Li, Zhu (2015) The Roles of Sectoral Moderator – A Combination of Environmental Munificence and volatility – in the relationship between corporate social responsibility and financial performance. Masters thesis, Concordia University.
Preview |
Text (application/pdf)
1MBLi Zhu_2015_fall.pdf - Accepted Version |
Abstract
The relationship between corporate social responsibility and financial performance has been the topic of a long-standing debate among researchers. Controversial conclusions are drawn from different methodologies and ways of thinking. This study finds a persuasive jurisdiction to explain why the preceding results have been inconclusive by using a new moderator – the sectorial moderator. According to environmental munificence and volatility, I divide all industries into four sectors – Ideal, Crisis, Catastrophe, and Inertness. Industries sharing similar levels of munificence and volatility are grouped as a sector, and the magnitude of munificence and volatility moderates the significance of the relationship between corporate social responsibility and corporate financial performance link. Moreover, the CSR effect on financial performance in different sectors is distinctive. The empirical results reveal that the CSR effect on financial performance is highest in the sector with high munificence and low volatility, and vice versa. The present article provides a good explanation of the discrepancy in the CSR-CFP link and establishes a new avenue for future research.
| Divisions: | Concordia University > John Molson School of Business > Management |
|---|---|
| Item Type: | Thesis (Masters) |
| Authors: | Li, Zhu |
| Institution: | Concordia University |
| Degree Name: | M. Sc. |
| Program: | Administration (Management option) |
| Date: | 29 June 2015 |
| Thesis Supervisor(s): | Farashahi, Mehdi |
| Keywords: | corporate social responsibility, financial performance, industry sector |
| ID Code: | 980141 |
| Deposited By: | LI ZHU |
| Deposited On: | 04 Nov 2015 20:18 |
| Last Modified: | 18 Jan 2018 17:50 |
References:
Ailawadi, Kusum L, Donald R. Lehmann, Scott A. Neslin. 2003, Revenue Premium as an Outcome Measure of Brand Equity, Journal of Marketing 67 (October): 1-17.Aldrich HE, Fiol CM. 1994. Fools rush in? The institutional context of industry creation. Academy of Management Review 19(4): 645-670.
Aghina W, Smet DA, Heywood S. 2014. The past and future of global organizations. McKinsey Quarterly 3: 97-106.
Aupperle KE, Carroll AB, Hatfield JD. 1985. An empirical examination of the relationship between corporate social responsibility and profitability. Academy of management Journal 28(2): 446-463.
Barnard CI. 1938. The functions of the executive. Harvard University Press. Cambridge: MA.
Barnett ML & Kramer. 2008. Stakeholder influence capacity and the variability of financial returns to corporate social. Academy of Management Review 32(3): 794-816.
Barnett ML, Salomon RM. 2012. Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal 33(11): 1304-1320.
Barth ME, Beaver WH, Landsman WR. 1998. Relative valuation roles of equity book value and net income as a function of financial health. Journal of Accounting and Economics 25(1): 1-34.
Brammer S, Brooks C, Pavelin S. 2006. Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management 35(3): 97-116.
Buchanan JM, Stubblebine WC. 1962. Externality. Economica: 371-384.
Bowen HR, Johnson FE. 1953. Social responsibility of the businessman. Harper.
Backman J. (Ed.). 1975. Social responsibility and accountability. New York University Press.
Carter CR, Kale R and Grimm CM. 2000. Environmental purchasing and firm performance: An Empirical Investigation. Transportation Research 36(3): 219–228.
Beurden P, Gössling T. 2008. The worth of values–a literature review on the relation between corporate social and financial performance. Journal of business ethics 82(2): 407-424.
Castrogiovanni GJ. 1991 Environmental Munificence; A Theoretical Assessment. Academy of Management Review 16(3): 542-565.
Carroll AB. 1979. A three-dimensional conceptual model of corporate performance. Academy of management review 4(4): 497-505.
Carroll GR. 1983. A stochastic model of organizational mortality: Review and reanalysis. Social Science Research 12(4): 303-329.
Carroll AB, Shabana KM. 2010. The business case for corporate social responsibility: a review of concepts, research and practice. International Journal of Management Reviews 12(1): 85-105.
Cheung SN. 1987. Economic organization and transaction costs. The new Palgrave: a dictionary of economics 2: 55-58.
Chung KH, Elder J, Kim JC. 2010. Corporate governance and liquidity. 4: 265-291
Clemens BW, Douglas TJ. 2005. Understanding strategic responses to institutional pressures. Journal of Business Research 58(9):1205
Crane A, McWilliams A, Matten D, Moon J, Siegel DS. (3Eds.). 2008. The Oxford handbook of corporate social responsibility. Oxford University Press.
Cochran PL, Wood RA. 1984. Corporate social responsibility and financial performance. Academy of management Journal 27(1): 42-56.
Cavaco S, Crifo P. 2014. CSR and financial performance: complementarity between environmental, social and business behaviors. Applied Economics 46(27): 3323-3338.
Dahlsrud A. 2008. How corporate social responsibility is defined: an analysis of 37 definitions. Corporate Social Responsibility & Environmental Management 15(1): 1-13.
Davidson WN, Worrell DL. 1990. A comparison and test of the use of accounting and stock market data in relating corporate social responsibility and financial performance. Akron business and economic review 21(3): 7-18.
Dean JW, Sharfman MP. 1996. Does decision process matter? A study of strategic decision making effectiveness. Academy of management journal 39(2): 368-392.
Dess GG, Beard DW. 1984. Dimensions of organizational task environments. Administrative Science Quarterly, 3: 52-73.
DiMaggio PJ, Powell WW. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American sociological review 48: 147-160.
Doh JP, Howton SD, Howton SW, Siegel DS. 2010. Does the market respond to an endorsement of social responsibility? The role of institutions, information, and legitimacy. Journal of Management 36(6): 1461-1485.
Donaldson T, Preston LE. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review 20(1): 65-91.
Donham WB. 1927. The social significance of business. Harvard Business Review 5(4): 406-419.
Dowell GS, Hart F, Yeung B. 2000. Do Corporate Global Environment Standards Create or Destroy Market Value? Management Science 46(8): 1059–1074.
Davis K. 1968. Understanding the social responsibility puzzle. Business Horizons 10(4): 45-50.
Elbanna S, Child J. 2007. The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision-Making. Journal Of Management Studies 44(4): 561-591.
Fauzi H, Idris K. 2009. The relationship of CSR and financial performance: new evidence from Indonesian companies. Issues in Social and Environmental Accounting 3(1): 45-60.
Friedman M. 1962. Should there be an independent monetary authority? In search of a monetary constitution: 219-243
Friedman M. 2007. The social responsibility of business is to increase its profits. Springer berlin Heidelberg: 173-178
Fredrickson JW, Mitchell TR. 1984. Strategic decision processes: Comprehensiveness and performance in an industry with an unstable environment. Academy of Management journal 27(2): 399-423.
Fredrickson JW, Iaquinto AL. 1989. Inertia and creeping rationality in strategic decision processes. Academy of Management Journal 32(3): 516-542.
Freeman RE. 1984. Strategic management: A stakeholder approach. Advances in strategic management 1(1): 31-60
Gilley KM, Rasheed A. 2000. Making more by doing less: an analysis of outsourcing and its effects on firm performance. Journal of management 26(4): 763-790.
Goll I. Rasheed AA. 2004. The relationship between top management demographic characteristics, rational decision making, environmental munificence, and firm performance. Organization Studies 26: 999–1023.
Goll I, Rasheed A. 1997. Rational decision‐making and firm performance: the moderating role of the environment. Strategic Management Journal 18(7): 583-591.
Green KC, Armstrong JS. 2005. Competitor-oriented Objectives: The Myth of Market Share (No. 17/05). Monash University, Department of Econometrics and Business Statistics.
Hart, O. 1995. Firms, contracts, and financial structure. Oxford university press.
He Y, Tian Z, Chen Y. 2007. Performance Implications of Nonmarket Strategy in China. Asia Pacific Journal of Management 24(2): 151–169.
Hough JR, White MA. 2003. Environmental dynamism and strategic decision-making rationality:
An examination at the decision level. Strategic Management Journal 24(5): 481-497.
Hur WM, Kim H, Woo J. 2014. How CSR leads to corporate brand equity: Mediating mechanisms of corporate brand credibility and reputation. Journal of Business Ethics 125(1): 75-86.
Husted BW, Allen DB. 2007. Corporate social strategy in multinational enterprises: Antecedents and value creation. Journal of Business Ethics 74(4): 345-361.
Henriques I, Sadorsky P. 1996. The determinants of an environmentally responsive firm: an empirical approach. Journal of environmental economics and management 30(3): 381-395.
Jayachandran S, Kalaignanam K, Eilert, M. 2013. Product and environmental social performance: varying effect on firm performance. Strategic Management Journal 34(10): 1255-1264.
Jennings PD, Zandbergen PA. 1995. Ecologically sustainable organizations: An institutional approach. Academy of Management Review 20(4): 1015-1052.
Jones RE, Jacobs LW, Spijker W. 1992. Strategic decision processes in international firms. Management International Review 3(2): 219-236.
Jones TM. 1991. Ethical decision making by individuals in organizations: An issue-contingent model. Academy of management review 16(2): 366-395.
Jones TM. 1995. Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of management review 20(2): 404-437.
Johnson HL. 1971. Disclosure of corporate social performance: survey, evaluation, and prospects. Praeger Publishers.
Jayachandran S, Kalaignanam K, Eilert M. 2013. Product and environmental social performance: Varying effect on firm performance. Strategic Management Journal 34(10): 1255-1264.
Judge WQ, Douglas TJ. 1998. Performance Implications of Incorporating Natural Environmental Issues into the Strategic Planning Process: An Empirical Assessment. Journal of Management Studies 35(2): 241–262.
Judge WQ, Miller A. 1991. Antecedents and outcomes of decision speed in different environmental context. Academy of Management Journal, 34(2): 449-463.
Kluver JR, Wicks AC. 2014. Decoration, self-transcendence, and spiritual expression: stakeholder cooperation and the creation of joint value in the workplace. Journal Of Management, Spirituality & Religion 11(4): 357-382.
Lai CS, Chiu CJ, Yang CF, Pai DC. 2010. The effects of corporate social responsibility on brand performance: The mediating effect of industrial brand equity and corporate reputation. Journal of Business Ethics 95(3): 457-469.
Lamberti L, Noci G. 2012. The relationship between CSR and corporate strategy in medium‐sized companies: evidence from Italy. Business Ethics: A European Review 21(4), 402-416.
Lankoski L. 2000. Determinants of environmental profit: An analysis of the firm-level relationship between environmental performance and economic performance. Helsinki University of Technology.
Lockett A, Moon J, Visser W. 2006. Corporate Social Responsibility in Management Research: Focus, Nature, Salience and Sources of Influence. Journal of management studies, 43(1): 115-136.
Lee S, Park SY. 2009. Do socially responsible activities help hotels and casinos achieve their financial goals? International Journal of Hospitality Management 28(1): 105-112.
Lee S, Park SY. 2009. Financial impacts of socially- responsible activities on airline companies. Journal of Hospitality & Tourism Research 27(2): 185-202
Li M, Simerly RL. 1998. The moderating effect of environmental dynamism on the ownership and performance relationship. Strategic Management Journal 19(2):169-179.
Li Y, Wei Z, Zhao J, Zhang C, Liu Y. 2013. Ambidextrous organizational learning, environmental munificence and new product performance: Moderating effect of managerial ties in China. International Journal of Production Economics 146(1): 95-105.
López MV, Garcia A, Rodriguez L. 2007. Sustainable development and corporate performance: A study based on the Dow Jones sustainability index. Journal of Business Ethics, 75(3): 285-300.
Margolis JD, Elfenbein HA, Walsh JP. 2007. Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Ann Arbor
Macher JT, Boerner CS. 2006. Experience and scale and scope economies: trade‐offs and performance in development. Strategic Management Journal 27(9): 845-865.
Mehra R, Prescott EC. 1985. The equity premium: A puzzle. Journal of monetary Economics 15(2): 145-161.
McWilliams A, Siegel D. 2009. Corporate social responsibility and financial performance: correlation or misspecification? Strategic management journal 21(5): 603-609.
McWilliams A, Siegel D. 2001. Corporate social responsibility: A theory of the firm perspective. Academy of management review 26(1), 117-127
Meyer JW, Scott RW. 1983. Organizational environments: Ritual and rationality. Beverly Hills: CA
Mill GA. 2006. The financial performance of a socially responsible investment over time and a possible link with corporate social responsibility. Journal of Business Ethics 63(2): 131-148.
McGuire WJ. 1960. Direct and indirect persuasive effects of dissonance-producing messages. The Journal of Abnormal and Social Psychology 60(3): 354-368.
McGuire JB, Sundgren A, Schneeweis T. 1988. Corporate social responsibility and firm financial performance. Academy of management Journal 31(4): 854-872.
Oeyono J, Samy M, Bampton R. 2011. An examination of corporate social responsibility and financial performance: A study of the top 50 Indonesian listed corporations. Journal of Global Responsibility 2(1): 100-112.
Orlitzky M, Schmidt FL, Rynes SL. 2003. Corporate social and financial performance: A meta-analysis. Organization studies 24(3): 403-441.
Parrino R, Kidwell DS, Bates TW. 2009. Fundamentals of corporate finance. John Wiley & Sons. CA
Peloza J. 2006. Using corporate social responsibility as insurance for financial performance. California Management Review 48(2): 52.
Peng MW, Sun SL, Pinkham B, Chen H. 2009. The Institution-Based View as a Third Leg for a Strategy Tripod. Academy of Management Perspectives 23(3): 63- 81.
Porter ME. 1979. How competitive forces shape strategy. Boston: Harvard Business Review: 21-38
Porter ME. 2008. Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster.
Porter ME, Kramer MR. 2011. Creating shared value. Harvard business review 89(1/2): 62-77.
Prado-Lorenzo JM, Gallego-Álvarez I, García-Sánchez IM, Rodríguez-Domínguez L. 2008. Social responsibility in Spain: practices and motivations in firms. Management Decision 46(8): 1247-1271.
Rosenbusch N, Rauch A, Bausch A. 2013. The Mediating Role of Entrepreneurial Orientation in the Task Environment–Performance Relationship A Meta-Analysis. Journal of Management 39(3): 633-659.
Ruf BM, Muralidhar K, Brown RM, Janney JJ, Paul K. 2001. An Empirical Investigation of the Relationship between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective. Journal of Business Ethics 32(2): 143–156.
Rumelt RP. 1984. Towards a strategic theory of the firm. Competitive strategic management 26: 556-570
Randolph WA, Dess GG. 1984. The congruence perspective of organization design: A conceptual model and multivariate research approach. Academy of Management Review 9(1), 114-127.
Salzmann O, Ionescu-Somers A, Steger U. 2005. The business case for corporate sustainability:: literature review and research options. European Management Journal 23(1): 27-36.
Schaltegger S, Deke–Freund F, Hansen EG. 2012. Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development 6(2): 95-119.
Scott WR. 1995. Institutions and organizations. Thousand Oaks. CA: Sage.
Seifert B, Morris SA, Bartkus BR. 2003. Comparing big givers and small givers: Financial correlates of corporate philanthropy. Journal of business ethics 45(3): 195-211.
Siregar SV, Bachtiar Y. 2010. Corporate social reporting: empirical evidence from Indonesia Stock Exchange. International Journal of Islamic and Middle Eastern Finance and Management 3(3): 241-252.
Stead JG, Stead WE. 2013. Sustainable strategic management. ME Sharpe.
Suchman M. 1995. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review 20(1): 571-610.
Tsoutsoura M. 2004. Corporate social responsibility and financial performance. Center for Responsible Business.
Tosi HL, Slocum JW. 1984. Contingency theory: Some suggested directions. Journal of Management 10(1): 9-26.
Waddock SA, Graves SB. 1997. The corporate social performance-financial performance link. Strategic management journal 18(4): 303-319.
Wartick SL. 1988. How issues management contributes to corporate performance. In Business Forum. California State University, Los Angeles, School of Business and Economics 13(2)
Wilson D, Wouters J. 2003. Spatiality and growth discourse: The restructuring of America's rust belt cities. Journal of Urban Affairs 25(2): 123-138.
Wernerfelt B. 1984. A resource‐based view of the firm. Strategic management journal 5(2): 171-180.
Wood DJ. 1991. Corporate social performance revisited. Academy of management review 16(4): 691-718.
Wu J. 2006. Environmental amenities, urban sprawl, and community characteristics. Journal of Environmental Economics and Management 52(2), 527-547.
Yasai-Ardekani M. 1989. Effects of environmental scarcity and munificence on the rel
All items in Spectrum are protected by copyright, with all rights reserved. The use of items is governed by Spectrum's terms of access.
Repository Staff Only: item control page
Download Statistics
Download Statistics