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Do customer satisfaction and reputation mediate the CSR–FP link? Evidence from Australia

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Author Info

  • Jeremy Galbreath

    (Curtin Graduate School of Business, Curtin University, Australia)

  • Paul Shum

    (School of Accounting, Finance and Economics, Edith Cowen University, Australia)

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    Abstract

    Direct 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 CSR–FP relationship. Specifically, we posit that reputation and customer satisfaction mediate fully the CSR–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 CSR–FP relationship. The results are interesting, suggesting that to reduce ambiguity surrounding the CSR–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 Info

    Article provided by Australian School of Business in its journal Australian Journal of Management.

    Volume (Year): 37 (2012)
    Issue (Month): 2 (August)
    Pages: 211-229

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    Handle: RePEc:sae:ausman:v:37:y:2012:i:2:p:211-229

    Contact details of provider:
    Web page: http://www.agsm.edu.au

    Related research

    Keywords: Australia; corporate social responsibility; customer satisfaction; firm performance; mediation test; reputation;

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    Cited by:
    1. Jeremy Galbreath, 2013. "ESG in Focus: The Australian Evidence," Journal of Business Ethics, Springer, vol. 118(3), pages 529-541, December.

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