The Relationships between Corporate Social Performance and Corporate Financial Performance: A Multidimensional Investigation

• In Event: Innovative and Emerging Issues 2

Abstract

Our proposed research will examine two broad questions that are essential for understanding the relationship between CSR and CFP. Our first question is: Are there stable and persistent associations among one or more subsets of the more than 90 specific CSP variables tracked by MSCI? We conceive of such stable, persistent associations as manifestations of a firm’s CSP personality or culture (Eccles et al, 2011). We will use these sets of CSP variables as a basis for classifying firms to address our second question: Are the sets of CSP variables identified in stage 1 related to CFP measures? In this second stage, we will examine the relationships (leading, lagging, or coincident) among groups of “culturally” similar firms with financial performance of those firms. To do this, we will examine key CFP variables derived from the abnormal earnings valuation model.

Authors

• Gregory J Tully, Marist College

• Joan Hollister, SUNY at New Paltz