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Strategic Corporate Social Responsibility and Economic Performance

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Author Info
Belu, Constantin () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Manescu, Cristiana () (Department of Economics, School of Business, Economics and Law, Göteborg University)

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Abstract

This paper studies the link between Corporate Social Responsibility (CSR) and economic performance of companies. Acknowledging the argument that companies might behave socially responsible strategically, i.e. favoring the CSR dimensions that provide competitive advantages, we construct a novel CSR index based on a Data Envelopment Analysis (DEA) model. We argue that this index accounts for CSR achievements from a strategic perspective, and use it to analyze the link between CSR and economic performance expressed by Return on Assets (ROA). When explicitly accounting for strategic behavior of companies, our findings reveal a significant positive relationship between CSR and economic performance.

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File URL: http://hdl.handle.net/2077/20408
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 362.

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Length: 26 pages
Date of creation: 11 Jun 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0362

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Corporate Social Responsibility; Data Envelopment Analysis; Strategic CSR; System-GMM;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models
M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility

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This page was last updated on 2009-11-19.

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