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Senior Honors Theses
The internal effects of corporate social responsibility on firm performance.
Lindsay Harris Follow
Publication Date
School of Business
Business Administration
CSR, Corporate, Social, Responsibility, Sustainability, Firm Performance
Disciplines
Business Administration, Management, and Operations | Business Analytics | Business Law, Public Responsibility, and Ethics | Marketing | Organizational Behavior and Theory
Recommended Citation
Harris, Lindsay, "The Internal Effects of Corporate Social Responsibility on Firm Performance" (2018). Senior Honors Theses . 781. https://digitalcommons.liberty.edu/honors/781
The purpose of this thesis is to identify the internal effects of corporate social responsibility on firm performance. It also examines the definition of corporate social responsibility and two varying theories about the topic. This thesis explores the human resource, quality and financial aspects of firm performance and how those aspects of a company are affected by adopting significant corporate social responsibility programs. This research seeks to answer the claim that corporate social responsibility programs do not have a positive effect on the actual performance of an organization. It will examine the effect of CSR on employee attitudes, moral and overall satisfaction, seeking to determine if it affects employees in such a way that would affect their performance. This thesis will also examine the effect of implementing CSR programs on the quality of the company’s service or products. Finally, it will investigate the financial effects of implementing CSR programs on an organization.
Since August 29, 2018
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Social Responsibility Journal
ISSN : 1747-1117
Article publication date: 5 June 2017
The concept of corporate social responsibility (CSR) has emerged over the past 30 years to occupy a significant role in certain aspects of the organizational theory. The purpose of this paper is to examine the impact of CSR and firm’s operational competitive performance in terms of cost, quality, flexibility and delivery, as well as the overall performance, from a developing country’s environment.
Design/methodology/approach
Structural equation modeling was used to study the relationship between CSR, competitive operational capabilities and the overall organizational performance using a survey of informants.
Using data from firms in Ghana, the work demonstrates that CSR initiative by firms will have a positive relationship with firm’s operational competitive performance in terms of cost, quality, flexibility and delivery performance, as well as overall performance. Furthermore, the study demonstrates that competitive operational capabilities in terms of cost and flexibility will lead to firms’ overall performance from the Ghanaian business environment, whereas delivery and quality seems to have no positive effect on overall performance.
Research limitations/implications
The results indicate the relevance and the implications of CSR initiatives on firms’ performance in a developing country such as Ghana. Specifically, the results indicate that when organizations invest in CSR initiatives, they are likely to achieve cost reductions, improved quality, flexibility, improved delivery and overall performance.
Practical implications
The research shows how CSR initiatives can enhance firm’s operational competitive performance and overall performance.
Originality/value
The work illustrates and provides some insights and builds on the literature in the area of CSR in a developing country’s environment.
- Responsibility
Famiyeh, S. (2017), "Corporate social responsibility and firm’s performance: empirical evidence", Social Responsibility Journal , Vol. 13 No. 2, pp. 390-406. https://doi.org/10.1108/SRJ-04-2016-0049
Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited
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Ph.D Thesis: Impact of Corporate Social Responsibility on Financial Performance and Competitiveness of Business: A Study of Indian Firms
Posted: 16 Apr 2013 Last revised: 1 Dec 2014
Rupal Tyagi
Indian Institute of Technology, Roorkee
Date Written: July 19, 2012
The past two decades have witnessed a remarkable change in the way businesses run and operate, with the quest for excellence and all-round growth the primary objective of corporations. Pursuit of financial growth does not always lead to social advancement, and is often detrimental to the environment, resulting in unhealthy workplaces, exposure to toxic substances, urban decay and other similar issues. Managers and practitioners have often been criticised for being single minded about value maximisation. The turn of events has pressurised firms to put serious efforts into a wide range of Corporate Social Responsibility (CSR) activities. CSR has become a critical aspect in strategic decision making of a firm primarily due to financial scandals and a drop in investors’ confidence. CSR has emerged as a view that can add to the financial performance of a company and suggests that corporate decision-makers must take care of a range of social and environmental affairs in order to maximise long-term financial returns. Every firm differs in the way it implement CSR in strategic business practices, with its size, operating industry, stakeholder demands, historical CSR engagement, level of diversification, research and development and labour market conditions a few of the factors that determine this decision making. One side of the coin confirms the benefits colligated with good reputation, while the other indicates that a firm’s costs of adhering to ethical standards will translate into higher product prices, a competitive disadvantage and lower profitability. Even after deep exploration of the Corporate Financial Performance (CFP)- Corporate Social Performance (CSP) relationship, empirical evidence to date is somewhat conflicting. Globalisation and liberalisation in the Indian economy has shifted corporate goals from a socio - economic focus towards increasing shareholders value to the benefit of various stakeholders. Although extensive research on CSR-CFP has been carried out in developed countries, there is a paucity of such studies in India. The main thrust of the current study is to get intimate with this issue or devise a problem along with attaining new insights into it. This study intends to get to grips with and derive the perceptivity of corporate social behaviour towards its stakeholders along with justifying its triple bottom line benefits while filling the literary gap through replicating and extending previous findings on social and financial performance of firms. In doing so, this study also attempts to analyse in detail the aforesaid relationship and discuss the effectiveness of social and financial performance along with competitive performance of sample Indian companies. The results identify critical Indian CSR factors and determine their importance in shaping the CSP-CFP relationship, on the basis of which further research in sectors identified as weak may be carried out.
Keywords: Corporate Social Responsibility, Corporate Financial Performance, Corporate Social Performance, Competitiveness, globalisation, financial growth, stakeholder relationship, India, transparency and disclosure, environment, business ethics
Suggested Citation: Suggested Citation
Rupal Tyagi (Contact Author)
Indian institute of technology, roorkee ( email ).
Department of Management Studies Roorkee Haridwar, Uttarakhand 247667 India 9717922899 (Phone)
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Corporate Social Responsibility (CSR) eJournal
Organizations & markets: formal & informal structures ejournal, csr & management practice ejournal, microeconomics: intertemporal firm choice & growth, investment, financing, & capacity ejournal, emerging markets economics: firm behavior & microeconomic issues ejournal.
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1. Introduction. The corporations in the developed countries adopt different CSR strategies to attract the investors (Poddi & Vergalli, Citation 2009).These strategies not only assist them to achieve economic objectives but also contribute to the viable ethical, social and environmental welfare (Rafique et al., Citation 2017).Thus, among other factors, the sustainable social and financial ...
The mission to establish the impact of Corporate Social Responsibility (CSR) on a firm's performance in the literature has been the focus of many past research studies (Orlitzky et al., 2003; Waddock & Graves, 1997).Exploring and analyzing the effect of corporations being socially responsible on their performance have been explained using various theoretical and conceptual underpinnings.
The authors aim to develop and test a theory of dual responsibility to explain the relationship between corporate social responsibility (CSR) and firm performance. The authors empirically examine whether firms that meet their economic and social responsibilities simultaneously perform better than firms that fail to do so. In doing so, the ...
In the spatial context-neutral thesis literature, most empirical models of firm performance and CSR have examined links from a single firm's attributes to its CSR behavior, largely ignoring spatial independence among neighboring firms (Endrikat et al., 2014; Lu et al., 2014; Rodriguez-Fernandez, 2016).
Tobin's Q is used as a proxy for firm value. Evidence is found that CSR performance and firm financial performance/value are positively correlated. However, the direction of causality is left to be determined. The findings suggest as well that top performers in CSR have higher returns than their peers with a lower CSR performance.
Understanding the impact of Corporate Social Responsibility (CSR) on firm performance as it relates to industries reliant on technological innovation is a complex and perpetually evolving challenge. To thoroughly investigate this topic, this dissertation will adopt an economics-based structure to address three primary hypotheses.
1 INTRODUCTION. Since Bowen's first work, the relationship between corporate social responsibility (CSR) and financial performance in the business context has become a topic of significant relevance.The idea and perception of CSR change from company to company, between managers, and in different societies (Lau, Hulpke, To and Kelly, 2007).However, a common aspect exists: instead of companies ...
(4) Which CSR categories are likely to have the most robust connection with firm value? and (5) Does the relation between CSR and firm value vary between sample periods? Consistent with prior studies, we find a positive relation between CSR and firm value. More importantly, we find that such relation is not sensitive to how CSR performance ...
Table 3 displays the simultaneous estimation results of Eqs. (2) and (3) obtained from SEM bootstrap. Model 4, 5 and 6 report the results for the structure of Eqs. (2) and (3) when firm performance is measured by Tobin's Q, ROA and ROE, respectively. As can be seen from the top half of Table 3 which reports the results of Eq. (2), CSR disclosure is positively associated with a firm ...
1. Introduction. The recognition of the direct relationship between corporate social responsibility (CSR) and firm performance has garnered much interest among authors lately.Their findings (Margolis and Walsh, 2003, Mishra and Suar, 2010, Vogel, 2005) are rather inconclusive, though; while a positive association between CSR and firm performance constituted a dominant theme in numerous ...
The purpose of this thesis is to identify the internal effects of corporate social responsibility on firm performance. It also examines the definition of corporate social responsibility and two varying theories about the topic. This thesis explores the human resource, quality and financial aspects of firm performance and how those aspects of a company are affected by adopting significant ...
Corporate Social Responsibility and Firm Performance: The Antecedent Effects of Transformational Leadership and Organizational Culture Evidence from Norwegian SMEs Master's thesis in International Business and Marketing Supervisor: Associate Professor Ghulam Mustafa December 2019 Norwegian University of Science and Technology
In this thesis, I test the effects of corporate social responsibility (CSR) on firm valuation and performance from the financial crisis of 2007 to year 2013. Prior research on CSR suggests that CSR is related to firm performance, but the results have not been consistent. My study focuses on the time period following the crisis since trust between firms and stakeholders may be more important ...
Academic research has shed light on the empirical relationships among a firm's corporate social responsibility (CSR), corporate social irresponsibility (CSiR) and firm performance and on the ...
3. The link between CSR and financial performance. Based on neoclassical economics, some researchers have argued that CSR unnecessarily raises a firm's costs in areas that do not yield any direct economic benefits thereby placing the organization at a competitive disadvantage (Aupperle et al., Citation 1985; Friedman, Citation 1970; Jensen, Citation 2002; McWilliams & Siegel, Citation 2000).
It has also been discussed that for a CSR strategy to be instrumental in affecting firm performance, the focus must be on integrating the CSR strategy with the firm's corporate strategy, which requires further justification (Aluchna & Roszkowska-Menkes, Citation 2019). Only by integrating CSR activities with firm strategy, the companies can ...
the 2008-2009 period, the short-term CSR firm performance sensitivity to sentiment declines. The results of the long-term analysis do not alter when excluding the financial crisis. ... To define CSR in my thesis, I will follow the broad view of Keleş and Çetin (2018), who argue
This study reexamines t he relation between C SR and financial pe rformance by benchmarking. firms against industry peers in a given year to identify best-in-class and worst-in-class firms. We ...
Turban and Greening (1997), asserted that an increase in the ability of a company to. attract and to retain employees is a benefit of CSR. Their results indicated that "companies. higher in corporate social performance (CSR) have more positive reputations and more attractive.
Purpose. The concept of corporate social responsibility (CSR) has emerged over the past 30 years to occupy a significant role in certain aspects of the organizational theory. The purpose of this paper is to examine the impact of CSR and firm's operational competitive performance in terms of cost, quality, flexibility and delivery, as well as ...
performance, which is seen as positive CSR, but also revealed misdeeds, such as fines, involuntary recalls and guilty verdicts in lawsuits. This can also be called negative CSR. In this meta-analysis a cumulative negative effect of negative CSR on firm performance is found. In this thesis I am interested in negative CSR.
This study aims to investigate the relationship between corporate social responsibility (CSR) and Jordanian firm performance. CSR is measured using three dimensions: philanthropy, community, and environment. Meanwhile, firm performance is measured by two accounting-based measurements; Return on Assets (ROA) and Return on Equity (ROE).
This study examined the relationship between corporate social responsibility (CSR) and firm performance between the multinational and local companies in Penang, Malaysia. Corporate social responsibility (CSR) in this study is dimensionalised into the community development CSR, human resources CSR and environmental contribution CSR.
Ph.D Thesis: Impact of Corporate Social Responsibility on Financial Performance and Competitiveness of Business: A Study of Indian Firms. ... Every firm differs in the way it implement CSR in strategic business practices, with its size, operating industry, stakeholder demands, historical CSR engagement, level of diversification, research and ...
It is observed that several studies investigated the role played by SA in creating value in emerging markets (Zahoor et al., Citation 2023), and in increasing firm performance (AlTaweel & Al-Hawary, Citation 2021). These researchers focus on the United Arab Emirate, a country with a similar cultural and business context of Saudi Arabia.