Original scientific paper
https://doi.org/10.1080/1331677X.2020.1862686
From driver to enabler: the moderating effect of corporate social responsibility on firm performance
Tian Lan
Yu Chen
Huafang Li
Lijia Guo
Jiashun Huang
Abstract
Corporate social responsibility (CSR) is assumed to have a direct
influence on firm performance. However, the existing literature
provides a mixed depiction of the relationship between CSR and
firm performance. In this study, CSR is considered as an enabler
for firm performance, rather than a direct driving force. Using a
sample of U.S. firms, we test the enabler hypothesis and find that
CSR positively moderates the relationship between marketing
investments and firm financial performance, i.e., the enabling
hypothesis is supported. The moderating effect of CSR is further
moderated by how firms treat their employees. Mistreating
employees weakens CSR’s moderating effect because it may make
customers to perceive CSR activities as self-interested makeups
rather than purely charitable actions in nature. Overall, our study
suggests a logic shift from considering CSR as a driver for firm
performance to an enabler and provides implications for both
future research and practices.
Keywords
corporate social responsibility (CSR); marketing investments; employee mistreatment; financial performance
Hrčak ID:
301355
URI
Publication date:
31.12.2021.
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