scholarly journals The Determinants of the Relationship of Corporate Social Performance and Financial Performance: Conceptual Framework

2008 ◽  
Vol 2 (2) ◽  
pp. 233 ◽  
Author(s):  
Hasan Fauzi
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Environment ◽  
Contingency Perspective ◽  
Management Domain ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

The objective of this paper is to investigate relationship between CSP and CFP using contingency perspective derived from the strategic management domain.  The investigation will be done using lens of slack resource and good management theory.  This study is expected to provide a new insight on the link between corporate social performance and corporate financial performance using contingency perspective as suggested in the strategic management and accounting literature, an area has not been examined<br />in the prior studies. The result of this study can resolve the existing conflict<br />in the literatures by developing an integrated model of the link between <br />CSP and CFP and the notion of corporate performance which, in strategic management, is highly affected by four factors: business environment, strategy, organization structure, and control system. The model will explain<br />in what condition the relationship of CSP and CFP is valid.

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 KAJIAN HASIL PENELITIAN EMPIRIS HUBUNGAN KINERJA KEUANGAN, STRATEGI INOVASI, BIAYA MODAL DAN KINERJA PASAR TERHADAP CORPORATE SOCIAL PERFORMANCE

2013 ◽  
Vol 3 (1) ◽  
Author(s):  
Sri Pujiningsih
Keyword(s):  
Financial Performance ◽  
Cost Of Capital ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Management Theory ◽  
Innovation Strategy ◽  
Good Management ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

<p>This article aims to review empirical research results of corporate social performance (CSP) themes. This article will discuss, firstly, the relationship of financial performance and CSP, the relationships of both are negative, positive and no correlation, based on difference theories. Secondly, the correlation of innovation strategy and CSP are explained by signaling theory. Thirdly, the correlation of cost of capital and CSP can be illuminated by good management theory. Fourth, correlation of market performance and CSP can be explained by signaling and good management theory. The advantages of this article can guide researchers to developed theoretical framework and hypothesis.</p><br />

Labour reputation and financial performance: is there a causal relationship?

2018 ◽  
Vol 40 (1) ◽  
pp. 43-57 ◽  
Author(s):  
María Dolores Odriozola ◽  
Antonio Martin ◽  
Ladislao Luna
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Causality Test ◽  
Content Type ◽  
Generalised Method Of Moments ◽  
Corporate Social ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyse if there is a circular relationship of causality between the labour dimension of corporate social performance (CSP) and corporate financial performance (CFP). Design/methodology/approach The sample is formed by the best companies to work for in Spain according to the labour reputation (LR) ranking developed by MERCO from 2006 to 2013. This study overcomes the limitations of previous studies using the panel data methodology (System generalised method of moments) and the Granger causality test. Findings The results suggest that the labour dimension of CSP cause CFP, but there is not causality in the opposite direction. Originality/value Studies about the relationship between dimensions of CSP and CFP demonstrated that there are divergences in the results depending on the dimension analysed. Despite managers and employees are interested in the impact of labour dimension of CSP on CFP, there are few studies about it and they have important limitations.

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 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.

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