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Corporate social responsibility and financial performance in the Australian context

Author

Listed:
  • Matthew Brine

    (Treasury, Government of Australia)

  • Rebecca Brown

    (Treasury, Government of Australia)

  • Greg Hackett

    (Treasury, Government of Australia)

Abstract

The concept of social responsibility of corporations has engendered considerable interest in Australia in recent years. While previous research on the relationship between corporate social responsibility and financial performance has largely been based on international data, this paper examines the relationship between the adoption of corporate social responsibility and the financial performance of companies within Australia. A number of economic drivers for corporate social responsibility have been identified that may explain its voluntary adoption by companies. Our preliminary results revealed no statistically significant relationship between corporate social responsibility and financial performance; however, a number of opportunities for refining the research were identified.

Suggested Citation

  • Matthew Brine & Rebecca Brown & Greg Hackett, 2007. "Corporate social responsibility and financial performance in the Australian context," Economic Roundup, The Treasury, Australian Government, issue 2, pages 47-58, June.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2007_2_1
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    File URL: http://archive.treasury.gov.au/documents/1268/PDF/04_CSR.pdf
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    References listed on IDEAS

    as
    1. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
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    Cited by:

    1. Ramzi Benkraiem & Sabri Boubaker & Asif Saeed, 2022. "How does corporate social responsibility engagement affect the information content of stock prices?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1266-1289, July.
    2. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.
    3. Muhammad Khalid Anser & Zhihe Zhang & Lubna Kanwal, 2018. "Moderating effect of innovation on corporate social responsibility and firm performance in realm of sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 799-806, September.
    4. Kladakis, George & Chen, Lei & Bellos, Sotirios K., 2023. "Ethical bank disclosures and liquidity creation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    5. Chune Young Chung & Sang Jun Cho & Doojin Ryu & Doowon Ryu, 2019. "Institutional blockholders and corporate social responsibility," Asian Business & Management, Palgrave Macmillan, vol. 18(3), pages 143-186, July.
    6. Sima Magatef, 2016. "The Impact of the Application of Social Responsibility on the Creation of a Competitive Advantage for Jordanian Private Universities," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(9), pages 166-166, August.
    7. Kim, Hyun-Dong & Kim, Taeyeon & Kim, Yura & Park, Kwangwoo, 2019. "Do long-term institutional investors promote corporate social responsibility activities?," Journal of Banking & Finance, Elsevier, vol. 101(C), pages 256-269.
    8. Szennay, Áron, 2018. "Nagyvállalatok pénzügyi teljesítményének és társadalmi felelősségvállalásának összefüggései Magyarországon [Relations between financial and non-financial performance in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1281-1298.
    9. Jolanta Wisniewska & Joanna Gorka, 2021. "A Model on the Decision to Conduct Independent Verification of CSR Data: The Case of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 189-212.
    10. Villafán Vidales Katia Beatriz & Ayala Ortiz Dante Ariel, 2014. "Responsabilidad social de las empresas agrícolas y agroindustriales aguacateras de Uruapan, Michoacán, y sus implicaciones en la competitividad," Contaduría y Administración, Accounting and Management, vol. 59(4), pages 223-251, octubre-d.
    11. Wu, Meng-Wen & Shen, Chung-Hua, 2013. "Corporate social responsibility in the banking industry: Motives and financial performance," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3529-3547.
    12. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    13. Yura Kim & Taeyeon Kim & Hye-Jeong Nam, 2021. "Marketing Investments and Corporate Social Responsibility," Sustainability, MDPI, vol. 13(9), pages 1-12, April.
    14. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.

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    More about this item

    Keywords

    corporate culture; corporate financial performance; Australia; social responsibility;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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