Unlocking the Connection between Corporate Social Responsibility Strategy and Firm Performance: Unveiling Mediating and Moderating Effects

Jonah Tyan (), Shih-Ching Liu (), Carol Yeh-Yun Lin () and Tien-Yu Chang ()
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Jonah Tyan: National Chengchi University
Shih-Ching Liu: Feng Chia University
Carol Yeh-Yun Lin: National Chengchi University
Tien-Yu Chang: National Chengchi University

Journal of Business Ethics, 2025, vol. 197, issue 3, No 9, 597-611

Abstract: Abstract The question whether corporate social responsibility (CSR) initiatives can be transferred to firm performance to achieve sustainable development goals (SDGs) prompted this study to investigate how CSR strategies influence both SDGs and financial performance. A mediated moderating model based on the organizational alignment theory was developed to examine the mediating and moderating roles of organizational structure and corporate governance, respectively. By analyzing the three-year panel data of 1,480 firm-year observations from publicly listed companies in Taiwan, we find that organizational structure mediates the relationship between a firm’s CSR strategy and firm performance consisting of SDG disclosures, sales revenue, net profit, and return on equity. Corporate governance plays a moderating role in the relationship between organizational structure and firm performance. Our objective financial data provide evidence supporting “doing well by doing good.” The proposed organizational alignment model and empirical results enhance the theoretical understanding of the CSR research field. The research findings have several practical implications for business executives to improve a firm’s social and financial performance.

Keywords: CSR; Organizational structure; Corporate governance; SDG disclosure; Taiwan; Organizational alignment (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10551-024-05758-0

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