A note on the interaction between corporate social responsibility and financial performance

Scholtens, Bert

doi:10.1016/j.ecolecon.2008.01.024

Cited by 242 publications

(220 citation statements)

References 16 publications

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“…Stock market-based measures refer to investors' evaluations and expectations of firms. However, these measures may not reflect the real evaluation if there is asymmetric information [42]. In the Chinese mineral industry, firms would face all types of stakeholders, and it is not feasible for them to only focus on investors.…”

Section: Financial Performancementioning

confidence: 99%

“…McGuire used an enterprise's reputation released by FORTUNE magazine as CSR performance [41]. Some CSR performance is based on KLD's measures, which use multidimensional variables capturing a wide range of stakeholder performance aspects [42,43]. In recent years, studies also evaluated CSR performance based on the firms' CSR reports [44].…”

Section: Csr Performancementioning

confidence: 99%

“…It appears that the regression model is used to investigate the association between social and financial performance [42]. Regression analysis is a statistical process for estimating the relationships among variables.…”

Section: Modelsmentioning

confidence: 99%

“…Most scholars choose ROE, ROA, EPS, and ROIC as important financial variables in their studies [2,7,[39][40][41]. Scholtens (2008) uses stock returns as a financial index [42]. McGuire et al compare both stock market-based and accounting-based measures that focus on different aspects of financial performance.…”

Section: Financial Performancementioning

confidence: 99%

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Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms

et al. 2014

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This paper examines the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) using panel data for 228 Chinese mineral listed firms from 2010 to 2013 with Pooled Least Squares regression analysis. Our study considers five different sublevel CSR issues-shareholder responsibility, employee responsibility, environmental responsibility, public responsibility, and supplier, customer and consumer responsibility-in capturing the effects of CSR elements on CFP. The estimation results show the different effects of each sublevel CSR issue on CFP. Overall, shareholder, employee responsibility, environmental responsibility, supplier, customer and consumer responsibility have significant relationships with CFP, which are the stakeholders who have the closest linkage with firm operations. Meanwhile, public responsibility outside the firm does not show significant interaction with CFP, which is why many mineral firms ignore the public interest and this leads to conflicts. Shareholder responsibility has the most significant positive effect on CFP. Supplier, customer and consumer responsibility and environmental responsibility usually have negative effects on CFP as costs increase. Moreover, all 228 listed mineral firms that were selected in this paper have been classified into five sub-sectors: the extractive industry, metal fabrication OPEN ACCESS Sustainability 2014, 6 4078 industry, oil and gas industry, gas and water-related industry, and oil-producing equipment industry, based on the Industry Classification Benchmark (ICB). Our study shows that the differences in the relationship between CSR and CFP for five sublevel industries are due to industry characteristics. If the government wants to solve these conflicts and positively encourage firms to adopt CSR, it is necessary to create a mining development environment whereby firm profits are closely tied to CSR.

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Section: Financial Performancementioning

confidence: 99%

Section: Csr Performancementioning

confidence: 99%

Section: Modelsmentioning

confidence: 99%

Section: Financial Performancementioning

confidence: 99%

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Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms

et al. 2014

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“…The decision to use the LE or UE is linked to the ongoing debate on the relationship between corporate social and environmental performance, and profitability, which still has not produced definite conclusions [40][41][42][43]. A company's CSR activities appeal to consumers motivated by social and environmental implications of consumption, often borne of a broader understanding of negative externalities.…”

Section: Methods and Datamentioning

confidence: 99%

Planting Trees for Publicity—How Much Are They Worth?

Kronenberg

Mieszkowicz

2011

Sustainability

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Corporate marketing departments use trees and forests for advertising and public relations (PR). Trees and forests constitute a tangible symbol of the environment, reinforced by the growing awareness of the role that trees play in preventing climate change. Although the carbon sequestration function of trees is valued in monetary terms, its derivative services to marketing, CSR or HR departments are not ('greening the image'). We focus on voluntary carbon offsets and other tree-planting activities undertaken by companies, aiming to demonstrate that the value of these derivative services of trees should be considered in monetary terms. Based on a small survey and an analysis of financial data for 10 tree-planting projects in Poland, we estimate this value at USD 7.42 per tree. This value depends on external circumstances, such as the current interest in climate change and ways to prevent it.

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Appendix A Supplemental Readings

2015

An Integrated Approach to Environmental Management

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A note on the interaction between corporate social responsibility and financial performance

Cited by 242 publications

References 16 publications

Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms

Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms

Planting Trees for Publicity—How Much Are They Worth?

Appendix A Supplemental Readings

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