Abstract
Measuring impact of corporate actions on corporate social performance (CSP) is traditionally recognized to be notoriously difficult. This manuscript reports results of a study using Net Impact Method to quantify CSP and approximates corporate financial performance (CFP). We report findings on the CFP-CSP relationship and consider temporal lags between CFP measures and CSP impacts. Our findings are mostly supporting existing research but contrary to earlier research we find non-linear dynamics between CFP and CSP measures on some accounts. Although we used a limited dataset, our findings shed additional light to the CFP-CSP relationship.
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