How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

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Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey

Sustainability ◽

10.3390/su11133643 ◽

2019 ◽

Vol 11 (13) ◽

pp. 3643 ◽

Cited By ~ 14

Author(s):

Elif Akben-Selcuk

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Ownership Concentration ◽

Firm Financial Performance ◽

Variable Approach ◽

Corporate Social ◽

The Impact ◽

Moderating Role

The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of non-financial public firms listed on the Borsa Istanbul (BIST)-100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for.

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Measuring the Impact of Corporate Social Responsibility Practices on Competitive Advantage: A Mediation Role of Reputation and Customer Satisfaction

International Journal of Business and Management ◽

10.5539/ijbm.v9n5p109 ◽

2014 ◽

Vol 9 (5) ◽

Cited By ~ 9

Author(s):

Wael Hassan El-Garaihy ◽

Abdel-Kader Mohamed Mobarak ◽

Sami Abdullah Albahussain

Keyword(s):

Corporate Social Responsibility ◽

Customer Satisfaction ◽

Social Responsibility ◽

Competitive Advantage ◽

Corporate Social ◽

The Impact

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Mediating Role of Competitive Advantage Between Corporate Social Responsibility and Firm’s Sales Growth

Advanced Science Letters ◽

10.1166/asl.2017.9902 ◽

2017 ◽

Vol 23 (9) ◽

pp. 8420-8424 ◽

Cited By ~ 1

Author(s):

Sayedeh Parastoo Saeidi ◽

Mohd Shahwahid Haji Othman ◽

Parvaneh Saeidi ◽

Sayyedeh Parisa Saeidi

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Competitive Advantage ◽

Sales Growth ◽

Mediating Role ◽

Corporate Social

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Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

Sustainability ◽

10.3390/su131810077 ◽

2021 ◽

Vol 13 (18) ◽

pp. 10077

Author(s):

Cao Thi Mien Thuy ◽

Nguyen Vinh Khuong ◽

Nguyen Thi Canh ◽

Nguyen Thanh Liem

Keyword(s):

Corporate Social Responsibility ◽

Stock Market ◽

Social Responsibility ◽

Financial Performance ◽

Financial Statement ◽

Estimation Methods ◽

Mediating Role ◽

Csr Disclosure ◽

Corporate Social

The aim of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance with the consideration of the mediating role of financial statement comparability (FSC) for a sample of Vietnamese listed firms. We used content analysis of the information related to the GRI Standards on annual reports in order to construct CSR disclosure score. We used a dataset of 1125 firm-year observations, covering 225 firms listed on Vietnam’s stock market in the period 2014–2018. Applying OLS and GMM estimation methods, Sobel test, and using different proxies of the mediator variable to increase the robustness, we obtained two remarkable conclusions. First, CSR disclosure has a positive impact on the financial performance of listed companies in Vietnam. Second, there is a complementary mediation effect of financial statement comparability in the above relationship. Our results suggest that it is necessary to develop a legal framework for the practice and disclosure of CSR as well as to apply the international accounting standards in the Vietnamese stock market.

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FURTHER EVIDENCE ON THE LINK BETWEEN FIRM’S CONTROL MECHANISMS AND FIRM FINANCIAL PERFORMANCE: SULTANATE OF OMAN

Journal of Governance and Integrity ◽

10.15282/jgi.4.1.2021.5435 ◽

2020 ◽

Vol 4 (1) ◽

pp. 1-6

Author(s):

Essia Ries Ahmed ◽

Tariq Tawfeeq Yousif Alabdullah ◽

Muhammad Shabir Shaharudin ◽

Eskasari Putri

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Audit Committee ◽

Board Independence ◽

Control Mechanisms ◽

Sultanate Of Oman ◽

Firm Financial Performance ◽

Corporate Social

Based on the agency theory perspective and its corporate governance problem, the current study investigated how control mechanisms affect firm financial performance with special concentrate on the role of audit committee on the enhancement of firm financial performance. The empirical findings of this study based on the listed companies in the Sultanate of Oman revealed that the control mechanisms, including committee size and board independence, positively enhance financial performance represented by ROE and therefore this leads to encourage firms to focus on such mechanisms. By contrast, audit size, board size and board independence are totally not motivated to engage with financial performance due to the insignificant link with ROA. On the other hand, a negative correlation has been found between board meeting and financial performance represented by ROE. The practical evidence of the implications by the current study found that for improvement of firm financial performance; that even though if most of the GCC governments recently have focused on corporate social responsibility because largely voluntary nature of corporate social responsibility, they should focus of the control mechanisms that suggested by the current study to play a significant role for enhancing firm financial performance.

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