Corporate social performance, financial performance and institutional ownership in Canadian firms

This study examines the relationship of corporate social performance (CSP) to financial performance (FP) and institutional ownership. We perform our empirical analyses on a large-sample of publicly held Canadian firms and use a novel independent measure of CSP. Based on tests utilizing four years of panel data, we found no significant relationship between a composite measure of firms\u27 CSP and FP. However, we found significant relationships between individual measures of firms\u27 CSP regarding environmental and international activities and FP. Our findings indicate a significant relationship between firms\u27 composite CSP measure and the number of institutions investing in firms\u27 stock. In addition, we found significant relationships between firms\u27 CSP ratings regarding their international activities and product quality and the number of institutions investing in firms\u27 stock. These findings, while subject to the limitations inherent in the use of specific CSP measures, provide mixed support for the business case for CSP. © 2007 Elsevier Ltd. All rights reserved

Capturing complexity in how configurations of firm Internal Orientations impact corporate social performance outcomes: Breaking from the dominant logic of symmetric-variable to asymmetric-case-based theory and testing

This study exemplifies how an asymmetric and case based (configurational) research approach (using fuzzy state logic and complexity theory) is useful for conceptualization and explanation of complex topics and heterogeneous outcomes. The study here analyses the recipes (condition combinations) for Internal Orientation constructs (IO: strategic intent, CSP management, strategic orientation and industrial standards) among multi-national companies (MNCs) indicating “high” levels of corporate social performance (CSP) and the “United Nations Principles for Responsible Investment” (UNPRI) ESG factor framework (Environment, Social-human rights, and Governance) – separately and as a whole. The study applies a mixed methods research design and includes comparing ESG with financial performance across a “Top-100 Sustainable Companies Index” (n?=?82 of MNCs trading on the Swedish stock exchange). The study's findings support the core tenets of complexity theory; all four IO constructs affect a high E or S or G outcome but not all three outcomes in combination