Corporate Social Performance Through Instrumental Stakeholder Theory: A Sector-Specific Perspective

Article

Arian, Adam, Sands, John, Rahman, Habib Ur and Khatatbeh, Ibrahim N.. 2025. "Corporate Social Performance Through Instrumental Stakeholder Theory: A Sector-Specific Perspective." Management Decision. 63 (5), pp. 1369-1390. https://doi.org/10.1108/MD-11-2023-2108
Article Title

Corporate Social Performance Through Instrumental Stakeholder Theory: A Sector-Specific Perspective

ERA Journal ID124426
Article CategoryArticle
AuthorsArian, Adam, Sands, John, Rahman, Habib Ur and Khatatbeh, Ibrahim N.
Journal TitleManagement Decision
Journal Citation63 (5), pp. 1369-1390
Number of Pages22
Year2025
PublisherEmerald
Place of PublicationUnited Kingdom
ISSN0025-1747
1355-252X
1758-6070
Digital Object Identifier (DOI)https://doi.org/10.1108/MD-11-2023-2108
Web Address (URL)https://www.emerald.com/insight/content/doi/10.1108/md-11-2023-2108/full/html
Abstract

Purpose
This study uses instrumental stakeholder theory to explore the relationship between corporate social performance (CSP) and financial performance in various market sectors. It aims to show how CSP, driven by stakeholder demands in different markets, affects financial outcomes.

Design/methodology/approach
Using panel data analysis on data from 2007 to 2020, this research examines how stakeholder demand impacts a firm's ability to turn social performance into financial gains. The study ensures reliable results by addressing methodological and endogeneity issues related to CSP.

Findings
The results show that a firm's success in converting social performance into financial benefits depends on stakeholder demands in different markets. While better CSP generally leads to improved financial performance, the extent of this benefit varies based on stakeholder expectations. This highlights the importance of managers strategically addressing stakeholder demands to maximize financial returns from social initiatives.

Originality/value
By examining the CSP–financial performance link through the lens of market and stakeholder demands, this research provides new insights into how firms can strategically gain stakeholder support for financial benefits. It shows the long-term value of CSP as an investment that gains stakeholder support over time. This approach broadens the understanding of CSP by considering diverse stakeholder influences across industries, filling a gap in long-term CSP research.

KeywordsCorporate social performance; Product market; Corporate strategy; Stakeholder theory; Industrial sectors; Financial performance
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020350107. Sustainability accounting and reporting
Public Notes

Files associated with this item cannot be displayed due to copyright restrictions.

Byline AffiliationsAustralian Catholic University
University of Southern Queensland
Holmes Institute
Hashemite University, Jordan
Permalink -

https://research.usq.edu.au/item/zq1zw/corporate-social-performance-through-instrumental-stakeholder-theory-a-sector-specific-perspective

Log in to edit
  • 80
    total views
  • 1
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Committee Diversity Effect on Corporate Investment Risk Practices
Li, Chung‑Chieh, Sands, John, Daff, Lyn, Arian, Adam G. and Busulwa, Richard. 2025. "Committee Diversity Effect on Corporate Investment Risk Practices." Journal of Risk and Financial Management. 18 (10). https://doi.org/10.3390/jrfm18100539
Economic costs of climate shock for firms in emerging economies
Arian, Adam, Gholipour, Hassan F, Busulwa, Richard and Sands, John. 2025. "Economic costs of climate shock for firms in emerging economies." Tourism Economics: the business and finance of tourism and recreation. https://doi.org/10.1177/13548166251369308
A Proposed New Multi-Dimensional Factor Fraud Framework for International Non-governmental Organizations (INGOs): A Vietnam Perspective
Nguyen, Khanh, Sands, John and Trimmer, Karen. 2025. "A Proposed New Multi-Dimensional Factor Fraud Framework for International Non-governmental Organizations (INGOs): A Vietnam Perspective." Journal of Forensic and Investigative Accounting. 17 (1), pp. 151-179.
The complementary effects of social resources on increasing positive employee engagement
Murray, Peter A., Southey, Kim, Ong, Derek, Sands, John and Gibson, Marnie. 2025. "The complementary effects of social resources on increasing positive employee engagement." 39th British Academy of Management Conference. Canterbury, United Kingdom 01 - 05 Sep 2025
From crisis to Stability: How CSR shielded firms during Covid-19 pandemic
Arian, Adam, Bose, Sudipta, Karoui, Lotfi and Shams, Syed. 2025. "From crisis to Stability: How CSR shielded firms during Covid-19 pandemic ." International Review of Economics and Finance. 103. https://doi.org/10.1016/j.iref.2025.104470
Strength in Numbers: How Social Resources Travel Together to Increase Employee Engagement
Murray, Peter A., Southey, Kim, Gibson, Marnie, Sands, John and Ong, Derek. 2025. "Strength in Numbers: How Social Resources Travel Together to Increase Employee Engagement ." Asia Pacific Journal of Human Resources. 63 (2). https://doi.org/10.1111/1744-7941.70008
Beyond carbon emissions: addressing broader climate risks in corporate financial disclosures
Arian, Adam and Sands, John. 2024. "Beyond carbon emissions: addressing broader climate risks in corporate financial disclosures ." Policymaker.
Our research shows higher carbon emissions increase costs for Australian businesses
Arian, Adam G. and Sands, John. 2024. "Our research shows higher carbon emissions increase costs for Australian businesses." The Conversation.
Review of Balanced Scorecard Application in Public Hospital Setting
Khalid, Salim Khaleel and Sands, John. 2024. "Review of Balanced Scorecard Application in Public Hospital Setting." Al-Shurafat, Hashem, Hamdan, Allam and Sands, John (ed.) Sustainable Horizons for Business, education, and technology: Interdisciplinary Insights. Simgapore. Springer. pp. 3-14
Sustainable Horizons for Business, education, and technology: Interdisciplinary Insights
Al-Shurafat, Hashem, Hamdan, Allam and Sands, John. Al-Shurafat, Hashem, Hamdan, Allam and Sands, John (ed.) 2024. Sustainable Horizons for Business, education, and technology: Interdisciplinary Insights . Singapore. Springer.
Gender diversity and research productivity in accounting and finance at Australian and New Zealand HEIs
Arian, Adam and Sands, John. 2024. "Gender diversity and research productivity in accounting and finance at Australian and New Zealand HEIs ." Accounting Education: An International Journal. https://doi.org/10.1080/09639284.2024.2413687
Do corporate carbon emissions affect risk and capital costs?
Arian, Adam G. and Sands, John. 2024. "Do corporate carbon emissions affect risk and capital costs?" International Review of Economics and Finance. 93 (Part A), pp. 1363-1377. https://doi.org/10.1016/j.iref.2024.04.018
Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy
Rahman, Habib Ur, Ali, Asif, Arian, Adam and Sands, John. 2024. "Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy." Journal of Risk and Financial Management. 17 (8). https://doi.org/10.3390/jrfm17080362
Did Emotional Intelligence Traits Mitigate COVID-19 Uncertainty Effects on Financial Institutions’ Board Decision-Making Process?
Hall, Jessica, Jones, Gregory, Beattie, Claire and Sands, John. 2024. "Did Emotional Intelligence Traits Mitigate COVID-19 Uncertainty Effects on Financial Institutions’ Board Decision-Making Process?" Journal of Risk and Financial Management. 17 (3). https://doi.org/10.3390/jrfm17030106
Obstacles Facing the Development of Forensic Accounting Curricula within the Australian Universities: Exploring Perspectives of Practitioners and Educators
Al-Shurafat, Hashem, Sands, John, Jones, Gregory and Beattie, Claire. 2024. "Obstacles Facing the Development of Forensic Accounting Curricula within the Australian Universities: Exploring Perspectives of Practitioners and Educators." Australasian Accounting Business and Finance Journal. 18 (2), pp. 188-195. https://doi.org/10.14453/aabfj.v18i2.12
A course design approach that encourages reflective practice habits
Daff, Lyn, Tame, Cathy and Sands, John. 2024. "A course design approach that encourages reflective practice habits ." The International Journal of Management Education. 22 (2). https://doi.org/10.1016/j.ijme.2024.100990
Corporate climate risk disclosure: assessing materiality and stakeholder expectations for sustainable value creationUnited Kingdom
Arian, Adam and Sands, John Stephen. 2024. "Corporate climate risk disclosure: assessing materiality and stakeholder expectations for sustainable value creationUnited Kingdom ." Sustainability Accounting, Management and Policy Journal. 15 (2), pp. 457-481. https://doi.org/10.1108/SAMPJ-04-2023-0236
Flight-to-Liquidity and Excess Stock Return: Empirical Evidence from a Dynamic Panel Model
Ali, Asif, Rahman, Habib Ur, Arian, Adam and Sands, John. 2023. "Flight-to-Liquidity and Excess Stock Return: Empirical Evidence from a Dynamic Panel Model." Journal of Risk and Financial Management. 16 (12). https://doi.org/10.3390/jrfm16120515
Enhancing accounting students’ reflective practice skills
Daff, Lyn, Tame, Cathy and Sands, John. 2023. "Enhancing accounting students’ reflective practice skills." 2023 Accounting and Finance Association of Australia and New Zealand Conference (2023 AFAANZ). Gold Coast, Australia 02 2023 - 04 Jul 2024 Australia. Accounting & Finance Association of Australia and New Zealand.
Does Fiscal Consolidation Affect Non-Performing Loans? Global Evidence from Heavily Indebted Countries (HICs)
Rahman, Habib Ur, Arian, Adam and Sands, John. 2023. "Does Fiscal Consolidation Affect Non-Performing Loans? Global Evidence from Heavily Indebted Countries (HICs)." Journal of Risk and Financial Management. 16 (9). https://doi.org/10.3390/jrfm16090417
The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance
Chong, Vincent K., Mia, Lokman, Sands, John and Wang, Zhichao Alex. 2023. "The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance." Journal of Management Control. 34 (2), pp. 201-233. https://doi.org/10.1007/s00187-023-00355-0
Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors
Arian, Adam, Sands, John and Tooley, Stuart. 2023. "Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors." Sustainability. 15 (16). https://doi.org/10.3390/su151612254
The influence of ownership structure on the extent of CSR reporting: An emerging market study
Al Fadli, Amer, Sands, Juhn, Jones, Gregory, Beattie, Claire and Pensiero, Dom. 2022. "The influence of ownership structure on the extent of CSR reporting: An emerging market study." Business and Society Review. 127 (3), pp. 725-754. https://doi.org/10.1111/basr.12286
The Impact of Corporate ESG Performance Disclosure Across Australian Industries
Gholami, Amir, Sands, John and Shams, Syed. 2022. "The Impact of Corporate ESG Performance Disclosure Across Australian Industries." Australasian Accounting Business and Finance Journal. 16 (4), pp. 180-200. https://doi.org/10.14453/aabfj.v16i4.10
Corporates’ sustainability disclosures impact on cost of capital and idiosyncratic risk
Gholami, Amir, Sands, John and Shams, Syed. 2023. "Corporates’ sustainability disclosures impact on cost of capital and idiosyncratic risk." Meditari Accountancy Research. 31 (4), pp. 861-886. https://doi.org/10.1108/MEDAR-06-2020-0926
Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms?
Gholami, Amir, Murray, Peter A. and Sands, John. 2022. "Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms?" Sustainability. 14 (10), pp. 1-21. https://doi.org/10.3390/su14106019
Environmental, Social and Governance Disclosure and Value Generation: Is the Financial Industry Different?
Gholami, Amir, Sands, John and Rahman, Habib Ur. 2022. "Environmental, Social and Governance Disclosure and Value Generation: Is the Financial Industry Different?" Sustainability. 14 (5), pp. 1-17. https://doi.org/10.3390/su14052647
Management control systems and governance from its institutional context
Arian, Adam G. and Sands, John. 2022. "Management control systems and governance from its institutional context ." 2022 ICVG Conference: Governance in its institutional context. Melbourne, Australia 15 - 16 Dec 2022 Australia.
Barriers and Motivations to Integrating Environmental Performance in the BSC: a case study in health care
Khalid, Salim Khaleel, Beattie, Claire and Sands, John Stephen. 2022. "Barriers and Motivations to Integrating Environmental Performance in the BSC: a case study in health care." Sustainability Accounting, Management and Policy Journal. 13 (2), pp. 297-319. https://doi.org/10.1108/SAMPJ-09-2020-0325
Associations among the Five Components within COSO Internal Control-Integrated Framework as the Underpinning of Quality Corporate Governance
Rae, Kirsten, Sands, John and Subramaniam, Nava. 2017. "Associations among the Five Components within COSO Internal Control-Integrated Framework as the Underpinning of Quality Corporate Governance." Australasian Accounting Business and Finance Journal. 11 (1), pp. 28-54. https://doi.org/10.14453/aabfj.v11i1.4
Incorporating the environmental dimension into the balanced scorecard: A case study in health care
Khalid, Salim, Beattie, Claire, Sands, John and Hampson, Veronica. 2019. "Incorporating the environmental dimension into the balanced scorecard: A case study in health care." Meditari Accountancy Research. 27 (4), pp. 652-674. https://doi.org/10.1108/MEDAR-06-2018-0360
Financial and Social Well-being Performance after Privatisation of the Port of Brisbane: A Case Study
Jayasundara, Mudiyanselage Upali Ranjith, Jones, Greg and Sands, John. 2020. "Financial and Social Well-being Performance after Privatisation of the Port of Brisbane: A Case Study." Australasian Accounting Business and Finance Journal. 14 (2), pp. 72-93. https://doi.org/10.14453/aabfj.v14i2.6
Board independence and CSR reporting: pre and post analysis of JCGC 2009
Al Fadli, Amer, Sands, John, Jones, Greg, Beattie, Claire and Pensiero, Dominic. 2020. "Board independence and CSR reporting: pre and post analysis of JCGC 2009." International Journal of Law and Management. 62 (2), pp. 117-138. https://doi.org/10.1108/IJLMA-11-2018-0259
Perceptions of the usefulness of various teaching methods in forensic accounting education
Alshurafat, Hashem, Beattie, Claire, Jones, Gregory and Sands, John. 2020. "Perceptions of the usefulness of various teaching methods in forensic accounting education." Accounting Education: An International Journal. 29 (2), pp. 177-204. https://doi.org/10.1080/09639284.2020.1719425
Board Gender Diversity and CSR Reporting: Evidence from Jordan
Al Fadli, Amer, Sands, John, Jones, Greg, Beattie, Claire and Pensiero, Dom. 2019. "Board Gender Diversity and CSR Reporting: Evidence from Jordan." Australasian Accounting Business and Finance Journal. 13 (3), pp. 29-52. https://doi.org/10.14453/aabfj.v13i3.3
Forensic accounting core and interdisciplinary curricula components in Australian universities: analysis of websites
Alshurafat, Hashem, Beattie, Claire, Jones, Gregory and Sands, John. 2019. "Forensic accounting core and interdisciplinary curricula components in Australian universities: analysis of websites." Journal of Forensic and Investigative Accounting. 11 (2 (Special edition)), pp. 353-365.
Using classroom layout to help reduce students' apprehension and increase communication
Rae, Kirsten and Sands, John. 2013. "Using classroom layout to help reduce students' apprehension and increase communication." Accounting Education: An International Journal. 22 (5), pp. 489-491. https://doi.org/10.1080/09639284.2013.835534
Advancing sustainability management accounting in the Asia Pacific region
Sands, John, Lee, Ki-Hoon and Fonseka, K .B. M. 2016. "Advancing sustainability management accounting in the Asia Pacific region." Accounting Research Journal. 29 (2), pp. 134-136. https://doi.org/10.1108/ARJ-03-2016-0035
An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance
Sands, John Stephen, Rae, Kirsten Nicole and Gadenne, David. 2016. "An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance." Accounting Research Journal. 29 (2), pp. 154-178. https://doi.org/10.1108/ARJ-04-2015-0065
Multi-perspective performance reporting systems, continuous improvement systems and organisational performance
Iselin, Errol R., Sands, John and Mia, Lokman. 2011. "Multi-perspective performance reporting systems, continuous improvement systems and organisational performance." Journal of General Management. 36 (3), pp. 19-36. https://doi.org/10.1177/030630701103600302
Guest editorial
Sands, John and Lee, Ki-Hoon. 2015. "Guest editorial." Journal of Accounting and Organisational Change. 11 (3), pp. 1-2. https://doi.org/10.1108/JAOC-07-2014-0038
Associations between organisations’ motivated workforce and environmental performance
Rae, Kirsten, Sands, John and Gadenne, David Leslie. 2015. "Associations between organisations’ motivated workforce and environmental performance." Journal of Accounting and Organisational Change. 11 (3), pp. 384-405. https://doi.org/10.1108/JAOC-10-2013-0090
Environmental and sustainability management accounting (EMA) for the development of sustainability management and accountability
Sands, John and Lee, Ki-Hoon. 2015. "Environmental and sustainability management accounting (EMA) for the development of sustainability management and accountability." Issues in Social and Environmental Accounting. 9 (1), pp. 1-4.
The influence of sustainability performance management practices on organisational sustainability performance
Gadenne, David, Mia, Lokman, Sands, John, Winata, Lanita and Hooi, George. 2012. "The influence of sustainability performance management practices on organisational sustainability performance." Journal of Accounting and Organisational Change. 8 (2), pp. 210-235. https://doi.org/10.1108/18325911211230380
The importance of understanding student learning styles in accounting degree programs
Cameron, Robyn, Clark, Pat, de Zwaan, Laura, English, Diane, Lamminmaki, Dawne, O'Leary, Conor, Rae, Kirsten and Sands, John. 2015. "The importance of understanding student learning styles in accounting degree programs." Australian Accounting Review. 25 (3), pp. 218-231. https://doi.org/10.1111/auar.12065
The association between organisational commitment and corporate social responsibility-environmental performance within an integrated sustainability balanced scorecard framework
Rae, Kirsten, Sands, John S and Gadenne, David. 2015. "The association between organisational commitment and corporate social responsibility-environmental performance within an integrated sustainability balanced scorecard framework." Issues in Social and Environmental Accounting. 9 (1), pp. 32-50.
Multi-perspective performance reporting and organisational performance: the impact of information, data and redundant cue load
Iselin, Errol R., Mia, Lokman and Sands, John. 2010. "Multi-perspective performance reporting and organisational performance: the impact of information, data and redundant cue load." International Journal of Accounting, Auditing and Performance Evaluation. 6 (1), pp. 1-27. https://doi.org/10.1504/IJAAPE.2010.030477
The association between sustainability performance management goals and organisational performance
Gadenne, David, Sands, John and Mia, Lokman. 2012. "The association between sustainability performance management goals and organisational performance." e-Journal of Social and Behavioural Research in Business. 3 (2), pp. 27-42.
Creating sustainable benefits for stakeholders of organisations using the strategy mapping framework
Rae, Kirsten and Sands, John. 2013. "Creating sustainable benefits for stakeholders of organisations using the strategy mapping framework." e-Journal of Social and Behavioural Research in Business. 4 (2), pp. 14-32.
The effects of the balanced scorecard on performance: The impact of the alignment of the strategic goals and performance reporting
Iselin, Errol R., Mia, Lokman and Sands, John. 2008. "The effects of the balanced scorecard on performance: The impact of the alignment of the strategic goals and performance reporting." Journal of General Management. 33 (4), pp. 71-85. https://doi.org/10.1177/030630700803300405
Multi‐perspective strategic goal setting, performance reporting and organisational performance
Iselin, Errol R., Mia, Lokman and Sands, John. 2008. "Multi‐perspective strategic goal setting, performance reporting and organisational performance ." Journal of Applied Accounting Research. 9 (2), pp. 76-96. https://doi.org/10.1108/09675420810900766
Educators' Epistemological Beliefs of Accounting Ethics Teaching: A Cross-Cultural Study
Auyeung, Pak K., Dagwell, Ron, Ng, Chew and Sands, John. 2006. "Educators' Epistemological Beliefs of Accounting Ethics Teaching: A Cross-Cultural Study." Accounting Research Journal. 19 (2), pp. 122-138. https://doi.org/10.1108/10309610680000683
The perceived importance of international accounting topics in the Asia-Pacific rim: A comparative study
Sands, John Stephen and Pragasam, John. 1997. "The perceived importance of international accounting topics in the Asia-Pacific rim: A comparative study." The International Journal of Accounting. 32 (2), pp. 187-202. https://doi.org/10.1016/s0020-7063(97)90025-x
Factors influencing accounting students' career choice: A cross-cultural validation study
Auyeung, Pak and Sands, John. 1997. "Factors influencing accounting students' career choice: A cross-cultural validation study." International Journal of Phytoremediation. 21 (1), pp. 13-23. https://doi.org/10.1080/096392897331596
A cross cultural study of the learning style of accounting students
Auyeung, Pak and Sands, John. 1996. "A cross cultural study of the learning style of accounting students ." Accounting and Finance. 36 (2), pp. 261-274. https://doi.org/10.1111/j.1467-629X.1996.tb00310.x