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The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership
Author(s) -
Javed Muzhar,
Rashid Muhammad Amir,
Hussain Ghulam,
Ali Hafiz Yasir
Publication year - 2019
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1892
Subject(s) - corporate social responsibility , reputation , business , stakeholder , contingency theory , stakeholder theory , accounting , perception , contingency , social responsibility , structural equation modeling , public relations , stakeholder engagement , stakeholder management , marketing , management , economics , psychology , political science , linguistics , philosophy , statistics , mathematics , neuroscience , law
Drawing on stakeholder theory and contingency theory, this study examines the effects of Corporate Social Responsibility (CSR) on corporate reputation and financial performance of Pakistani firms with a moderating role of responsible leadership. Perceptual data on CSR, reputation, and performance were collected from 224 senior‐level Pakistani managers through a questionnaire survey. Structural equation modeling was used to analyze the data. The results reveal that socially responsible initiatives for disparate stakeholders significantly and positively influence corporate reputation and financial performance. Moreover, CSR–reputation and CSR–performance direct relationships were found to be negatively moderated by responsible leadership. It suggests that when socially responsible firms have leaders with strong stakeholder values, they practice excessive CSR that hurts performance.