STAKEHOLDER MISMATCHING A THEORETICAL PROBLEM IN EMPIRICAL RESEARCH ON CORPORATE SOCIAL PERFORMANCE

STAKEHOLDER MISMATCHING A THEORETICAL PROBLEM IN EMPIRICAL RESEARCH ON CORPORATE SOCIAL PERFORMANCE This paper uses a stakeholder framework to review the empirical literature on corporate social performance CSP, focusing particularly on studies attempting to correlate social with financial performance. Results show first that most studies correlate measures of business performance that as yet have no theoretical relationship for example, the level of corporate charitable giving with return on investment. To make sense of this body of research, CSP studies must be integrated with stakeholder theory. Multiple stakeholders a set expectations for corporate performance, b experience the effects of corporate behavior, and c evaluate the outcomes of corporate behavior. However, we find that the empirical CSP literature mismatches variables in terms of which stakeholders are relevant to which kind of measure. Second, only the studies using marketbased variables and theory show a consistent relationship between social and financial performance, particularly those showing a negative abnormal return to the stock price of companies experiencing product recalls. Although this paper shows that the CSP construct is not yet wellspecified enough to produce stronger results, recent research suggests that much progress is being made both empirically and theoretically in developing valid and reliable measures of corporate social performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Organizational Analysis Emerald Publishing

STAKEHOLDER MISMATCHING A THEORETICAL PROBLEM IN EMPIRICAL RESEARCH ON CORPORATE SOCIAL PERFORMANCE

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1055-3185
DOI
10.1108/eb028831
Publisher site
See Article on Publisher Site

Abstract

This paper uses a stakeholder framework to review the empirical literature on corporate social performance CSP, focusing particularly on studies attempting to correlate social with financial performance. Results show first that most studies correlate measures of business performance that as yet have no theoretical relationship for example, the level of corporate charitable giving with return on investment. To make sense of this body of research, CSP studies must be integrated with stakeholder theory. Multiple stakeholders a set expectations for corporate performance, b experience the effects of corporate behavior, and c evaluate the outcomes of corporate behavior. However, we find that the empirical CSP literature mismatches variables in terms of which stakeholders are relevant to which kind of measure. Second, only the studies using marketbased variables and theory show a consistent relationship between social and financial performance, particularly those showing a negative abnormal return to the stock price of companies experiencing product recalls. Although this paper shows that the CSP construct is not yet wellspecified enough to produce stronger results, recent research suggests that much progress is being made both empirically and theoretically in developing valid and reliable measures of corporate social performance.

Journal

The International Journal of Organizational AnalysisEmerald Publishing

Published: Mar 1, 1995

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