Exploring market orientation versus finance orientation effects on perceived CSR motivations and outcomes using resource-advantage (R-A) theory

Abstract

Drawing on resource-advantage (R-A) theory, this paper examines the association between market orientation versus finance orientation and different potential CSR engagement motivations. It also examines if the different CSR motivations, in turn, are associated with differences in fiscal competitiveness and internal customer focus (employee morale). We analyze data from 257 companies. The results indicate that more market-oriented companies engage in CSR due to (a) ‘beneficence’ motivation (it’s the right moral thing) and/or (b) ‘effectiveness’ related motivations (to generate employee goodwill, customer goodwill, and/or competitive advantage). The relationships are somewhat reversed for firms that are more finance-oriented—they are more focused on (a) effectiveness motivation and/or (b) efficiency motivation (everyone else is doing it, avoiding legislation, and/or rising energy costs), but not on (c) beneficence motivation. Last, beneficence and effectiveness motivations are associated with employee morale improvements, making these valuable internal marketing tools, while efficiency motivations are associated with fiscal competitiveness improvements.