Toward the end of the Corporate Social Performance – Corporate Financial Performance debate
Abstract
The purpose of this document is to present the way forward to finalize the debate related to the link between Corporate Social Performance – Corporate Financial Performance. The discussion and proposal of 7 elements were developed that allow proposing a new methodological path for the development of empirical investigations that seek to explain the link between the Corporate Social Performance – Corporate Financial Performance. After the theoretical review, it was found that the most relevant changes were associated with the level of maturity of the Corporate Social Performance, micro-foundations approach, mediating variables, structural equation models, primary sources, and delimitation of the short, medium, and long term on the analysis.
Keyword : Corporate Social Performance, Corporate Financial Performance, microfoundations, Structural Equation Modeling, SMEs
How to Cite
Soriano, L., & Fong, C. (2023). Toward the end of the Corporate Social Performance – Corporate Financial Performance debate. Business: Theory and Practice, 24(2), 416–424. https://doi.org/10.3846/btp.2023.16688
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Bögel, P. (2019). Company reputation and its influence on consumer trust in response to ongoing CSR communication. Journal of Marketing Communications, 25(2), 115–136. https://doi.org/10.1080/13527266.2016.1166146
Børing, P. (2019). The relationship between firm productivity, firm size and CSR objectives for innovations. Eurasian Business Review, 9(3), 269–297. https://doi.org/10.1007/s40821-019-00123-y
Bouyssou, D., & Marchant, T. (2011). Bibliometric rankings of journals based on impact factors: An axiomatic approach. Journal of Infometrics, 5(1), 75–86. https://doi.org/10.1016/j.joi.2010.09.001
Breslin, D., & Gatrell, C. (2020). Theorizing through literature reviews: The miner-prospector continuum. Organizational Research Methods, 10(9), 42–81.
Broadstock, D., Matousek, R., Meyer, M., & Tzeremes, N. (2019). Does corporate social responsibility impact firms’ innovation capacity? The indirect link between environmental & social governance implementation and innovation performance. Journal of Business Research, 2(2), 23–32. https://doi.org/10.1016/j.jbusres.2019.07.014
Bruce, K., & Nyland, C. (2011). Elton Mayo and the deification of human relations. Organization Studies, 32(3), 383–405. https://doi.org/10.1177/0170840610397478
Busch, T., & Friede, G. (2018). The robustness of the corporate social and financial performance relation: A second‐order meta‐analysis. Corporate Social Responsibility and Environmental Management, 25(4), 583–608. https://doi.org/10.1002/csr.1480
Callahan, J. L. (2014). Writing literature reviews: A reprise and update. Human Resource Development Review, 13(3), 271–275. https://doi.org/10.1177/1534484314536705
Carroll, A. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-G
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Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117, 683–693. https://doi.org/10.1016/j.jbusres.2018.11.017
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Ferreira, C., & Morán, M. (2011). La responsabilidad social corporativa (RSC) en las bases de datos Scopus y Wos (estudio bibliométrico). Revista EDICIC, 1(4), 141–160.
Freeman, R., & Reed, D. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88–106. https://doi.org/10.2307/41165018
Głuszek, E. (2018). Dimensions and stages of the CSR maturity. In Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu (No. 520, pp. 64–80). DBC. https://doi.org/10.15611/pn.2018.520.06
Herrán-Páez, E. (2019). Análisis bibliométrico de la producción científica colombiana (2003–2015). Ediciones Profesionales de la Información SL. https://doi.org/10.3145/colombia_scimago
Herrera, J., Larrán, J., Lechuga, M., & Martínez, D. (2015). Evolución de la literatura sobre la responsabilidad social en pymes como disciplina científica. Revista Europea de Dirección y Economía de la Empresa, 24(2), 117–128. https://doi.org/10.1016/j.redee.2014.06.001
Hetze, K., & Winistörfer, H. (2016). CSR communication on corporate websites compared across continents. International Journal of Bank Marketing, 34(4), 501–528. https://doi.org/10.1108/IJBM-02-2015-0022
Khurshid, M., Shaheer, H., Nazir, N., Waqas, M., & Kashif, M. (2016). Impact of corporate social responsibility on financial performance: The role of intellectual capital. City University Research Journal, 3(4), 247–263.
Kim, M., & Kim, Y. (2019). CSR and shareholder value in the restaurant industry: The roles of CSR communication through annual reports. Cornell Hospitality Quarterly, 60(1), 69–76. https://doi.org/10.1177/1938965518777969
Kim, Y., Li, H., & Li, S. (2014). Corporate social responsibility and stock price crash risk. Journal of Banking & Finance, 43, 1–13. https://doi.org/10.1016/j.jbankfin.2014.02.013
Margolis, J., Elfenbein, H., & Walsh, J. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Ann Arbor, 10(12), 1–68.
Martinez-Conesa, I., Soto-Acosta, P., & Carayannis, E. (2017). On the path towards open innovation: Assessing the role of knowledge management capability and environmental dynamism in SMEs. Journal of Knowledge Management, 21(3), 553–570. https://doi.org/10.1108/JKM-09-2016-0403
Maslow, A. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396. https://doi.org/10.1037/h0054346
Miller, S., Eden, L., & Li, D. (2020). CSR reputation and firm performance: A dynamic approach. Journal of Business Ethics, 163(3), 619–636. https://doi.org/10.1007/s10551-018-4057-1
Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403–441. https://doi.org/10.1177/0170840603024003910
Porter, M., & Kramer, M. (2011). Creating shared value. Harvard Business Review, 34(17), 124–143.
Ramos, A., & Navarro, J. (2008). Base intelectual de la investigación en creación de empresas: un estudio bibliométrico. Revista Europea de Dirección y Economía de la Empresa, 17(1), 13–38.
Ruggiero, P., & Cupertino, S. (2018). CSR strategic approach, financial resources and corporate social performance: The mediating effect of innovation. Sustainability, 10(10), 3611. https://doi.org/10.3390/su10103611
Saeidi, S., Sofian, S., Saeidi, P., Saeidi, S., & Saaeidi, S. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Sánchez, P., & Benito-Hernández, S. (2015) CSR policies: Effects on labour productivity in Spanish micro and small manufacturing companies. Journal of Business Ethics, 128(4), 705–724. https://doi.org/10.1007/s10551-013-1982-x
Silva, R., Boaventura, J., & Bandeira-de-Mello, R. (2018). Meta-analysis of the relation between corporate social performance and corporate financial performance. Gestão & Produção, 25(4), 764–776. https://doi.org/10.1590/0104-530x025-18
Simionescu, L., & Dumitrescu, D. (2018). Empirical study towards corporate social responsibility practices and company financial performance. Evidence for companies listed on the Bucharest stock exchange. Sustainability, 10(9), 3141. https://doi.org/10.3390/su10093141
Soriano, L., & Fong, C. (2022). 75 años de responsabilidad social empresarial: análisis bibliométrico. Revista Empresa y Humanismo, 25(2), 147–176. https://doi.org/10.15581/015.XXV.2.147-176
Sun, W., & Cui, K. (2014). Linking corporate social responsibility to firm default risk. European Management Journal, 32(2), 275–287. https://doi.org/10.1016/j.emj.2013.04.003
Teece, D. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Toppinen, A., Hänninen, V., & Lähtinen, K. (2015). ISO 26000 in the assessment of CSR communication quality: CEO letters and social media in the global pulp and paper industry. Social Responsibility Journal, 11(4), 702–715. https://doi.org/10.1108/SRJ-09-2013-0108
Valenzuela, L., Linares, M., & Suárez, Y. (2015). Una aproximación teórica y bibliométrica a la Responsabilidad Social Empresarial (1971–2015): Análisis mundial, latinoamericano y colombiano. Lumina, 16, 168–193. https://doi.org/10.30554/lumina.16.1673.2015
Vishwanathan, P., Van Oosterhout, H., Heugens, P., Duran, P., & Van Essen, M. (2020). Strategic CSR: A concept building meta‐analysis. Journal of Management Studies, 57(2), 314–350. https://doi.org/10.1111/joms.12514
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Yim, S., Bae, Y., Lim, H., & Kwon, J. (2019). The role of marketing capability in linking CSR to corporate financial performance: When CSR gives positive signals to stakeholders. European Journal of Marketing, 53(7), 1333–1354. https://doi.org/10.1108/EJM-08-2017-0526
Yoo, D., & Lee, J. (2018). The effects of corporate social responsibility (CSR) fit and CSR consistency on company evaluation: The role of CSR support. Sustainability, 10(8), 2956. https://doi.org/10.3390/su10082956
Acevedo, M., Jiménez, L., & Rojas, M. (2017). Análisis bibliométrico sobre indicadores de innovación. Revista ESPACIOS, 38(08), 1–13.
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932–968. https://doi.org/10.1177/0149206311436079
Al-Shuaibi, K. (2016). A structural equation model of CSR and performance: Mediation by innovation and productivity. Journal of Management and Sustainability, 6(2). https://doi.org/10.5539/jms.v6n2p139
Barney, J. (1986). Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32(10), 1231–1241. https://doi.org/10.1287/mnsc.32.10.1231
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bögel, P. (2019). Company reputation and its influence on consumer trust in response to ongoing CSR communication. Journal of Marketing Communications, 25(2), 115–136. https://doi.org/10.1080/13527266.2016.1166146
Børing, P. (2019). The relationship between firm productivity, firm size and CSR objectives for innovations. Eurasian Business Review, 9(3), 269–297. https://doi.org/10.1007/s40821-019-00123-y
Bouyssou, D., & Marchant, T. (2011). Bibliometric rankings of journals based on impact factors: An axiomatic approach. Journal of Infometrics, 5(1), 75–86. https://doi.org/10.1016/j.joi.2010.09.001
Breslin, D., & Gatrell, C. (2020). Theorizing through literature reviews: The miner-prospector continuum. Organizational Research Methods, 10(9), 42–81.
Broadstock, D., Matousek, R., Meyer, M., & Tzeremes, N. (2019). Does corporate social responsibility impact firms’ innovation capacity? The indirect link between environmental & social governance implementation and innovation performance. Journal of Business Research, 2(2), 23–32. https://doi.org/10.1016/j.jbusres.2019.07.014
Bruce, K., & Nyland, C. (2011). Elton Mayo and the deification of human relations. Organization Studies, 32(3), 383–405. https://doi.org/10.1177/0170840610397478
Busch, T., & Friede, G. (2018). The robustness of the corporate social and financial performance relation: A second‐order meta‐analysis. Corporate Social Responsibility and Environmental Management, 25(4), 583–608. https://doi.org/10.1002/csr.1480
Callahan, J. L. (2014). Writing literature reviews: A reprise and update. Human Resource Development Review, 13(3), 271–275. https://doi.org/10.1177/1534484314536705
Carroll, A. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-G
Carroll, A., & Brown, J. (2018). Corporate social responsibility: A review of current concepts, research, and issues. In Corporate social responsibility (Business and society 360, Vol. 2, pp. 39–69). Emerald Publishing Limited. https://doi.org/10.1108/S2514-175920180000002002
Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117, 683–693. https://doi.org/10.1016/j.jbusres.2018.11.017
Elkington, J. (2004). Enter the triple bottom line. In A. Henriques & J. Richardson (Eds.), The triple bottom line: Does it all add up (pp. 1–16). Routledge. https://doi.org/10.4324/9781849773348
Felin, T., Foss, N., & Ployhart, R. (2015). The microfoundations movement in strategy and organization theory. Academy of Management Annals, 9(1), 575–632. https://doi.org/10.5465/19416520.2015.1007651
Ferreira, C., & Morán, M. (2011). La responsabilidad social corporativa (RSC) en las bases de datos Scopus y Wos (estudio bibliométrico). Revista EDICIC, 1(4), 141–160.
Freeman, R., & Reed, D. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88–106. https://doi.org/10.2307/41165018
Głuszek, E. (2018). Dimensions and stages of the CSR maturity. In Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu (No. 520, pp. 64–80). DBC. https://doi.org/10.15611/pn.2018.520.06
Herrán-Páez, E. (2019). Análisis bibliométrico de la producción científica colombiana (2003–2015). Ediciones Profesionales de la Información SL. https://doi.org/10.3145/colombia_scimago
Herrera, J., Larrán, J., Lechuga, M., & Martínez, D. (2015). Evolución de la literatura sobre la responsabilidad social en pymes como disciplina científica. Revista Europea de Dirección y Economía de la Empresa, 24(2), 117–128. https://doi.org/10.1016/j.redee.2014.06.001
Hetze, K., & Winistörfer, H. (2016). CSR communication on corporate websites compared across continents. International Journal of Bank Marketing, 34(4), 501–528. https://doi.org/10.1108/IJBM-02-2015-0022
Khurshid, M., Shaheer, H., Nazir, N., Waqas, M., & Kashif, M. (2016). Impact of corporate social responsibility on financial performance: The role of intellectual capital. City University Research Journal, 3(4), 247–263.
Kim, M., & Kim, Y. (2019). CSR and shareholder value in the restaurant industry: The roles of CSR communication through annual reports. Cornell Hospitality Quarterly, 60(1), 69–76. https://doi.org/10.1177/1938965518777969
Kim, Y., Li, H., & Li, S. (2014). Corporate social responsibility and stock price crash risk. Journal of Banking & Finance, 43, 1–13. https://doi.org/10.1016/j.jbankfin.2014.02.013
Margolis, J., Elfenbein, H., & Walsh, J. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Ann Arbor, 10(12), 1–68.
Martinez-Conesa, I., Soto-Acosta, P., & Carayannis, E. (2017). On the path towards open innovation: Assessing the role of knowledge management capability and environmental dynamism in SMEs. Journal of Knowledge Management, 21(3), 553–570. https://doi.org/10.1108/JKM-09-2016-0403
Maslow, A. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396. https://doi.org/10.1037/h0054346
Miller, S., Eden, L., & Li, D. (2020). CSR reputation and firm performance: A dynamic approach. Journal of Business Ethics, 163(3), 619–636. https://doi.org/10.1007/s10551-018-4057-1
Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403–441. https://doi.org/10.1177/0170840603024003910
Porter, M., & Kramer, M. (2011). Creating shared value. Harvard Business Review, 34(17), 124–143.
Ramos, A., & Navarro, J. (2008). Base intelectual de la investigación en creación de empresas: un estudio bibliométrico. Revista Europea de Dirección y Economía de la Empresa, 17(1), 13–38.
Ruggiero, P., & Cupertino, S. (2018). CSR strategic approach, financial resources and corporate social performance: The mediating effect of innovation. Sustainability, 10(10), 3611. https://doi.org/10.3390/su10103611
Saeidi, S., Sofian, S., Saeidi, P., Saeidi, S., & Saaeidi, S. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Sánchez, P., & Benito-Hernández, S. (2015) CSR policies: Effects on labour productivity in Spanish micro and small manufacturing companies. Journal of Business Ethics, 128(4), 705–724. https://doi.org/10.1007/s10551-013-1982-x
Silva, R., Boaventura, J., & Bandeira-de-Mello, R. (2018). Meta-analysis of the relation between corporate social performance and corporate financial performance. Gestão & Produção, 25(4), 764–776. https://doi.org/10.1590/0104-530x025-18
Simionescu, L., & Dumitrescu, D. (2018). Empirical study towards corporate social responsibility practices and company financial performance. Evidence for companies listed on the Bucharest stock exchange. Sustainability, 10(9), 3141. https://doi.org/10.3390/su10093141
Soriano, L., & Fong, C. (2022). 75 años de responsabilidad social empresarial: análisis bibliométrico. Revista Empresa y Humanismo, 25(2), 147–176. https://doi.org/10.15581/015.XXV.2.147-176
Sun, W., & Cui, K. (2014). Linking corporate social responsibility to firm default risk. European Management Journal, 32(2), 275–287. https://doi.org/10.1016/j.emj.2013.04.003
Teece, D. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Toppinen, A., Hänninen, V., & Lähtinen, K. (2015). ISO 26000 in the assessment of CSR communication quality: CEO letters and social media in the global pulp and paper industry. Social Responsibility Journal, 11(4), 702–715. https://doi.org/10.1108/SRJ-09-2013-0108
Valenzuela, L., Linares, M., & Suárez, Y. (2015). Una aproximación teórica y bibliométrica a la Responsabilidad Social Empresarial (1971–2015): Análisis mundial, latinoamericano y colombiano. Lumina, 16, 168–193. https://doi.org/10.30554/lumina.16.1673.2015
Vishwanathan, P., Van Oosterhout, H., Heugens, P., Duran, P., & Van Essen, M. (2020). Strategic CSR: A concept building meta‐analysis. Journal of Management Studies, 57(2), 314–350. https://doi.org/10.1111/joms.12514
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Yim, S., Bae, Y., Lim, H., & Kwon, J. (2019). The role of marketing capability in linking CSR to corporate financial performance: When CSR gives positive signals to stakeholders. European Journal of Marketing, 53(7), 1333–1354. https://doi.org/10.1108/EJM-08-2017-0526
Yoo, D., & Lee, J. (2018). The effects of corporate social responsibility (CSR) fit and CSR consistency on company evaluation: The role of CSR support. Sustainability, 10(8), 2956. https://doi.org/10.3390/su10082956