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Does corporate social responsibility influence the corporate performance of the U.S. telecommunications industry?

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  • Wang, Wei-Kang
  • Lu, Wen-Min
  • Kweh, Qian Long
  • Lai, Hsiao-Wen

Abstract

This study uses a two-stage approach to explore the relationship between the operational performance of U.S. telecommunications companies and their implementation of corporate social responsibility (CSR). In the first stage, this study adopts the dynamic data envelopment analysis model to measure the efficiency of the telecommunications industry in the U.S. from 2004 to 2008. The empirical results show that the corporate efficiency of those companies that implemented CSR was higher than that of those companies that did not. In the second stage, the study adopts OLS and 2SLS to explore the influence of the execution level of CSR on performance. The results show that the Kinder, Lyndenberg, and Domini & Co (KLD) social ratings indexes are significantly and positively related to corporate performance. Finally, this study suggests ways in which corporate policy makers can enhance CSR in order to improve corporate performance in the U.S. telecommunications industry.

Suggested Citation

  • Wang, Wei-Kang & Lu, Wen-Min & Kweh, Qian Long & Lai, Hsiao-Wen, 2014. "Does corporate social responsibility influence the corporate performance of the U.S. telecommunications industry?," Telecommunications Policy, Elsevier, vol. 38(7), pages 580-591.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:7:p:580-591
    DOI: 10.1016/j.telpol.2014.01.004
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    6. Tadesse Getacher Engida & Alfons G. J. M. Oude Lansink & Xudong Rao, 2022. "A dynamic by‐production framework for measuring productivity change in the presence of socially responsible and undesirable outputs: Evidence from European food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 279-294, April.
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    9. Magdalena Kapelko & Alfons Oude Lansink, 2022. "Measuring firms' dynamic inefficiency accounting for corporate social responsibility in the U.S. food and beverage manufacturing industry," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1702-1721, December.
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    14. Jyotirani Gupta & Niladri Das, 2022. "Multidimensional corporate social responsibility disclosure and financial performance: A meta‐analytical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 731-748, July.
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    16. Muzhar Javed & Muhammad Amir Rashid & Ghulam Hussain & Hafiz Yasir Ali, 2020. "The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1395-1409, May.
    17. Luis Otero-González & Pablo Durán-Santomil & Luis-Ignacio Rodríguez-Gil & Rubén Lado-Sestayo, 2021. "Does a Company’s Profitability Influence the Level of CSR Development?," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    18. Xiaodan Wu & Richard Amoasi, 2024. "The role of CSR in sustaining corporate brands in the global market: The perspective of telecommunication companies in Ghana," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 433-447, January.
    19. Wei‐Kang Wang & Wen‐Min Lu & Qian Long Kweh & Hoang Tu Nhi Truong, 2020. "What do U.S. biopharmaceutical companies get from patents and research and development spikes for their dynamic corporate performance?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 762-770, July.
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    21. Toshiyuki Sueyoshi & Mika Goto, 2018. "Difficulties and remedies on DEA environmental assessment," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-20, December.

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