Does it really pay to be good,everywhere? A first step to understand the corporate social and financial performance link in Latin American controversial industries |
| |
| Authors: | Pablo Rodrigo Ignacio J Duran Daniel Arenas |
| |
| Institution: | 1. Associate Professor, Strategy Department, Business School, Universidad Adolfo Ibá?ez, Vi?a del Mar, Región de Valparaíso, Chile;2. Research Associate, Centre for Business Sustainability, Business School, Universidad Adolfo Ibá?ez, Vi?a del Mar, Región de Valparaíso, Chile;3. Associate Professor, Social Sciences Department, Institute for Social Innovation, ESADE – Ramon Llull University, Barcelona, Catalunya, Spain |
| |
| Abstract: | Most research studying the corporate social performance (CSP)–corporate financial performance (CFP) link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors – such as controversial industries – have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association (or a non‐significant one at best) between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market‐level forces play a major role in shaping this relationship. |
| |
| Keywords: | |
|
|
