Proceedings of The 4th International Conference on Management, Economics and Finance
Exploring the Relationship of CSR & CFP – A meta-analytical investigation of measurement strategies and institutional effects
Andreas Höhre, Andreas Bausch
Since numerous studies about the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) result in contradicting findings, researchers have begun to meta-analyze existing findings. However, even the largest review studies do not allow final conclusions because they lack data scope and measurement fineness. The present study applies meta-analysis to a comprehensive sample of 703 empirical studies, from 2016 to 2020, resulting in more than 2,400 individual observations. By doing so, the paper aims to: (1) find further evidence of the positive relationship between CSR and CFP; (2) investigate the importance of different CSR and CFP measurement strategies; and (3) gain deeper insights regarding moderating effects of the institutional dimension, as the importance of the firm’s geographic location is widely underestimated. The results substantiate the hypothesized positive and bilateral CSR – CFP relationship. Moreover, the results show that several aspects of both sustainable behavior and financial performance differ in their bilateral relationship. In addition, it is revealed that the CSR – CFP relationship is significantly influenced by institutional circumstances. Thus, the present study contributes to the ongoing debate by establishing additional certainty of previous findings. Further, it highlights the importance of different CSR practices and institutional circumstances for researchers and practitioners who intend to look further into the issue of CSR and firm’s financial performance.
Keywords: Correlation Analysis, Economic Performance, Environmental Management, Stakeholder Theory, Social Responsibility.