• A Strategic Analysis of Corporate Social Responsibility

Abstract

This study examines the relation between corporate social responsibility (CSR) performance and corporate operating performance (ROA and operating costs) from stakeholders’ points of view. The purpose of this paper is to provide evidence on how to conduct CSR activities to account for stakeholders’ rights. Our results are summarized as follows. First, in general, CSR activities improve operating performance in both short and long run. Second, positive CSR activities have positive impacts on ROA in the short and long run, while negative CSR activities increase operating costs. Third, positive corporate governance, employee relations, and environment activities increase operating performance. Negative community, employee relations, and human rights activities decrease the corporate financial performance.

Keywords: Corporate Social Responsibility, Operating Performance, Stakeholders