The effect of corporate social responsibility performance on financial performance: the case of food industry

Abstract

PurposeThe present study examines the impact of the different dimensions of corporate social responsibility (CSR) performance on the financial performance of food companies.Design/methodology/approachAs proxies for the financial performance, two different indices are employed: a single index, namely, operating income and an aggregate financial index, namely, economic score. The CSR performance based on Thomson Reuter’s data stream methodology involves three distinct aspects of the CSR concept: environmental, social and governance for the time spanning 2012–2017.FindingsFindings based on estimated generalized least squares (EGLS) indicate that the higher level of environmental performance (as described by an aggregate environmental index), the publishing of a stand-alone sustainable report and the implementation of quality principles, such as Total Quality Management (TQM), Lean and Six Sigma positively affect the financial performance.Originality/valueThe results provide useful implications to stakeholders, mainly to corporate managers and investors for uptaking initiatives aiming toward the eco-efficiency of the food company.

Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

“…The logic of the matter presupposes a positive bidirectional relationship between these two concepts. This is justified by several empirical studies (Galant and Cadez, 2017; Partalidou et al , 2020). To this end, this study will update the assessment of the bidirectional relationship between CSR performance and the FP of companies in the fertile ground (Sweden).…”

“…The ambiguity of the concepts of social performance, as well as corporate FP, generates a wealth of literature to provide a theoretical framework to explain the relationship between CSR performance and FP to increase and improve consumer loyalty. The question of the interaction between CSR and FP remains a highly controversial topic despite the abundant literature (Partalidou et al , 2020).…”

“…Thus, company management has an informational advantage over stakeholders, leading to information asymmetry. Consequently, the signal theory provides the theoretical basis for management efforts to reduce information asymmetry to increase the trust and loyalty of the firm’s clientele (Partalidou et al , 2020). The development and dissemination of new means of communication have reinforced the strength of these stakeholders.…”

“…Indeed, researchers are very interested in the subject of CSR performance. CSR ensures the obligations of the company towards society, beyond legal and economic obligations (Partalidou et al , 2020). It is a volunteer effort, which requires management to be responsive to stakeholder needs and to provide an economic perspective, i.e.…”

“…In this sense, the concept of social responsibility has generated a lot of interest from companies (Manrique and Mart_ı-Ballester, 2017). The corporate social responsibility (CSR) approach is considered a strategic choice of companies (Partalidou et al , 2020). The term CSR leads the initiatives of companies towards a goal to be achieved which is the sustainability of the relationship with stakeholders especially with consumers (Hegde and Mishra, 2019).…”