Corporate social responsibility and organizational effectiveness: A multivariate approach

In this paper, three major themes in research on corporate social responsibility (CSR) are identified. Of particular interest, however, is the potential link between CSR and organizational effectiveness (OE). Data collected from 410 college graduate and undergraduate students were used to examine this relationship. Using factor analysis, eight dimensions of CSR and three components of OE were extracted. Canonical analysis was then performed. The result supports the proposition that specific CSR practices affect select OE outcomes. In addition, the method employed here provides a parsimonious approach to give priority to social claims.Shaker A. Zahra, Ph.D., is Associate Professor of Strategic Management, George Mason University, Fairfax, VA 22030, U.S.A. His research centers on the role of board of directors in the strategic process, determinants of technological innovation in large corporations, and ethical issues associated with strategic choices. His research has received several awards.Michael S. LaTour, Ph.D., is Assistant Professor of Marketing, College of Business, Old Dominion University, Norfolk, Virginia 23508, USA. His research centers on the role of arousal in consumer behavior and ethical issues arising in this context.