Aspects Of Corporate Social Responsibility Research Articles

Web‐based corporate social responsibility disclosure practices: A systematic literature review and research directions

AbstractThe current paper aims to conduct a comprehensive systematic review of the existing literature on web‐based Corporate Social Responsibility (CSR) disclosure practices and introduce suggestions for scholars in this research area. To achieve this main objective, a systematic literature review technique was adopted, consisting of the content analysis of 119 papers from different scientific databases utilizing specific inclusion and exclusion criteria. The findings of the study show that scholars have a strong and continuing interest in a variety of web‐based Corporate Social Responsibility disclosure (CSRD) aspects. Moreover, the investigation revealed that stakeholder, legitimacy, institutional, and Media‐Richness theories were more prevalent in the online CSRD literature. According to the investigation, the two key determinants of online CSRD are firm‐ and country‐level characteristics. The results further confirm that content analysis is the most common research methodology. Furthermore, the bulk of online CSRD studies are from Spain, Malaysia, and the United States. Moreover, findings indicate that samples of 91 up to 200 entities from listed companies from multiple industries and banks are the most common sample sizes and sectors. The review suggests that there is a gap in the use of mixed methodological studies. The current work has some limitations. In more detail, this study limited the search to reviewing 119 papers published in English peer‐reviewed journals that focused on web‐based CSR disclosure practices until February 2023, so there might be other academic studies accidentally missed. Future studies will require a mixed methodological approach, including quantitative (e.g., document analysis) and qualitative research methods (i.e., interviews and case studies), to examine, for example, the determinants (e.g., corporate governance mechanisms, cultural dimensions, ESG performance scores, and prosperity status like country governance, investment environment) and consequences (i.e., corporate cash holdings, credit ratings) of web‐based CSR disclosure in various sectors such as the banking sector, Universities, SMEs, and MNCs. The study reveals a strong interest in web‐based CSR aspects, emphasizing its significance in fostering societal relationships among businesses and their stakeholders. Furthermore, the study suggests that professional bodies, regulators, and policymakers should establish effective standards for CSRD on websites to ensure the quality, quantity, and type of information available. The originality of this paper derives from its being one of the first papers to date that analyses comprehensively and systematically all the articles related to internet CSR disclosure practices and brings out interesting directions for future research.

Keeping them honest? Exploring the impact of labor unions on CSR

Purpose The role of labor unions in relation to corporate social responsibility (CSR) remains both ambiguous and crucial for union members and business leaders. Given the complex relationship between labor unions and corporations, this study aims to address whether labor unions keep corporations honest (by monitoring CSR activities) or potentially render CSR initiatives less necessary. Design/methodology/approach Using data from the MSCI Kinder, Lydenberg, Domini Database for firms in the Russell 1000 Index, this study examines the link between labor unions and CSR in U.S. companies over a six year period. Generalized least squares models were used to test the hypotheses for 3,937 firm-year observations. Findings The findings show that unionized companies generally pay less attention to CSR compared to nonunionized ones. The presence of labor unions and positive union-management relations both show a significant negative impact on CSR ratings, where positive union-management relations negatively affect CSR ratings more than just the presence of labor unions. Further, when considering the environmental, social and governance aspects of CSR separately, the results are more complex, suggesting that the relationship between labor unions and CSR varies depending on specific ESG dimensions. Originality/value CSR, a well-researched area, rarely addresses the companies' relationships with labor unions. Studies in South Korea and the UK have touched on the impact of labor unions on CSR, but in the USA it remains unexplored. This study extends this line of work by examining U.S. companies.

Corporate social responsibility and labor tax avoidance: Evidence from Spain

AbstractThis study expands on the scope of firms' social responsibility and analyzes the relationship between Environmental Social Governance (ESG) and a commonly neglected aspect of Corporate Social Responsibility (CSR), which is tax payment – specifically, the payment of labor taxes. To test the research hypothesis, this study utilizes ESG data from Refinitiv Eikon and consolidated accounting data collected from Sistemas de Análisis de Balances Ibéricos (SABI) and applies panel data estimation. The regression results indicate that CSR has a negative and significant relationship with Labor Tax Avoidance (LTAV). This negative relationship remains robust and significant across different estimation methods and measures of CSR and LTAV. Our research suggests that managerial and practical concerns regarding social responsibility awareness are related to firms' decisions, impacting both society and employees, particularly concerning the avoidance of labor taxes.

CSR inequality, managerial myopia and hostile takeover threats

PurposeExploiting a novel measure of hostile takeover exposure primarily based on the staggered adoption of state legislations, we explore a crucial, albeit largely overlooked, aspect of corporate social responsibility (CSR). In particular, we investigate CSR inequality, which is the inequality across different CSR categories. Higher inequality suggests a less balanced, more lopsided, CSR policy.Design/methodology/approachIn addition to the standard regression analysis, we perform several robustness checks including propensity score matching, entropy balancing and an instrumental-variable analysis.FindingsOur results show that more takeover exposure exacerbates CSR inequality. Specifically, a rise in takeover vulnerability by one standard deviation results in an increase in CSR inequality by 4.53–5.40%. The findings support the managerial myopia hypothesis, where myopic managers promote some CSR activities that are useful to them in the short run more than others, leading to higher CSR inequality.Originality/valueOur study is the first to exploit a unique measure of takeover vulnerability to investigate the impact of takeover threats on CSR inequality, which is an important aspect of CSR that is largely overlooked in the literature. We aptly fill this void in the literature.

The impact of women's empowerment and access to finance on greenhouse gas emissions: A framework for securing environmental tranquility

This study explores corporate environmental responsibility, which is an integral aspect of corporate social responsibility, through the lens of women's empowerment and their role in shaping eco-friendly policies. Examining 74 nations, the study reveals that women's influence significantly reduces greenhouse gas emissions within an empowerment index of 67.5–75. However, we observe a decline in corporate environmental quality beyond the 82.5 threshold. In particular, loans and money supply exacerbate emissions, indicating that financial activities have an influence on environmental quality. Considering different financial indicators, the study underscores that women's empowerment is distinctly correlated with lowering emissions within the $3.77 million to $14.71 million range. This financial range signifies a critical zone in which women's impact is most pronounced. Environmental quality also improves above $31.59 million. This study emphasises the critical importance of integrating women into corporate environmental initiatives, showcasing the potential for advancing long-term benefits and a greener corporate image.

ЕВОЛЮЦІЯ СИСТЕМИ КОРПОРАТИВНОЇ СОЦІАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ

The pandemic and the post-Covid period, military actions on the territory of Ukraine have changed the orientations in the strategic planning of business entities. Entrepreneurs have become more socially responsible and environmentally conscious participants in the global economy. In the conditions of geopolitical and cultural transformations, they felt their important role in the formation of a strong civil society. The article examines modern aspects of corporate social responsibility (CSR) as a relevant component of enterprise management. The periods of formation and development of CSR are systematized, citing the authors of the main works of that time and the main ideas of doctrines. The limitations of each stage of evolution during the transition to the next one are defined. The conducted research proves that CSR is a complex multi-component system, the elements of which are able to stimulate the sustainable development of the ecosystem, contribute to social stabilization and environmental restoration. Creating a favorable environment for prosperity means not only supporting economic growth and entrepreneurship, but also ensuring equal opportunities, improving the quality of life, and investing in human capital. The authors characterized the theoretical foundations of CSR formation, highlighting approaches and concepts based on object-functional analysis. Practical recommendations for the effective use of CSR are offered, such as professional trainings, social and charitable missions, support for educational and cultural initiatives, implementation of environmental projects, energy saving and food security programs, cooperation with local communities, etc. CSR becomes a kind of catalyst for enterprises that seek to play a positive role in society and contribute to the development of the future welfare of nations. The decisive role of CSR in ensuring the competitiveness and successful development of enterprises in harmony with nature and achieving social progress of society in today’s globalization conditions has been confirmed.

Pengaruh Karakteristik Perusahaan Terhadap Pengungkapan Kesehatan dan Keselamatan Kerja: Studi Empiris pada Perusahaan Infrastruktur dan Pertambangan yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2019-2021

Disclosure of occupational health and safety is a crucial aspect of corporate social responsibility, requiring in-depth attention from the company. This research aims to analyze the impact of company size, leverage, and company age on Occupational Health and Safety (K3) disclosure. The research object involves infrastructure and mining companies listed on the Indonesia Stock Exchange during the 2019-2021 period. The method applied is panel data regression analysis. The research results show that company size and company age have a positive effect on occupational health and safety disclosures, while leverage has a negative effect on occupational health and safety disclosures.

Review of Corporate Social Responsibility Dimensions

Corporate Social Responsibility (CSR) is an important self-regulating business model that helps businesses to be accountable to their stakeholders. This paper reviews the role of CSR and its dimensions for businesses The study aims to fill a gap in the existing literature by covering six CSR dimensions which are business governance, community welfare, health and education, workforce, product and services, and environment and energy. These broader six dimensions of CSR are further discussed in detail highlighting the aspects of CSR. CSR is used as a tool to compete in the competitive market and gain benefits of proving to be socially responsible. The paper also examines the relationship between CSR and competitive advantage, weighing the concept of shared value.

Corporate Social Responsibility (CSR) Reporting in Pakistan: Insights from Stakeholder Perspectives

Background: Corporate Social Responsibility (CSR) reporting has become a de facto in business law. Previous studies on CSR reporting only focused on the context of developed countries however in new research CSR reporting on developing countries has also started to garner attention. Research Aim: This study aims to explore the perspectives of the stakeholders of Pakistan on Corporate Social Responsibility (CSR) reporting. Methodology: This study used a qualitative research approach to explore the perspectives of the stakeholders. The data was collected by interviewing a diverse group of stakeholders in Pakistan. The research employed a thematic analysis for patterning the interview questions. The interviews were done with ethical consideration and with the consent of each of the participants and reporting was on par with the ethical standards for interview design. Results: The outcomes of the study give a meticulous understanding of aspects of CSR in Pakistan and could lead the researchers, policymakers and organizations to improve CSR reporting and practices in the country. Through the perspectives of diverse groups of stakeholders, insights into the complications of CSR reporting were revealed. Conclusion: This study has highlighted the evolving nature of CSR reporting, the institutional factor, the stakeholder’s growing role and the challenges that organizations have faced

Board of directors, COVID-19, and corporate social responsibility monetary performance: direct and interaction effects analysis

Purpose This study aims to provide archival evidence on the impact of board characteristics on corporate social responsibility (CSR) monetary performance and how they interact with the COVID-19 pandemic in the context of CSR monetary performance. Design/methodology/approach This study analyzes listed companies in Oman’s capital market from 2016 to 2021, using pooled ordinary least squares and unique CSR performance measures such as budgeting and spending. Findings The study finds that companies with more expertise and frequent meetings are more likely to allocate a larger budget for CSR activities. However, this does not apply to larger boards or to independent directors. During the COVID-19 pandemic, the effect of independent directors on CSR budgeting and spending is more pronounced, and boards with more expertise and meetings show a negative interaction with the pandemic. The interaction of board characteristics with COVID-19 in terms of CSR monetary performance varies depending on company size. Board independence and expertise show a significant reaction to COVID-19 infection and death cases when setting CSR budgeting and spending. Research limitations/implications The findings of this study are stimulating, but stem from an emerging country with unique cultural and institutional characteristics. Methodological issues were also encountered during the analysis, so readers should exercise caution when applying the results to other settings. Practical implications This study highlights board involvement in deciding a company’s CSR investment, as it was believed that chief executive officers are considered responsible for CSR activities. Additionally, this research underscores the significance of incorporating the financial aspects of CSR into reporting. Originality/value This study examines the seldom explored relationship between corporate boards and CSR monetary aspects during regular and irregular times, offering theoretical and practical insights that benefit multiple stakeholders.

CSR in Ukrainian Retail Enterprises in Time of the COVID-19 Pandemic and the Russian Invasion (2019–2022)

The corporate social responsibility (CSR) landscape of Ukraine’s retail sector underwent profound and global transformations during the COVID-19 pandemic and the extensive Russian incursion into Ukraine in 2022. These transformations were precipitated by rapid changes in the operational activities of the retail sector’s enterprises, resulting from significant external disruptions. Consequently, the primary objective of this study is to analyse the indicators of the CSR status of Ukraine’s retail enterprises and ascertain the extent of the changes that occurred due to the pandemic and Russia’s incursion. The study also aims to determine the influence of these transformations on CSR initiatives and identify key issues within the realm of corporate social responsibility in Ukraine’s retail sector. To quantify these changes, indicators of CSR status encompassing key aspects of corporate social responsibility (economic, legal, environmental, and social indicators) were selected (Carroll, 1979). To achieve the set objectives, research methods such as analysis (measuring CSR indicators), comparison (relating the examined indicators chronologically), induction (identifying specific factors affecting the overall CSR status of retail enterprises), and deduction (determining the nature of the impact of the overall CSR status on its individual aspects) were employed. Throughout the investigation, the significant impact of the COVID-19 pandemic along with the comprehensive Russian incursion into Ukraine on the CSR status of retail enterprises was revealed. It was observed that enterprises reduced nonessential and irrelevant activities at that time not only to support stakeholder interests and enhance working conditions for employees, but also to aid community support.

Building food consumer loyalty through economic corporate social responsibility: the moderating effects of environmental and social dimensions

Research into the impact of Corporate Social Responsibility (CSR) on consumer behaviour has consistently revealed that CSR initiatives possess the potential to mould specific consumer attitudes and behaviours that, in turn, profoundly influence the overall success of businesses. Building upon the theoretical framework of the expectation disconfirmation theory, this study seeks to delve deeper into the intricate dynamics that underlie the influence of consumers’ perceptions of a company’s CSR efforts on their satisfaction levels and, consequentially, their propensity to exhibit brand loyalty. Previous CSR studies have ignored the possible interactions between CSR dimensions. This study tests the moderating role of social and environmental aspects of CSR in the relationship between economic responsibility and consumer satisfaction, influencing consumer loyalty. A sample of 252 Spanish consumers was used to test the hypotheses. The findings suggest that each aspect of CSR has varying levels of impact, and their interplay also significantly affects satisfaction and consequent loyalty. The economic aspect most influences consumer loyalty, and its effect is amplified as social or environmental aspects increase.

A win-win situation: uncovering the relationship between CSR reporting and financial performance in Indian companies

PurposeThis study aims to evaluate the relationship of corporate social responsibility (CSR) reporting with the financial performance of firms using various market and accounting-based parameters in a developing economy, India.Design/methodology/approachThe study uses content analysis to develop a CSR reporting index for the Indian firms listed on the Bombay Stock Exchange. The two-step system generalized methods of moments has been used for the estimation of the panel data.FindingsThe results from the study suggest that the CSR reporting-based activities of the firms may impact the financial performance of the firms, but at the same time, the need of the hour is to create awareness among the investors and market players so that they realize the relevance of CSR reporting, which can further improve other dimensions of financial performance as well.Research limitations/implicationsThe study relies on Tobin’s Q and return on assets while measuring financial performance, though there are various other parameters that can be used to gauge the performance. The outcomes of this study have practical implications for the practitioners as well as policymakers, incentivizing them to integrate CSR aspects into their decision-making frameworks.Originality/valueTo the best of the authors’ knowledge, this is the first Indian study to develop a unique index for CSR reporting and linking it with financial performance. This study shall assist the researchers in broadening the scope of CSR studies in India and can be used to draw a systematic comparison with developed nations.

Social Corporate Responsibility of Champion Breweries and Socio-economic Development in Host Communities in Akwa Ibom State (2015-2022): A Critical Appraisal

As organizations seek to expand their patronage for profit-making, they develop different strategies to establish equilibrium with the host communities. One such strategy is Corporate Social Responsibility (CSR) which has been ingrained in the organizational culture of Champion Breweries, Akwa Ibom State. However, some of the approaches of CSR have not matched the intrinsic essentials of socio-economic development, which is why the paper is aimed at examining the CSR of Champions Breweries to the host communities. The Stakeholder’s Theory was adopted for the study. The qualitative method represented through the descriptive research design was used for the study. Data were also obtained through the interview method. It was discovered that Champion Breweries have contributed to socioeconomic development in the host communities through donations for power supply, provision of annual scholarships to at least 10 indigenes of the host communities, and sponsoring free medical services. However, it was observed that these contributions were majorly presented in monetary forms through donations to certain institutions and projects, without concrete supervision on their uses and effects. It was recommended that Champions Breweries should not only focus on the monetary aspect of CSR but also include services, infrastructures and skill-based programmes in its CSR package.

Should Brands Talk about Environmental Sustainability Aspects That “Really Hurt”? Exploring the Consequences of Disclosing Highly Relevant Negative CSR Information

When communicating their CSR (Corporate Social Responsibility) activities many companies predominantly release positive information. However, relying solely on positive information holds potential risks. Brands are consequently confronted with the dilemma of whether to exclusively disclose positive details about their environmental CSR activities (i.e., one-sided messages) or opt for voluntary disclosure of positive and negative information (i.e., two-sided messages). Existing literature distinguishes moderately and highly relevant types of negative information. However, prior research has predominantly overlooked the investigation of highly relevant negative CSR information. Therefore, our primary objective is to explore the impact of two-sided messages encompassing highly relevant negative CSR information in comparison to one-sided messages. We conducted four online experiments in two countries with different brands (study 1 (Germany, Mercedes-Benz, n = 457); study 2 (Germany, Porsche, n = 431); study 3 (USA, Mercedes-Benz, n = 468) and study 4 (USA, Tesla, n = 465)). The results reveal that two-sided messages with the disclosure of highly relevant negative CSR information lead to negative effects in comparison to one-sided messages with only positive information. Consequently, brands should exercise caution in communicating highly relevant negative CSR aspects. Our findings offer notable theoretical insights and practical implications.

The Influence of Corporate Social Responsibility Aspects on Business Model Innovation, Competitive Advantage, and Company Performance: A Study on Small- and Medium-Sized Enterprises in Iran

This study explores how the dimensions of corporate social responsibility (CSR) as defined by Carroll, along with environmental responsibility, impact business model innovation (BMI), competitive advantage, and firm performance in small- and medium-sized enterprises in Iran. This paper proposes a theoretical framework, based on past studies. Afterward, structural equation modeling was used to test the conceptual model. The data of this research were collected face-to-face, and 483 valid questionnaires were collected from small- and medium-sized businesses in Iran. The results show that all dimensions of CSR (except philanthropic) directly and significantly affect Business Model Innovation. Furthermore, the competitive advantage is significantly impacted by the economic, legal, and ethical aspects of CSR. Additionally, the findings demonstrate that both BMI and competitive advantage play a direct and substantial role in influencing a company’s performance. This study represents one of the initial investigations to specifically analyze how each facet of corporate social responsibility influences Business Model Innovation and competitive advantage. It is worth noting that a new dimension, environmental responsibility, was incorporated into Carroll’s original model due to the growing significance of environmental concerns. This paper gives managers a better insight into CSR and its effects on company performance. In addition, it shows managers which aspects of CSR can have an impact on BMI and competitive advantage.

ПЕРЕДУМОВИ ТА ОСОБЛИВОСТІ СТРАТЕГІЧНОГО МАСШТАБУВАННЯ БІЗНЕСУ НА ПРИНЦИПАХ СОЦІАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ

In today’s conditions, a significant share of enterprises whose businesses are actively developing are looking for new ways to increase efficiency, often associated with scaling. Limited resources, lack of expertise, or insufficient competitiveness can change the enterprise’s strategic plans. The article aims to study the prerequisites and features of strategic business scaling based on the principles of social responsibility in modern conditions. It has been found that strategic scaling for any business is a desirable prospect and a complex procedure with a clear rationale for feasibility and limitations. The work analyzes the organizational conditions of strategic business scaling based on social responsibility (factors of influence, prerequisites, principles of activity). The main principles of strategic scaling include the involvement of interested parties, ethical sourcing, transparency, and accountability (transparency), social and environmental impact, and creating long-term value for social and environmental development. Such a development strategy’s problems, advantages, and risks are also considered. Among the advantages, the following are highlighted: an increase in the volume of production, sales, and profitability; cost reduction due to economies of scale; strengthening of competitiveness in the market; implementation of innovations and their implementation. It was determined that when making decisions about digital transformations of the part of the business that will serve foreign markets, their prevalence among potential consumers should be considered. It is substantiated that today, the team as an internal factor of influence is becoming the main asset of the enterprise, so the strategy of transition from a normal state to a scalable one should be built, first, based on the interests and capabilities of the staff. This context reveals another aspect of corporate social responsibility during the implementation of strategic business scaling. Keywords: strategic scaling, business, social responsibility, transparency, target market, partnership, business process, convergence of legislation, strategy, development.

Corporate social responsibility in the enterprise development management

Purpose. The purpose of the research is to determine the content and the implementation peculiarities of corporate social responsibility (CSR) as a direction of an enterprise development. Results. The article determines that the ensuring of the enterprise development is an important component of its activity management in view of the necessity to provide its stable functioning and competitiveness in modern conditions. It was determined that one of the key directions of enterprise development is the implementation of corporate social responsibility concept in the functioning of economic entity. CSR is proposed to be understood as the concept of the functioning and development of the enterprise, which provides an opportunity to balance economic, social, ecological, and ethical aspects, thus contributing to the sustainable development of the business entity. The types and key aspects of CSR were investigated as well as factors of impact on CSR implementation in the enterprise activity. A set of tools contributing to the implementation of CSR in the enterprise activities were analyzed, in particular: the formation of the enterprise internal regulatory framework, risk management, innovation and investment activities, fundraising, project approach, communication. The experience of implementing corporate social responsibility projects on the example of trade networks of Ukraine was studied. The key directions for improving CSR management in the enterprise activities were identified. Scientific novelty. The scientific novelty of the research lies in the further development of the theoretical and methodical principles of the enterprise corporate social responsibility management. In particular, the methodical principles of management in terms of tool support for the implementation of CSR measures have gained further development. Practical value. The practical value of the research is defined by the role of CSR in the activity of the enterprise. In particular, it was determined that the implementation of the CSR concept forms a positive impact on financial and reputational indicators of enterprise activity, which defines the feasibility of integrating CSR into the management system of the business entity. The directions of improvement defined in the article form the trajectory of development in the field of CSR implementation for modern enterprises.

The Implementation Science of Financial Intelligence in Evidence-Based Medicine Using Select Criteria Mechanism as Treatment Process towards Healthcare Corporate Governance

Purpose: Implementation science is the broader aspect of corporate social responsibility (CSR) translating healthcare education to clinical research and practice for public health and patient safety encompassing the hierarchy of evidence-based medicine (EBM), hence, serving as an integrative method of combing CSR towards healthcare corporate governance. This paper aims to model EBM under principles of valid contract formation as compliance to CSR theories of promoting positive health outcomes of patient safety leading to financial success and lessening the risks of mortality cases.
 Methodology: The elements of valid contract formation and sources of errors are the systematic plan for behavioral guidance of EBM practice. These determinants are crucial in refining the clinical judgment of medical experts together with other healthcare professionals in support with high-ranking databases of research publication, resulting to a greater impact of positive health outcomes of patient safety under “judicious” application of CSR. These principles of contract law are integrated for “measuring” the EBM’s financial success towards healthcare corporate governance.
 Findings: EBM is a scientific approach to handle medical cases and reports towards patient safety under clinical judgment of medical expert and healthcare team in corroboration with reliable sources of databases for medical research and review for reducing death rates in healthcare setting. SELECT Criteria Mechanism elucidated EBM as implementation science integrating CSR for behavioral compliance to healthcare corporate governance. First, the modeling of CSR as method to comply with EBM delineates the elements formed for valid contract formation in producing an “ethical” standard as responsibility for optimal patient safety as bargained promise under acceptance of the clinical team. Second, the illustration of the healthcare corporate governance in EBM practice as theory “measures” the reduction of healthcare expenditures from the exhibited means of diminishing mortality cases. Therefore, implementation science serves as an initiation for remediation process of reducing risks of death cases. 
 Recommendation: Implementation science is very important in EBM practice in treating ways of lessening the probability of mortality cases under “ethical” or “judicious” patient safety guidelines as corporate social responsibility. Hence, it is recommended to develop systems for behavioral guidance in a more organized plan of targeting death reduction cases towards financial intelligence as fulfillment in implementation science.

Unlocking sustainable success: exploring the impact of transformational leadership, organizational culture, and CSR performance on financial performance in the Italian manufacturing sector

PurposeThis study aims to investigate how organizational culture (OC) and transformational leadership (TL) affect corporate social responsibility (CSR) performance (environmental performance and social performance) and financial performance (FP) in the context of the Italian manufacturing sector. Grounded in resource-based view theory, this study explores how these factors influence sustainable firm performance.Design/methodology/approachData gathered from 260 employees were analyzed to examine the multidimensional aspects of CSR, encompassing social and environmental sustainability.FindingsThe findings highlight the pressing need for sustainable firm performance in the existing environment, supporting the hypothesis that firms achieve sustainable and FP through the recognition of TL and OC. Moreover, a positive and significant relationship between CSR performance and FP was established, underscoring the strategic importance of integrating CSR initiatives into core business practices. This study offers valuable insights for both academia and firms, providing theoretical and practical implications that underscore the importance of cultivating a robust OC to drive performance enhancements.Originality/valueThis study is novel because it is one of the first, to the best of the author’s knowledge, to analyze the relationships between TL, OC and performance components associated with CSR.