The Effect of Corporate Social Responsibility Strengths and Concerns on Financial Performance: MNEs vs. U.S. Domestic Firms

摘要

We argue that inconsistencies on whether or not firms should allocate additional resources into CSR investments are due to the different measurements of CSR. As such, we distinguish between CSR concerns and strengths to explore their relationship with firm financial performance. Additionally, we test whether the relationship between CSR and firm performance is moderated by the type of the firm in terms of being multinational or domestic. We find that increases in CSR strengths as well reductions in CSR concerns are positively linked to firm financial performance. Our results also suggest that addressing concerns would be more beneficial to MNEs.