AN EXPLORATORY VIEW OF EMERGING RELATIONSHIP BETWEEN CORPORATE SOCIAL AND FINANCIAL PERFORMANCE IN CANADA

2008 ◽  
Vol 10 (03) ◽  
pp. 239-264 ◽  
Author(s):  
PETER MAY ◽  
ANSHUMAN KHARE
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Primary Research ◽  
Publicly Traded ◽  
Ranking Methods ◽  
Canadian Context ◽  
Almost All ◽  
Corporate Social

This study uses primary research methods to determine whether a corporate social performance (CSP)–corporate financial performance (CFP) relationship exists within the Canadian context through examination of publicly-traded Canadian-based companies. The empirical findings demonstrate a positive CSR–CFP relationship, typically with CFP preceding CSP (although this does not preclude a relationship in the other direction) when using accounting-based measures of financial performance and as applied to the Top 1000 firms in Canada as ranked by profitability. This positive relationship was not confirmed when compared to the Top 500 companies ranked by profitability (i.e., with the "bottom 500" removed). In addition, the positive relationship did not occur with respect to market-based measures of financial performance (i.e., share performance). In addition, the study noted two possible issues that may have influenced the findings although the extent of such influences (if they exist) is not known. The first of these relates to a predilection amongst the CSR-rankings towards firms with high profitability. Almost all of the top-ranked CSR leaders are from the Top 500 firms in Canada as ranked by profitability and nearly three-quarters are from the Top 100. The second issue is the potential bias of the CSR-ranking methods themselves. This may have resulted in the inclusion of some firms with more questionable reputations in the rankings as well as the lack of continuity from year to year of CSR-leaders amongst the three rankings examined. This exploratory study sets the stage for more detailed analyses within a Canadian context in the future.

scholarly journals Corporate Social Performance, Financial Performance for Firms that Restate Earnings

2008 ◽  
Vol 2 (1) ◽  
pp. 104 ◽  
Author(s):  
Lois Mahoney ◽  
William LaGore ◽  
Joseph A. Scazzero
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Block Design ◽  
Financial Statements ◽  
Match Pair ◽  
The People ◽  
Randomized Block Design ◽  
Corporate Social

This study examines corporate social performance (CSP) in firms that restate their financial statements and, using a match pair design, compares their performance to firms that do not restate their financial statements.  Utilizing a randomized block design (two years prior to the<br />restatement and two years after the restatement) for a sample of 44 U.S. firms, we found that CSP Strengths, CSP Weaknesses, CSP People Strengths, and CSP People Weaknesses all increased after restatement <br />though weaknesses increased at a greater rate than strengths. Additionally, using panel data and a match pair design we found, we found<br />that restating firms had a greater increase in CSP Strengths, CSP Weaknesses, CSP Product Strengths, CSP People Strengths and a greater decrease in Total CSP People than non-restating firms after the restatement period. When comparing the relationships between CSP and<br />financial performance (FP), we found that the positive relationship between<br />ROA and CSP Strengths is greater for restatement firms than non-restating firms.  In particular, we find that this positive relationship is a result of the People dimension of CSP, in particular CSP People Strengths.<br /><br />

scholarly journals Relationship between Corporate Social Performance, Corporate Financial Performance and Financial Risk in Indian Firms

2019 ◽  
Vol 8 (3S3) ◽  
pp. 121-128
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Financial Performance ◽  
Corporate Social ◽  
The Relationship

This study examines the relationship between Corporate Social Performance and Corporate Financial Performance and Financial Risk of BSE top 10 companies in India. The variables of Corporate Social Performance and Financial Performance and Financial Risk were used in this study. There was positive relationship between Corporate Social Performance, Corporate Financial Performance and Financial Risk, at Bajaj Finance Ltd, Reliance Industries Ltd, Bajaj Auto Ltd, State Bank of India, Hindustan Unilever Ltd, Asian Paints Ltd and Bharathi Airtel Ltd. The novelty of the study is that the analysis of this study focuses on CSP, CFP and Financial Risk in respect of Indian firms.

When does it pay to stand out as stand-up? Competitive contingencies in the corporate social performance–corporate financial performance relationship

2018 ◽  
Vol 18 (3) ◽  
pp. 448-471 ◽  
Author(s):  
David Gras ◽  
Ryan Krause
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Social Orientation ◽  
Corporate Financial Performance ◽  
Moderating Effects ◽  
Publicly Traded ◽  
Contingency Model ◽  
Corporate Social ◽  
Strategic Differentiation

We develop a competitive contingency model of the relationship between corporate social performance and corporate financial performance, focusing on the moderating effects of industry-based factors. We conceptualize corporate social performance as a form of strategic differentiation and predict that the positive link between corporate social performance and corporate financial performance is strongest when a firm competes in an environment that is not conducive to corporate social performance. Analyses of data from roughly 2500 publicly traded firms between 2002 and 2009 support the moderating effects of industry munificence and social orientation. We discuss the implications of our contingency model for firms seeking a competitive advantage through corporate social performance.

scholarly journals A Systematic Literature Review—Social Engagement from Business Perspective

Proceedings ◽  
2018 ◽  
Vol 2 (22) ◽  
pp. 1379
Author(s):  
Jana Švecová
Keyword(s):  
Literature Review ◽  
Financial Performance ◽  
Social Engagement ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Perspective ◽  
Enormous Amount ◽  
Corporate Social ◽  
The Relationship

The present paper offers a literature review of relevant empirical research articles dealing with the relationship between corporate social performance (CSP) and corporate financial performance (CFP) published during the last five-year period 2013–2018. The results identify that although there is enormous amount of relevant studies presenting an overall positive relationship, there is still a lack of consensus in published results. Therefore CSP-CFP nexus remains a line of inquiry and more researches are needed. The most obvious explanation are different approaches in measuring corporate social responsibility and financial performance.

scholarly journals The Corporate Social-Financial Performance Link: Evidence from Pakistan

2016 ◽  
Vol 04 (01) ◽  
pp. 64-75
Author(s):  
Shahzad Butt ◽  
◽  
Safdar Ali Butt
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Least Square ◽  
Influential Factor ◽  
Listed Firms ◽  
Financial Firms ◽  
Corporate Social ◽  
The Relationship

This empirical investigation has been conducted to constitute a link between corporate social performance and corporate financial performance in Pakistani listed firms. For this purpose the data from seventy listed non-financial firms at KSE from twenty one sectors which are engaged in CSR activities for a period of six years from 2008 to 2013 was employed. The two-stage least square (TSLS) methodology has been used to explore a link between CSP and CFP. The results of study revealed that there is a simultaneous link between social and financial performance. Corporate social performance has been found as positively linked with the previous CFP which supports the slack resources theory. Social performance initiatives taken by the firms have also been found as having a positive relationship with future CFP. Secondly, this study examined the relationship between financial performance and social performance, and the results disclose that there is a positive relationship between CFP and CSP, and the fore most influential factor of corporate social performance was found to be size of the firms and the association between firm size and CSP was found as positive.

Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

scholarly journals Analisis CSR Dan Kinerja Keuangan Studi Empiris Pada Perusahaan Yang Terdaftar Pada Indeks Sri Kehati

2012 ◽  
Vol 5 (2) ◽  
Author(s):  
Farah Margaretha
Keyword(s):  
Financial Performance ◽  
Partial Correlation ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Sample Population ◽  
Significant Relation ◽  
Managerial Implications ◽  
The Difference ◽  
Corporate Social

The objectives of this study are to analyze the difference and correlation between the corporate social performance  and the corporate financial performance Companies in Indonesia,  The sample population of this study is company listed in Indonesian Stock Exchange. sampling was used in this study, are 23 companies in SRI KEHATI Index  The CSR score is measured by content analysis of corporate annual report . The data is tested by using partial correlation test to know the correlation between the corporate social performance and financial performance.  The results of this study show that there no significant relation between financial performance at (t) year and CSR  but found significant at tht (t+1) year. Managerial implications from this research will hopefully provide a new discourse  for investor in considering the aspects that need to be taken into investments that are not to monetary measurements. this research hopes management company can provide the input on the importance of corporate social responsibility in terms of the overall strategic management to improve the company's financial and social performance and raise awareness of companies to conduct CSR activities.

scholarly journals The Effect of Corporate Visibility on Corporate Social Responsibility

2019 ◽  
Vol 11 (13) ◽  
pp. 3698 ◽  
Author(s):  
Frank Li ◽  
Taylor Morris ◽  
Brian Young
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Size ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Mediating Effect ◽  
The Public ◽  
Corporate Social ◽  
The Relationship

Outside of direct ownership, the general public may feel it is an implicit stakeholder of a firm. As the public becomes more vested in a firm’s actions, the firm may be more likely to engage in Corporate Social Responsibility (CSR) activities. We proxy for the public’s stake in a firm with public visibility. Based on 3400 unique newspaper publications from 1994–2008, we measure visibility for the S&P 500 firms with the frequency of print articles per year concerning the firm. We find that visibility has a signficant, positive relationship with the CSR rating. Evidence also suggests this relationship may be causal and working in one direction, from visibility to CSR. While the existing literature provides other factors that influence CSR, visibility proves to have the most significant impact when tested alongside those other factors. Visibility also has a mediating effect on the relationship between CSR rating and firm size. CSR rating and firm size relate negatively for the lowest visibility firms and positively for the highest. This paper provides strong evidence that visibility is an important factor to consider for studies on corporate social performance.

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