IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v22y2015i6p424-440.html
   My bibliography  Save this article

Stakeholder Prioritization, Strategic Corporate Social Responsibility and Company Performance: Further Evidence

Author

Listed:
  • Giacomo Boesso
  • Francesco Favotto
  • Giovanna Michelon

Abstract

Using KLD data on more than 900 company's performance over a nine‐year period in seven areas of corporate social responsibility (environment, community, corporate governance, diversity, employee relations, human rights, and product quality), this research note re‐tests Michelon et al. proxies for prioritization and strategic approaches to CSR. The results show that, when a company pursues CSR initiatives that are linked to stakeholder preferences and allocates resources to these initiatives in a strategic way, the positive effect of its CSR initiatives on financial corporate performance (CP) strengthen. The analysis of KLD's variance and top tiers is thus proposed as a parsimonious way to measure when companies link their CSR initiatives to salient stakeholder preferences and undertake the corporate social actions that are ultimately relevant to the company's strategy and financials. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Giacomo Boesso & Francesco Favotto & Giovanna Michelon, 2015. "Stakeholder Prioritization, Strategic Corporate Social Responsibility and Company Performance: Further Evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 424-440, November.
    • Handle: RePEc:wly:corsem:v:22:y:2015:i:6:p:424-440
    DOI: 10.1002/csr.1356
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1356
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1356?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cory Searcy & Daryl McCartney & Stanislav Karapetrovic, 2008. "Identifying priorities for action in corporate sustainable development indicator programs," Business Strategy and the Environment, Wiley Blackwell, vol. 17(2), pages 137-148, February.
    2. Jaepil Choi & Heli Wang, 2009. "Stakeholder relations and the persistence of corporate financial performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 895-907, August.
    3. Joseph E. Coombs & K. Matthew Gilley, 2005. "Stakeholder management as a predictor of CEO compensation: main effects and interactions with financial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 827-840, September.
    4. Umit Alniacik & Esra Alniacik & Nurullah Genc, 2011. "How corporate social responsibility information influences stakeholders' intentions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(4), pages 234-245, July.
    5. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    6. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    7. Caroline D. Ditlev‐Simonsen & Atle Midttun, 2011. "What motivates managers to pursue corporate responsibility? a survey among key stakeholders," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(1), pages 25-38, January.
    8. Giovanna Michelon & Giacomo Boesso & Kamalesh Kumar, 2013. "Examining the Link between Strategic Corporate Social Responsibility and Company Performance: An Analysis of the Best Corporate Citizens," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 81-94, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kamalesh Kumar & Giacomo Boesso & Giovanna Michelon, 2016. "How Do Strengths and Weaknesses in Corporate Social Performance Across Different Stakeholder Domains Affect Company Performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 277-292, May.
    2. Giovanna Michelon & Giacomo Boesso & Kamalesh Kumar, 2013. "Examining the Link between Strategic Corporate Social Responsibility and Company Performance: An Analysis of the Best Corporate Citizens," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 81-94, March.
    3. Emmanuel Lawal & Gökan May & Bojan Stahl, 2017. "The Significance of Corporate Social Disclosure for High‐Tech Manufacturing Companies: Focus on Employee and Community Aspects of Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 295-311, July.
    4. Shao‐Chi Chang & Heng‐Yu Chang, 2015. "Corporate Motivations of Product Recall Strategy: Exploring the Role of Corporate Social Responsibility in Stakeholder Engagement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 393-407, November.
    5. Kamalesh Kumar & Giacomo Boesso & Rishtee Batra & Jun Yao, 2021. "Cross‐national differences in stakeholder management: Applying institutional theory and comparative capitalism framework," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2354-2366, July.
    6. Kamalesh Kumar & Rishtee Batra & Giacomo Boesso, 2021. "Difference in stakeholder engagement approach of small & medium enterprises and large companies and its performance implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 992-1001, May.
    7. Kamalesh Kumar & Giacomo Boesso & Rishtee Batra & Jun Yao, 2019. "Explicit and implicit corporate social responsibility: Differences in the approach to stakeholder engagement activities of U.S. and Japanese companies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1121-1130, September.
    8. Simone Pizzi & Fabio Caputo & Andrea Venturelli, 2020. "Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1478-1486, May.
    9. Eduardo Duque-Grisales & Javier Aguilera-Caracuel, 2021. "Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack," Journal of Business Ethics, Springer, vol. 168(2), pages 315-334, January.
    10. Pablo Gomez‐Carrasco & Giovanna Michelon, 2017. "The Power of Stakeholders' Voice: The Effects of Social Media Activism on Stock Markets," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 855-872, September.
    11. Jesús Barrena‐Martínez & Macarena López‐Fernández & Cristina Márquez‐Moreno & Pedro Miguel Romero‐Fernández, 2015. "Corporate Social Responsibility in the Process of Attracting College Graduates," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 408-423, November.
    12. José M. Agudo‐Valiente & Concepción Garcés‐Ayerbe & Manuel Salvador‐Figueras, 2015. "Corporate Social Performance and Stakeholder Dialogue Management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(1), pages 13-31, January.
    13. Jingoo Kang, 2016. "Labor market evaluation versus legacy conservation: What factors determine retiring CEOs' decisions about long-term investment?," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 389-405, February.
    14. Giovanni-Battista Derchi & Laura Zoni & Andrea Dossi, 2021. "Corporate Social Responsibility Performance, Incentives, and Learning Effects," Journal of Business Ethics, Springer, vol. 173(3), pages 617-641, October.
    15. Calabrese, Armando & Costa, Roberta & Levialdi, Nathan & Menichini, Tamara, 2019. "Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 155-168.
    16. Jonathan Luffarelli & Amrou Awaysheh, 2018. "The Impact of Indirect Corporate Social Performance Signals on Firm Value: Evidence from an Event Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(3), pages 295-310, May.
    17. Stefan Schaltegger & Jacob Hörisch, 2017. "In Search of the Dominant Rationale in Sustainability Management: Legitimacy- or Profit-Seeking?," Journal of Business Ethics, Springer, vol. 145(2), pages 259-276, October.
    18. Joseph Taylor & Joseph Vithayathil & Dobin Yim, 2018. "Are corporate social responsibility (CSR) initiatives such as sustainable development and environmental policies value enhancing or window dressing?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 971-980, September.
    19. Giacomo Boesso & Barbara Fryzel & Marco Ghitti, 2023. "Corporate social responsibility and comparative capitalism frameworks: Evidence from the United States, Poland, and Italy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 531-547, March.
    20. Goh, Lisa & Liu, Xuejiao & Tsang, Albert, 2020. "Voluntary disclosure of corporate political spending," Journal of Corporate Finance, Elsevier, vol. 61(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:corsem:v:22:y:2015:i:6:p:424-440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.