Organizational Size, Corporate Social Performance, and Business Performance

Marc Orlitzky and Diane L. Swanson
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Marc Orlitzky: Pennsylvania State University Altoona
Diane L. Swanson: Kansas State University

Chapter 6 in Toward Integrative Corporate Citizenship, 2008, pp 147-163 from Palgrave Macmillan

Abstract: Abstract In the previous two chapters, we presented meta-analytic evidence which suggests that corporate social performance (CSP) is positively related to company financial performance (Chapter 4) and inversely related to business risk (Chapter 5). Even so, Stanwick and Stanwick’s (1998) study raises the suspicion that organizational size may be an exogenous determinant of both CSP and corporate financial performance (CFP). That is, it is possible that the significantly positive path coefficient between CSP and CFP is spurious and disappears when firm size is entered as a third variable (Chen & Metcalf, 1980). However, Stanwick and Stanwick’s (1998) conclusions are limited to their specific sample (Fortune 500 companies) and operationalizations of CSP (Fortune Corporate Reputation Index). The study presented in this chapter takes a broader, more representative perspective.

Keywords: Corporate Social Responsibility; Business Ethic; Social Responsibility; Management Journal; Corporate Social Performance (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59470-8_7

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DOI: 10.1057/9780230594708_7

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