The impact of Corporate Social Responsibility on financial performance:

An analysis in companies from Obregon City

Authors

  • Yara Landazuri Aguilera Instituto Tecnológico de Sonora, México.
  • Roberto Ruíz Pérez Instituto Tecnológico de Sonora, México.
  • Maria Dolores Moreno M. Instituto Tecnológico de Sonora, México.

DOI:

https://doi.org/10.51896/rilcods.v6i52.442

Keywords:

Corporate social responsibility, financial performance

Abstract

Among the various strategies that companies adopt to try to mitigate social problems is social responsibility, these strategies allow them to compete in the market through the implementation of programs that allow them to implement activities for the benefit of society and in turn improve their financial performance. Therefore, the objective of this research is to analyze the impact of the dimensions of social responsibility on the financial performance of socially responsible companies in Obregon City. The importance of this research is focused on being able to analyze the results obtained from this local sample with the results of studies in Mexico on the same variables. As part of the intellectual merit and the contribution that this research intends to make to knowledge is the quantitative measurement of the variables. The research is non-experimental, cross-sectional correlational, the hypotheses of this study will be verified through the linear regression model. The data is collected through an instrument adapted and applied to a sample of companies in Obregon City that are socially responsible. Among the findings identified is that corporate social responsibility does have a significant impact on the financial performance of socially responsible companies in Obregon City.

References

Aguilera-Caracuel, J., Guerrero-Villegas, J., & Morales-Raya, M. (2015). Responsabilidad social y desempeño financiero en multinacionales: influencia de la diversificación internacional. Revista Venezolana de Gerencia, 20(71), 419-439. https://www.redalyc.org/pdf/290/29042408003.pdf

Aldrich, H. E., & Fiol, C. M. (1994). Fools rush in? The institutional context of industry creation. Academy of management review, 19(4), 645-670. https://doi.org/10.5465/amr.1994.9412190214

Amiraslani, H., Lins, K.V., Servaes, H. et al. Trust, social capital, and the bond market benefits of ESG performance. Rev Account Stud 28, 421–462 (2023). https://doi.org/10.1007/s11142-021-09646-0

Baraibar-Diez, E., & Sotorrío, L. L. (2018). The mediating effect of transparency in the relationship between corporate social responsibility and corporate reputation. Revista brasileira de gestão de negócios, 20, 05-21. DOI: 10.7819/rbgn.v20i1.36005

Barroso Tanoira, F. G. (2008). La responsabilidad social empresarial: un estudio en cuarenta empresas de la ciudad de Mérida, Yucatán. Contaduría y administración, (226), 73-91. https://scholar.google.com/scholar?cluster=14895357236682258388&hl=es&as_sdt=0,5

Campbell, J. L. (2006). Institutional Analysis and the Paradox of Corporate Social Responsibility. American Behavioral Scientist, 49(7), 925–938. https://doi.org/10.1177/0002764205285172

Carroll, A. B. (1999). Corporate Social Responsibility: Evolution of a Definitional Construct. Business & Society, 38(3), 268–295. https://doi.org/10.1177/000765039903800303

Chow, W.S., Chen, Y. Corporate Sustainable Development: Testing a New Scale Based on the Mainland Chinese Context. J Bus Ethics 105, 519–533 (2012). https://doi.org/10.1007/s10551-011-0983-x

Deegan, C. & Gordon, B. (1996) A Study of the Environmental Disclosure Practices of Australian Corporations, Accounting and Business Research, 26:3, 187-199, DOI: 10.1080/00014788.1996.9729510

Deegan, C. (2002), "Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation", Accounting, Auditing & Accountability Journal, Vol. 15 No. 3, pp. 282-311. https://doi.org/10.1108/09513570210435852

Deegan, C., Rankin, M. & Tobin, J. (2002), "An examination of the corporate social and environmental disclosures of BHP from 1983‐1997: A test of legitimacy theory", Accounting, Auditing & Accountability Journal, Vol. 15 No. 3, pp. 312-343. https://doi.org/10.1108/09513570210435861

Díez, F., Blanco, A., Cruz, A., y Prádo, C. (2014). Efecto de la Responsabilidad Social Empresarial sobre la Legitimidad de las Empresas. Anuario jurídico y económico escurialense, (47), 325-348.

Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20(1), 65-91. https://doi.org/10.5465/amr.1995.9503271992

Fong, C. ., Parra, Ángeles ., Soriano, L. ., & Teodoro, E. . (2020). El estado actual de la Responsabilidad Social Empresarial en México. RAN - Revista Academia & Negocios, 6(1), 41-56. Recuperado a partir de https://revistas.udec.cl/index.php/ran/article/view/2618

Freeman, Robert Edward. "Strategic management: a stakeholder approach, Pitman." Boston, MA (1984).

Gallardo-Vázquez, D., Sánchez-Hernández, M. I., & Corchuelo-Martínez-Azúa, M. B. (2013). Validación de un instrumento de medida para la relación entre la orientación a la responsabilidad social corporativa y otras variables estratégicas de la empresa. Revista de contabilidad, 16(1), 11-23. https://doi.org/10.1016/S1138-4891(13)70002-5

Gray, R., Kouhy, R. and Lavers, S. (1995), "Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure", Accounting, Auditing & Accountability Journal, Vol. 8 No. 2, pp. 47-77. https://doi.org/10.1108/09513579510146996

Griffin, J. J., & Mahon, J. F. (1997). The Corporate Social Performance and Corporate Financial Performance Debate: Twenty-Five Years of Incomparable Research. Business & Society, 36(1), 5–31. https://doi.org/10.1177/000765039703600102

Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: what's the bottom line?. Strategic management journal, 22(2), 125-139. https://doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H

Ibarra Morales, L. E., Olivas Valdez, E., Casas Medina, E. V., & Paredes Zempual, D. (2020) Development of Management Skills in the Management of Socially Responsible Enterprises (ESR) of the State of Sonora. Revista RELAYN- Micro Y Pequeña Empresa En Latinoamérica, 4(2), 56–66. https://doi.org/10.46990/relayn.2020.4.2.65

Lee, M. D. P. (2008). A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International journal of management reviews, 10(1), 53-73. https://doi.org/10.1111/j.1468-2370.2007.00226.x

López Salazar, A., Contreras Soto, R., & Molina Sánchez, R. (2011). La responsabilidad social empresarial como estrategia de competitividad en el sector alimentario. Cuadernos de Administración, 24(43), 261-683. https://www.redalyc.org/articulo.oa?id=20521435012

Maignan, I. (2001). Consumers perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of Business Ethics, 30(1), 57–72 https://link.springer.com/article/10.1023/A:1006433928640

Marín, F. D., González, A. B., Suárez, A. C., & Román, C. P. (2014). Efecto de la Responsabilidad Social Empresarial sobre la Legitimidad de las Empresas. Anuario jurídico y económico escurialense, (47), 325-348.

Mathews, M.R. (1997), "Twenty‐five years of social and environmental accounting research: Is there a silver jubilee to celebrate?", Accounting, Auditing & Accountability Journal, Vol. 10 No. 4, pp. 481-531. https://doi.org/10.1108/EUM0000000004417

McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification?. Strategic management journal, 21(5), 603-609. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3

McWilliams, A., Siegel, D., & Van Fleet, D. D. (2005). Scholarly Journals as Producers of Knowledge: Theory and Empirical Evidence Based on Data Envelopment Analysis. Organizational Research Methods, 8(2), 185–201. https://doi.org/10.1177/1094428105275377

Mercado Salgado, P., & García Hernández, P. (2007). La responsabilidad social en empresas del Valle de Toluca (México): un estudio exploratorio. Estudios gerenciales, 23(102), 119-135. http://www.scielo.org.co/scielo.php?pid=S012359232007000100005&script=sci_abstract&tlng=pt

Murthy, V. & Abeysekera, I. 2008, Corporate social reporting practices of top software Indian firms, Australasian Accounting, Business and Finance Journal, Vol. 2, No. 1, pp. 36–59., Available at SSRN: https://ssrn.com/abstract=2601740.

O’Dwyer, B. (2003), "Conceptions of corporate social responsibility: the nature of managerial capture", Accounting, Auditing & Accountability Journal, Vol. 16 No. 4, pp. 523-557. https://doi.org/10.1108/09513570310492290

Olaniyi, T., & Abdusalam, S. (2015). Impact of Corporate Social Responsibility on Firms Profitability: Evidence from Nigeria and Sierra Leone. Amity Business Review, 16(2). https://www.amity.edu/abs/abr/pdf/Vol%2016%20No.2/1.pdf

Oliveira, R. R. D. (2008). Qualidade de vida no trabalho-QVT e responsabilidade social empresarial-RSE: um estudo sobre a satisfação de QVT com funcionários voluntários em programas RSE. http://tede.metodista.br/jspui/handle/tede/124

Orlitzky, M. (2013). Corporate social responsibility, noise, and stock market volatility. Academy of Management Perspectives, 27(3), 238-254. https://doi.org/10.5465/amp.2012.0097

Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization studies, 24(3), 403-441. https://doi.org/10.1177/0170840603024003910

Pradhan, R.P., Arvin, M.B., Nair, M. et al. The information revolution, innovation diffusion and economic growth: an examination of causal links in European countries. Qual Quant 53, 1529–1563 (2019). https://doi.org/10.1007/s11135-018-0826-2

Ramos, M. I. G., Manzanares, M. J. D., & Gómez, F. G. (2014). El efecto del papel mediador de la reputación corporativa en la relación entre la RSC y los resultados económicos. Revista de Estudios Empresariales. Segunda Época, (1). https://revistaselectronicas.ujaen.es/index.php/REE/article/view/1378

Reyno, M. (2006). RSE como ventaja competitiva. Santiago de Chile: Universidad Técnica Gederico Santa María.

Rowley, T. J. (1997). Moving beyond dyadic ties: A network theory of stakeholder influences. Academy of management Review, 22(4), 887-910. https://doi.org/10.5465/amr.1997.9711022107

Salmones, M.d.M.G.d.l., Crespo, A.H. & Bosque, I.R.d. Influence of Corporate Social Responsibility on Loyalty and Valuation of Services. J Bus Ethics 61, 369–385 (2005). https://doi.org/10.1007/s10551-005-5841-2

Singh, K., & Misra, M. (2021). Linking corporate social responsibility (CSR) and organizational performance: The moderating effect of corporate reputation. European Research on Management and Business Economics, 27(1), 100139. https://doi.org/10.1016/j.iedeen.2020.100139

Steurer, R. (2006). Mapping stakeholder theory anew: from the ‘stakeholder theory of the firm’to three perspectives on business–society relations. Business strategy and the environment, 15(1), 55-69. https://doi.org/10.1002/bse.467

Vermeir, W., Van de Velde, E., & Corten, F. (2005). Sustainable and responsible performance. The Journal of Investing, 14(3), 94-101. http://doi.org/10.3905/joi.2005.580555

Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic management journal, 18(4), 303-319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G

Zabala, I., & García, M. (2008). Historia de la Educación Ambiental desde su discusión y análisis en los congresos internacionales. Revista de investigación, 32(63), 201-218. https://creativecommons.org/licenses/by-nc-sa/3.0/ve/

Published

2024-02-23

How to Cite

Landazuri Aguilera, Y., Ruíz Pérez, R., & Moreno M., M. D. (2024). The impact of Corporate Social Responsibility on financial performance: : An analysis in companies from Obregon City. Desarrollo Sustentable, Negocios, Emprendimiento Y Educación, 6(52), 34–48. https://doi.org/10.51896/rilcods.v6i52.442

Issue

Section

Artículos