Does it Pay to Be Different? An Analysis of the Relationship between Corporate Social and Financial Performance

  • Managing Corporate Responsibility
  • Periodical Articles
  • Strategy
  • Text
Author
S. Brammer , A. Millington
Source
Strategic Management Journal Vol. 29 No 12
Publisher
John Wiley & Sons, Ltd.
Publication date
September 2008
Type
Periodical Articles
Category
Managing Corporate Responsibility
Discipline
Strategy
Language
English
Link
Does it pay to be different? An analysis of the relationship between corporate social and financial performance [1]
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This study explores the relationship between corporate social performance (CSP) and corporate financial performance (CFP) within the context of a specific component of CSP: corporate charitable giving. A model of the determinants of the extent of corporate charitable giving is estimated and used as the basis of a classification that groups firms according to the difference between their actual and their predicted intensity of gift giving. The financial performance attributes of the classification are explored. We found that firms with both unusually high and low CSP have higher financial performance than other firms, with unusually poor social performers doing best in the short run and unusually good social performers doing best over longer time horizons.
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Source URL: http://www.businessinsociety.eu/resources/3294

Links:
[1] http://www3.interscience.wiley.com/journal/121412765/abstract?CRETRY=1&SRETRY=0