The Impact of CSR on Corporate Value of Restaurant Businesses Using Triple Bottom Line Theory

Jimin Shim,Joonho Moon,Namho Chung,Won Seok Lee

doi:10.3390/su13042131

Abstract

The main goal of this study was to investigate the association between corporate social responsibility (CSR) and the value of restaurant firms by employing triple bottom line theory, a framework for a business model of sustainable development focusing on profit, environment, and people rather than just maximizing profit. Even though triple bottom line has been a common theoretical foundation in the CSR area, there is sparse literature on the theory in the context of CSR in the restaurant domain. Data regarding CSR dimensions and market-to-book value from 32 publicly traded restaurant firms in the US stock market for the period 1999–2012 were gathered, and panel data analysis methods of ordinary least square, one-way fixed effect, and time series feasible generalized least square were employed. The results revealed that economic CSR enhanced restaurant value, whereas environmental CSR diminished the value. The theoretical contribution of this study is that it will broaden the scope of triple bottom line theory. The results of the study will help restaurant administrators determine CSR policy.

Highlights

Corporate social responsibility (CSR) is associated with the sustainability of business; CSR has been widely researched in the business context [1,2,3]
The results showed that environmental CSR negatively affected the value of restaurant firms, suggesting that environmental CSR in the restaurant industry could become a cost driver, which is consistent with prior research [71,107]
This study demonstrated the possible applicability of triple bottom line theory to the restaurant business, which is the main theoretical contribution of the study

Summary

Introduction

Corporate social responsibility (CSR) is associated with the sustainability of business; CSR has been widely researched in the business context [1,2,3]. CSR is performed in diverse manners depending on the idiosyncratic characteristics of industries or the relationships between stakeholders [1,4,5,6,7,8]. The industrial characteristics of the restaurant industry, the context of this study, are unique. The representative industrial features of the restaurant industry include labor intensiveness, large employment volume, food waste and packaging issues, nurturing human resources, maintaining diversity, assisting local communities, and food information disclosure [2,9,10,11]. McDonald’s Corporation, a representative quick-service restaurant, has allocated resources to increase their numbers of female full-time employees and their charitable activities in local communities [12]

Objectives

Methods

Results

Discussion

Conclusion