Does it Pay to Be Different? An Analysis of the Relationship between Corporate Social and Financial Performance
Author
S. Brammer , A. Millington
Source
Strategic Management Journal Vol. 29 No 12
Category
Managing Corporate Responsibility
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.