance: New insights to an old question

Cited by 11 publications

References 0 publications

Corporate social responsibility and firm performance: does institutional quality matter?

Corporate social responsibility and firm performance: does institutional quality matter?

Optimal Decisions and Coordination in a Socially Responsible Supply Chain with Irresponsibility Risk

Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market

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