CSR, Risk Management Practices, and Performance Outcomes: An Empirical Investigation of Firms in Different Industries

Nitya Singh and Paul Hong ()
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Nitya Singh: Department of Management, Perdue School of Business, Salisbury University, Salisbury, MD 21804, USA
Paul Hong: John B. and Lillian E. Neff College of Business and Innovation, The University of Toledo, Toledo, OH 43606, USA

JRFM, 2023, vol. 16, issue 2, 1-20

Abstract: This article presents a research model that defines how external drivers impact financial performance outcomes, and the role played by strategic practices (especially CSR) in reducing the negative impact of such external influences. Applying strategic orientation theory, risk management theory, and CSR theory as the encompassing theoretical rationale, the conceptual framework defines the research idea and the research model provides the empirically testable model that identifies key variables with valid instrument measures. The results indicate that although external supply chain risk drivers do negatively impact a firm’s financial performance, the influence of these risk events can be mitigated if firms adopt focused strategic practices. The results highlight the significant role played by CSR strategic practices in enabling firms to develop resilience from disruption events. In our research model, CSR, as an organizational linkage practice, is positioned in between upfront strategic flow and back-end performance flow. It suggests that CSR success is only possible when CSR is implemented broadly throughout organizational processes. Based on the empirical results, lessons and implications are presented for theoretical and managerial insights and future research.

Keywords: corporate social responsibility; risk management practices; performance outcome; strategy; supply chain (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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