The effect of corporate social responsibility performance on financial performance: the case of food industry

摘要

Purpose - The present study examines the impact of the different dimensions of corporate social responsibility (CSR) performance on the financial performance of food companies. Design/methodology/approach - As proxies for the financial performance, two different indices are employed: a single index, namely, operating income and an aggregate financial index, namely, economic score. The CSR performance based on Thomson Reuter's data stream methodology involves three distinct aspects of the CSR concept: environmental, social and governance for the time spanning 2012-2017. Findings - Findings based on estimated generalized least squares (EGLS) indicate that the higher level of environmental performance (as described by an aggregate environmental index), the publishing of a standalone sustainable report and the implementation of quality principles, such as Total Quality Management (TQM), Lean and Six Sigma positively affect the financial performance. Originality/value - The results provide useful implications to stakeholders, mainly to corporate managers and investors for uptaking initiatives aiming toward the eco-efficiency of the food company.