CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE FINANCIAL PERFORMANCE: RELATIONSHIPS IN DIFFERENT COUNTRIES
This study aims to examine literature about relationship between corporate social responsibility (CSR) and financial performance (CFP) in different countries. The studies from nine different countries were examined. The results indicate that there are three groups of results. Three different types of relationships between CSR and CFP can be identified: positive, negative and neutral. We claim, that researchers of 9 different countries use quite the same methodology to different to examine the relation between CSR and CFP for different types of companies. However, CSR is strongly influenced by cultural and socio-economic environments and relates to a country’s national business system. Political institutions are potential drivers of CSR as well. Moreover, informal institutions such as national cultures have an important effect on CSR practices. The national business system of the specific country creates the conditions under which corporations are more or less likely to engage in socially responsible behavior. For instance, in countries with a high degree of union power, firms perform better on the social and environmental scores. So, variety of legislative basis and national institutions (political, market, cultural) are drivers of CSR. They is a specific for each country. Due to that, all examined studies are incomparable because of the national institutions’ difference that drive responsible behavior of the companies. The results in one country can differ in another. This article adds to the previous research devoted to the relationship between CSR and CFP. Firstly, the study enhances understanding of the relationship between CSR and CFP. Secondly, this study expands information about CSR in different countries to scholars and researchers. It also contributes to investors, who consider CSR in decisions making process.
Adeneye, Y.B., Ahmed, M. (2015). Corporate social responsibility and company performance. Journal of Business Studies Quarterly, 7(1), 151-166.
Aguilera, R.V., Rupp, D. E., Williams, C.A. and Ganapathi J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. The Academy of Management Review Vol. 32, No. 3, pp. 836-863.
Allouche José, Laroche Patrice (2005). A Meta-analytical investigation of the relationship between corporate social and financial performance. Revue de Gestion des Ressources Humaines, Eska, pp.18. ffhal-00923906f.
Basuony, M. A. K., Elseidi, R. I., & Mohamed, E. K. A. (2014). The impact of corporate social responsibility on firm performance: Evidence form a MENA country. Corporate Ownership & Control, 12(1-9), 761-774.
Bedi, Harpreet Singh, Financial Performance and Social Responsibility: Indian Scenario (October 29, 2009). Available at: https://ssrn.com/abstract=1496291 or http://dx.doi.org/10.2139/ssrn.1496291
Bushman, Robert M. and Piotroski, Joseph D. and Smith, Abbie J., What Determines Corporate Transparency (2004). Journal of Accounting Research, 42 (2). Available at: https://ssrn.com/abstract=428601,
Chand, M. (2006). The relationship between corporate social performance and corporate financial performance: Industry Type as a 'Boundary Condition’ Disclosure: Some Empirical Evidence. Accounting, Auditing and Accountability Journal, Vol.7, pg. 47,
Crisóstomo, V.L., Freire, F.S. and Vasconcellos, F.C. (2011). Corporate social responsibility firm value and financial performance in Brazil ‘Social Responsibility Journal’ Vol. 7 No. 2.
Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups Retrieved from: http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri= OJ%3AJOL_2014_330_R_0001.
Dyck, A. and Zingales, L. (2004). Private Benefits of Control: An International Comparison. The Journal of Finance, 59, 537-600.
Garcia-Gastro, R., Arino, M.A., and Canela, M.A. (2010). “Does social performance really lead to financial performance? Accounting for endogeneity”, Journal of Business Ethics, Vol. 92, pp. 107–126.
Griffin, J. J., and Mahon, J. F. (1997). "The Corporate Social Performance and Corporate Financial Performance Debate: Twenty-Five Years of Incomparable Research," Business & Society, Vol. 36, (5): 5-31. Available at: https://ssrn.com/abstract=2267176.
Griffin, Jennifer and Mahon, John F. (2013). The Corporate Social Performance and Corporate Financial Performance Debate: Twenty-Five Years of Incomparable Research (May 19, 2013).
Impact Reporting and Investment Standards Retrieved from: https://iris.thegiin.org/about-iris
Ioannou, I. and Serafeim, G. (2010). What Drives Corporate Social Performance? The Role of Nation-level Institutions. HBS Working Paper Series 11-016.
Iqbal, N., Ahmad, N., Basheer, N. A., & Nadeem, M. (2012). Impact of corporate social responsibility on financial performance of corporations: Evidence from Pakistan. International Journal of Learning & Development, 2(6).
Iqra A.M, Naeem A., Aqsa I. & Ayesha (2014). Impact of Corporate Social Responsibility on Financial Performance: a Case Study of Pakistan. International Review of Management and Business Research Vol. 3 Issue.4, pp.1914-1927.
Gautam, Richa; Singh, Anju; Bhowmick, Debraj (2016). Demystifying relationship between corporate social responsibility (CSR) and financial performance: an Indian business perspective. Independent Journal of Management & Production, vol. 7, núm. 4, pp. 1034-1062.
Margolis, J.D., and Walsh, J.P. (2003). “Misery loves companies: rethinking social initiatives by business”, Administrative Science Quarterly, Vol. 48 No, 2, pp. 268–305.
Matten, D., & Moon, J. (2008). "Implicit" and "explicit" CSR: A conceptual framework for a comparative understanding of corporate social responsibility. The Academy of Management Review, 33(2), 404-424.
Mba, T.A. (2006). The impact of Corporate Social Responsibility on Financial Performance of quoted companies in Nigeria: MBA thesis, Ambrose Alli University, Ekpoma.
McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: A Theory of Firm Perspective. Academy of Management Review, Vol.26. No. 1.
Mikołajek-Gocejna M. (2016). The relationship between social responsibility and corporate financial performance – Evidence from empirical studies. Comparative Economic Research, 19 (4), 67-83.
Muhammad Shaheer Nuhu, Sani Salisu (2017). Corporate Social Performance Determinants: A Study of Marketing Petroleum and Food and Beverages Industry in Nigeria International Journal of Business and Technopreneurship Volume 7, No. 3, 307-324.
Muttanachai Suttipun (2014). Corporate characteristics, social responsibility reporting, and financial performance: evidence in Thailand Corporate Ownership & Control / Vol. 12, Issue 1, 836-847.
Najah, Ahlem and Jarboui, Anis (2013). The Social Disclosure Impact on Corporate Financial Performance: Case of Big French Companies International Journal of Business Management and Research, Vol. 3, No. 4. Available at: https://ssrn.com/abstract=2472347.
Ngwakwe, C.C. (2008). Environmental Responsibility and Firm Performance: Evidence from Nigeria. World Academy of Science, Engineering and Technology 46 2008.
Turban, D., & Greenin, D. (1997). Corporate Social Performance and Organizational. Academy of Management Journal, Vol.40.658-672.
United Nations Guiding Principles Reporting Framework Retrieved from: http://www.ungpreporting.org/consult-the-reporting-framework/download-the-reporting-framework/
Uz Zaman (2013). The Relationship between Corporate Social Responsibility and Firm Financial Performance: A Case of Pakistan. Journal of Basic and Applied. 3(11)34-45.
Waddock, S., & Graves, S. (1997). The corporate social performance-financial performance link. Strategic Management Journal, vol. 18, no. 4, pp. 303-319.
Waheed, R., Lv, Y., Sarwar, S., & Sarwar, H. (2016). The Role of Corporate Social Responsibility on Firms Financial Performance in Pakistan. Elixir Management Arts, 98, 667–671.
Weshah, S., Dahiyat, A., Awwad, M., Hajjat, E. (2012). The impact of adopting corporate social responsibility on corporate financial performance: Evidence from Jordanian banks. Interdisciplinary Journal of Contemporary Research in Business, 4(5), 34-44
Whitley, Richard (1999). Divergent Capitalisms: The social structuring and change of business systems, Oxford: Oxford University Press
- There are currently no refbacks.