Faculty Publications

Performance Outcomes Of Investing Slack Resources In Corporate Social Responsibility

Document Type

Article

Keywords

corporate social responsibility, organization performance, slack resources, stakeholder theory

Journal/Book/Conference Title

Journal of Leadership and Organizational Studies

Volume

25

Issue

4

First Page

481

Last Page

498

Abstract

Our study examined relationships among slack resources, investment in corporate social responsibility (CSR) and firm performance, finding that accounting and market returns respond differently to investments of slack in CSR. Although accounting returns to both financial and organizational CSR investment were positive, equity markets reward organizational slack but punish financial slack investments. Moreover, distinguishing among forms of CSR indicates that both accounting and market returns respond much more positively to investment in stakeholder protection than to investment in stakeholder improvement. Finally, risk, strategy, and governance are mediating mechanisms partially explaining CSR effects but not to the extent we expected.

Original Publication Date

11-1-2018

DOI of published version

10.1177/1548051818762336

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Language

en

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