Article Sidebar

Download
View Article
Statistic
Read Counter : 25 Download : 46

Main Article Content

Abstract

The financial success of a business is closely tied to its ability to meet its social responsibilities towards its stakeholders, who contribute valuable resources to the business. Corporate Social Responsibility (CSR) is the embodiment of corporate social behaviour, which has an impact on both a company's reputation and its performance. The study seeks to examine the influence of fulfilling corporate social responsibility (CSR) on financial success, with a focus on the mediating effect of company reputation. In order to accomplish this objective, this study focuses on examining publicly traded companies in China's food market. By utilizing both domestic and foreign theoretical study findings and practical exploration experiences on corporate social responsibility (CSR), business reputation, and financial performance. This study employs the literature review method to elucidate the theoretical foundation that supports the research and uncover the mechanism by which corporate performance is enhanced by the fulfilment of social responsibility by listed businesses in the food industry in China. And find the intermediary role of corporate reputation and investigates the mechanisms and pathways through which social responsibility and corporate reputation influence corporate performance. The findings will help to enhance the current understanding of the relationship between corporate social responsibility (CSR) and financial success. Additionally, it will offer valuable insights for future research and practical applications in this field..

Keywords

corporate social responsibility corporate reputation financial performance mediation

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Ali, A., & Jiaqi, X. (2024). CORPORATE REPUTATION AND THE PATH FROM CSR TO PROFIT IN CHINA’S FOOD COMPANIES. Journal of Artificial Intelligence and Digital Economy, 1(7), 46–59. https://doi.org/10.61796/jaide.v1i7.767
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. . Abbas, A., & Arizah, A. (2019). Marketability, profitability, and profit-loss sharing evidence from sharia banking in Indonesia. AJAR (Asian Journal of Accounting Research) (Online), 4(2), 315–326. https://doi.org/10.1108/AJAR-08-2019-0065
  2. . Al-Shammari, M., Al-Shammari, H., & Banerjee, S. N. (2022). CSR discrepancies, firm visibility and performance: A mediated moderation analysis. Management Decision, 60(6), 1560–1584. https://doi-org.libproxy.ncl.ac.uk/10.1108/MD-01-2021-0024
  3. . Ansoff, H.I. (1965). Corporate strategy; an analytic approach to business policy for growth and expansion. McGraw-Hill.
  4. . Akerlof, G.A. (1970). The Market for “Lemons”: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 84(3), 488–500. https://doi.org/10.2307/1879431
  5. . Abbott, W.F., & Monsen, R. J. (1979). On the Measurement of Corporate Social Responsibility: Self-Reported Disclosures as a Method of Measuring Corporate Social Involvement. Academy of Management Journal, 22(3), 501–515. https://doi.org/10.5465/255740
  6. . Ahmed, R. R., Pahi, M. H., Nadeem, S., Soomro, R. H., Parmar, V., Nasir, F., & Ahmed, F. (2023). How and When Ethics Lead to Organizational Performance: Evidence from South Asian Firms. Sustainability, 15(10), 8147. https://doi.org/10.3390/su15108147
  7. . Ahmad, H., Yaqub, M., & Lee, S. H. (2024). Environmental-, social-, and governance-related factors for business investment and sustainability: A scientometric review of global trends. Environment, Development and Sustainability, 26(2), 2965-2987. https://doi.org/10.1007/s10668-023-02921-x
  8. . Broadstock, D.C., Matousek, R., Meyer, M., & Tzeremes, N. G. (2020). Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental & social governance implementation and innovation performance. Journal of Business Research, 119, 99–110. https://doi.org/10.1016/j.jbusres.2019.07.014
  9. . Bahta, D., Yun, J., Islam, M. R., & Bikanyi, K. J. (2021). How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation. Economic Research - Ekonomska Istraživanja, 34(1), 1428–1451. https://doi.org/10.1080/1331677X.2020.1828130
  10. . Chen, Z., & Xie, G. (2022). ESG disclosure and financial performance: Moderating role of ESG investors. International Review of Financial Analysis, 83, 102291. https://doi.org/10.1016/j.irfa.2022.102291
  11. . Carroll, A.B. (1979). A Three-Dimensional Conceptual Model of Corporate Performance. The Academy of Management Review, 4(4), 497–505. https://doi.org/10.2307/257850
  12. . Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-G
  13. . Clark, J. M. (1916). The changing basis of economic responsibility. Journal of political economy, 24(3), 209-229. https://doi.org/10.1086/252799
  14. . Chen, L. & Liu, J. (2020). Research on the Relationship between Social Responsibility and Financial Performance of Food Manufacturing Enterprises in China. Productivity Research (09), 142-145. https://doi.org/10.19374/j.cnki.14-1145/f.2020.09.030.
  15. . Çakmakçı, R., Salık, M. A., & Çakmakçı, S. (2023). Assessment and Principles of Environmentally Sustainable Food and Agriculture Systems. Agriculture (Basel), 13(5), 1073. https://doi.org/10.3390/agriculture13051073
  16. . Carrera, L. (2022). Corporate social responsibility. A strategy for social and territorial sustainability. International Journal of Corporate Social Responsibility, 7(1), 1–11. https://doi.org/10.1186/s40991-022-00074-0
  17. . Cho, S.J., Chune Young Chung, & Young, J. (2019). Study on the Relationship between CSR and Financial Performance. Sustainability (Basel, Switzerland), 11(2), 343. https://doi.org/10.3390/su11020343
  18. . Djekic, I., Batlle-Bayer, L., Bala, A., Fullana-i-Palmer, P., & Jambrak, A. R. (2021). Role of the food supply chain stakeholders in achieving UN SDGs. Sustainability, 13(16), 9095. https://doi.org/10.3390/su13169095
  19. . Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack. Journal of Business Ethics, 168(2), 315–334. https://doi.org/10.1007/s10551-019-04177-w
  20. . Esenyel, V. (2020). Corporate reputation as a strategic management tool: Through the lens of employees. International Journal of Management and Sustainability, 9(1), 24-42. https://doi.org/10.18488/journal.11.2020.91.24.42
  21. . Edi, E., & Wati, E. (2022). MEASURING INTANGIBLE ASSET: FIRM REPUTATION. Verslas: Teorija Ir Praktika, 23(2), 396–407. https://doi.org/10.3846/btp.2022.15945
  22. . Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge. https://doi.org/10.4324/9781351280129
  23. . Ferrell, O.C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, 491–501. https://doi.org/10.1016/j.jbusres.2018.07.039
  24. . Fisch, J.E. (2006). Measuring Efficiency in Corporate Law: The Role of Shareholder Primacy. The Journal of Corporation Law, 31(3), 637.
  25. . Fairfax, L. M. (2022). Stakeholderism, Corporate Purpose, and Credible Commitment. Virginia Law Review, 108(5), 1163-1241. https://www.jstor.org/stable/27219952
  26. . Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability. Journal of Business Ethics, 166(1), 3–18. https://doi.org/10.1007/s10551-019-04112-z
  27. . Fernández-Guadaño, J., & Sarria-Pedroza, J. H. (2018). Impact of corporate social responsibility on value creation from a stakeholder perspective. Sustainability, 10(6), 2062. https://doi.org/10.3390/su10062062
  28. . Ghaderi, Z., Mirzapour, M., Henderson, J. C., & Richardson, S. (2019). Corporate social responsibility and hotel performance: A view from Tehran, Iran. Tourism Management Perspectives, 29, 41–47. https://doi.org/10.1016/j.tmp.2018.10.007
  29. . García‐Sánchez, I. M., & Martínez‐Ferrero, J. (2019). Chief executive officer ability, corporate social responsibility, and financial performance: The moderating role of the environment. Business Strategy and the Environment, 28(4), 542-555. https://doi.org/10.1002/bse.2263
  30. . Ghoul, S.E., Guedhami, O., Nash, R., & Patel, A. (2019). New Evidence on the Role of the Media in Corporate Social Responsibility. Journal of Business Ethics, 154(4), 1051–1079. https://doi.org/10.1007/s10551-016-3354-9
  31. . Hayes, A. F. (2009). Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium. Communication Monographs, 76(4), 408–420. https://doi.org/10.1080/03637750903310360
  32. . Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y. A., Shah, S. Z. A., & Shahzad, F. (2020). Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), 27-53. https://doi.org/10.1108/JGR-12-2018-0088
  33. . Ishaq, M., Islam, Y., & Ghouse, G. (2021). Tobin’s Q as an indicator of firm performance: Empirical evidence from manufacturing sector firms of Pakistan. International Journal of Economics and Business Administration, IX, 1, 425-441.
  34. . Jamali, D. (2008). A Stakeholder Approach to Corporate Social Responsibility: A Fresh Perspective into Theory and Practice. Journal of Business Ethics, 82(1), 213–231. https://doi.org/10.1007/s10551-007-9572-4
  35. . Javed, M., Rashid, M. A., Hussain, G., & Ali, H. Y. (2020). The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership. Corporate Social-Responsibility and Environmental Management, 27(3), 1395–1409. https://doi.org/10.1002/csr.1892
  36. . Jeffrey, S., Rosenberg, S., & McCabe, B. (2019). Corporate social responsibility behaviors and corporate reputation. Social Responsibility Journal, 15(3), 395-408. https://doi.org/10.1108/SRJ-11-2017-0255
  37. . Jia, X. P. (2020). Corporate social responsibility activities and firm performance: The moderating role of strategic emphasis and industry competition. Corporate Social-Responsibility and Environmental Management, 27(1), 65–73. https://doi.org/10.1002/csr.1774
  38. . Kong, D., Shi, L., & Yang, Z. (2019). Product recalls, corporate social responsibility, and firm value: Evidence from the Chinese food industry. Food Policy, 83, 60–69. https://doi.org/10.1016/j.foodpol.2018.11.005
  39. . Kuzey, C., Uyar, A., Ellili, N. O. D., & Karaman, A. S. (2023). Corporate social responsibility performance and social reputation via corporate social responsibility awarding: is there a threshold effect? Corporate Governance (Bradford). https://doi.org/10.1108/CG-03-2023-0128
  40. . Kasasbeh, F.I. (2021). Impact of financing decisions ratios on firm accounting-based performance: Evidence from Jordan listed companies. Future Business Journal, 7(1), 1–10. https://doi.org/10.1186/s43093-021-00061-0
  41. . Kreps, D.M., & Wilson, R. (1982). Reputation and imperfect information. Journal of Economic Theory, 27(2), 253–279. https://doi.org/10.1016/0022-0531(82)90030-8
  42. . Li, W., & Zhang, R. (2010). Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence from China. Journal of Business Ethics, 96(4), 631–645. https://doi.org/10.1007/s10551-010-0488-z
  43. . Latifi, M. A., Nikou, S., & Bouwman, H. (2021). Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation, 107, 102274. https://doi.org/10.1016/j.technovation.2021.102274
  44. . Milgrom, P., & Roberts, J. (1982). Predation, reputation, and entry deterrence. Journal of Economic Theory, 27(2), 280–312. https://doi.org/10.1016/0022-0531(82)90031-X
  45. . Mattingly, J.E. & Berman, S. L. (2006). Measurement of Corporate Social Action: Discovering Taxonomy in the Kinder Lydenburg Domini Ratings Data. Business & Society, 45(1), 20–46. https://doi.org/10.1177/0007650305281939
  46. . Mai, N.K., Nguyen, A. K. T., & Nguyen, T. T. (2021). Implementation of Corporate Social Responsibility Strategy to Enhance Firm Reputation and Competitive Advantage. Journal of Competitiveness, 13(4), 96–114. https://doi.org/10.7441/joc.2021.04.06
  47. . Olunuga, O. A., & Akinrodoye, O. M. (2022). Financial Management Practices and Performance of Deposit Money Banks in Emerging Market. Economic Insights, Trends and Challenges, 2022(1), 67–74. https://doi.org/10.51865/EITC.2022.01.07
  48. . Ohalehi, P. (2019). Fraud in small charities: evidence from England and Wales. Journal of Financial Crime, 26(1), 211–222. https://doi.org/10.1108/JFC-12-2017-0122
  49. . Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from US tech firms. Journal of cleaner production, 292, 126078. https://doi.org/10.1016/j.jclepro.2021.126078
  50. . Park, Y. S., Konge, L., & Artino, A. R. (2020). The Positivism Paradigm of Research. Academic Medicine, 95(5), 690–694. https://doi.org/10.1097/ACM.0000000000003093
  51. . Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147–169. https://doi.org/10.1108/IJLMA-03-2019-0076
  52. . Penrose, E. (1959). The theory ofthe growth ofthe firm. JohnWiley& Sons, New York.
  53. . Rehman, A. A., & Alharthi, K. (2016). An introduction to research paradigms. International journal of educational investigations, 3(8), 51-59.
  54. . Rettab, B., Kashani, H., Obay, L., & Rao, A. (2010). Impact of market power and efficiency on performance of banks in the Gulf Cooperation Council countries. International Research Journal of Finance and Economics, 50(50), 190-203.
  55. . Reid, A., Ringel, E., & Pendleton, S. M. (2024). Transparency reports as CSR reports: motives, stakeholders, and strategies. Social Responsibility Journal, 20(1), 81–107. https://doi.org/10.1108/SRJ-03-2023-0134
  56. . Roberts, P.W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23(12), 1077–1093. https://doi.org/10.1002/smj.274
  57. . Song, Y., Teng, P. P., & Qin, C. C. (2017). Corporate social responsibility and surplus management: An empirical study based on A-share manufacturing companies listed in China's Shanghai and Shenzhen stock markets. Chinese Management Science (05), 187-196. http://www.zgglkx.com/CN/Y2017/V25/I5/187
  58. . Schwaiger, M. (2004). Components and parameters of corporate reputation -- an empirical study. Schmalenbachs Zeitschrift Für Betriebswirtschaftliche Forschung, 56(1), 46.
  59. . Spence, M. (1978). Job Market Signaling. Quarterly Journal of Economics, 87(3), 355-374. https://doi.org/10.1016/B978-0-12-214850-7.50025-5
  60. . Su, R., Liu, C., & Teng, W. (2020). THE HETEROGENEOUS EFFECTS OF CSR DIMENSIONS ON FINANCIAL PERFORMANCE – A NEW APPROACH FOR CSR MEASUREMENT. Journal of Business Economics and Management, 21(4), 987–1009. https://doi.org/10.3846/jbem.2020.12394
  61. . Suteja, J., Gunardi, A., Alghifari, E. S., Susiadi, A. A., Yulianti, A. S., & Lestari, A. (2023). Investment decision and firm value: moderating effects of corporate social responsibility and profitability of non-financial sector companies on the Indonesia stock exchange. Journal of Risk and Financial Management, 16(1), 40. https://doi.org/10.3390/jrfm16010040
  62. . Sarhan, A.A., & Al-Najjar, B. (2023). The influence of corporate governance and shareholding structure on corporate social responsibility: The key role of executive compensation. International Journal of Finance and Economics, 28(4), 4532–4556. https://doi.org/10.1002/ijfe.2663
  63. . Velte, P. (2022). Meta-analyses on Corporate Social Responsibility (CSR): a literature review. Management Review Quarterly, 72(3), 627–675. https://doi.org/10.1007/s11301-021-00211-2
  64. . Valentinov, V. (2023). Sustainability and stakeholder theory: a processual perspective. Kybernetes, 52(13), 61-77. https://doi.org/10.1108/K-05-2023-0819
  65. . Wen, Z., & Ye, B. (2014). Analyses of mediating effects: the development of methods and models. Advances in psychological Science, 22(5), 731. https://doi.org/10.3724/SP.J.1042.2014.00731
  66. . Wei, L. L., & Lu, Y.(2016). Research on the Relationship between Corporate Social Responsibility and Financial Performance--The Case of Food and Beverage Manufacturing Industry. Journal of Southeast University (Philosophy and Social Science Edition) (S2), 26-29.https://doi.org/10.13916/j.cnki.issn1671-511x.2016.s2.008
  67. . Walsh, G., & Beatty, S. E. (2007). Customer-based corporate reputation of a service firm: Scale development and validation. Journal of the Academy of Marketing Science, 35(1), 127–143. https://doi.org/10.1007/s11747-007-0015-7
  68. . Wang, H.Z., & Li, C. (2019). Research on the relationship between social responsibility, corporate governance and financial performance - an empirical analysis based on panel data of listed food companies. Price Theory and Practice (12), 145-148. https://doi.org/10.19851/j.cnki.cn11-1010/f.2019.12.004.
  69. . Wang, Z. J., & Xie, X. (2020). Corporate social responsibility fulfilment, R&D investment and financial performance - Based on internal and external stakeholder perspectives. Finance & Accounting Newsletter (07), 51-55. https://doi.org/10.16144/j.cnki.issn1002-8072.2020.07.010.
  70. . Wu, L., Shao, Z., Yang, C., Ding, T., & Zhang, W. (2020). The impact of CSR and financial distress on financial performance—evidence from Chinese listed companies of the manufacturing industry. Sustainability, 12(17), 6799. https://doi.org/10.3390/su12176799
  71. . Wang, Z., Li, Y., & He, F. (2020). Asymmetric volatility spillovers between economic policy uncertainty and stock markets: Evidence from China. Research in International Business and Finance, 53, 101233. https://doi.org/10.1016/j.ribaf.2020.101233
  72. . Wells, E. C., Lehigh, G. R., & Vidmar, A. M. (2020). Stakeholder Engagement for Sustainable Communities. In The Palgrave Handbook of Global Sustainability (pp. 1143–1155). Springer International Publishing. https://doi.org/10.1007/978-3-031-01949-4_10
  73. . Wang, C., Zhang, Q., & Zhang, W. (2020). Corporate social responsibility, Green supply chain management and firm performance: The moderating role of big-data analytics capability. Research in Transportation Business & Management, 37, 100557. https://doi.org/10.1016/j.rtbm.2020.100557
  74. . Xu, T.S., (2020). Empirical test of the impact of corporate social responsibility on corporate competitiveness. Statistics and Decision Making, 36(9), 164-168. https://doi.org/10.13546/j.cnki.tjyjc.2020.09.035
  75. . Xu, R., Liu, J., & Yang, D. (2023). The Formation of Reputation in CSR Disclosure: The Role of Signal Transmission and Sensemaking Processes of Stakeholders. Sustainability, 15(12), 9418. https://doi.org/10.3390/su15129418
  76. . Ye, K. T., Zhang, R., & Xu, H. P., (2010). Reputation, Institutional Environment and Debt Financing - Evidence Based on Chinese Privately Listed Companies. Financial Studies (08), 171-183.
  77. . Yang, H. L., Lin, X. R., & Wang, S. (2019). Research on the Impact of Board Diversity on CSR and Corporate Reputation. Finance & Accounting Newsletter (23), 20-25. https://doi.org/10.16144/j.cnki.issn1002-8072.2019.23.005
  78. . Yang, C., Li, Q., Yang, X. P., & Sun, L. L. (2020). Does reputational capital affect corporate financial performance? --Evidence from 417 questionnaires. Journal of credit (01),21-27.
  79. . Zahid, M., Ghafoor, Z., & Farooq, M. (2021). Corporate social responsibility and financial performance: the role of corporate reputation, advertising, and competition. Journal of Sustainable Finance & Investment, 11(2), 153-175. https://doi.org/10.1108/PRR-10-2021-0059
  80. . Zhang, J.S., & LI, M. Y. (2021). Research on the relationship between corporate social responsibility, internal control and financial performance: based on technological innovation perspective. Forecast (04), 81-87.
  81. . Zhang, L.,& Su, W. (2023). Corporate social responsibility, internal control, and firm financial performance. Frontiers in Psychology, 13, 977996–977996. https://doi.org/10.3389/fpsyg.2022.977996
  82. . Zhao, Z., Meng, F., He, Y., & Gu, Z. (2019). The Influence of Corporate Social Responsibility on Competitive Advantage with Multiple Mediations from Social Capital and Dynamic Capabilities. Sustainability (Basel, Switzerland), 11(1), 218. https://doi.org/10.3390/su11010218
  83. . Zhang, J., & Liu, Z. (2023). The Impact of Corporate Social Responsibility on Financial Performance and Brand Value. Sustainability, 15(24), 16864. https://doi.org/10.3390/su152416864
  84. . Zou, X., & Deng, M. (2018). Reputational capital, innovation level and corporate financial performance. Finance & Accounting Newsletter (06), 56-59. https://doi.org/10.16144/j.cnki.issn1002-8072.2018.06.012
  85. . Zaid, M.A.A., Abuhijleh, S. T. F., & Pucheta‐Martínez, M. C. (2020). Ownership structure, stakeholder engagement, and corporate social responsibility policies: The moderating effect of board independence. Corporate Social-Responsibility and Environmental Management, 27(3), 1344–1360. https://doi.org/10.1002/csr.1888
  86. . Zeng, Y., Gulzar, M. A., Wang, Z., & Zhao, X. (2020). The effect of expected financial performance on corporate environmental responsibility disclosure: evidence from China. Environmental Science and Pollution Research International, 27(30), 37946–37962. https://doi.org/10.1007/s11356-020-09719-