Advanced Search
MyIDEAS: Login

Does Corporate Social Responsibility Affect the Performance of Firms?

Contents:

Author Info

  • Sergio Vergalli

    (University of Brescia)

  • Laura Poddi

    (University of Ferrara)

Abstract

Over the last two decades in OECD countries increasingly more firms are certifying as Socially Responsible (CSR is the acronym for Corporate Social Responsibility). This kind of certification is assigned by private companies that guarantee that a certain firm’s behaviour is environmentally and sociologically correct. Some papers (including Preston and O’Bannon, 1997; Waddock and Graves, 1997; McWilliams and Sieger, 2001; Ullman, 1985) tried to establish if there exists a link between Social Responsibility certification and the performance of firms. Their results were ambiguous and did not show any common connection. This ambiguity depends mainly on the static nature of their analyses and on the problem of whether performance is affected more by certification costs or by increasing sales due to an effect on reputation. Our work would like to discover whether certain performance indicators are affected by a firm’s social responsible behaviour and their certifications by looking at panel data. The novelty of our analysis is due to its dynamic aspect and from a CSR index that intersects two of the three main international indices (Domini 400 Social Index, Dow Jones Sustainability World Index, FTSE4Good Index), to be objective and obtain a representative sample. The main results seem to support the idea that CSR firms which are more virtuous, have better long run performance. They have some initial costs but obtain higher sales and profits due to several causes reputation effect, a reduction of long run costs and increased social responsible demand.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.feem.it/userfiles/attach/Publication/NDL2009/NDL2009-052.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.52.

as in new window
Length:
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:fem:femwpa:2009.52

Contact details of provider:
Postal: Corso Magenta, 63 - 20123 Milan
Phone: 0039-2-52036934
Fax: 0039-2-52036946
Email:
Web page: http://www.feem.it/
More information through EDIRC

Related research

Keywords: Corporate Social Responsibility; Growth;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Patten, Dennis M., 1991. "Exposure, legitimacy, and social disclosure," Journal of Accounting and Public Policy, Elsevier, vol. 10(4), pages 297-308.
  2. Alberto Alesina & Eliana La Ferrara, 1999. "Participation in Heterogeneous Communities," NBER Working Papers 7155, National Bureau of Economic Research, Inc.
  3. Ivo Welch & Siew Hong Teoh & Paul Wazzan, 1995. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," Finance _005, University of California at Los Angeles.
  4. Freedman, Martin & Jaggi, Bikki, 1982. "Pollution disclosures, pollution performance and economic performance," Omega, Elsevier, vol. 10(2), pages 167-176.
  5. Dierkes, Meinolf & Preston, Lee E., 1977. "Corporate social accounting reporting for the physical environment: A critical review and implementation proposal," Accounting, Organizations and Society, Elsevier, vol. 2(1), pages 3-22, January.
  6. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
  8. Patten, Dennis M., 1990. "The market reaction to social responsibility disclosures: The case of the Sullivan principles signings," Accounting, Organizations and Society, Elsevier, vol. 15(6), pages 575-587.
  9. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
  10. Herremans, Irene M. & Akathaporn, Parporn & McInnes, Morris, 1993. "An investigation of corporate social responsibility reputation and economic performance," Accounting, Organizations and Society, Elsevier, vol. 18(7-8), pages 587-604.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Paolo Cominetti & Laura Poddi & Sergio Vergalli, 2012. "The Push Factors for Corporate Social Responsibility: A Probit Analysis," Working Papers 2012.58, Fondazione Eni Enrico Mattei.
  2. Nicola Comincioli & Laura Poddi & Sergio Vergalli, 2012. "Does Corporate Social Responsibility Affect the Performance of Firms?," Working Papers 2012.53, Fondazione Eni Enrico Mattei.
  3. Diana Tuomasjukka & Staffan Berg & Marcus Lindner, 2013. "Managing Sustainability of Fennoscandian Forests and Their Use by Law and/or Agreement: For Whom and Which Purpose?," Sustainability, MDPI, Open Access Journal, vol. 6(1), pages 18-49, December.
  4. Paolo Cominetti & Laura Poddi & Sergio Vergalli, 2013. "The Push Factors for Corporate Social Responsibility: A Probit Analysis," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(2), pages 2, April.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2009.52. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.