Do customer satisfaction and reputation mediate the CSRâ€“FP link? Evidence from Australia
AbstractDirect tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be spurious. Following this line of argument, the present study tests a mediated model in understanding the CSRâ€“FP relationship. Specifically, we posit that reputation and customer satisfaction mediate fully the CSRâ€“FP relationship. Based on the results from a sample of 280 Australian firms, the findings suggest that CSR is linked with FP. However, the effect is indirect: while CSR is linked to both reputation and customer satisfaction, reputation alone mediates the CSRâ€“FP relationship. The results are interesting, suggesting that to reduce ambiguity surrounding the CSRâ€“FP relationship scholars need to significantly expand studies that address moderating and mediating variables. Discussion is given to these findings along with paths for future research.
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Bibliographic InfoArticle provided by Australian School of Business in its journal Australian Journal of Management.
Volume (Year): 37 (2012)
Issue (Month): 2 (August)
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Web page: http://www.agsm.edu.au
Australia; corporate social responsibility; customer satisfaction; firm performance; mediation test; reputation;
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