Corporate Saints and Sinners: The Effects of Philanthropic and Illegal Activity on Organizational Performance

Richard E. Wokutch; Barbara A. Spencer

doi:10.2307/41165239

Abstract

This article utilizes a two-dimensional view of corporate social responsibility (CSR) to examine the relationships between corporate financial performance and experts9 ratings of CSR. The two dimensions are compliance/noncompliance with society9s minimal expectations (the law) and involvement/noninvolvement in praiseworthy or supererogatory behavior (philanthropic contributions). In this study, four groups of corporations are identified: (no crimes, high contributions); pharisees (no crimes, low contributions); (crimes, high contributions); and (crimes, low contributions). A survey of industry experts reveals that the saints and the cynics/repenters groups were rated significantly higher on CSR than the other two groups. Firms in the sinners group performed significantly poorer than the other three groups on two five-year financial performance measures. These results have important implications for the debate over the relationship between CSR and financial performance.

Keywords

Corporate social responsibilityCompliance (psychology)BusinessAccountingPublic relationsPsychologyPolitical scienceSocial psychology

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Publication Info

Year: 1987
Type: article
Volume: 29
Issue: 2
Pages: 62-77
Citations: 176
Access: Closed

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APA Style

                            
                                    Richard E. Wokutch, 
                                
                                    Barbara A. Spencer
                                
                            (1987). 
                            Corporate Saints and Sinners: The Effects of Philanthropic and Illegal Activity on Organizational Performance. 
                            California Management Review
                            , 29
                            (2)
                            , 62-77.
                            https://doi.org/10.2307/41165239

Identifiers

DOI: 10.2307/41165239