Ambition Versus Conscience, Does Corporate Social Responsibility Pay off? The Application of Matching Methods
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Journal of Business Ethics 88 (1):133 - 153 (2009)
In this article, we examine the effect of corporate social responsibility (CSR) on firms' financial performance (CSR-effect). Two competing hypotheses, social impact hypothesis and shift of focus hypothesis, are proposed to investigate this issue, where the former suggests that CSR has a positive relation with performance and the latter are opposite. In order to ensure the CSR-effect is not contaminated by other faeton or samples are randomly drawn, we employ four matching methods, Nearest, Caliper, Mahala and Mahala Caliper to match the samples of CSR (CSR-firms) and without CSR (NonCSR-firms) with similar characteristics. Although four methods yield slightly different results, firms engaging in CSR activities tend to obtain significantly higher values on pretax income to net sales and profit margin, and adopting CSR at the very least not deteriorate the performance of firms, making our con clusion favors the social impact hypothesis and against shift of focus hypothesis in Taiwan. Thus, ambition and conscience are not conflicting with each other
|Keywords||corporate social responsibility selection bias matching method|
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Citations of this work BETA
Min-Dong Paul Lee (2011). Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies. [REVIEW] Journal of Business Ethics 102 (2):281-298.
Chieh-Peng Lin (2010). Modeling Corporate Citizenship, Organizational Trust, and Work Engagement Based on Attachment Theory. Journal of Business Ethics 94 (4):517 - 531.
Chieh-Peng Lin, Yehuda Baruch & Wei-Chi Shih (2012). Corporate Social Responsibility and Team Performance: The Mediating Role of Team Efficacy and Team Self-Esteem. [REVIEW] Journal of Business Ethics 108 (2):167-180.
Joyce Falkenberg & Petter Brunsæl (2011). Corporate Social Responsibility: A Strategic Advantage or a Strategic Necessity? [REVIEW] Journal of Business Ethics 99 (S1):9-16.
Weichieh Su, Mike W. Peng, Weiqiang Tan & Yan-Leung Cheung (forthcoming). The Signaling Effect of Corporate Social Responsibility in Emerging Economies. Journal of Business Ethics.
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