David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Business Ethics 20 (4):418-432 (2011)
The goal of this paper is to describe the link between financial performance and the level of sustainability. In a novel approach, the paper classifies firms based on past financial success to address a potentially reciprocal relationship. For the groups of better and worse performing firms and for the entire sample, the above link is then tested, also accounting for non-linearity in the relationship. We show that environmental management system (EMS) implementation as a proxy for a firm's sustainability level is only positively associated with the financial performance of financially well-performing firms. Conversely, it has a negative association with the performance of less good firms. We show that this implies that firms cannot change from good to bad performance, and vice versa, solely through the implementation of an EMS, and also that the result remains when introducing non-linearity in the link. Based on this result, we discuss implications for the direction of causality
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Geoff Moore (2001). Corporate Social and Financial Performance: An Investigation in the U.K. Supermarket Industry. [REVIEW] Journal of Business Ethics 34 (3-4):299 - 315.
Geoff Moore & Andy Robson (2002). The UK Supermarket Industry: An Analysis of Corporate Social and Financial Performance. Business Ethics 11 (1):25–39.
Lee E. Preston & Douglas P. O.’Bannon (1997). The Corporate Social-Financial Performance Relationship. Business and Society 36 (4):419-429.
Laura J. Spence (1999). Does Size Matter? The State of the Art in Small Business Ethics. Business Ethics 8 (3):163–174.
Tuomo Takala & Paul Pallab (2000). Individual, Collective and Social Responsibility of the Firm. Business Ethics 9 (2):109–118.
Citations of this work BETA
No citations found.
Similar books and articles
Jijun Gao & Pratima Bansal (2013). Instrumental and Integrative Logics in Business Sustainability. Journal of Business Ethics 112 (2):241-255.
Philip L. Baird, Pinar Celikkol Geylani & Jeffrey A. Roberts (2012). Corporate Social and Financial Performance Re-Examined: Industry Effects in a Linear Mixed Model Analysis. [REVIEW] Journal of Business Ethics 109 (3):367-388.
Heather R. Dixon-Fowler, Daniel J. Slater, Jonathan L. Johnson, Alan E. Ellstrand & Andrea M. Romi (2013). Beyond “Does It Pay to Be Green?” A Meta-Analysis of Moderators of the CEP–CFP Relationship. Journal of Business Ethics 112 (2):353-366.
Curtis C. Verschoor (1998). A Study of the Link Between a Corporation's Financial Performance and its Commitment to Ethics. Journal of Business Ethics 17 (13):1509-1516.
Peter A. Stanwick & Sarah D. Stanwick (1998). The Relationship Between Corporate Social Performance, and Organizational Size, Financial Performance, and Environmental Performance: An Empirical Examination. [REVIEW] Journal of Business Ethics 17 (2):195-204.
Rim Makni, Claude Francoeur & François Bellavance (2009). Causality Between Corporate Social Performance and Financial Performance: Evidence From Canadian Firms. [REVIEW] Journal of Business Ethics 89 (3):409 - 422.
Irene Goll & Abdul A. Rasheed (2004). The Moderating Effect of Environmental Munificence and Dynamism on the Relationship Between Discretionary Social Responsibility and Firm Performance. Journal of Business Ethics 49 (1):41-54.
W. Gary Simpson & Theodor Kohers (2002). The Link Between Corporate Social and Financial Performance: Evidence From the Banking Industry. [REVIEW] Journal of Business Ethics 35 (2):97 - 109.
Ran Zhang & Zabihollah Rezaee (2009). Do Credible Firms Perform Better in Emerging Markets? Evidence From China. Journal of Business Ethics 90 (2):221 - 237.
Bernadette M. Ruf, Krishnamurty Muralidhar, Robert M. Brown, Jay J. Janney & Karen Paul (2001). An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective. [REVIEW] Journal of Business Ethics 32 (2):143 - 156.
Marta de La Cuesta-González, María Jesús Muñoz-Torres & María Ángeles Fernández-Izquierdo (2006). Analysis of Social Performance in the Spanish Financial Industry Through Public Data. A Proposal. Journal of Business Ethics 69 (3):289 - 304.
Rashid Ameer & Radiah Othman (2012). Sustainability Practices and Corporate Financial Performance: A Study Based on the Top Global Corporations. [REVIEW] Journal of Business Ethics 108 (1):61-79.
M. Victoria López, Arminda Garcia & Lazaro Rodriguez (2007). Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index. [REVIEW] Journal of Business Ethics 75 (3):285 - 300.
Kent Walker & Fang Wan (2012). The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications. [REVIEW] Journal of Business Ethics 109 (2):227-242.
Added to index2011-06-09
Total downloads9 ( #155,581 of 1,098,626 )
Recent downloads (6 months)6 ( #43,041 of 1,098,626 )
How can I increase my downloads?