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Research Article
THE CORPORATE SOCIAL PERFORMANCE–FINANCIAL PERFORMANCE LINK
Article first published online: 4 DEC 1998
DOI: 10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Copyright © 1997 John Wiley & Sons, Ltd.
1097-0266/asset/cover.gif?v=1&s=f21741be70afec8fda7a78364d0bbf96e0cb833f "Strategic Management Journal")
Additional Information
How to Cite
WADDOCK, S. A. and GRAVES, S. B. (1997), THE CORPORATE SOCIAL PERFORMANCE–FINANCIAL PERFORMANCE LINK. Strat. Mgmt. J., 18: 303–319. doi: 10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Publication History
- Issue published online: 4 DEC 1998
- Article first published online: 4 DEC 1998
- Manuscript Revised: 14 MAY 1996
- Manuscript Received: 6 DEC 1994
- Abstract
- Cited By
Keywords:
- corporate social performance;
- social responsibility;
- financial performance;
- management quality
Abstract
Strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them. Recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management, rather than traditional arenas of strategic management. Using a greatly improved source of data on corporate social performance, this paper reports the results of a rigorous study of the empirical linkages between financial and social performance. Corporate social performance (CSP) is found to be positively associated with prior financial performance, supporting the theory that slack resource availability and CSP are positively related. CSP is also found to be positively associated with future financial performance, supporting the theory that good management and CSP are positively related.© 1997 by John Wiley & Sons, Ltd