What question did this study set out to answer?

To investigate how methodological choices and metric selection influence the observed relationship between corporate social performance and corporate financial performance.

March 1, 1997Business & Society

The Corporate Social Performance and Corporate Financial Performance Debate

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Authors

JGJennifer J. GriffinLoyola University Chicago JMJohn F. MahonCappagh National Orthopaedic Hospital

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Implication

Empirical analysis reveals measurement choices predetermine social and financial performance links in the chemical industry, suggesting metric selection biases empirical findings.

Key Points

To investigate how methodological choices and metric selection influence the observed relationship between corporate social performance and corporate financial performance.
Focused on firms within the chemical industry using multiple data sources to assess corporate social performance.
Employed two perception-based measures (KLD Index and Fortune reputation survey) alongside two performance-based measures (Toxic Release Inventory database and corporate philanthropy).
Evaluated corporate financial performance across the five most commonly used accounting measures in the existing literature.
A priori selection of measurement tools directly predetermines the statistical outcome of the corporate social performance and financial performance relationship.
Perceptual measures track each other closely, whereas performance-based measures differentiate social performance levels but do not correlate with corporate financial metrics.

Cite This Study

Griffin et al. (1997) studied this question.

synapsesocial.com/papers/69d737283f2a6ac123b8a7b4 https://doi.org/10.1177/000765039703600102

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Implication

Empirical analysis reveals measurement choices predetermine social and financial performance links in the chemical industry, suggesting metric selection biases empirical findings.

The Corporate Social Performance and Corporate Financial Performance Debate

Discussion

Member takes

Implication

Key Points

Cite This Study

The Corporate Social Performance and Corporate Financial Performance Debate

Discussion

Member takes

Implication

Key Points

Cite This Study

Also Consider

Also Consider