Does Stakeholder Perception of Firm’s Corporate Social Responsibility Affect Firm Performance?

Siva Prasad Ravi
Additional contact information
Siva Prasad Ravi: School of Business and Economics, Thompson Rivers University, Kamloops, BC, Canada

International Journal of Asian Business and Information Management (IJABIM), 2013, vol. 4, issue 1, 67-83

Abstract: In the present-day business landscape characterised by global competition, demanding customers and depleting natural resources, Corporate Social Responsibility (CSR) has become an important strategy for corporations for creating competitive advantage. CSR involves a corporation’s commitment to align performance (revenue growth and profit) motives with fulfillment of social, ethical, community and environmental obligations. Researchers have found a positive correlation between stakeholder perceptions of firm’s CSR performance and financial performance, assuming other factors as constant. This paper, based on analysis of Wal-Mart’s performance from 2001 to 2011, found, seemingly significant negative perceptions of CSR activities of corporations result in lower performance. Once formed, changing negative perceptions is often difficult and the effort involves considerable amount of resources with questionable outcomes. This study has come to the conclusion that being a good ‘Corporate Citizen’ and creating positive stakeholder perceptions is a better strategic approach for firm’s continuing success.

Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/jabim.2013010107 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jabim0:v:4:y:2013:i:1:p:67-83

Access Statistics for this article

International Journal of Asian Business and Information Management (IJABIM) is currently edited by Patricia Ordóñez de Pablos

More articles in International Journal of Asian Business and Information Management (IJABIM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().