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The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

The impact of corporate social responsibility on firms’ financial performance, evidence from the... The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector.Design/methodology/approachThe authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis.FindingsThe findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP.Originality/valueDespite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png British Food Journal Emerald Publishing

The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

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References (68)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0007-070X
DOI
10.1108/bfj-07-2019-0503
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector.Design/methodology/approachThe authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis.FindingsThe findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP.Originality/valueDespite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.

Journal

British Food Journal – Emerald Publishing

Published: Jan 6, 2020

Keywords: Corporate finance; Sustainability; Financial performance; Corporate social responsibility

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