The relationship between corporate social responsibility and sustainable financial performance: firm‐level evidence from Taiwan

217

126

Academic and corporate interest in ethical leadership, corporate social responsibility (CSR), and firm performance has attracted a lot of attention in recent years. In fact, many research papers and journal special issues have been focused on these three domains. In this context, this paper conducts a systematic review on the concepts of ethical leadership and CSR and their impact on firm performance. 114 papers published over a period of 58 years (1958–2016) were selected and analyzed according to descriptive and content perspectives to propose a conceptual framework and define a future research agenda. In fact, the main results allow us to derive six main propositions representing possible areas of investigation to direct research on the topic. More in details, the body of literature highlights that financial factors are the main barriers affecting the adoption of CSR practices. On the contrary, internal and external environment was found to represent a critical success factor in the adoption of CSR practices. Finally, the results highlight that personal values have impact on ethical leadership that in turn has direct positive impact on CSR and direct and indirect impact on firm performance.

Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review

Saha

Shashi

Cerchione

et al. 2019

217

126

“…Institutional transitions affect the role of financial performance in CSR reporting CFP buffers against external pressures on CSR brought by institutional transitions Hou (2019) Relationship between CSR and CFP in Taiwan Socially responsible firms can achieve financial performance superior to those which do not pursue CSR initiatives Hussain et al (2018) Link between sustainability practices and CFP Interlinks between different sustainability performance dimensions and subdimensions are weak and somewhat contradictory to bias and fragment research results Lu et al (2018) Link between CSR and its material implications including CFP CSR programs can be detrimental to CFP in the short term but conducive to improving it in the long term Busch and Friede (2018) Relation between CSP and CFP The relation is positive regardless of whether firms focus on ecological or social aspects. Strong relation for operational, short-term CFP Marti et al…”

Section: Significant Differences Between Industrial Firms and Financimentioning

confidence: 99%

Corporate financial performance due to sustainable development in Vietnam

Tien

Anh

Ngọc

2019

Social responsibility and environmental sustainability issues began to be paid attention in Vietnam due to the impressive economic development in recent years. However, corporate social responsibility (CSR) is still quite a new management concept, especially for small and medium enterprises. Managers are facing multiple obstacles in executing CSR programs in accordance with international standards. Regarding corporate environmental sustainability (CES), the idea of sustainable development is a rising trend in today's business reality. Essentially, CSR is regarded as a part of the overall sustainability issues. For the purpose of studying the impact of CSR and CES on corporate financial performance (CFP), quantitative method has been used to examine the relation between CSR and CFP. Qualitative method has been applied to verify the relation between CSR, CES, and CFP. On the basis of findings, several useful suggestions are made for managers to improve business performance and sustainable development in Vietnam.

“…However, these studies showed inconsistent conclusions regarding the relationship between CSR and corporate financial performance (Hou, 2018;Orlitzky, Schmidt, & Rynes, 2003;Uadiale, Temitope, & Fagbemi, 2012;Yang, Lin, & Chang, 2010). However, these studies showed inconsistent conclusions regarding the relationship between CSR and corporate financial performance (Hou, 2018;Orlitzky, Schmidt, & Rynes, 2003;Uadiale, Temitope, & Fagbemi, 2012;Yang, Lin, & Chang, 2010).…”

Section: Introductionmentioning

confidence: 99%

Institutional pressures on corporate social responsibility strategy in construction corporations: The role of internal motivations

Gao-Zeller

Rizzuto

et al. 2019

The aim of the research is to reveal the role of internal motivations in the mechanism driving corporate social responsibility (CSR) strategy in construction corporations. A framework was constructed based on neo-institutional theory, and measurement scales were developed through interviews. Questionnaire surveys and hierarchical regression analysis were carried out to verify the framework in a sample of huge Chinese construction corporations. The results reveal the mediating and moderating roles of ethical leadership, managerial moral motivation, and managerial autonomy in driving CSR strategy, which will enrich the application of neo-institutional theory in future CSR research. Furthermore, this study developed indicators, scales, and analytical frameworks with full consideration of the theoretical generality and the industrial particularity of Chinese construction corporations, which deepened the understanding of the driving mechanism of CSR strategy in the construction industry.The findings have practical implications for HCCCs in terms of developing CSR strategy and ultimately improving their CSR performance.