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CSR Strategic Approach, Financial Resources and Corporate Social Performance: The Mediating Effect of Innovation

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  • Pasquale Ruggiero

    (Department of Business and Law Studies, University of Siena, Piazza San Francesco 7, 53100 Siena, Italy
    Brighton Business School, University of Brighton, Mithras House, Lewes Road, Brighton BN2 4AT, UK)

  • Sebastiano Cupertino

    (Department of Business and Law Studies, University of Siena, Piazza San Francesco 7, 53100 Siena, Italy)

Abstract

Given the current undefined relational effect between corporate financial performance (CFP) and corporate social performance (CSP) and the potentially myopic behavior of managers, this paper answers the call from some scholars to contribute towards a better understanding of the relationship between CFP and CSR. Different from other papers, it does so by analyzing the role of innovation activities as a mediator between CFP and CSR, applying a regression and mediation analysis between firms’ financial resources, innovation initiatives, and social and environmental performance. The results demonstrate that innovation is a critical factor in the relationship between CFP and corporate social performance (CSP) as it enables organizations to respond to new economic, social and environmental challenges faster and better than organizations that are not able to innovate. Therefore, the investment of financial resources in innovation initiatives is one of the most important levers to pursue and to increase CSP.

Suggested Citation

  • Pasquale Ruggiero & Sebastiano Cupertino, 2018. "CSR Strategic Approach, Financial Resources and Corporate Social Performance: The Mediating Effect of Innovation," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3611-:d:174641
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