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Determinants of corporate social performance: the influence of organizational culture, management tenure and financial performance

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  • Tiago Melo

Abstract

Purpose - The purpose of the paper is to examine the influence of organizational culture, top management tenure and financial performance on corporate social performance (CSP). Design/methodology/approach - The sample comprises 295Fortune500 American companies from 2000 to 2005. Financial information from Thompson World Scope is contrasted with social responsibility data from KLD database and the estimation technique applied is panel data. Findings - Results indicate that a humanistic culture has a positive impact of CSP, as well as management tenure and slack resources in a lesser degree. Research limitations/implications - The paper successfully constructs and employs a variable depicting the humanistic culture of a firm. More research is needed to define which factors determine this culture dimension, so it can be scientifically agreed on as opposed to being used exploratorily. Practical implications - The results point out that firms that incorporate a humanistic approach to culture perform well in CSP because their internal cultural values and beliefs drive them to establish a good relationship with stakeholders. Originality/value - As opposed to the majority of the studies that focus on the CSP leading to financial performance relation, this article alternatively analyzes factors that determine CSP.

Suggested Citation

  • Tiago Melo, 2012. "Determinants of corporate social performance: the influence of organizational culture, management tenure and financial performance," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(1), pages 33-47, March.
    • Handle: RePEc:eme:srjpps:v:8:y:2012:i:1:p:33-47
    DOI: 10.1108/17471111211196557
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    References listed on IDEAS

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    Cited by:

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    2. Stéphanie Arnaud & David Wasieleski, 2014. "Corporate Humanistic Responsibility: Social Performance Through Managerial Discretion of the HRM," Journal of Business Ethics, Springer, vol. 120(3), pages 313-334, March.
    3. Li, Xinlan & Li, Changhong & Wang, Zhan & Jiao, Wenting & Pang, Yiwen, 2021. "The effect of corporate philanthropy on corporate performance of Chinese family firms: The moderating role of religious atmosphere," Emerging Markets Review, Elsevier, vol. 49(C).
    4. Ajab Khan & H. Kent Baker, 2022. "How board diversity and ownership structure shape sustainable corporate performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3751-3770, December.
    5. Pascal Nguyen & Anna Nguyen, 2015. "The effect of corporate social responsibility on firm risk," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(2), pages 324-339, June.
    6. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.

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