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The Impact of CSR on Corporate Value of Restaurant Businesses Using Triple Bottom Line Theory

Author

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  • Jimin Shim

    (Department of Tourism and Recreation, Kyonggi University, 24, Kyonggidae-ro 9-gil, Seodaemun-gu, Seoul 03753, Korea)

  • Joonho Moon

    (Department of Tourism Administration, Kangwon National University/Hyoja2-Dong, Kangwon University Rd., Chooncheon 200-701, Korea)

  • Won Seok Lee

    (Department of Tourism and Recreation, Kyonggi University, 24, Kyonggidae-ro 9-gil, Seodaemun-gu, Seoul 03753, Korea)

  • Namho Chung

    (Smart Tourism Education Platform, Kyung Hee University, 26 Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea)

Abstract

The main goal of this study was to investigate the association between corporate social responsibility (CSR) and the value of restaurant firms by employing triple bottom line theory, a framework for a business model of sustainable development focusing on profit, environment, and people rather than just maximizing profit. Even though triple bottom line has been a common theoretical foundation in the CSR area, there is sparse literature on the theory in the context of CSR in the restaurant domain. Data regarding CSR dimensions and market-to-book value from 32 publicly traded restaurant firms in the US stock market for the period 1999–2012 were gathered, and panel data analysis methods of ordinary least square, one-way fixed effect, and time series feasible generalized least square were employed. The results revealed that economic CSR enhanced restaurant value, whereas environmental CSR diminished the value. The theoretical contribution of this study is that it will broaden the scope of triple bottom line theory. The results of the study will help restaurant administrators determine CSR policy.

Suggested Citation

  • Jimin Shim & Joonho Moon & Won Seok Lee & Namho Chung, 2021. "The Impact of CSR on Corporate Value of Restaurant Businesses Using Triple Bottom Line Theory," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:2131-:d:500640
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    Cited by:

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    2. Pourkhanali, Armin & Tafakori, Laleh & Bee, Marco, 2023. "Forecasting Value-at-Risk using functional volatility incorporating an exogenous effect," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Sanaz Ghorbanloo & Sajjad Shokouhyar, 2023. "Consumers' attitude footprint on sustainable development in developed and developing countries: a case study in the electronic industry," Operations Management Research, Springer, vol. 16(3), pages 1444-1475, September.
    4. Xiaofei Yan & Juan Felipe Espinosa-Cristia & Kalpina Kumari & Lucian Ionel Cioca, 2022. "Relationship between Corporate Social Responsibility, Organizational Trust, and Corporate Reputation for Sustainable Performance," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    5. Ahmed Hassan Abdou & Thowayeb H. Hassan & Amany E. Salem, 2023. "Promoting Sustainable Food Practices in Food Service Industry: An Empirical Investigation on Saudi Arabian Restaurants," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    6. Francis Ezieshi Monyei & Wilfred I. Ukpere & Emmanuel Kalu Agbaeze & Solomon Omonona & Lovlyn Ekeowa Kelvin-Iloafu & Happiness Ozioma Obi-Anike, 2021. "The Impact of Succession Management on Small and Medium Enterprises’ Sustainability in Lagos State, Nigeria," Sustainability, MDPI, vol. 13(23), pages 1-12, December.
    7. Kaur, Puneet & Talwar, Shalini & Madanaguli, Arun & Srivastava, Shalini & Dhir, Amandeep, 2022. "Corporate social responsibility (CSR) and hospitality sector: Charting new frontiers for restaurant businesses," Journal of Business Research, Elsevier, vol. 144(C), pages 1234-1248.

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