Linking Corporate Social Responsibility (CSR) and Organizational Performance: the moderating effect of corporate reputation

The study empirically investigates the relationship between corporate social responsibility (CSR) and organizational performance from the perspective of European multinational firms. Further, the study examines the effectiveness of corporate reputation as a moderator on CSR-organizational performance linkages. Final data comprised 340 responses collected from senior executives/managers working in European multinational firms. A two-stage approach was used to analyze the association: stage 1 involved theoretical model construction using the strategic paradigm of literature; in stage 2, hierarchical regression analysis was performed to examine the relevant relationships. Results have shown that CSR, when exercised towards external stakeholders, influences organizational performance. Moreover, this influence has been found to vary between well-established, reputable firms and business firms with weaker reputations.