Re-Thinking the CSP-CFP Linkage: Analyzing the Mechanisms Involved in Translating Socially-Responsible Behavior to Financial Performance

Advances in Strategic Management, Volume 38, Forthcoming

HEC Paris Research Paper No. ACC-2018-1253

55 Pages Posted: 10 Mar 2018 Last revised: 19 Jun 2018

See all articles by Afshin Mehrpouya

Afshin Mehrpouya

HEC Paris - Accounting and Management Control Department

Imran Chowdhury

Pace University

Date Written: March 1, 2018

Abstract

In this paper, we re-examine the notion that socially-responsible behavior by firms will lead to increased financial performance. By identifying the underlying processes, institutional settings and actors involved, we present a framework that is more attentive to the multiplicity and conditionality of the mechanisms operating in the often-tenuous connection between firms’ social behavior and financial performance. Building and expanding upon existing analyses of the CSP-CFP linkage, our model helps explain the mixed results from a wide range of empirical studies which examine this link. It also provides a novel theoretical account to help guide future research that is more attentive to conditionalities and contextual contingencies.

Keywords: Business Ethics, Corporate Social Performance, Corporate Financial Performance, Corporate Social Responsibility, Mechanisms

JEL Classification: M14

Suggested Citation

Mehrpouya, Afshin and Chowdhury, Imran, Re-Thinking the CSP-CFP Linkage: Analyzing the Mechanisms Involved in Translating Socially-Responsible Behavior to Financial Performance (March 1, 2018). Advances in Strategic Management, Volume 38, Forthcoming; HEC Paris Research Paper No. ACC-2018-1253. Available at SSRN: https://ssrn.com/abstract=3137026

Afshin Mehrpouya (Contact Author)

HEC Paris - Accounting and Management Control Department ( email )

Jouy-en-Josas Cedex
France

Imran Chowdhury

Pace University ( email )

One Pace Plaza
New York, NY 10038
United States

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