CQUniversity
Browse

Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors

Download (347.58 kB)
journal contribution
posted on 2024-07-30, 06:29 authored by Adam Arian, John Sands, Stuart TooleyStuart Tooley
We examine the longitudinal relationship between corporate social responsibility (CSR) performance and financial performance by investigating attributes among firms operating in different industry sectors longitudinally. Using panel regression analysis on Australian publicly listed firms from 2007 to 2021, we find that CSR performance positively influences financial performance. Furthermore, our industry-specific analysis uncovers notable distinctions. Specifically, within the consumer product markets, including recreational facilities, travel and tourism, lodging, dining, and leisure products, firms benefit from stakeholder rewards for their CSR efforts, leading to sustained financial gains. However, this positive association is absent for firms operating in industrial product markets, where stakeholders do not offer similar rewards for CSR performance. The significance of stakeholder engagement becomes evident in consumer market sectors, as firms with higher levels of CSR performance secure stakeholder support, resulting in superior long-term financial performance. Our findings contribute to the existing CSR literature and offer practical insights and implications for managers operating in diverse product market industries, including the dynamic field of tourism and hospitality seeking to harness CSR performance, meet stakeholder expectations, and achieve financial advantages.

History

Volume

15

Issue

16

Start Page

1

End Page

21

Number of Pages

21

eISSN

2071-1050

ISSN

2071-1050

Publisher

MDPI AG

Additional Rights

CC-BY

Language

en

Peer Reviewed

  • Yes

Open Access

  • Yes

Acceptance Date

2023-08-09

Era Eligible

  • Yes

Journal

Sustainability

Usage metrics

    CQUniversity

    Licence

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC