A note on the interaction between corporate social responsibility and financial performance

Bert Scholtens

doi:10.1016/j.ecolecon.2008.01.024

A note on the interaction between corporate social responsibility and financial performance

Bert Scholtens^*

^*Corresponding author for this work

Centre for Responsible Banking and Finance

Research output: Contribution to journal › Article › peer-review

Abstract

This paper studies the interaction between financial and social performance. The research is about the overall social strengths and concerns of firms as well as strengths and concerns with respect to firms' community involvement, employee relations, diversity, environment and product. Using a sample of 289 firms from the US covering the period 1991-2004 and employing two different test methods, namely lagged OLS and Granger causation, there appears to be preliminary evidence that the direction of the 'causation' predominantly runs from financial to social performance. However, the specific interaction patterns tend to vary along the different dimensions.

Original language	English
Pages (from-to)	46-55
Number of pages	10
Journal	Ecological Economics
Volume	68
Issue number	1-2
DOIs	https://doi.org/10.1016/j.ecolecon.2008.01.024
Publication status	Published - 1 Dec 2008

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 12 Responsible Consumption and Production

Keywords

Corporate social responsibility
Financial performance
Interaction
Stock market

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10.1016/j.ecolecon.2008.01.024

Cite this

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abstract = "This paper studies the interaction between financial and social performance. The research is about the overall social strengths and concerns of firms as well as strengths and concerns with respect to firms' community involvement, employee relations, diversity, environment and product. Using a sample of 289 firms from the US covering the period 1991-2004 and employing two different test methods, namely lagged OLS and Granger causation, there appears to be preliminary evidence that the direction of the 'causation' predominantly runs from financial to social performance. However, the specific interaction patterns tend to vary along the different dimensions.",

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KW - Interaction

KW - Stock market

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A note on the interaction between corporate social responsibility and financial performance

Abstract

UN SDGs

Keywords

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