scholarly journals Social Performance vs. Financial Performance

2013 ◽  
Vol 2 (2) ◽  
pp. 53-65 ◽  
Author(s):  
Ilker Yilmaz
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Annual Reports ◽  
Financial Indicators ◽  
Financial Position ◽  
Low Levels ◽  
Corporate Social ◽  
The Relationship

In recent decades, it is gaining more and more dominance in both academic and business life that the company exists for and has responsibilities toward a wider group of stakeholders and it must have some objectives other than profitability. To achieve sustainable development and growth, the companies must assume more duties, which is called the term “corporate social responsibility (CSR).” In the literature, it is questioned whether CSR activities benefit the company or not; whether there is any relationship exists between CSR activities and the company’s financial performance and the direction of the relationship. We aimedto explore that whether there is any effect corporate social performance (CSP) on financial performance and position and vice versa. We performed content analysis through annual reports and derived a social score composed of the items included in disclosure guidelines and some criteria used in CSR ratings. We also used several financial position and financial performance indicators. In order to explore the relationship between CSP and financial indicators, we run panel data regressions. We found significant results for some of the indicators, where some of the indicators gave insignificant results. The reporting of CSR activities is in very low levels. The conscious toward CSR and sustainability must be promoted and the companies must assume more active roles. The reporting of those activities is also important.

scholarly journals Desempenho social e financeiro de pequenas e médias empresas: modelo conceitual de causa e efeito

2016 ◽  
Vol 15 (2) ◽  
pp. 60-70
Author(s):  
Jose Elenilson Cruz ◽  
Rafael Barreiros Porto
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Empirical Studies ◽  
The Social ◽  
Research Propositions ◽  
Object Of Study ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Corporate social performance can be understood as a way to measure the efficiency of interactions between companies and their main stakeholders. This evaluation has led to some steps forward in research and management implications. One of its main issues, which is the study of the relationship between social and financial performance, focuses on traditional joint-stock companies. This fact reveals a gap concerning the object of study in the literature of the area. The importance of investigating small and medium companies (SMCs) lies in their social and economic relevance and also in new evidences these studies may provide. After the theoretical discussion, this study presents a conceptual model composed of research propositions to be tested by future empirical studies that wish to answer the following question: in small and medium companies there are relations of cause and effect between social and financial performance? The test of the proposals suggested can reveal, among other results, the categories of social performance of SMCs most affected by a higher financial performance, as established by the premises of theoretical slack-resources; if the impact of these categories on the financial performance is qualified by way of management, confirming assumptions of the theory good management, or if there are no significant differences between the social performance of SMEs with higher financial performance and SMEs with low financial performance, revealing the existence of non-financial factors also influence social performance.

scholarly journals The Link between Corporate Social Performance and Financial Performance: Evidence from Indonesian Companies

2007 ◽  
Vol 1 (1) ◽  
pp. 149 ◽  
Author(s):  
Hasan Fauzi ◽  
Lois S. Mahoney ◽  
Azhar Abdul Rahman
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Resource Theory ◽  
Moderating Variables ◽  
Corporate Social ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Slack Resource

This study examines the relationship of corporate social performance (CSP) to corporate financial performance (CFP) to determine if CSP is related to firm performance.  Additionally, it examines whether firm size or industry affects the relationships between CSR and CSP. This study  advances the literature as it examines this relationship for companies in a developing country, Indonesia, along with examining the impact of moderating variables on this relationship. Two models were developed: the first model was derived using slack resource theory and the second model was developed using the good management theory. Through the examination of 383 firms, the result of the study failed to find a significant relationship between CSP and CFP in either model.  Further analysis, using the slack resource theory, did find that company size had a significant positive moderating effect on the relationship between CSP and CFP.

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.

Corporate Social Performance and Financial Performance

2009 ◽  
Author(s):  
Marc Orlitzky
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Critical Examination ◽  
Turn Of The Millennium ◽  
Business And Society ◽  
Literature Reviews ◽  
Research Stream ◽  
Corporate Social ◽  
The Relationship

The community of Business and Society scholars has been investigating the relationship between corporate social performance and corporate financial performance over thirty years. The typical conclusion, based on narrative reviews of this literature, is that the empirical evidence is too mixed to allow for any firm. In these reviews, poor measures and weak theory construction are often mentioned as causes of this apparent variability in findings. The assumption that this research stream is inconclusive has persisted until after the turn of the millennium. So, what may be required at this point is a critical examination of the evidence that seems to have motivated these conclusions. This article argues that certain types of literature reviews should be treated with caution. It proposes an alternative and uses this more rigorous methodology of literature reviews in order to assess the cumulative evidence on the core constructs.

Employees and Corporate Social Performance

2009 ◽  
pp. 327-333
Author(s):  
Punit Arora
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Employment Relations ◽  
Stakeholder Relationships ◽  
Stakeholder Influence ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Over 30 years of research on the relationship between corporate social performance (CSP) and financial performance (FP) has yielded no conclusive results. Researchers have tried to legitimize (or discredit) social performance on the basis of its surmised impact on corporate profitability. However, the empirical evidence on the topic has been as divisive as the theoretical propositioning. By reviewing the theory and evidence on the topic, this article puts forth four intertwined propositions that could be confounding these results: failure to consider the impact of corporate governance, lumping together all sorts of expenditures under the rubric of social performance, failure to consider the stakeholder relationships, and above all, not accounting for the past reputation and stakeholder influence capacity of the firm. In particular, we contend that it is the employment relations that run like a common thread among these factors and hold the key to the dynamics of CSP-FP link.

scholarly journals A Quantitative Analysis for the Correlation Between Corporate Financial and Social Performance

2016 ◽  
Vol 4 (4) ◽  
pp. 55
Author(s):  
Wafaa Salah ◽  
Mostafa Abdelhady Salama
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Three Dimensions ◽  
Operating Income ◽  
Corporate Social Responsibility Report ◽  
Corporate Social ◽  
The Relationship

Recently, the corporate social performance (CSP) is not less important than the corporate financial performance (CFP). Debate still exists about the nature of the relationship between the CSP and CFP, whether it is a positive, negative or a neutral correlation. The objective of this study is to explore the relationship between corporate social responsibility (CSR) reports and CFP. The study uses the accounting-based and market-based quantitative measures to quantify the financial performance of seven organizations listed on the Egyptian Stock Exchange in 2007-2014. Then uses the information retrieval technologies to quantify the contribution of each of the three dimensions of the corporate social responsibility report (environmental, social and economic). Finally, the correlation between these two sets of variables is viewed together in a model to detect the correlations between them. This model is applied on seven firms that generate social responsibility reports. The results show a positive correlation between the Earnings per share (market-based measure) and the economical dimension in the CSR report. On the other hand, total assets and property, plant and equipment (accounting-based measure) are positively correlated to the environmental and social dimensions of the CSR reports. While there is not any significant relationship between ROA, ROE, Operating income and corporate social responsibility. This study contributes to the literature by providing more clarification of the relationship between CFP and the isolated CSR activities in a developing country.

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.

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