Corporate Social and Financial 
Performance: An Extended 
Stakeholder Theory, and Empirical 
Test with Accounting Measures

Laan, G. van der; Ees, Hans van; Witteloostuijn, A. van

doi:10.1007/s10551-007-9398-0

Cited by 248 publications

(179 citation statements)

References 36 publications

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“…2016 www.anpad.org.br/bar investments on them indicates how far organizations will actually go taking on such internal social responsibilities. Both, theory and research on I-CSR (e.g., Aguilera et al, 2007;Cooper & Wagman, 2009;Van der Laan et al, 2008) have strongly supported the proposition that companies that make more substantial investments on employees are more likely to attract, engage and retain human capital, and therefore improve their performance (Aguinis & Glavas, 2012). Thus, we propose that:…”

Section: Hypothesesmentioning

confidence: 66%

“…As mentioned previously, I-CSR is considered a factor in the attraction of talented workers (Kim & Park, 2011;Cooper & Wagman, 2009;Van der Laan et al, 2008), particularly compensation schemes (Chapman, Uggerslev, Carroll, Piasentin, & Jones, 2005). There is also evidence in the literature of the motivational power of employee incentives that tie employee compensation schemes to company results in the short and long run (e.g.…”

Section: Hypothesesmentioning

confidence: 95%

“…Studies have shown that human resources management policies, many of which are now listed as I-CSR standards, can foster performance and bring about improved results at the organizational level (Aguilera et al, 2007;Cooper & Wagman, 2009;Van der Laan et al, 2008). I-CSR initiatives that focus on individual employees are likely to boost human capital through three mechanisms: (a) by attracting more qualified workers; (b) through on-going expansion of employee skills; and (c) through the retention and engagement of the workforce.…”

Section: Hypothesesmentioning

confidence: 99%

“…Quite clearly, outlays on different areas of social responsibility (e.g., internal, environmental or philanthropic initiatives) can produce distinct outcomes in terms of costs and returns (Van der Laan, Ees, & Witteloostuijn, 2008). Therefore, in the present study we single out internal CSR investments (I-CSR), a dimension of social responsibility that focuses on employees (Carroll, 2008;Turker, 2009).…”

Section: Introductionmentioning

confidence: 99%

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Internal Corporate Social Responsibility and Performance: A Study of Publicly Traded Companies

Cavazotte¹,

Chang²

2016

BAR, Braz. Adm. Rev.

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Research on the relationship between social responsibility and the financial performance of companies has yielded ambivalent results. Since investments on different areas of social responsibility can promote distinct outcomes, in this study we focus on internal corporate social responsibility (I-CSR), that is, investments on employees. The objective of the study is to verify if outlays on I-CSR affect organizational performance. We analyzed financial information from companies listed in the São Paulo Stock Exchange, and their social balance sheets filled with the Brazilian Institute of Social and Economic Analysis between 2001 and 2007, applying Two-Stage Least Squares (2SLS) equation model to minimize endogeneity and reverse causality problems. The results indicate that overall I-CSR was associated with revenue contemporarily, one and two years after the investments. Corporate outlays on healthcare, pension plans, employee education and profit-sharing all had positive effects on revenue in the years that followed such investments.

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Section: Hypothesesmentioning

confidence: 66%

Section: Hypothesesmentioning

confidence: 95%

Section: Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Internal Corporate Social Responsibility and Performance: A Study of Publicly Traded Companies

Cavazotte¹,

Chang²

2016

BAR, Braz. Adm. Rev.

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“…the variable to measure the social performance has been Fortune's Corporate Reputation Index 1 (Fombrun and Shanley 1990). In many studies corporate social responsibility appears as a key driver of corporate reputation (Logsdon and Wood 2002;Rettab et al 2009;Roberts 2003;Van der Laan et al 2008). …”

Section: H1: Business Ethics Literature Largely Identifies Corporate mentioning

confidence: 99%

Corporate Reputation and Corporate Ethics: Looking Good or Doing Well

Leiva-Soto

Ferrero-Muñoz²,

Calderón-Cuadrado

2014

SSRN Journal

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Corporate reputation (CR) has become a fashionable topic due, among other reasons, to the recent financial and economic crisis and spreading corporate scandals. Given its interdisciplinary character and intangible nature, CR has been a frequent issue in many disciplines, but scarcely present in the business ethics field. This neglect is odd since a good reputation is one of the most valuable consequences of doing the right things and the things right. In this paper, we intend to explain this absence through three hypotheses: a) business ethics literature largely identifies corporate reputation and corporate social responsibility; b) corporate reputation overlaps with corporate image and corporate identity, resulting interchangeable constructs; and c) business ethics scholars have focused on the negative side of the reputation phenomenon, highlighting reputational risk more than benefits.Based on a bibliometric analysis of the top journal of business ethics literature over a recent decade (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011), we finally confirmed the three hypotheses although c) only partially. In addition, the findings of this study will allow for a deeper understanding of the link between looking good and doing well. Ricardo Leiva AbstractCorporate reputation (CR) has become a fashionable topic due, among other reasons, to the recent financial and economic crisis and spreading corporate scandals. Given its interdisciplinary character and intangible nature, CR has been a frequent issue in many disciplines, but scarcely present in the business ethics field. This neglect is odd since a good reputation is one of the most valuable consequences of doing the right things and the things right. In this paper, we intend to explain this absence through three hypotheses: a) business ethics literature largely identifies corporate reputation and corporate social responsibility; b) corporate reputation overlaps with corporate image and corporate identity, resulting interchangeable constructs; and c) business ethics scholars have focused on the negative side of the reputation phenomenon, highlighting reputational risk more than benefits.Based on a bibliometric analysis of the top journal of business ethics literature over a recent decade (2002-2011), we finally confirmed the three hypotheses although c) only partially. In addition, the findings of this study will allow for a deeper understanding of the link between looking good and doing well.

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Equity market performance: The role of environmental protection and corporate social responsibility efforts

Panda,

Ray

2023

Bus Strat Dev

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Businesses that contribute to social welfare and development are regarded as reliable and generate more wealth for their stakeholders. This study attempts to determine how corporate social responsibility (CSR) and environmental protection measures influence the financial performance of Indian businesses. A panel dataset containing 330 Nifty 500 companies is included to determine their relationship. The quarterly and semi‐annual share prices are employed as proxies for the financial performance of companies. In the regression model, the lagged share prices (log) of two periods serve as the response variable, while the CSR and the CSR plus the environment and pollution control expenses (CSREP) serve as explanatory variables. The results suggest that the fixed‐effect regression model is suitable where the explanatory variables are time‐invariant and the relationship between the dependent and explanatory variables across firms is constant over time. Our analysis indicates that CSR spending alone has little effect on the share prices of companies over two prospective time periods. However, as companies invest more in environmental and pollution control activities in addition to their CSR expenditure, the market recognises this as a significant factor, and their share prices rise. Consequently, we discovered that CSREP (CSR plus environmental and pollution control expenditure) is a significant factor that influences quarterly and semi‐annual share prices.

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Corporate Social and Financial Performance: An Extended Stakeholder Theory, and Empirical Test with Accounting Measures

Cited by 248 publications

References 36 publications

Internal Corporate Social Responsibility and Performance: A Study of Publicly Traded Companies

Internal Corporate Social Responsibility and Performance: A Study of Publicly Traded Companies

Corporate Reputation and Corporate Ethics: Looking Good or Doing Well

Equity market performance: The role of environmental protection and corporate social responsibility efforts

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