Corporate Social Performance, Corporate Financial Performance, Multi-dimensional
Abstract
The dimensions of Corporate Social Performance (CSP) have been constantly debated from the conceptual, empirical, and regulatory perspectives. It is further exacerbated by the ambiguity in the definition of CSP, and is also influenced by cultural and country factors. Without a clear understanding of CSP, it would hinder company’s proactive action in social engagement. In order to promote company social engagement, this paper proposes to examine the influence of CSP on Corporate Financial Performance (CFP) using independent dimensional approach. Four dimensions of CSP are proposed, comprising workplace, marketplace, environment and community. To better grasp the influence of CSP and CFP, this paper also proposes multi-faceted dimensions by disentangling CFP construct into accounting-, market-, and aggregated based measure. Lastly, the paper proposes four individual CSP dimensions influence on three independent CFP based measures. In terms of research implications, a multi-faceted approach of CSP and CFP would provide a concrete and comprehensive insights into their relationships.