The impact of corporate social responsibility on the sustainable financial performance of Italian firms: mediating role of firm reputation

Abstract This research examines the impact of corporate social responsibility (CSR) dimensions (employee, customer, community, and environment) on the sustainable business performance of the manufacturing industry. Manifestly, the mediating impact of firm reputation is also analyzed between CSR and sustainable business performance. In doing so, we have collected primary data from Italian manufacturing firm’s employees using simple random sampling. Smart-PLS was used to test the reliability of the covariates and relationships among the variables. The results revealed that CSR has a positive association with firm reputation and sustainable business performance. The findings also indicated that firm reputation has a significant and positive association with sustainable business performance. Moreover, firm’s reputation plays a positive and significant mediating role between CSR and sustainable business performance. These results provide valuable recommendations.

[1]  M. Irfan,et al.  Hydrogen production potential from agricultural biomass in Punjab province of Pakistan , 2021, International Journal of Hydrogen Energy.

[2]  Zeeshan Khan,et al.  Environmental impact of infrastructure-led Chinese outward FDI, tourism development and technology innovation: a regional country analysis , 2021, Journal of Environmental Planning and Management.

[3]  Yunpeng Sun,et al.  The asymmetric effect eco-innovation and tourism towards carbon neutrality target in Turkey. , 2021, Journal of environmental management.

[4]  Hafiz Waqas Kamran,et al.  Outbreak of epidemic diseases and stock returns: an event study of emerging economy , 2021, Economic Research-Ekonomska Istraživanja.

[5]  Sharon Miller,et al.  Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability , 2021, Business Strategy and the Environment.

[6]  Sohail M. Noman,et al.  Nexus between green logistic operations and triple bottom line: evidence from infrastructure-led Chinese outward foreign direct investment in Belt and Road host countries , 2021, Environmental Science and Pollution Research.

[7]  Qingyu Zhang,et al.  Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective , 2020, Journal of Business Ethics.

[8]  P. Rodríguez,et al.  A PLS-SEM approach to understanding E-SQ, E-Satisfaction and E-Loyalty for fashion E-Retailers in Spain , 2020 .

[9]  Nan Ye,et al.  A bibliometric analysis of corporate social responsibility in sustainable development , 2020 .

[10]  S. Kraus,et al.  Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation , 2020, Technological Forecasting and Social Change.

[11]  Rashidul Islam,et al.  How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation , 2020, Economic Research-Ekonomska Istraživanja.

[12]  D. Štreimikienė,et al.  Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods , 2020, Corporate Social Responsibility and Environmental Management.

[13]  Francisco Guzmán,et al.  How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study , 2020, Journal of Business Research.

[14]  Z. Rehman,et al.  Corporate social responsibility's influence on firm risk and firm performance: the mediating role of firm reputation , 2020 .

[15]  S. Manfredi,et al.  The profitable relationship among corporate social responsibility and human resource management: A new sustainable key factor , 2020 .

[16]  María del Mar Miras-Rodríguez,et al.  Does corporate social responsibility reporting actually destroy firm reputation? , 2020, Corporate Social Responsibility and Environmental Management.

[17]  Abdullah S. Karaman,et al.  The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry , 2020 .

[18]  Mehrez Ben Slama,et al.  CSR and Banking Soundness: A Causal Perspective , 2020 .

[19]  I. Ozturk,et al.  Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach , 2020 .

[20]  Muhammad Andi Prayogi,et al.  The Quality of Small and Medium Enterprises Performance Using the Structural Equation Model-Part Least Square (SEM-PLS) , 2020, Journal of Physics: Conference Series.

[21]  Angeli E. Weller Exploring Practitioners’ Meaning of “Ethics,” “Compliance,” and “Corporate Social Responsibility” Practices: A Communities of Practice Perspective , 2020 .

[22]  C. Falivena,et al.  Corporate social responsibility and firm value: Do firm size and age matter? Empirical evidence from European listed companies , 2019, Corporate Social Responsibility and Environmental Management.

[23]  N. H. Tien,et al.  Corporate financial performance due to sustainable development in Vietnam , 2020, Corporate Social Responsibility and Environmental Management.

[24]  G. Tontini,et al.  Influence of maturity on corporate social responsibility and sustainable innovation in business performance , 2020, Corporate Social Responsibility and Environmental Management.

[25]  R. Muhamad,et al.  Sustainable business practices and financial performance during pre- and post-SDG adoption periods: a systematic review , 2020, Journal of Sustainable Finance & Investment.

[26]  Marc A. Cohen,et al.  THE IMPLICIT MORALITY OF THE MARKET IS CONSEQUENTIALIST , 2020 .

[27]  Yalei Zhang,et al.  Classifying green technologies for sustainable innovation and investment , 2020 .

[28]  Benito Yáñez-Araque,et al.  Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises , 2020 .

[29]  J. Herrera,et al.  Corporate Social Responsibility and Human Resource Management: Towards Sustainable Business Organizations , 2020, Sustainability.

[30]  S. K. Mousa,et al.  The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework , 2020, Journal of Cleaner Production.

[31]  J. J. Muros,et al.  Anthropometric and Physical Fitness Profiles of World-Class Male Padel Players , 2020, International journal of environmental research and public health.

[32]  N. Bontis,et al.  Using a balanced scorecard to manage corporate social responsibility , 2019, Knowledge and Process Management.

[33]  Jianling Wang,et al.  Corporate Social Responsibility and financial performance: A comparative study in the Sub-Saharan Africa banking sector , 2019, Journal of Cleaner Production.

[34]  K. McSweeney,et al.  Corporate social responsibility and the reproduction of (neo)colonialism in the Ecuadorian Amazon , 2019, The Extractive Industries and Society.

[35]  Marius Pislaru,et al.  Corporate sustainable performance assessment based on fuzzy logic , 2019, Journal of Cleaner Production.

[36]  Wen-Lung Shiau,et al.  Internet research using partial least squares structural equation modeling (PLS-SEM) , 2019, Internet Res..

[37]  Sahar Afshan,et al.  The dynamic relationship of renewable and nonrenewable energy consumption with carbon emission: A global study with the application of heterogeneous panel estimations , 2019, Renewable Energy.

[38]  Eunil Park Corporate social responsibility as a determinant of corporate reputation in the airline industry , 2019, Journal of Retailing and Consumer Services.

[39]  Z. Halim,et al.  Airline Value Chain Capabilities and CSR Performance: The Connection Between CSR Leadership and CSR Culture with CSR Performance, Customer Satisfaction and Financial Performance , 2019, The Asian Journal of Shipping and Logistics.

[40]  B. Davidsdottir,et al.  A literature review of the history and evolution of corporate social responsibility , 2019, International Journal of Corporate Social Responsibility.

[41]  Geert Braam,et al.  Corporate governance and sustainable business conduct-Effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices , 2018, Corporate Social Responsibility and Environmental Management.

[42]  M. K. Anser,et al.  Moderating effect of innovation on corporate social responsibility and firm performance in realm of sustainable development , 2018 .

[43]  Weisheng Lu,et al.  The paradoxical nexus between corporate social responsibility and sustainable financial performance: Evidence from the international construction business , 2018 .

[44]  G. Tian,et al.  Business Strategy and Corporate Social Responsibility , 2018, Journal of Business Ethics.

[45]  W. Filho,et al.  Corporate Social Responsibility (CSR) practices developed by Brazilian companies: an exploratory study , 2018 .

[46]  Tony Chieh-Tse Hou The relationship between corporate social responsibility and sustainable financial performance: firm-level evidence from Taiwan , 2018, Corporate Social Responsibility and Environmental Management.

[47]  Teresa Serra,et al.  Corporate Sustainable Development. Revisiting the Relationship between Corporate Social Responsibility Dimensions , 2018 .

[48]  S. Kelly,et al.  Corporate social responsibility (CSR) in Vietnam: a conceptual framework , 2018 .

[49]  Chuck C. H. Law,et al.  Business sustainability and corporate social responsibility: case studies of three gas operators in China , 2018, Int. J. Prod. Res..

[50]  T. Sarker,et al.  Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam , 2018, CSR 2017.

[51]  Marko Sarstedt,et al.  PLS-SEM: Indeed a Silver Bullet , 2011 .

[52]  Norfadzilah Rashid,et al.  Discriminant Validity: A Comparison of CBSEM and Consistent PLS using Fornell & Larcker and HTMT Approaches , 2021 .

[53]  M. Misra,et al.  Linking Corporate Social Responsibility (CSR) and Organizational Performance: the moderating effect of corporate reputation , 2021, European Research on Management and Business Economics.

[54]  Abdul Hameed Pitafi,et al.  The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust , 2021 .

[55]  J. Abbas Impact of total quality management on corporate green performance through the mediating role of corporate social responsibility , 2020 .

[56]  J. Henderson,et al.  Corporate social responsibility and hotel performance: A view from Tehran, Iran , 2019, Tourism Management Perspectives.