Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2013

Abstract

The authors develop the argument that the establishment of good stakeholder relations is influenced not only by a firm’s having a high level of corporate social performance but also by its ability to deliver consistent social performance. Therefore, both level and consistency in corporate social performance should have significant financial implications. More specifically, the authors suggest that level and two types of consistency in corporate social performance—temporal consistency and interdomain consistency—interact positively to influence a firm’s financial performance. Using a sample of 622 firms and 2,365 firm-year observations based on the Kinder, Lydenberg, Domini, & Co. data, the authors found empirical results supporting this argument. In addition, they found that maintaining consistently good social performance is more important for firms with high levels of knowledge intensity.

Keywords

Corporate social performance, Corporate financial performance, Temporal consistency, Interdomain consistency, Knowledge intensity

Discipline

Business Law, Public Responsibility, and Ethics | Finance and Financial Management | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Journal of Management

Volume

39

Issue

2

First Page

416

Last Page

441

ISSN

0149-2063

Identifier

10.1177/0149206310375850

Publisher

SAGE

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1177/0149206310375850

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