Is corporate social responsibility linked with firm performance? An alternative test

Direct tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be a futile pursuit. Following this line of thinking, the present study sought to test an alternative model in understanding the CSR-FP relationship. Specifically, reputation and customer satisfa...

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Main Authors: Galbreath, Jeremy, Shum, P.
Other Authors: Dr Nicholas Beaumont
Format: Conference Paper
Published: Promaco Conventions Pty Ltd 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/27621
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author Galbreath, Jeremy
Shum, P.
author2 Dr Nicholas Beaumont
author_facet Dr Nicholas Beaumont
Galbreath, Jeremy
Shum, P.
author_sort Galbreath, Jeremy
building Curtin Institutional Repository
collection Online Access
description Direct tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be a futile pursuit. Following this line of thinking, the present study sought to test an alternative model in understanding the CSR-FP relationship. Specifically, reputation and customer satisfaction are posited to be the mediational pathway by which CSR positively affects firm performance. Studying a sample of Australian business firms the findings suggest that CSR is positively linked with firm performance. However, the effect is indirect: reputation and customer satisfaction fully mediate the CSR-FP relationship. The results are provocative, suggesting that to reduce ambiguity surrounding the CSR-FP relationship scholars need to turn their attention to moderating and mediating variables. Discussion is given to these findings along with paths for future research.
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institution Curtin University Malaysia
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publishDate 2009
publisher Promaco Conventions Pty Ltd
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spelling curtin-20.500.11937-276212017-10-02T02:27:38Z Is corporate social responsibility linked with firm performance? An alternative test Galbreath, Jeremy Shum, P. Dr Nicholas Beaumont stakeholder structural equation modeling customer satisfaction reputation mediation corporate social responsibility firm performance Direct tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be a futile pursuit. Following this line of thinking, the present study sought to test an alternative model in understanding the CSR-FP relationship. Specifically, reputation and customer satisfaction are posited to be the mediational pathway by which CSR positively affects firm performance. Studying a sample of Australian business firms the findings suggest that CSR is positively linked with firm performance. However, the effect is indirect: reputation and customer satisfaction fully mediate the CSR-FP relationship. The results are provocative, suggesting that to reduce ambiguity surrounding the CSR-FP relationship scholars need to turn their attention to moderating and mediating variables. Discussion is given to these findings along with paths for future research. 2009 Conference Paper http://hdl.handle.net/20.500.11937/27621 Promaco Conventions Pty Ltd fulltext
spellingShingle stakeholder
structural equation modeling
customer satisfaction
reputation
mediation
corporate social responsibility
firm performance
Galbreath, Jeremy
Shum, P.
Is corporate social responsibility linked with firm performance? An alternative test
title Is corporate social responsibility linked with firm performance? An alternative test
title_full Is corporate social responsibility linked with firm performance? An alternative test
title_fullStr Is corporate social responsibility linked with firm performance? An alternative test
title_full_unstemmed Is corporate social responsibility linked with firm performance? An alternative test
title_short Is corporate social responsibility linked with firm performance? An alternative test
title_sort is corporate social responsibility linked with firm performance? an alternative test
topic stakeholder
structural equation modeling
customer satisfaction
reputation
mediation
corporate social responsibility
firm performance
url http://hdl.handle.net/20.500.11937/27621