A Framework to Explicate the Relationship Between CSER and Financial Performance: an Intellectual Capital-Based Approach and Knowledge-Based View of Firm

Abstract

Recently some emphasis has been placed on measuring social and environmental intellectual capital. The major weight of current literature focuses on explaining its mediating role between corporate environmental and social responsibility and corporate financial performance. This mediation approach aims at overcoming the weaknesses of previous methodological frameworks, which recognized a direct casual relationship between corporate social and environmental responsibility and financial performance. This paper outlines a theoretical framework to comprehensively explain the interrelationship among some mediating components for corporate environmental and financial performance, such as social and environmental responsibility, intellectual capital, innovation and competitive advantage. The analysis falls into the knowledge-based view of firms and intellectual capital-based approach of firms and depends on some rational and deductive epistemological reflections which assist in overcoming some existing theoretical weaknesses in the field of corporate environmental and social management.