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Does corporate social responsibility influence profit margins? a case study of executive perceptions

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  • Atle Blomgren

Abstract

The literature on the business case for Corporate Social Responsibility (CSR) has identified possible mechanisms for CSR to increase profits. Other parts of the CSR literature argue that any strategy yielding above‐average profits will be imitated by competitors and profits driven down to industry average; consequently, CSR may only be a strategy for achieving average profits. The empirical research on the relationship between CSR and profits, consisting mostly of quantitative studies, has thus far proved inconclusive and many studies are challenged on methodological grounds. This paper presents the results of interviews with senior executives of 15 of the largest textile companies on the Norwegian market. The aim of the paper is to investigate the relationship between CSR and profits while avoiding the most important methodological pitfalls of the quantitative research and acknowledging the distinction between CSR as a strategy for achieving average profits and as a strategy for achieving above‐average profits. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

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  • Atle Blomgren, 2011. "Does corporate social responsibility influence profit margins? a case study of executive perceptions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 263-274, September.
    • Handle: RePEc:wly:corsem:v:18:y:2011:i:5:p:263-274
    DOI: 10.1002/csr.246
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    14. Rainer Lueg & Maria Medelby Pedersen & Søren Nørregaard Clemmensen, 2015. "The Role of Corporate Sustainability in a Low‐Cost Business Model – A Case Study in the Scandinavian Fashion Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 24(5), pages 344-359, July.
    15. Víctor Amor‐Esteban & Ma‐Purificación Galindo‐Villardón & Isabel‐María García‐Sánchez & Fátima David, 2019. "An extension of the industrial corporate social responsibility practices index: New information for stakeholder engagement under a multivariate approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 127-140, January.
    16. Yan Jiang & Le Luo, 2018. "Market reactions to environmental policies: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 889-903, September.
    17. Dolors Setó‐Pamies, 2015. "The Relationship between Women Directors and Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 334-345, November.
    18. Debbie Haski‐Leventhal, 2013. "Employee Engagement in CSR: The Case of Payroll Giving in Australia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 113-128, March.
    19. Daniel Kiel & Julian M. Müller & Christian Arnold & Kai-Ingo Voigt, 2017. "Sustainable Industrial Value Creation: Benefits And Challenges Of Industry 4.0," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(08), pages 1-34, December.
    20. Alberto Romolini & Silvia Fissi & Elena Gori, 2014. "Scoring CSR Reporting in Listed Companies – Evidence from Italian Best Practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(2), pages 65-81, March.
    21. Francisco J. García‐Rodríguez & José León García‐Rodríguez & Carlos Castilla‐Gutiérrez & Silvério A. Major, 2013. "Corporate Social Responsibility of Oil Companies in Developing Countries: From Altruism to Business Strategy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(6), pages 371-384, November.
    22. Gutama Kusse Getele & Tieke Li & Tsitaire Jean Arrive, 2020. "Corporate culture in small and medium enterprises: Application of corporate social responsibility theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 897-908, March.

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