The corporate social performance-financial performance link
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Citations
The Road to Sustainability: Exploring the Process of Corporate Environmental Strategy Over Time
The effect of cross-listing on the environmental, social, and governance performance of firms
Executive Compensation in Socially Responsible Firms
Financial outcomes of environmental risk and opportunity for US companies
Corporate Social Performance: From Output Measurement to Impact Measurement
References
Competitive Strategy: Techniques for Analyzing Industries and Competitors
A Three-Dimensional Conceptual Model of Corporate Performance
Corporate Social Performance Revisited
Corporate Social Responsibility and Firm Financial Performance
Decision analysis and behavioral research
Related Papers (5)
Frequently Asked Questions (8)
Q2. How did the panelists evaluate the attributes of the CSP?
Using the simple multi-attribute rating technique (SMART) (Von Winterfeldt andEdwards, 1986), the authors asked each panelist to evaluate the eight CSP attributes, perform tradeoffs among the attributes, then construct a scale.
Q3. What is the significance of the weights in the CSP index?
the heavier weights in the CSP index are those that most closely represent critical stakeholders, such as employees, customers, and community, while less directly stakeholder-related categories of involvement in nuclear industries, military contracting, or South Africa receive considerably less weight.
Q4. What are the sources of information used by KLD?
External data sources include articles about a company in the general business press (e.g., Fortune, Business Week, Wall St. Journal), trademagazines, and general media.
Q5. What is the relationship between slack resources and financial performance?
If slack resources are available, then better social performance would result from the allocation of these resources into the social domains, and thus better financial performance would be a predictor of better CSP.
Q6. Why are previous studies mixed on the relationship between profitability and corporate social performance?
In part because of the measurement difficulties, previous findings on the relationship between profitability and corporate social performance have been mixed.
Q7. What is the significance of controlling for industry in the analysis of the KLD data?
Table 5 presents the results of the regression analysis using CSP as the dependentvariable and financial performance as the independent variable, controlling for debt, size, and industry (industry controls are omitted from the table in the interest of space), using a one-year lag between the financial performance (1989 data) and the CSP measurement (1990 data).
Q8. What is the relationship between CSP and debt-to-asset ratio?
CSP is negatively related to debt-to-asset ratio in each of the first nine models, but is only significant (p<.10) when ROE is used.