The Relationship between Corporate Social Responsibility and Firm Performance: An Application of Quantile Regression
This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environme...
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Published in | Frontiers of business research in China Vol. 6; no. 2; pp. 218 - 244 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Netherlands
Brill
2012
Higher Education Press Higher Education Press Limited Company |
Subjects | |
Online Access | Get full text |
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Summary: | This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004–2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen. |
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Bibliography: | corporate social responsibility (CSR), corporate social responsibility index (CSRI), stakeholders, firm performance, socially responsible investment This study empirically examines the relationship between a firm's fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm's contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004--2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen. corporate social responsibility (CSR) stakeholders firm performance corporate social responsibility index (CSRI) socially responsible investment ark:/67375/JKT-MZ7NSHHD-S istex:99C50796A3569B6FECEE5D715E856EAD716B24DE href:16737431_006_02_S03_text.pdf |
ISSN: | 1673-7326 1673-7431 |
DOI: | 10.3868/s070-001-012-0011-3 |