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Organizational Size, Corporate Social Performance, and Business Performance

In: Toward Integrative Corporate Citizenship

Author

Listed:
  • Marc Orlitzky

    (Pennsylvania State University Altoona)

  • Diane L. Swanson

    (Kansas State University)

Abstract

In the previous two chapters, we presented meta-analytic evidence which suggests that corporate social performance (CSP) is positively related to company financial performance (Chapter 4) and inversely related to business risk (Chapter 5). Even so, Stanwick and Stanwick’s (1998) study raises the suspicion that organizational size may be an exogenous determinant of both CSP and corporate financial performance (CFP). That is, it is possible that the significantly positive path coefficient between CSP and CFP is spurious and disappears when firm size is entered as a third variable (Chen & Metcalf, 1980). However, Stanwick and Stanwick’s (1998) conclusions are limited to their specific sample (Fortune 500 companies) and operationalizations of CSP (Fortune Corporate Reputation Index). The study presented in this chapter takes a broader, more representative perspective.

Suggested Citation

  • Marc Orlitzky & Diane L. Swanson, 2008. "Organizational Size, Corporate Social Performance, and Business Performance," Palgrave Macmillan Books, in: Toward Integrative Corporate Citizenship, chapter 6, pages 147-163, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59470-8_7
    DOI: 10.1057/9780230594708_7
    as

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