| Title | Financial Performance of Socially Responsible Firms: The Short- and Long-Term Impact |
|---|---|
| ID_Doc | 71259 |
| Authors | Charlo, MJ; Moya, I; Muñoz, AM |
| Title | Financial Performance of Socially Responsible Firms: The Short- and Long-Term Impact |
| Year | 2017 |
| Published | Sustainability, 9.0, 9 |
| Abstract | The pressure of society for firms to adopt socially responsible behavior is evident. Yet, Corporate Social Responsibility (CSR) needs an economic justification. In response to this, there exists a comprehensive literature that analyzes the possible relation between social and business financial performance. During the last decade, the literature has been heading toward the carrying out of dynamic studies as researches find that the relationship between social and financial performance is not static. The purpose of this work is to analyze the relevance for the financial performance of Spanish listed firms of maintaining their responsible behavior. To do so, we carry out a comparison between two analyses-one cross-sectional, and the other longitudinal-to be able to conclude whether or not adopting responsible criteria makes a difference in business financial performance in the short and long-term. Some of the results obtained in the cross-sectional study are consolidated in the long-term study. In this sense, responsible firms exhibit a higher systematic risk and have greater size. As a conclusion, be responsible does not mean less stock profitability or a lower business result. It certainly contributes to firms continuing to voluntarily incorporate good corporate social responsibility practices into their business models. What is more, these results support the governmental policies and initiatives that bolster corporate social responsibility. |
| https://www.mdpi.com/2071-1050/9/9/1622/pdf?version=1505300365 |
Similar Articles
| ID | Score | Article |
|---|---|---|
69119
|
Prado-Lorenzo, JM; Gallego-Alvarez, I; García-Sánchez, IM; Rodríguez-Domínguez, L Social responsibility in Spain Practices and motivations in firms(2008)Management Decision, 46, 8 | |
| 71497
|
Skare, M; Golja, T Corporate Social Responsibility And Corporate Financial Performance - Is There A Link?(2012) | |
| 74290
|
Salmerón, AMG The relationship of CSR and the business profit: can the most responsible companies be more profitable?(2016)Faedpyme International Review-Fir, 5, 8 | |
| 78385
|
Matytsin, DE; Petrenko, YS; Saveleva, NK Corporate Social Responsibility in Terms of Sustainable Development: Financial Risk Management Implications(2022)Risks, 10, 11 | |
| 74365
|
Hernández, JPSI; Yañez-Araque, B; Moreno-García, J Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises(2020) | |
| 73242
|
Teti, E; Dell'Acqua, A; Etro, LL; Andreoletti, LB Corporate social performance and portfolio management(2015)Journal Of Management Development, 34, 9 | |
| 76006
|
Gallardo-Vázquez, D; Sanchez-Hernandez, MI Measuring Corporate Social Responsibility for competitive success at a regional level(2014) | |
| 68403
|
González-Ramos, MI; Donate, MJ; Guadamillas, F Tthe Effect Of Technological Posture And Corporate Social Responsibility On Financial Performance Through Corporate Reputation(2018)International Journal Of Innovation, 6, 2 | |
| 74965
|
Hategan, CD; Sirghi, N; Curea-Pitorac, RI; Hategan, VP Doing Well or Doing Good: The Relationship between Corporate Social Responsibility and Profit in Romanian Companies(2018)Sustainability, 10, 4 | |
| 66673
|
Ribeiro, LGG; Sampaio, JAL Corporate Social Responsibility: Between Meaning And Meaningless(2023) |