Corporate Social and Financial Performance: An Extended Stakeholder Theory, and Empirical Test with Accounting Measures

By G. Laan, H. Ees, A. van Witteloostuijn. 2008

352 citations recorded by the source corpus.

Although agreement on the positive sign of the relationship between corporate social and financial performance is observed in the literature, the mechanisms that constitute this relationship are not yet well-known. We address this issue by extending management’s stakeholder theory by adding insights from psychology’s prospect decision theory and sociology’s resource dependence theory. Empirically, we analyze an extensive panel dataset, including information on disaggregated measures of social performance for the S&P 500 in the 1997–2002 period. In so doing, we enrich the extant literature by focusing on stakeholder heterogeneity, perceptional framing, and disaggregated measures of corporate social performance.

Subfields: Accounting, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/3847381b339d181c73fc32d81bf17bff5b379804

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Citations in the corpus

Corporate Social Performance: A Review of Empirical Research Examining the Corporation–Society Relationship Using Kinder, Lydenberg, Domini Social Ratings Data (2017, background): “Separately composing variables of KLD’s strength and concern items, one study discovered that beneficial social activities resulted in higher economic performance, whereas socially harmful activities resulted in lower economic performance (Van der Laan et al., 2008).”
Looking for evidence of the relationship between corporate social responsibility and corporate financial performance in an emerging market (2011, background): “…postulates of the theoretical relationships between CSR and CFP, namely, the trade-off hypothesis; the supply and demand theory of the company; the social impact of hypothesis; and the theory of modern corporate stakeholder (Laan et al., 2008; Salzmann et al., 2005; Preston and O’Bannon, 1997).”
The Effects of Top Management Team Integrative Complexity and Decentralized Decision Making on Corporate Social Performance (2011, methodology): “However, numerous studies have approached both the conceptualization and measurement of corporate social performance in different ways (e.g., Deckop et al., 2006; Godfrey et al., 2009; Graves & Waddock, 1994; Hillman & Keim, 2001; Thomas & Simerly, 1995; Van der Laan et al., 2008).”
Corporate social responsibility and corporate financial performance in China: an empirical research from Chinese firms (2011, background): “The first explanation is that undertaking CSR will improve the company's profitability and financial performance ( Van der Laan et al. , 2008”
Corporate social responsibility reporting and firm performance: evidence from China (2015, result): “These findings support the proposition that CSR leads to better performance (Wu and Shen 2013; Lin et al. 2009; Van der Laan et al. 2008).”
Sustainability Matter and Financial Performance of Companies (2017, background): “There are few studies that identify this negative relationship [44,45], which in many cases is attributed to the impact of certain irresponsible corporate actions on financial results [46].”