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Strategic corporate social responsibility and economic performance

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  • Constantin Belu
  • Cristiana Manescu

Abstract

This article proposes a novel Corporate Social Responsibility (CSR) index based on a Data Envelopment Analysis (DEA) model. Acknowledging the argument that companies might favour those CSR dimensions that provide strategic competitive advantages, we argue that the index can capture companies’ strategic approach to CSR. Furthermore, our findings reveal a neutral relationship between this strategic CSR index and economic performance as measured by Return on Assets (ROA) and Tobin's Q , when controlling for firm unobserved heterogeneity and past economic performance. By contrast, an equally-weighted index of the same CSR indicators is found to be negatively related with ROA, which reinforces our claim that this specific DEA-based index is a measure of strategic CSR.

Suggested Citation

  • Constantin Belu & Cristiana Manescu, 2013. "Strategic corporate social responsibility and economic performance," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2751-2764, July.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2751-2764
    DOI: 10.1080/00036846.2012.676734
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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