Does Corporate Social Responsibility Pay Off in Times of Crisis? An Alternate Perspective on the Relationship between Financial and Corporate Social Performance

ABSTRACT There are numerous studies analyzing the relationship between corporate social performance (CSP) and financial performance, and even if recent surveys give the upper hand to a generally positive relationship, this question still gives rise to debate. I have chosen to approach this theme from a different angle in order to provide an alternate perspective on this issue: does CSP play a role during periods of uncertainty? I test this hypothesis of CSP acting as an insurance‐like protection on a sample of French listed companies, over several reference periods around the current financial crisis. My findings show a significant positive link between CSP and financial performance for the period corresponding to the beginning of the crisis (second‐half of 2007), but in early 2007 and after the first six months of turmoil, there is no longer a significant connection between the two variables. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.