CFP: PPI, vol. 11, 2021 Special Issue: Capitalism and Critical Theory This special issue will include a discussion of Nancy Fraser’s Capitalism. A Conversation in Critical Theory, co-authored with Rahel Jaeggi, with commentaries by Giorgio Fazio, Alessandro Ferrara, Laura Pennacchi, Stefano Petrucciani, Angela […].

Review of extant research on the corporate environmental performance (CEP) and corporate financial performance (CFP) link generally demonstrates a positive relationship. However, some arguments and empirical results have demonstrated otherwise. As a result, researchers have called for a contingency approach to this research stream, which moves beyond the basic question “does it pay to be green?” and instead asks “when does it pay to be green?” In answering this call, we provide a meta-analytic review of CEP–CFP literature in which we (...) identify potential moderators to the CEP–CFP relationship including environmental performance type (e.g., reactive vs. proactive performance), firm characteristics (e.g., large vs. small firms), and methodological issues (e.g., self-report measures). By analyzing these contingencies, this study attempts to provide a basis on which to draw conclusions regarding some inconsistencies and debates in the CEP–CFP research. Some of the results of the moderator analysis suggest that small firms benefit from environmental performance as much or more than large firms, US firms seem to benefit more than international counterparts, and environmental performance seems to have the strongest influence on market-measures of financial performance. (shrink)

This article proposes a unified theory of the relationship between corporate social performance (CSP) and corporate financial performance (CFP). The theory provides a framework for rationalizing the various and contradictory findings in past empirical research. The theory is based on the parallels between the business and CSR domains, and thus draws on models from economics.

Previous studies have proposed a virtuous circle between corporate social performance (CSP) and corporate financial performance (CFP). However, a key challenge researchers face when empirically examining this virtuous circle is endogeneity. In this paper, we apply a well-developed method—dynamic panel data (DPD) estimation—to account for endogeneity and conduct two studies to reexamine the causal relationship between CSP and CFP. Study 1 relies on KLD ratings from 1997 to 2012 as the measure of CSP. According to the results of Study 1, (...) although CFP measured as ROE may have a causal impact on CSP, it is doubtful whether there is a causal influence of CSP on CFP. Study 2 relies on the sustainability scores provided by Sustainalytics from 2009 to 2018 as the measure of CSP. Study 2 reports that CSP does not causally influence CFP and that CFP does not have a causal impact on CSP. Together, Study 1 and Study 2, using different measures for CSP, suggest that a virtuous circle between CSP and CFP may not exist. Our study suggests that doing good may not necessarily lead to doing well and that doing well may not naturally result in doing good. Thus, our study implies that future studies should seriously consider the causal mechanisms through which CSP may influence or may be influenced by CFP. Our paper also discusses the implications for CSP research and for management and organization research. The limitations of applying DPD estimation to empirically examine the causal relationship between CSP and CFP are also discussed. (shrink)

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite (...) conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data. (shrink)

For four decades, research on the role and responsibilities of business in society has centered on the business case for corporate social responsibility (CSR) and an increasing number of studies on the corporate social performance (CSP)—corporate financial performance (CFP) link emerged leading to controversial results. Heeding the call for a deeper understanding of the mechanisms linking certain CSR efforts to certain performance outcomes, this study provides a stakeholder-based organizing framework rooted in an extensive review of existing literature on the link (...) between CSP and CFP. In so doing, we aim at guiding research and practice toward less simplistic understandings of the CSP–CFP connection, thus advancing the debate over the consequences of voluntary integrating CSR into business operations and into relationships with stakeholders. By disentangling specific drivers and outcomes of the CSP–CFP link, we underline the importance of setting clear boundaries and specifying levels of analysis to generate comparable results. (shrink)

We provide evidence of the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in Palestine, a highly unstable political context. Annual reports of all firms listed on the Palestine Exchange (PEX) for the period 2016-2019 were manually content analysed. A checklist of reported CSR items is summarised into four areas: environmental information, human resources, community involvement, and product and customer service quality. Results indicate a robust positive connection between each of the four dimensions and the composite CSR (...) index with three performance indicators: ROA, ROE, and Tobins Q. Results also find better performing companies with a higher degree of community involvement being greatly appealing, while the environmental dimension was the least resilient. We discuss the significance of community engagement for an unstable context like Palestine from a community cohesion standpoint. (shrink)

Objective: To estimate the level of complementary feeding pattern among children aged between 6 to 23 months and to identify the determinants in individual, household and community level in Bangladesh. Methods: From secondary data of Bangladesh Demographic Health Survey 2011 was used in this study. A total of 2,373 children aged between 6 to 23 months were selected. To estimate the level of CFP “dimension index” was used and the score of the index was used as dependent variables. Statistical analyses (...) and tests were guided by the nature of the variables. Multivariable logistic regression analyses were performed to identify the significant determinants of CFP. Results: The overall level of CFP among children aged between 6 to 23 months was low. More than 95% of the children experienced either no or inadequate CFP. The mean levels of CFP as well as percentages of no or inadequate CFP were significantly lower among children of the youngest age group, uneducated parents, unemployed/laborer fathers, socio-economically poor families, food insecure families and rural areas. No weekly exposure to mass media also revealed significant associations with CFP. However, only few variables remained significant for adequate CFP in the multivariable logistic regression analysis. Adequate CFP was significantly lower among the children aged between 6 to 23 months, children of illiterate fathers and socio-economically middle-class families as compared to their reference categories. Conclusion: Inappropriate and inadequate CFP may cause serious health hazards among children of 6 to 23 months in Bangladesh. It is ethical to take effective interventions and strategies by the government and other concerned stakeholders to improve the overall situation of CFP in Bangladesh. (shrink)

Objective: To estimate the level of complementary feeding pattern (CFP) among children aged between 6 to 23 months and to identify the determinants in individual, household and community level in Bangladesh. Methods: From secondary data of Bangladesh Demographic Health Survey (BDHS) 2011 was used in this study. A total of 2,373 children aged between 6 to 23 months were selected. To estimate the level of CFP dimension index and the “score of the index” was used as dependent variables. Statistical analyses (...) and tests were guided by the nature of the variables. Multivariable logistic regression analyses were performed to identify the significant determinants of CFP. Results: The overall level of CFP among children aged between 6 to 23 months was low. More than 95% of the children experienced inadequate (92.7%) CFP level. The mean levels of CFP as well as percentages of no or inadequate (94.1%) CFP were significantly lower among children of the youngest age group (06 months), uneducated parents, unemployed/laborer fathers, socio-economically poor families, food insecure families and rural areas. However, only few variables remained significant for adequate CFP in the multivariable logistic regression analysis. Adequate CFP was significantly lower among the children aged between 6 to 23 months (OR: 0.22, 95% CI: 0.10-0.47), children of illiterate fathers (OR: 0.32, 95% CI: 0.11-0.95) and socio-economically middle-class families (OR: 0.28, 95% CI: 0.09-0.86) as compared to their reference categories. Conclusion: Inappropriate and inadequate CFP may cause serious health hazards among children of 6 to 23 months in Bangladesh. It is ethical to take effective interventions and strategies by the government and other concerned stakeholders to improve the overall situation of CFP in Bangladesh. (shrink)

The corporate financial performance (CFP)–corporate social performance (CSP) relationship has been investigated many times over the past few decades, yet the notion of CSP has generally been understood to be a single, monolithic aspect of corporate strategy. This article examines the common CFP–CSP understanding in three distinct ways: (1) by extending the evaluation of CSP as a complex, multistakeholder notion; (2) by analyzing CSP's relationship with the firm's financial performance at a given point in time as a lead (independent) variable (...) in the relationship and as a lag (dependent) variable in the relationship; and (3) for both positive and negative stakeholder relationships. The results indicate that the employee emerges as the stakeholder group most strongly linked to CFP, followed by the consumer stakeholder. The natural environment and the community stakeholder group are minimally associated with CFP. General support is found for a CFP–CSP relationship at a given point in time, with some support found for CSP as a lead (independent) variable. When used as a measure of financial performance, return on assets is more often correlated with CSP than is return on equity. These results and their implications are discussed. (shrink)

This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and from (...) corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

Prior studies assert that social trust may positively influence the economic performance of countries and firms (within those countries). This paper proposes a more nuanced mechanism whereby corporate social responsibility (CSR) mediates the relationship between country-level social trust and firm-level financial performance. Anchored in neo-institutional theory, we theorize that social trust instills norms of trustworthiness and willingness to trust others guiding individual and corporate behaviors. In order to comply with such norms and gain legitimacy, firms in high-trust society are more (...) likely to commit to CSR activities that serve the interests of stakeholders. CSR activities, in turn, can positively influence financial performance by enabling firms to access stakeholders' resources and capabilities and to decrease transactions costs in the stakeholder relationships. We tested our theory by analyzing 9818 firm-year observations across 34 countries, during the 2006 to 2015 period. Our analysis shows the expected CSR mediation in the relationship between social trust and firm-level financial performance. Our findings are robust across different models addressing the concerns of endogeneity, alternative measures, and potential moderators. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

Although business and society scholars have sought to demonstrate that corporate social performance (CSP) leads to corporate financial performance (CFP), a complete model of the pathway from CSP to CFP has not been substantiated. One suggestion is that certain indicators of CSP are noticed by stakeholders, who then act in ways that ultimately affect the firm's CFP. The present study focused on the first step in this path: identifying the factors that initially lead a stakeholder group to target a particular (...) firm. Existing theory from the literature on the environmental movement, stakeholder theory, and CSP fostered the development of eight propositions regarding corporate environmental performance. Case studies of five environmental non-governmental organizations (ENGOs) are used to address the propositions. The case studies also supply additional insight into ENGO targeting of particular firms, unrelated to the propositions, thereby facilitating the development of a theoretical model. (shrink)

In this article, we examine the empirical association between corporate governance (CG) and corporate social responsibility (CSR) engagement by investigating their causal effects. Employing a large and extensive US sample, we first find that while the lag of CSR does not affect CG variables, the lag of CG variables positively affects firms’ CSR engagement, after controlling for various firm characteristics. In addition, to examine the relative importance of stakeholder theory and agency theory regarding the associations among CSR, CG, and corporate (...) financial performance (CFP), we also examine the relation between CSR and CFP. After correcting for endogeneity bias, our results show that CSR engagement positively influences CFP, supporting the conflict-resolution hypothesis based on stakeholder theory, but not the CSR overinvestment argument based on agency theory. Furthermore, firms’ CSR engagement with the community, environment, diversity, and employees plays a significantly positive role in enhancing CFP. (shrink)

Since the 1970s, many Anglo-American studies have investigated the theme of corporate social responsibility (CSR) and its costs and benefits. Most studies have tried to test, largely in samples of multiple industries, the relationship between corporate social performance (CSP) and corporate financial performance (CFP). These analyses, however, have produced conflicting results and any attempt to give a generalized and coherent conclusion has proved inadequate. This article examines the ways CSP can be proxied and investigates the possible relationship between CSP (measured (...) by ethical rating) and CFP (measured by market and accounting ratios) in the banking sector using correlation methodology. It emerges that there is no statistically significant link between CSP and CFP. (shrink)

Most research studying the corporate social performance –corporate financial performance link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors – such as controversial industries – have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an (...) exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market-level forces play a major role in shaping this relationship. (shrink)

In this article, we propose that giving in cash and non-cash differ in their relation with the giving firm’s future corporate financial performance and only cash giving is associated with future CFP. Using a novel dataset from ASSET4 that differentiates corporate giving over a sample period of 2002–2012, we examine three competing hypotheses: agency cost hypothesis that cash giving reflects agency cost and destroys value for shareholders, investment hypothesis that cash giving is an investment by management that aims for better (...) future return, and information hypothesis that cash giving has informational value to shareholders as cash is a critical resource at a firm and giving is a decision by managers who are insiders. We find that indeed, only cash giving is positively associated with future CFP and firm value, measured by Fama–French five-factor abnormal risk-adjusted stock returns, future return on assets, and Tobin’s Q. In addition, we find that the positive association exists only between excess, i.e., unexpected, but not expected cash giving and future CFP. Our empirical findings support the information hypothesis, but neither the agency hypothesis nor the investment hypothesis, and are robust to a number of endogeneity tests, including orthogonalized cash giving, instrumental variable regression using geography-based instruments, and propensity score matching. Furthermore, we show that the positive association between future CFP and unexpected cash giving is only pronounced at firms with good governance and relatively higher sales growth where agency problems are less likely, and at firms with no alternative mechanisms to demonstrate the strength of cash flow. Additionally, we do not find evidence that suggests in-kind giving to possess any informational value. (shrink)

The relationship between corporate social responsibility and corporate financial performance has long been a central and contentious debate in the literature. However, prior empirical studies provide indefinite conclusions. The purpose of this study is to review systematically and quantify the CSR–CFP link in a meta-analytic framework. Based on 119 effect sizes from 42 studies, this study estimates that the overall effect size of the CSR–CFP relationship is positive and significant, thus endorsing the argument that CSR does enhance financial performance. Furthermore, (...) this work sheds light on the causal relationship between CSR and CFP. Subsequent financial performance is associated with prior social responsibility, while the reverse direction is not supported. This finding supports the instrumental stakeholder theory. As predicted, the meta-analysis results indicate that the measurement strategies of the two key constructs of CSR and CFP explain some variations of the CSR–CFP relationship. Last, this study examines the moderating effect of the environmental context on the CSR–CFP link. This work proposes that CSR in the developed world, with a relatively mature institutional system and efficient market mechanism, will be more visible than CSR in the developing world. The results show that the CSR–CFP relationship is stronger for firms from advanced economies than for firms from developing economies. (shrink)

ABSTRACT:This study examines whether the empirical evidence on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) differs depending on the publication outlet in which that evidence appears. This moderator meta-analysis, based on a total sample size of 33,878 observations, suggests that published CSP-CFP findings have been shaped by differences in institutional logics in different subdisciplines of organization studies. In economics, finance, and accounting journals, the average correlations were only about half the magnitude of the findings published (...) in Social Issues in Management, Business Ethics, or Business and Society journals (mean corrected correlation coefficientof.22 vs..49, respectively). Specifically, economists did not find null or negative CSP-CFP correlations, and average findings published in general management outlets (=.41) were closer to Social Issues in Management, Business Ethics, and Business and Society results than to findings reported in economics, finance, and accounting journals. (shrink)

This article investigates the role of commonly specified control variables in moderating the relationship between corporate social performance (CSP) and corporate financial performance (CFP). In addition, there are separate measures for positive (strengths) social actions, and for negative (concerns) social actions. The results support the positive relationship between CSP and CFP. The best model, as determined using factorial analysis of variance, is one which has the following control variables: size, industry, risk, and research and development expenditures. In examining the CSP/CFP (...) relationship, researchers must control for these variables, in order to properly specify the model. (shrink)

Using two national culture dimensions, we show that the influence of firms’ corporate social performance on corporate financial performance hinges on culture. Specifically, CFP is higher in those firms where CSR initiatives are congruent with the cultural environment. CSP has a negative impact on CFP for those firms domiciled in countries which are individualistic and favor flexibility. These findings are amplified for those firms with low levels of foreign influence in terms of institutional ownership and sales. Using a dataset covering (...) 5334 firms from 41 different countries, our results indicate that culture and CSR initiatives have a powerful interaction effect in determining CFP, suggesting that CSP’s impact is dependent upon the culture of the country where the firm resides. (shrink)

Previous empirical research has found mixed results for the impact of corporate social responsibility (CSR) investments on corporate financial performance (CFP). This paper contributes to the literature by exploring in a two stage investor decision-making model the relationship between a firm’s innovation effort, CSR, and financial performance. We simultaneously examine the impact of CSR on both accounting-based (financial health) and market-based (Tobin’s Q) financial performance measures. From a sample of top corporate citizens, we find that: (1) a firm’s social responsibility (...) commitment (CSR) contributes to its financial performance; (2) after controlling for investment in innovation activities, CSR continues to have a positive impact on a firm’s financial performance; (3) the customer dimension of CSR has a positive effect on both CFP measures, whereas the employee dimension indicates a significant impact only on financial heath; and (4) the community relation dimension of CSR only affects the market-based CFP measure of firms with high innovation intensity. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

Managers face an ethical dilemma in the allocation of scarce resources to corporate social responsibility (CSR) because the underlying managerial incentives behind such CSR spending can range from pure altruism to complete financial orientation. Despite the importance of the managerial role in implementing CSR, prior studies generally have treated the role of managers as an exogenous factor. This study builds on recent studies on the managerial characteristics in studies on CSR by examining how managerial efficiency influences the outcomes of CSR. (...) Using a newly developed measure of managerial efficiency, we find that, on average, managerial efficiency is positively associated with a subsequent change in corporate social performance (CSP), although the association is weak in the level of total CSP. We find that efficient managers are more likely to engage in the product-related CSR that directly connects to corporate financial performance (CFP) but are less likely to engage in environment-related CSR. We also find that CSP is positively associated with CFP with efficient managers. Our findings contribute to management and other stakeholders’ understanding of the association of CSR to its outcomes, CSP and/or CFP, which is hinged by the indispensable moderating role of managerial efficiency. (shrink)

In this paper, we review the literature on moderators and mediators in the corporate sustainability –corporate financial performance relationship. We provide some clarity on what has been learned so far by taking a contingency perspective on this much-researched relationship. Overall, we find that this research has made some progress in the past. However, we also find this research stream to be characterized by three major shortcomings, namely low degree of novelty, missing investment in theory building, and a lack of research (...) design and measurement options. To address these shortcomings, we suggest avenues for future research. Beyond that we also argue for a stronger emphasis on the strategic perspective of CS. In particular, we propose future research to take a step back and aim for an integration of the CS–CFP relationship into the strategic management literature. (shrink)

A critical and notoriously elusive issue in Corporate Social Responsibility (CSR) research is the impact of Corporate Social Performance (CSP) on the bottom line. Instead of looking for direct correlations between social and financial performance, we hypothesize that the first result of CSR activities is the creation of trust among the stakeholders. A survey conducted on consumers of organic products provided support for our hypothesis, showing that CSP influences consumer trust and that that trust in turn influences consumers' subsequent actions. (...) The findings further suggest that intermediate variables between CSP and Corporate Financial Performance (CFP) may best support a business case for CSR. (shrink)

A critical and notoriously elusive issue in Corporate Social Responsibility (CSR) research is the impact of Corporate Social Performance (CSP) on the bottom line. Instead of looking for direct correlations between social and financial performance, we hypothesize that the first result of CSR activities is the creation of trust among the stakeholders. A survey conducted on consumers of organic products provided support for our hypothesis, showing that CSP influences consumer trust and that that trust in turn influences consumers' subsequent actions. (...) The findings further suggest that intermediate variables between CSP and Corporate Financial Performance (CFP) may best support a business case for CSR. (shrink)

Reporting biases refer to a truncated pool of published studies with the resulting suppression or omission of some empirical findings. Such biases can occur in positive research paradigms that try to uncover correlations and causal relationships in the social world by using the empirical methods of science. Furthermore, reporting biases can come about because of authors who do not write papers that report unfavorable results despite strong efforts made to find previously accepted evidence and because of a higher rejection rate (...) of studies documenting contradictory evidence. Reporting biases are a serious concern because the conclusions of systematic reviews and meta-analyses can be misleading. The authors show that published evidence in win-win corporate social responsibility research tends to overestimate efficiency. The research field expects to find a positive association between corporate social performance and corporate financial performance, and findings meet that expectation. The authors explain how this pattern may reflect reporting bias. The empirical results show strong tentative evidence for a positive reporting bias in the CSP–CFP literature but only weak tentative evidence for CSP efficiency. The study also examines which factors, such as time trends, publication outlet, and study characteristics, are associated with higher reporting biases within this literature. (shrink)

Managers face an ethical dilemma in the allocation of scarce resources to corporate social responsibility because the underlying managerial incentives behind such CSR spending can range from pure altruism to complete financial orientation. Despite the importance of the managerial role in implementing CSR, prior studies generally have treated the role of managers as an exogenous factor. This study builds on recent studies on the managerial characteristics in studies on CSR by examining how managerial efficiency influences the outcomes of CSR. Using (...) a newly developed measure of managerial efficiency, we find that, on average, managerial efficiency is positively associated with a subsequent change in corporate social performance, although the association is weak in the level of total CSP. We find that efficient managers are more likely to engage in the product-related CSR that directly connects to corporate financial performance but are less likely to engage in environment-related CSR. We also find that CSP is positively associated with CFP with efficient managers. Our findings contribute to management and other stakeholders’ understanding of the association of CSR to its outcomes, CSP and/or CFP, which is hinged by the indispensable moderating role of managerial efficiency. (shrink)

This article contributes to the general literature on the relationship between corporate social performance and corporate financial performance, as well as to the emerging HRM–CSR literature, by exploring the curvature of the relationship between HRM–CSP and CFP. We advance conceptual arguments in favor of an inverted U-shaped relationship. Our results demonstrate a significant quadratic relationship between HRM–CSP and CFP. We provide evidence that this relationship is not linear or S-shaped but rather inverted U-shaped.

Research on the relationship between corporate environmental performance and corporate financial performance has consistently grown and is gaining widespread attention. Given the vast body of CEP–CFP studies, recently scholars have begun to take stock of the cumulative results. However, no study so far has meta-analyzed the findings yielded by event studies assessing the stock market reactions to corporate environmental performance-related events. This paper sets out to close this gap by synthesizing previous empirical results regarding the stock market impact of positive (...) and negative CEP-related events. Results indicate a positive relationship across studies in terms of positive market reactions to positive events and negative reactions to negative events. Furthermore, the findings show that the market reactions are stronger for negative events than for positive events. Finally, this study examines whether methodological artifacts may explain the differences in the findings of the analyzed event studies. (shrink)

Many of the commentators—let’s ignore their sex for the moment—suggested including women in the Feyerabend conference. Then the question was raised, “but are they of the right quality, status, rank?” That is, do they bring down the average quality of the conference in virtue of their being of inferior status, or, in Vincenzo Politi’s words, not “someone whose work is both relevant to the topic of the conference and also as widely recognized as the work of the invited speakers” (HOPOS-L (...) archive, “CFP: Feyerabend Conference,” Tuesday, July 17, 2012, 14:57:20)? It is extremely important that such a discussion of quality, status, and rank recognize the scourge of evaluation bias and its long-term and pervasive consequences. One well-designed study this past year, published by the National Academy of Sciences, established prominent evaluation bias among both male and female science faculty in their evaluations of a student applying for a managerial job, who was randomly assigned either a male or a female name (Moss-Racusin et al. 2012). These professors examined the qualifications of the students and decided whether to hire them, what salary to give them, and whether to mentor themand howmuch to do so.The resultswere that both male and female scientists hired more men, gave them higher salaries, and offered more mentoring to them, even though themale applications were identical to the female applications. When probed about their reasons for not hiring or mentoring the female applicants, the professors explained that they based their decisions on the inferior competence of the applicant: the female applicants were perceived as less competent by all professors (with identical applications between males and females). This is what “evaluation bias” looks like, and it has been established in many, many contexts since the 1970s—this is only the most recent. (shrink)

More businesses are embedding stakeholder engagement (SE) practices in their corporate disclosures. This article explores the extent to which SE practices are featured in the sustainability reports (SRs) of 48 Italian food and beverage businesses, following the latest Global Reporting Initiative (GRI) standards. The researchers analyze the content of their SRs dated 2020 and 2021. They utilize a panel regression technique to examine the relationship between stakeholder engagement disclosures (SED) and corporate financial performance (CFP), and to investigate the mediating role (...) of SR assurance. The results show a positive and significant relationship between SED and CFP. They also confirm that there is a moderating effect from SR assurance on this causal path. However, the findings reveal that SED in SRs of Italian food companies is still moderate. This contribution builds on the logic behind the stakeholder theory. It implies that there is scope for food companies to forge relationships with stakeholders. It indicates that it is in their interest to disclose material information about their SE practices in their SR and to organize third party assurance assessments in order to improve their legitimacy with stakeholders. (shrink)

In this research, we shed new light on the empirical link between corporate social performance (CSP) and corporate financial performance (CFP) via the application of empirical models and methods new to the CSP–CFP literature. Applying advanced financial models to a uniquely constructed panel dataset, we demonstrate that a significant overall CSP–CFP relationship exists and that this relationship is, in part, conditioned on firms’ industry-specific context. To accommodate the estimation of time-invariant industry and industry-interaction effects, we estimate linear mixed models in (...) our test of the CSP–CFP relationship. Our results show both a significant overall CSP effect as well as significant industry effects between CSP and CFP. In conflict with expectations, the unweighted average effect of CSP on CFP is negative. Our industry analysis, however, shows that in over 17% of the industries in our sample, the effect of CSP on CFP for socially responsible firms is positive. We also examine the multidimensional nature of the CSP construct in an industry context by exploring the CSP dimension–industry nexus and identify dimensions of social performance that are associated with either better or worse financial performance. Our results confirm the existence of disparate CSP dimension–industry effects on CFP, thus our results provide important and actionable information to decision makers considering whether and how to commit corporate resources to social performance. (shrink)

This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and from (...) corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)

The effect of environmental, social, and governance (ESG) activities on corporate financial performance (CFP) could be linear or nonlinear. However, inconsistent results remain a research gap and thus need to be re-examined. By drawing on stakeholder theory and the neoclassical economics perspective while using the panel data of 155 Chinese listed firms from 2010 to 2020, system generalized method of moments (GMM) estimation results revealed an inverted U-shaped relationship between ESG and CFP. Moreover, by drawing on the institutional-based view, it (...) was determined that government subsidies moderate the inverted U-shaped relationship between ESG and CFP. Specifically, we found that the inverted U-shaped effect of ESG on CFP is weakened when government subsidies are high. This study contributes to the literature by confirming the presence of a curvilinear relationship between ESG and CFP. This study also generates meaningful implications suggesting that the governmental role in ESG is salient in mitigating associated financial costs for firms, thereby ultimately affecting CFP. (shrink)

In den soziologischen, kulturwissenschaftlichen und politisch-theoretischen Diskursen haben die Themen der Subjektivierungsweisen, Singularisierungen, Selbstsetzungsstrategien und Technologien des Selbst in den letzten beiden Dekaden viel Aufmerksamkeit auf sich gezogen. Angesichts dessen stellt die Suche nach „neue[n] Vokabulare[n] und Theorien der Kollektivität“ (so das CfP zu dieser Ausgabe der Zeitschrift) eine wichtige komplementäre Fragerichtung dar. Unser Beitrag will mit der Forschungsperspektive der ‚digitalen Gouvernementalität‘ sowie den Konzepten der ‚Kollektivitätseffekte‘ und der ‚digitalen Methexis‘ (Teilhabe, Partizipation) die Suche nach einem neuen heuristischen und konzeptuellen (...) Rahmen zur Erfassung und kritischen Durchdringung der zugleich individualisierenden und kollektivierenden Phänomene der Digitalität unterstützen. Ausgangspunkt des Beitrages ist die Überlegung, dass sich die Phänomene der Digitalisierung und Digitalität machthistoriographisch mit Foucault als aktuelle Form von Gouvernementalität – genauer: digitale Gouvernementalität – beschreiben lassen, d.h. als spezifisches epistemischpraktisches Ensemble aus Regierungstechnologien, Subjektivierungsweisen und Wissensformen der Digitalität. Unsere grundlegende These ist, dass sich in der Digitalität und digitalisierten Gesellschaft sowohl Regime der verstärkten Individualisierung als auch Regime der Kollektivierung und Kollektivität installieren, wobei erstere immer schon durch letztere eingeholt sind. Die theoretisch-konzeptuelle Herausforderung besteht darin, beide Ausdrucksformen der digitalen Gesellschaft für sich und in ihrer kokonstitutiven Verfasstheit zu begreifen. Wir versuchen damit, Andreas Reckwitz’ Analyse der „Digitalisierung als Singularisierung“ sowohl um eine regierungsanalytische als auch um eine kollektivitätsfokussierte Perspektive zu ergänzen. (shrink)

There has been much controversy concerning the benefits of the certification (professionalization) of financial planners and the merits of various compensation systems; this study examined the controversy insofar as it concerned ethical orientation rather than competence issues. The study was delimited to financial planners practicing in the United States of America. It was found that Certified Financial Planner (CFP) designees manifested higher ethical orientation scores than non-designees. Fee-based planners manifested no significantly different ethical orientation scores as compared to their counterparts. (...) Lower ethical orientation scores were noted among planners whose career tenure exceeded 10 years. (shrink)

This paper presents the evaluation of the alpha version of a gamified tool called Call for Papers: The Game (CfP:TG), specially designed for teaching scientific writing in the training of future engineers. A non-probabilistic convenience sampling was carried out with the participation of engineering students from a Peruvian public university. The short version of the user experience questionnaire (UEQ) was applied, and usability was qualitatively evaluated. The main results indicate that the Pragmatic Quality of CfP:TG is in the neutral range (...) with a value of 0.729, and the Hedonic Quality receives a positive evaluation with a value of 1.089. (shrink)

Building on 42 semi-structured interviews with directors and stakeholders of food charities based in Greater Manchester (UK), alongside online data and Factiva references trends, I argue that the charitable food provision (CFP) sector can be effectively conceptualized as a strategic action field (SAF). To do so, I first focus on the shared rules, understandings and practices characterising the organizations that belong to the field and on the broader field environment that imposes constraints and provides opportunities to the field actors. Subsequently, (...) I examine the characteristics of five particularly relevant charities to describe the social positions and position-takings of the incumbent, the challengers and the group I refer to as sideliners of the field. Hence, I briefly touch upon the Covid-19 outbreak as an exogenous shock to discuss the effect of the campaign carried out by a ‘socially skilled actor’ - football player Marcus Rashford. I conclude by suggesting future research directions to enhance the application of SAF theory as a tool for investigating food support organizing within and across countries. (shrink)

This study aims to overview the existing literature, knowledge framework, and intellectual structure mapping in the field of corporate environmental performance (CEP) and corporate financial performance (CFP) by employing a bibliometric analysis approach to selected 311 papers sourced from the Scopus database between 1994 and 2022. It presents the publication growth, influential sources, productive authors, and collaboration index of countries using Biblioshiny software. Stringent regulatory regime and stakeholders' pressure followed by a growing trend of publication motivated us to comprehend the (...) evolving facets of the relationship using co‐citation analysis followed by a systematic literature review using coupling analysis which identified five research themes as CEP–CFP relationships—facets, strategies and dimensions, and methodological choices during the initial phase of 1994–2014; and green innovation and corporate sustainability practices, environmental disclosure and environmental responsibility, and green development behavior and practices during 2015–2022. From the insights congregated from research themes, the study discusses prominent developments and provides future research directions to further enrich the field of CEP and CFP. Our findings provide various global regulatory frameworks, government, policymakers, and firm managers the need to explore the dynamic factors while formulating the strategic environmental policy and how it contributes to the financial performance of the firms. (shrink)

Se discute el análisis de M. Williams de la Concepción de la Fundamentación Previa de la justificación epistémica –una concepción supuestamente detrás del trilema de Agripa– y se le contrasta con la Concepción del Desafío por Defecto – la concepción alternativa de la justificación epistémica propugnada por Williams. Se argumenta que los privilegios epistémicos predeterminados de la CDD son un eufemismo para estipulaciones epistémicamente arbitrarias, asimismo se argumenta que mientras el CFP puede conducir a paradojas escépticas, la CDD conduce a (...) un pancriticismo paradójico y que cuál de estas dos paradojas preferir es un asunto de gusto o temperamento. Finalmente se arguye que la CDD no es ni una adecuada descripción de nuestra práctica filosófica, ni tampoco de nuestra práctica epistémica cotidiana. Se concluye entonces que la CFP es la concepción superior, aun si pudiese conducir al escepticismo pirrónico. Concluimos argumentando abiertamente en favor de un tipo de dogmatismo no epistémico con implicaciones pirrónicas para las presuposiciones absolutas de la ciencia Estas consecuencias, sin embargo, no tienen por qué ser incompatibles con la investigación científica. (shrink)

This study draws on and extends contingency theory, in relation to stakeholder theory to understand the corporate social performance and financial performance link, by evaluating under what circumstances CSP influences CFP. Contingencies include stakeholder configurations/salience and crisis conditions. Using differentiated measures of CSP, this study examined financial effects of various specific stakeholder facing activities pre- and post-crisis in the food/beverage and pharmaceutical industries, and in firms selling search versus experience goods. The results indicate that pre-crisis CSP is related to post-crisis (...) financial effects, but the relationships are dependent on the interactions among the contingencies studied, so investments in certain social areas improve CFP, whereas others may hurt it. This confirms that a finer grained approach should be taken to the examination of CSP and CFP. On a practical basis, it shows that deep stakeholder knowledge and attention to complementary factors to CSP, such as advertising, must be understood, so CSP activities are of benefit to the firm. (shrink)

Environmental information disclosure (EID) is an important part of environmental management practices, and it has become a reference for stakeholders to evaluate firms. To obtain support from stakeholders, such as analysts, firms can disclose information that indicates how good they perform in environmental protection, which we referred to as EID quality, and/or that covers multiple aspects of environmental protection, which we referred to as EID breadth. Given the importance of EID practices, this study examines whether and how these two dimensions (...) of EID affect corporate financial performance (CFP). Analyzing a sample of publicly listed manufacturing firms from 2009 to 2019 in China, we find that EID breadth has a positive relationship with CFP, while EID quality has a negative impact on CFP after controlling for EID breadth. In addition, we find that the positive impact of EID breadth on CFP is achieved by enhancing analyst coverage, while the effect of EID quality on CFP is achieved by analyst recommendation. Our work contributes to the literature on EID by uncovering different mechanisms about how EID quality and EID breadth affect CFP and offers important implications regarding the management and governance of EID practices. (shrink)

This study complements previous empirical research on the business case for corporate social responsibility (CSR) by employing hitherto unused data on corporate social performance (CSP) and proposing statistical analyses to account for bi-directional causality between social and financial performance. By allowing for differences in the importance of single components of CSP between industries, the data in this study overcome certain limitations of the databases used in earlier studies. The econometrics employed offer a rigorous way of addressing the problem of endogeneity (...) due to simultaneous causality. Although the study’s results provide no evidence that there is a generic or universal business case for CSR, they indicate that there is a strong link between single stakeholder-related issues of CSR and financial performance. However, the analysis does not establish causality within these relationships. (shrink)