We use the technique of panel data in a sample of 320 American listed companies from 2003 to 2007 to estimate a model of corporate reputation, measured by the Fortune index. We propose that corporate social responsibility (CSR) is a key driver of corporate reputation given its potential to foster hard-to-duplicate competitive advantage. Our model embodies the multidimensional concept of CSR, presenting a five dimensional construct -employee relations, diversity issues, product issues, community relations, and environmental issues -and interact those with industrial effects. Our results indicate that the five dimensions of CSR have a significant impact on corporate reputation and this impact is moderated by the industry of the firm. The most salient dimensions were diversity of the work force -was positively relevant to eight of the nine industries; and product issues with a positive impact in five industries and negative in three.

This study analyses the impact of corporate social responsibility (CSR) on brand value, with the sample being a select group of US corporations with the best global brands. Based on the instrumental stakeholder theory, we confirm that CSR is a valid source of intangible competitive advantage. It is not used, however, to its full potential, given that CSR has a lesser impact on business performance than the size of the company and other conventional financial indicators. We contend that this undervaluation is due to the nonalignment of CSR initiatives with corporate strategy. The value added of this study in terms of methodology is the successful employment of the panel data technique and the introduction of brand value as a measure of corporate performance. We also provide empirical evidence of the long-term nature of the impact of CSR initiatives on corporate performance.

Purpose -The purpose of the paper is to examine the influence of organizational culture, top management tenure and financial performance on corporate social performance (CSP).Design/methodology/approach -The sample comprises 295 Fortune 500 American companies from 2000 to 2005. Financial information from Thompson World Scope is contrasted with social responsibility data from KLD database and the estimation technique applied is panel data. Findings -Results indicate that a humanistic culture has a positive impact of CSP, as well as management tenure and slack resources in a lesser degree.Research limitations/implications -The paper successfully constructs and employs a variable depicting the humanistic culture of a firm. More research is needed to define which factors determine this culture dimension, so it can be scientifically agreed on as opposed to being used exploratorily.Practical implications -The results point out that firms that incorporate a humanistic approach to culture perform well in CSP because their internal cultural values and beliefs drive them to establish a good relationship with stakeholders.Originality/value -As opposed to the majority of the studies that focus on the CSP leading to financial performance relation, this article alternatively analyzes factors that determine CSP.

PurposeThe purpose of the paper is to test the slack‐resources hypothesis in corporate social performance (CSP).Design/methodology/approachThe paper uses the technique of panel data in a sample of 624 American listed companies from 2001 to 2007. The literature review builds on the contradictions between the instrumental stakeholder theory and the slack‐resources hypothesis to argue that both concepts are not fully compatible.FindingsThe results indicate that prior financial performance, measured as market value added, positively affects CSP. The results further confirm that slack resources are assigned to specific areas of involvement of CSP (product issues, community relations, environmental issues, employee relations and diversity of the work force), rather than to a unified conception of CSP.Research limitations/implicationsThe current trend in social responsibility regards Friedman's arguments as old‐fashioned and assumes the instrumental stakeholder to be true. The results presented here indicate that part of Friedman's claims may be occurring in reality, so further investigation is needed before they are disregarded.Practical implicationsThe multidimensional nature of CSP, here proposed and confirmed by the exploratory models, indicates that each dimension of social performance may be impacted by the availability of funds different intensities; and according to the instrumental view (assuming the virtuous circle is true), investment in each particular dimension may provide a different level of return to the firm.Originality/valueThe slack resources hypothesis has been the least researched of the two hypotheses relating to the corporate social and financial performance (CSP and CFP) links. Although the slack resources hypothesis may explain the relation as well as the good management hypothesis, most studies tend to focus on the first one, basing their argumentation on the assumption that superior CFP comes as a result of a strategic CSP.

AGRADECIMIENTOSAgradezco profundamente la paciencia, sabiduría y, sobre todo, amistad de mi director de tesis, José Ignacio Galán Zazo. Sin él, sencillamente, este trabajo no sería posible.Agradezco también al departamento de economía de la empresa, los profesores que me han dado clases en el master y aquellos que me han animado a continuar la carrera académica.Finalmente agradezco a mis compañeros de la universidad, mis amigos y mi familia por el apoyo que me han dado en todo este período. ABSTRACTWe analyze the influence of Corporate Social Responsibility (CSR) on organisational performance through four main aspects. We carry out a solid theoretical appraisal and employed a rigorous panel data technique on a significant sample of US corporations from 2001 to 2007. First, we provide scholars and management with an alternative measure of corporate financial performance (CFP), which can be impacted by CSR. Our results indicate that brand value is a valid measure of CFP and it is positively impacted by CSR. Second, we contend that corporate reputation is the conceptual link between CSR and financial performance. We build a model accordingly, highlighting the multidimensional nature of CSR and the moderating effect performed by the industry of the firm. We breakdown CSR in five qualitative areas: community relations, environmental issues, employee relations, product issues, diversity of the workforce. Our results suggest that all five qualitative areas impact positively on corporate reputation, as well as market-based indicators of risk and performance. In the final two sections, we investigate what variables influence CSR. We find that organizational culture, management tenure and prior-financial performance (slack resources) impact positively on CSR. We contend that firms that incorporate a humanistic approach to culture perform well in CSP because their internal cultural values and beliefs drive them to establish good relationship with stakeholders. This is maximized by top management permanence in the firm, as the longer they stay the more absorbed the humanistic culture will be. Availability of slack resources combined with the pro-active organizational culture and the integration of top management in this culture further contributes to improving CSP.

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