Do customer satisfaction and reputation mediate the CSR–FP link? Evidence from Australia

Jeremy Galbreath and Paul Shum
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Jeremy Galbreath: Curtin Graduate School of Business, Curtin University, Australia
Paul Shum: School of Accounting, Finance and Economics, Edith Cowen University, Australia

Australian Journal of Management, 2012, vol. 37, issue 2, 211-229

Abstract: Direct tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be spurious. Following this line of argument, the present study tests a mediated model in understanding the CSR–FP relationship. Specifically, we posit that reputation and customer satisfaction mediate fully the CSR–FP relationship. Based on the results from a sample of 280 Australian firms, the findings suggest that CSR is linked with FP. However, the effect is indirect: while CSR is linked to both reputation and customer satisfaction, reputation alone mediates the CSR–FP relationship. The results are interesting, suggesting that to reduce ambiguity surrounding the CSR–FP relationship scholars need to significantly expand studies that address moderating and mediating variables. Discussion is given to these findings along with paths for future research.

Keywords: Australia; corporate social responsibility; customer satisfaction; firm performance; mediation test; reputation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:37:y:2012:i:2:p:211-229

DOI: 10.1177/0312896211432941

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