Corporate Social Responsibility and Financial Performance: A Relationship Mediated by Stakeholder Satisfaction

Oscar Licandro (), José Luis Vázquez Burguete, Luis Camilo Ortigueira-Sánchez and Patricia Correa
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Oscar Licandro: Cathedra of Organizational Social Responsibility, Universidad CLAEH (Centro Latinoamericano de Economía Humana), Montevideo 11100, Uruguay
José Luis Vázquez Burguete: Business Management and Economics Department, Universidad de León, 24071 León, Spain
Luis Camilo Ortigueira-Sánchez: Department of Administration, Faculty of Business, Universidad del Pacífico, Jesús María 15072, Peru
Patricia Correa: Department of Administration and Finance, Universidad Católica del Uruguay, Montevideo 11600, Uruguay

Administrative Sciences, 2024, vol. 14, issue 1, 1-25

Abstract: Research work on the relationship between Corporate Social Responsibility and financial performance has been going on for seven decades. Even when the prevailing studies are those that found a positive influence of social responsibility on financial performance, strong conclusive results are still unavailable. Some explanations for this situation are based, among other reasons, on the fact that the variables have a relation mediated by multiple factors. Additionally, it is still unknown whether the results obtained can be extrapolated to all types of companies since the majority of studies have focused on large companies listed on the stock exchange. This research studied how one of those factors (stakeholder satisfaction) mediated in companies of different sizes (including SMEs) and different types of companies (publicly listed companies or private ownership companies). A questionnaire was used, including indices relative to (1) the degree of development of the company’s social responsibility policies, (2) the changes in the satisfaction of four key stakeholders (employees, customers, suppliers, and shareholders) and financial performance (sales and profitability). Findings show the existence of a correlation between social responsibility and financial performance and also that such a relationship is mediated by the satisfaction of stakeholders. That relationship was also found to be independent of company sizes and the type of company This research work is intended to be a contribution towards that field of study, as it has detected a relationship between variables in medium-sized and private ownership companies.

Keywords: corporate social responsibility; financial performance; mediation; stakeholder satisfaction; type of capital; company size (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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