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Corporate social responsibility and financial performance: International evidence of the mediating role of reputation

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  • Yosra Makni Fourati
  • Mariam Dammak

Abstract

The aim of this article is to explore both the direct and indirect effect of corporate social responsibility (CSR) on corporate financial performance (CFP). Specifically, the mediating role of corporate reputation (CR) on the relationship between CSR and CFP is examined. We empirically investigate a sample of 3274 listed firms over the period 2009–2016 drawn from 25 countries located at Europe, Asia, Africa, and South and North America. Using four OLS regressions, we evince on the one side that CSR has a positive and direct impact on CFP. On the other side, we show that CR mediates the relationship between CSR and CFP: CSR has a significant and positive impact on CR and that CR has a significant and positive influence on CFP. The results of this study add to CSR‐related literature by providing international evidence and provide direction for a comparison across countries.

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  • Yosra Makni Fourati & Mariam Dammak, 2021. "Corporate social responsibility and financial performance: International evidence of the mediating role of reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1749-1759, November.
    • Handle: RePEc:wly:corsem:v:28:y:2021:i:6:p:1749-1759
    DOI: 10.1002/csr.2143
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    3. David Berlepsch & Fred Lemke & Matthew Gorton, 2024. "The Importance of Corporate Reputation for Sustainable Supply Chains: A Systematic Literature Review, Bibliometric Mapping, and Research Agenda," Journal of Business Ethics, Springer, vol. 189(1), pages 9-34, January.
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    6. Timo Busch & Maximilian Schnippering, 2022. "Corporate social and financial performance: Revisiting the role of innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 635-645, May.
    7. Chao‐Hung Wang & Wei‐Jr Juo, 2024. "Sustainable environmental performance: The mediating role of green reputation in the choice of green marketing or green demarketing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1756-1768, May.
    8. Sojin Jung & Stacy H. Lee, 2022. "The buffering effect of continuous corporate social responsibilities engagement on negative consumer responses toward brand crises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1636-1646, September.
    9. Kyle D. Turner, 2022. "Actions in the spotlight: Differential effects of corporate social responsibility actions on organizational celebrity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 860-870, July.
    10. Juan Carlos Matallín‐Sáez & Amparo Soler‐Domínguez & Salvador Navarro‐Montoliu & Diego Víctor de Mingo‐López, 2022. "Investor behavior and the demand for conventional and socially responsible mutual funds," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 46-59, January.
    11. Francisco José Gomes Silva & Konstantinos Kirytopoulos & Luis Pinto Ferreira & José Carlos Sá & Gilberto Santos & Maria Carolina Cancela Nogueira, 2022. "The three pillars of sustainability and agile project management: How do they influence each other," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1495-1512, September.
    12. Erum Shaikh & Mohsen Brahmi & Pham Chien Thang & Waqas Ahmad Watto & Ta Thi Nguyet Trang & Nguyen Thi Loan, 2022. "Should I Stay or Should I Go? Explaining the Turnover Intentions with Corporate Social Responsibility (CSR), Organizational Identification and Organizational Commitment," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    13. He-Boong Kwon & Jooh Lee & Laee Choi, 2023. "Dynamic interplay of environmental sustainability and corporate reputation: a combined parametric and nonparametric approach," Annals of Operations Research, Springer, vol. 324(1), pages 687-719, May.

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