Abstract:
This study attempted to investigate the effects of corporate social responsibility on firm performance. It also tried to identify the mediating role of corporate image on the relationship between corporate social responsibility and firm performance. This research collected data on latent constructs through a questionnaire administered survey of managers across a spectrum of industries in Bangladesh. The proposed model has been empirically tested by using SmartPls 2.0 software. Empirical results, based on a sample of 125 firms, suggest that corporate social responsibility can improve corporate image by establishing good controls and monitoring and thereby improve overall firm performance. The results of this study also suggest that executives should not dismiss corporate social responsibility and also need to take into account the mediating role of corporate image. A more comprehensive model can be developed considering some other context specific variables. This study also highlights the implications of the model.
Machine summary:
"A significant number of academic research investigates the relationship between corporate social responsibility (CSR) and firm performance; however, the findings are indecisive (Chen and Wang, 2011; Jacobs et al.
Hence, one of the objectives of this study is to investigate the mediating role of corporate image on the link between corporate social responsibility (CSR) and firm performance.
A growing number of academic studies empirically tested the impact of corporate image on firm performance and found a positive relationships (Hammond and Slocum, 1996; Roberts and Dowling, 2002).
On the basis of above discussion, the following hypothesis is proposed, H2: There is a positive relationship between corporate image and firm performance Corporate Social Responsibility (CSR) and Firm Performance Scholars broadly argue that organisations can benefit from CSR practices through gaining more customers (Gallardo-Vázquez and Sanchez-Hernandez, 2014).
Recent literature explores some other variables, such as, corporate reputation or image can play a vital role in the link between CSR and firm performance (Galbreath and Shum, 2012; Jamali et al.
Discussion and Implications This study examines the mediating effect of corporate image on the relationship between CSR and firm performance.
The result exhibits that CSR builds strong corporate image through socially responsible business operation which ultimately create a positive impression to the stakeholders as well as firm performance (Galbreath and Shum, 2012).
The findings of this study provides empirical support of the prior studies in developing countries by Belal and Owen (2007) and Islam and Deegan (2008) who argue that CSR is a tool for legitimisation of corporate social and environmental friendly activities."