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ESG performance and CSR awards: Does consistency matter?

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  • Uyar, Ali
  • Kuzey, Cemil
  • Karaman, Abdullah S.

Abstract

In this study, drawing on social reputation theory, we focus on the non-financial benefit (social reputation) of ESG engagement via CSR awarding and consider ESG inconsistency. The country-industry-year fixed-effects logistic regression analysis was executed based on the data including 45,395 observations between 2012 and 2019. We find that social reputation via CSR awarding requires a full ESG commitment in environmental, social, and governance pillars. However, governance pillar is less relevant for social reputation than the environmental and social pillars. Besides, ESG inconsistency over time and across ESG dimensions harms social reputation as it negatively moderates ESG performance and CSR awarding.

Suggested Citation

  • Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2022. "ESG performance and CSR awards: Does consistency matter?," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004640
    DOI: 10.1016/j.frl.2022.103276
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    References listed on IDEAS

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    Cited by:

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    2. Zhang, Jitao & Yang, Yongliang, 2023. "Can environmental disclosure improve price efficiency? The perspective of price delay," Finance Research Letters, Elsevier, vol. 52(C).
    3. Sahar E-Vahdati & Wan Nordin Wan-Hussin & Mohd Shazwan Mohd Ariffin, 2023. "The Value Relevance of ESG Practices in Japan and Malaysia: Moderating Roles of CSR Award, and Former CEO as a Board Chair," Sustainability, MDPI, vol. 15(3), pages 1-17, February.

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    More about this item

    Keywords

    CSR; ESG; ESG consistency; CSR award; Social reputation theory;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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