Strategic Corporate Social Responsibility and Economic Performance
AbstractThis 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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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 362.
Length: 26 pages
Date of creation: 11 Jun 2009
Date of revision: 01 Jan 2011
Publication status: Forthcoming as Belu, Constantin and Cristiana Manescu, 'Strategic Corporate Social Responsibility and Economic Performance' in Applied Economics, 2013, pages 2751-2764.
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Corporate Social Responsibility; Data Envelopment Analysis; Strategic CSR; System-GMM;
Other versions of this item:
- Constantin Belu & Cristiana Manescu, 2013. "Strategic corporate social responsibility and economic performance," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(19), pages 2751-2764, July.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
- NEP-CSE-2009-07-03 (Economics of Strategic Management)
- NEP-EFF-2009-07-03 (Efficiency & Productivity)
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