Stakeholder Prioritization, Strategic Corporate Social Responsibility and Company Performance: Further Evidence

Giacomo Boesso*, Francesco Favotto, Giovanna Michelon

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

38 Citations (Scopus)

Abstract

Using KLD data on more than 900 company's performance over a nine-year period in seven areas of corporate social responsibility (environment, community, corporate governance, diversity, employee relations, human rights, and product quality), this research note re-tests Michelon et al. proxies for prioritization and strategic approaches to CSR. The results show that, when a company pursues CSR initiatives that are linked to stakeholder preferences and allocates resources to these initiatives in a strategic way, the positive effect of its CSR initiatives on financial corporate performance (CP) strengthen. The analysis of KLD's variance and top tiers is thus proposed as a parsimonious way to measure when companies link their CSR initiatives to salient stakeholder preferences and undertake the corporate social actions that are ultimately relevant to the company's strategy and financials.

Original languageEnglish
Pages (from-to)424-440
Number of pages17
JournalCorporate Social Responsibility and Environmental Management
Volume22
Issue number6
DOIs
Publication statusPublished - 1 Nov 2015

Keywords

  • Corporate social responsibility
  • Performance
  • Prioritization and strategic CSR
  • Stakeholder management

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