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Effects of corporate social responsibility and irresponsibility on firm financial performance: A longitudinal fuzzy-set analysis of the largest American companies

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  • Thi-Minh Ngoc Nguyen

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)

  • Sébastien Brion

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU - Aix Marseille Université)

  • Vincent Chauvet

    (CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon)

Abstract

There is a fundamental interest in management research: whether, how, and when corporate social responsibility leads to corporate financial performance. Despite tremendous past effort, the available answers are still unsatisfied. We address this traditional gap by suggesting a fresh viewpoint: the existence of corporate social irresponsibility and the dynamic relationships between corporate social responsibility and irresponsibility. Specifically, we ground on signaling perspective to explore the long-term financial impact of both responsibility and irresponsibility-related signals in their relational mechanisms. Using a sample of the largest American companies on a built longitudinal configurational framework, we find several causal recipes of combining these positive and negative signals toward a high level of financial performance. Our study makes theoretical contributions to signaling theory and corporate social performance research.

Suggested Citation

  • Thi-Minh Ngoc Nguyen & Sébastien Brion & Vincent Chauvet, 2023. "Effects of corporate social responsibility and irresponsibility on firm financial performance: A longitudinal fuzzy-set analysis of the largest American companies," Post-Print hal-04032510, HAL.
    • Handle: RePEc:hal:journl:hal-04032510
    Note: View the original document on HAL open archive server: https://hal.science/hal-04032510v1
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    References listed on IDEAS

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    1. Vanessa M Strike & Jijun Gao & Pratima Bansal, 2006. "Being good while being bad: social responsibility and the international diversification of US firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 850-862, November.
    2. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    3. Price, Joseph M. & Sun, Wenbin, 2017. "Doing good and doing bad: The impact of corporate social responsibility and irresponsibility on firm performance," Journal of Business Research, Elsevier, vol. 80(C), pages 82-97.
    4. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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