Does it really pay to be good, everywhere? A first step to understand the corporate social and financial performance link in Latin American controversial industries

Pablo Rodrigo, Ignacio J. Duran, Daniel Arenas

Research output: Contribution to journalArticlepeer-review

44 Scopus citations

Abstract

Most research studying the corporate social performance (CSP)-corporate financial performance (CFP) link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors - such as controversial industries - have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association (or a non-significant one at best) between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market-level forces play a major role in shaping this relationship.

Original languageEnglish
Pages (from-to)286-309
Number of pages24
JournalBusiness Ethics
Volume25
Issue number3
DOIs
StatePublished - 1 Jul 2016
Externally publishedYes

Fingerprint

Dive into the research topics of 'Does it really pay to be good, everywhere? A first step to understand the corporate social and financial performance link in Latin American controversial industries'. Together they form a unique fingerprint.

Cite this