A Non-Linear and Disaggregated Approach to Studying the Impact of CSR on Accounting Profitability: Evidence from the Polish Banking Industry

Łukasz Matuszak , Ewa Różańska

Abstract

Corporate social responsibility (CSR) is now extensively promoted in the European Union and highly desired by stakeholders. However, from a manager’s point of view, the question of whether or not corporations should conduct CSR activities is controversial because of the accompanying high cost and uncertain benefits. The vast empirical literature appears to be rather inconclusive with respect to the question of whether CSR business engagement creates or destroys financial performance (FP). This study suggests that the inconsistent findings may be due to the use of aggregated CSR measures and a linear approach, as well as the omission of the industry or country context. Thus, the purpose of this study is to provide an updated assessment of the relationship between CSR and FP. Based on content analysis, we developed four individual CSR disclosure indices, corresponding to the environmental, human resources, product and customers, and community involvement dimensions, instead of an overall CSR composite score, and we examined their impact on accounting-based measures. We applied both linear and non-linear approaches. Data from Poland’s banking industry for the period 2008–2015 provided the background for this study. Our results confirm the existence of a U-shaped relationship between human resources and FP, and an inverse-U-shaped relationship between FP and community involvement, and FP and product and customers. This study contributes not only to the CSR literature by providing new insights into this relationship between CSR dimensions and FP, but it also offers policy suggestions for both bank managers and government regulators
Author Łukasz Matuszak (WZ / KR)
Łukasz Matuszak,,
- Department of Accounting
, Ewa Różańska (WZ / KR)
Ewa Różańska,,
- Department of Accounting
Journal seriesSustainability, ISSN 2071-1050, (N/A 70 pkt)
Issue year2019
Vol11
No1
Pages1-21
Publication size in sheets1
Keywords in Polishspołeczna odpowiedzialność biznesu; ujawnienia CSR, wyniki finansowe, zależność nieliniowa, sektor bankowy, Polska
Keywords in English corporate social responsibility; CSR disclosure; financial performance; non-linear relationship; banking industry; Poland
ASJC Classification3305 Geography, Planning and Development; 2105 Renewable Energy, Sustainability and the Environment; 2308 Management, Monitoring, Policy and Law
DOIDOI:10.3390/su11010183
URL https://www.mdpi.com/2071-1050/11/1/183/htm
Languageen angielski
Score (nominal)70
Score sourcejournalList
ScoreMinisterial score = 70.0, 16-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 2; Scopus SNIP (Source Normalised Impact per Paper): 2016 = 0.911; WoS Impact Factor: 2018 = 2.592 (2) - 2018=2.801 (5)
Citation count*7 (2020-07-06)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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