Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors
Article
Article Title | Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors |
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ERA Journal ID | 41498 |
Article Category | Article |
Authors | Arian, Adam, Sands, John and Tooley, Stuart |
Journal Title | Sustainability |
Journal Citation | 15 (16) |
Article Number | 12254 |
Number of Pages | 21 |
Year | 2023 |
Publisher | MDPI AG |
Place of Publication | Switzerland |
ISSN | 2071-1050 |
Digital Object Identifier (DOI) | https://doi.org/10.3390/su151612254 |
Web Address (URL) | https://www.mdpi.com/2071-1050/15/16/12254 |
Abstract | 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. |
Keywords | financial performance; sustainable development; corporate social responsibility; stakeholder pressure |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 3599. Other commerce, management, tourism and services |
Byline Affiliations | School of Business |
Central Queensland University |
https://research.usq.edu.au/item/z105q/industry-and-stakeholder-impacts-on-corporate-social-responsibility-csr-and-financial-performance-consumer-vs-industrial-sectors
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