Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2048194
Can the spending of corporate social responsibility be offset? Evidence from pharmaceutical industry
Minghui Yang
Jiawen Wang
Petra Maresova
Minhas Akbar
Sažetak
This study aims to investigate whether the costs spent on corporate
social responsibility (CSR) can be offset, and identify the
inflection point when financial returns from CSR exceed the
spending. By using Principal Component Analysis, we developed
the Carroll’s CSR model to measure actual CSR spending. Drawing
on data of 315 listed pharmaceutical firms from China, the quadratic
effect was used to examine the inflection point, and the
panel data regression was employed to examine the impact of
CSR spending on current and subsequent financial performance.
The results show that CSR spending cannot be offset in the shortterm.
After two years of CSR implementation, ethical-domain and
overall CSR spending positively relate to return on assets (ROA),
whereas legal-domain CSR spending positively affects ROA after
three years of CSR implementation, all justifying that CSR spending
can be offset in the long-term. This research contributes to literature
by precisely recognizing the time-based inflection point in
financial performance arises, which is less discussed in existing
CSR studies. The study findings imply that corporate managers
need to view CSR spending as capital investment rather than
operating costs, and policy makers should mandate institutional
arrangements to facilitate CSR.
Ključne riječi
CSR spending; financial performance; Carroll’s CSR model; pharmaceutical industry
Hrčak ID:
302973
URI
Datum izdavanja:
31.3.2023.
Posjeta: 686 *