To what extent is CSR beneficial to a company’s performance?
The area of corporate social responsibility has been laid great emphasis recent year. Corporate social responsibility means a company concerns its business operations in an environmental-friendly way and interacts with its shareholders and customers voluntarily (Commission of the European Communities, 2001, as cited in Dahlsrud, 2008). Nowadays a large quantity of international companies have issued their CSR report and designed separate websites about their CSR performance in order to run a better business. However, opponents believe the relationship between CSR and company’s performance is neutral (Aupperle, Carroll, & Hatfield, 1985) and CSR’s
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Due to its irresponsible performance, “Enron”, once a reliable and notable brand name, was attributed as a biggest audit failure after the scandal. Hence, companies might concern more over CSR performance and try to increase brand value by running business responsibly to the society and interacting with its customers and shareholders. Secondly, it is suggested that corporate social responsibility performance serves as an attraction to job seekers. Psychologically, employees might have more confidence and a sense of satisfaction working in a corporate with proper CSR performance. It can be explained by Social Identity Theory (Tajfel, 1974), which indicates that an employee, as an organization member, will classify himself into a social category. Thus his self-image will be greatly influenced by the image and reputation of a group he is in. In this case, employees will feel self-respecting when they work in a company with proper CSR behavior, because these companies tend to have more notable brand name and higher reputation. With a sense of corporate identity to the company, employees are more loyalty to their employers. Furthermore, employees could gain practical benefit from corporates with CSR performance. The reason is that CSR requires employers to care about employees’ health, working