The Relationship between Social and Financial Performance

Roman, Ronald M.; Hayibor, Sefa; Agle, Bradley R.

doi:10.1177/000765039903800105

Cited by 503 publications

(342 citation statements)

References 39 publications

(49 reference statements)

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“…Of these, an increasing number show a positive correlation between the social responsibility and financial performance of corporations in most cases (Frooman, 1997;Griffin and Mahon, 1997;Key and Popkin, 1998;Roman et al, 1999;Waddock and Graves, 1997) However, these findings have to be read with caution since such correlation is difficult to measure (Griffin, 2000;Rowley and Berman, 2000).…”

Section: Instrumental Theoriesmentioning

confidence: 99%

Corporate Social Responsibility Theories: Mapping the Territory

Garriga¹,

Mêlé

2012

Citation Classics From the Journal of Business Ethics

610

815

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ABSTRACT. The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, ''mapping the territory'' by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions.

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Section: Instrumental Theoriesmentioning

confidence: 99%

Corporate Social Responsibility Theories: Mapping the Territory

Garriga¹,

Mêlé

2012

Citation Classics From the Journal of Business Ethics

610

815

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“…Bragdon and Marlin (1972), Parket and Eilbirt (1975), Cochran and Wood (1984), and McGuire, Sundgren, and Schneeweis (1988) found a positive link to accounting performance. More generally, the metaanalyses of Roman, Hayibor, and Agle (1999) and Margolis and Walsh (2003) documented that more studies find a positive than negative relationship between CSR and financial performance.…”

Section: The Link In Practicementioning

confidence: 99%

The Link Between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility

Edmans

2012

SSRN Journal

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Executive OverviewHow are job satisfaction and firm value linked? I tackle this long-standing management question using a new methodology from finance. I study the effect on firm-level value, rather than employee-level productivity, to take into account the cost of increasing job satisfaction. To address reverse causality, I measure firm value by using future stock returns, controlling for risk, firm characteristics, industry performance, and outliers. Companies listed in the "100 Best Companies to Work For in America" generated 2.3% to 3.8% higher stock returns per year than their peers from 1984 through 2011. These results have three main implications. First, consistent with human resource management theories, job satisfaction is beneficial for firm value. Second, corporate social responsibility can improve stock returns. Third, the stock market does not fully value intangible assets, and so it may be necessary to shield managers from short-term stock prices to encourage long-run growth.

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“…Within the CSR-CFP empirical literature, a few empirical studies employed constructs and variables germane to the insurance perspective 1 Given the number of excellent large-scale literature reviews in this area, and in view of limited journal space, we suggest that interested readers consult the in-text citations for a sense of this work, as well as the meta-analytic work of Griffin and Mahon (1997), Roman, Hayibor, and Agle (1999), or Orlitzky, Schmidt, and Rynes (2003). The studies by Griffin and Mahon (1997) and Roman et al (1999) provide a sense of the tension in the literature as these authors use the same data to arrive at different conclusions.…”

Section: Introductionmentioning

confidence: 99%

“…The studies by Griffin and Mahon (1997) and Roman et al (1999) provide a sense of the tension in the literature as these authors use the same data to arrive at different conclusions.…”

Section: Introductionmentioning

confidence: 99%