When Corporate Social Responsibility Matters: An Empirical Investigation of Contingencies

International Journal of Corporate Governance 3 (2-4), 143-162, (2012)

35 Pages Posted: 8 Dec 2016

See all articles by Stephen Luxmore

Stephen Luxmore

Rochester Institute of Technology (RIT) - Saunders College of Business

Zhi Tang

Rochester Institute of Technology (RIT)

Clyde Eiríkur Hull

Rochester Institute of Technology (RIT) - Saunders College of Business

Date Written: December 1, 2012

Abstract

Rather than re-examine the question of whether doing good generally helps a company to do well, this study draws on contingency theory to empirically examine when doing good helps a company do as well as possible. Using panel data, we examine the effects of industry life cycle, munificence, and instability on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). Our findings indicate that life cycle has a significant impact on the CSR-CFP relationship, as does industry instability. These findings suggest that CSR helps the bottom line considerably – if it is applied at the right time.

Keywords: corporate social responsibility, CSR, corporate financial performance, CFP, industry life cycle, munificence, instability, contingencies

Suggested Citation

Luxmore, Stephen and Tang, Zhi and Hull, Clyde Eiríkur, When Corporate Social Responsibility Matters: An Empirical Investigation of Contingencies (December 1, 2012). International Journal of Corporate Governance 3 (2-4), 143-162, (2012). Available at SSRN: https://ssrn.com/abstract=2882126

Stephen Luxmore

Rochester Institute of Technology (RIT) - Saunders College of Business ( email )

105 Lomb Memorial Dr.
Rochester, NY 14623
United States

Zhi Tang

Rochester Institute of Technology (RIT) ( email )

Rochester, NY 14623
United States

Clyde Eiríkur Hull (Contact Author)

Rochester Institute of Technology (RIT) - Saunders College of Business ( email )

105 Lomb Memorial Dr.
Rochester, NY 14623
United States

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