The effect of corporate social responsibility performance on financial performance: the case of food industry
Benchmarking: An International Journal
ISSN: 1463-5771
Article publication date: 28 August 2020
Issue publication date: 8 October 2020
Abstract
Purpose
The present study examines the impact of the different dimensions of corporate social responsibility (CSR) performance on the financial performance of food companies.
Design/methodology/approach
As proxies for the financial performance, two different indices are employed: a single index, namely, operating income and an aggregate financial index, namely, economic score. The CSR performance based on Thomson Reuter’s data stream methodology involves three distinct aspects of the CSR concept: environmental, social and governance for the time spanning 2012–2017.
Findings
Findings based on estimated generalized least squares (EGLS) indicate that the higher level of environmental performance (as described by an aggregate environmental index), the publishing of a stand-alone sustainable report and the implementation of quality principles, such as Total Quality Management (TQM), Lean and Six Sigma positively affect the financial performance.
Originality/value
The results provide useful implications to stakeholders, mainly to corporate managers and investors for uptaking initiatives aiming toward the eco-efficiency of the food company.
Keywords
Acknowledgements
The research work was supported by the Hellenic Foundation for Research and Innovation (HFRI) and the General Secretariat for Research and Technology (GSRT), under the HFRI PhD Fellowship grant (GA. no. 2280).
Citation
Partalidou, X., Zafeiriou, E., Giannarakis, G. and Sariannidis, N. (2020), "The effect of corporate social responsibility performance on financial performance: the case of food industry", Benchmarking: An International Journal, Vol. 27 No. 10, pp. 2701-2720. https://doi.org/10.1108/BIJ-11-2019-0501
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited