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Corporate Social Responsibility and Firm Financial Performance

Jean B. McGuire, Alison Sundgren and Thomas Schneeweis
The Academy of Management Journal
Vol. 31, No. 4 (Dec., 1988), pp. 854-872
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/256342
Page Count: 19
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Abstract

Using Fortune magazine's ratings of corporate reputations, we analyzed the relationships between perceptions of firms' corporate social responsibility and measures of their financial performance. Results show that a firm's prior performance, assessed by both stock-market returns and accounting-based measures, is more closely related to corporate social responsibility than is subsequent performance. Results also show that measures of risk are more closely associated with social responsibility than previous studies have suggested.

Notes and References

This item contains 42 references.

[Footnotes]
  • 1
    This reference contains 2 citations:
    • Lubatkin and Shrieves (1986)
    • Aaker and Jacobson (1987)
  • 2
    Spicer, 1978
  • 3
    Council on Economic Priorities (1987)
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