Promotion Pathways of Financial Performance: A Configuration Analysis of Corporate Social Responsibility Based on a Fuzzy Set Qualitative Comparative Analysis Approach

Chunbao Wang,Haiwei Zhou,Liming Liu,Yukuo Zhang

doi:10.1109/access.2022.3144136

Abstract

To explore the mechanism of multiple conjunctural causation underlying differences in financial performance, this study selects 39 Chinese companies from the Fortune Global 500 as samples and applies configurational thinking and the qualitative comparative analysis (QCA) approach to integrate five variable conditions concerning corporate social responsibility (CSR). The results show that 3 path configurations achieve high financial performance. Specifically, the first configuration includes highly responsible governance, superior employee rights and interests, and effective environmental protection. The second configuration includes highly responsible governance, superior employee rights, and active public charity. The third configuration includes highly responsible governance, active public charity, and effective environmental protection. The four dimensions involved in the above three path configurations have alternative effects in interpreting financial performance. When the level of responsible governance ability is high, as long as any two conditions among employee rights and interests, environmental protection and public charity also attain a high level, this situation can drive the corporation to achieve high financial performance. Based on the conclusions of this paper, management implications from the perspectives of firms are also proposed.

Highlights

In 1899, the term ‘‘corporate social responsibility (CSR),’’ was first proposed in the United States
Taking financial data from the annual report published by the corporation as the outcome variable, we calculate statistics for the data related to responsible governance, employee rights and interests, public charity, environmental protection and legal responsibility disclosed by the corporation
This study considers the social responsibility implemented by 39 Chinese enterprises in terms of specific cases, starting from the three levels of institutional, organizational, and individual, applies configuration thinking and the qualitative comparative analysis (QCA) method to reconfigure the five conditional factors of the above three levels, and discusses the multiple concurrent and complex causal mechanisms that affect high financial performance

Summary

Introduction

In 1899, the term ‘‘corporate social responsibility (CSR),’’ was first proposed in the United States. Carroll developed a framework of the ‘‘pyramid of social responsibility’’ to specify the social responsibilities of firms. According to the ‘‘Research Report on Corporate Social Responsibility of China (2019)’’ compiled by the Chinese Academy of Social. A social responsibility department has only been established in some large companies, and most companies have not yet established such a department. This fact means that in China, the level of corporate social responsibility performance is generally low, and development is very uneven. In the fierce market competition environment, an increasing number of large Chinese companies achieve business goals and attach importance to the implementation of CSR and participate in philanthropy and support education, effective poverty alleviation, environmental protection, and other activities. CSR can bring these companies a good reputation, increase their social influence, and improve

Objectives

Methods

Results

Discussion

Conclusion