Corporate Social Responsibility and Firm Performance: A Stakeholder Approach

Corporate Social Responsibility (CSR) represents an important strategic imperative for the corporation (Moura-Leite & Padgett, 2011). However, if CSR is to gain a high organizational standing, the identification of the relationship between CSR and financial performance is an important issue (McGuire, Sundgren & Schneeweis, 1988). This research provides understanding of the relationship between CSR and financial performance through the lens of stakeholder theory. Using structural equation modeling, it follows the advice of Neville, Bell & Menguc (2005) and Harrison & Freeman (1999), and provides a more detailed understanding of the relationship between these variables, which is lacking in the literature (Aqueveque, 2005). In addition, this research overcomes one of the main problems in the field of CSR, that is, the lack of a single, objective measurement of CSR (Turker, 2009a). A CSR scale was developed following a review of literature on the topic and analysed using the results of 222 survey respondents ...