DOI QR코드

DOI QR Code

Investigating the Impact of Corporate Social Responsibility on Firm's Short- and Long-Term Performance with Online Text Analytics

온라인 텍스트 분석을 통해 추정한 기업의 사회적책임 성과가 기업의 단기적 장기적 성과에 미치는 영향 분석

  • Lee, Heesung (Center for Advanced Information Technology, Kyung Hee University) ;
  • Jin, Yunseon (Center for Advanced Information Technology, Kyung Hee University) ;
  • Kwon, Ohbyung (School of Management, Kyung Hee University)
  • 이희승 (경희대학교차세대정보기술연구센터) ;
  • 진윤선 (경희대학교차세대정보기술연구센터) ;
  • 권오병 (경희대학교 경영대학)
  • Received : 2016.05.11
  • Accepted : 2016.05.19
  • Published : 2016.06.30

Abstract

Despite expectations of short- or long-term positive effects of corporate social responsibility (CSR) on firm performance, the results of existing research into this relationship are inconsistent partly due to lack of clarity about subordinate CSR concepts. In this study, keywords related to CSR concepts are extracted from atypical sources, such as newspapers, using text mining techniques to examine the relationship between CSR and firm performance. The analysis is based on data from the New York Times, a major news publication, and Google Scholar. We used text analytics to process unstructured data collected from open online documents to explore the effects of CSR on short- and long-term firm performance. The results suggest that the CSR index computed using the proposed text - online media - analytics predicts long-term performance very well compared to short-term performance in the absence of any internal firm reports or CSR institute reports. Our study demonstrates the text analytics are useful for evaluating CSR performance with respect to convenience and cost effectiveness.

Acknowledgement

Grant : BK21플러스

Supported by : 경희대학교

References

  1. Aguilera, R. V., D. E. Rupp, C. A. Williams, and J. Ganapathi, "Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations," Academy of Management Review, Vol.32, No.3(2007), 836-863. https://doi.org/10.5465/AMR.2007.25275678
  2. Allern, S., "Journalistic and Commercial News Values," Nordicom Review, Vol.23, No.1-2 (2002), 137-152. https://doi.org/10.1515/nor-2017-0327
  3. Amran, A., S. P. Lee, and S. S. Devi, "The Influence of Governance Structure and Strategic Corporate Social Responsibility Toward Sustainability Reporting Quality," Business Strategy and The Environment, Vol.23, No.4(2014), 217-235. https://doi.org/10.1002/bse.1767
  4. Anderson, C. L. and R. L. Bieniaszewska, "The Role of Corporate Social Responsibility in an Oil Company's Expansion into New Territories," Corporate Social Responsibility and Environmental Management, Vol.12, No.1(2005), 1-9. https://doi.org/10.1002/csr.71
  5. Aupperle, K. E., A. B. Carroll, and J. D. Hatfield, "An Empirical Examination of the Relationship Between Corporate Social Responsibility and Profitability," Academy of management Journal, Vol.28, No.2(1985), 446-463. https://doi.org/10.2307/256210
  6. Barnett, M. L. and R. M. Salomon, "Beyond Dichotomy: The Curvilinear Relationship Between Social Responsibility and Financial Performance," Strategic Management Journal, Vol.27, No.11 (2006), 1101-1122. https://doi.org/10.1002/smj.557
  7. Baumgartner, R. J. and D. Ebner, "Corporate Sustainability Strategies: Sustainability Profiles and Maturity Levels," Sustainable Development, Vol.18, No.2(2010), 76-89. https://doi.org/10.1002/sd.447
  8. Becker-Olsen, K. L., B. A. Cudmore, and R. P. Hill, "The Impact of Perceived Corporate Social Responsibility on Consumer Behavior," Journal of Business Research, Vol.59, No.1(2006), 46-53. https://doi.org/10.1016/j.jbusres.2005.01.001
  9. Bednarek, M. and H. Caple, "Why Do News Values Matter? Towards a New Methodological Framework for Analysing News Discourse in Critical Discourse Analysis and Beyond," Discourse & Society, Vol.25, No.2(2014), 135-158. https://doi.org/10.1177/0957926513516041
  10. Berens, G., C. B. V. Riel, and G. H. V. Bruggen, "Corporate Associations and Consumer Product Responses: The Moderating Role of Corporate Brand Dominance," Journal of Marketing, Vol.69, No.3(2005), 35-48. https://doi.org/10.1509/jmkg.69.3.35.66357
  11. Blowfield, M. and J. G. Frynas, "Editorial Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World," International Affairs, Vol.81, No.3(2005), 499-513. https://doi.org/10.1111/j.1468-2346.2005.00465.x
  12. Bouslah, K., L. Kryzanowski, and B. M'Zali, "Social Performance and Firm Risk: Impact of the Financial Crisis," Journal of Business Ethics, (2016), 1-27.
  13. Brammer, S., A. Millington, and B. Rayton, "The Contribution of Corporate Social Responsibility to Organizational Commitment," The International Journal of Human Resource Management, Vol.18, No.10(2007), 1701-1719. https://doi.org/10.1080/09585190701570866
  14. Campbell, J. L., "Why Would Corporations Behave in Socially Responsible Ways? An Institutional Theory of Corporate Social Responsibility," Academy of Management Review, Vol.32, No.3(2007), 946-967. https://doi.org/10.5465/AMR.2007.25275684
  15. Carroll, A. B. and K. M. Shabana, "The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice," International Journal of Management Reviews, Vol.12, No.1(2010), 85-105. https://doi.org/10.1111/j.1468-2370.2009.00275.x
  16. Carroll, A. B., "Ethical Challenges for Business in the New Millennium: Corporate Social Responsibility and Models of Management Morality," Business Ethics Quarterly (2000), 33-42.
  17. Carroll, C. E. and M. McCombs, "Agenda-Setting Effects of Business News on the Public's Images and Opinions about Major Corporations," Corporate Reputation Review, Vol.6, No.1(2003), 36-46. https://doi.org/10.1057/palgrave.crr.1540188
  18. Cheng, B., I. Ioannou, and G. Serafeim, "Corporate Social Responsibility and Access to Finance," Strategic Management Journal, Vol.35, No.1(2014), 1-23. https://doi.org/10.1002/smj.2131
  19. Choi, S., Jeon, J., Subrata, B. and O. Kwon, "An Efficient Estimation of Place Brand Image Power Based on Text Mining Technology," Journal of Intelligence and Information Systems, Vol.21, No.2(2015), 113-129. https://doi.org/10.13088/jiis.2015.21.2.113
  20. Cochrane, J. H., "Production-based Asset Pricing and the Link Between Stock Returns and Economic Fluctuations," The Journal of Finance, Vol.46, No.1(1991), 209-237. https://doi.org/10.1111/j.1540-6261.1991.tb03750.x
  21. Costa, R. and T. Menichini, "A Multidimensional Approach for CSR Assessment: The Importance of the Stakeholder Perception," Expert Systems with Applications, Vol.40, No.1(2013), 150-161. https://doi.org/10.1016/j.eswa.2012.07.028
  22. DeGeorge, R. T, Business Ethics, 4th Edition, Prentice-Hall: New York, 1995.
  23. Deng, X., J. K. Kang, and B. S. Low, "Corporate Social Responsibility and Stakeholder Value Maximization: Evidence from Mergers," Journal of Financial Economics, Vol.110, No.1(2013), 87-109. https://doi.org/10.1016/j.jfineco.2013.04.014
  24. Dhaliwal, D. S., O. Z. Li, A. Tsang, and Y. G. Yang, "Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting," The Accounting Review, Vol.86, No.1(2011), 59-100. https://doi.org/10.2308/accr.00000005
  25. Dixon-Fowler, H. R., D. J. Slater, J. L. Johnson, A. E. Ellstrand, and A. M. Romi, "Beyond 'Does it Pay to Be Green?' A Meta-Analysis of Moderators of the CEP-CFP Relationship," Journal of Business Ethics, Vol.112, No.2(2013), 353-366. https://doi.org/10.1007/s10551-012-1268-8
  26. Du, S., C. B. Bhattacharya, and S. Sen, "Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication," International Journal of Management Reviews, Vol.12, No.1(2010), 8-19. https://doi.org/10.1111/j.1468-2370.2009.00276.x
  27. Einwiller, S. A., C. E. Carroll, and K. Korn, "Under What Conditions Do the News Media Influence Corporate Reputation? The Roles of Media Dependency and Need for Orientation," Corporate Reputation Review, Vol.12, No.4(2010), 299-315. https://doi.org/10.1057/crr.2009.28
  28. European Commission, Green Paper: Promoting a European Framework for Corporate Social Responsibility, Office for Official Publications of the European Communities, Brussels: COM. 366, 2001.
  29. Flammer, C., "Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach," Management Science, Vol.61, No.11(2015), 2549-2568. https://doi.org/10.1287/mnsc.2014.2038
  30. Fombrun, C. J. and M. Shanley, "What's in a Name? Reputation Building and Corporate Strategy," Academy of Management Journal, Vol.33, No.2(1990), 233-258. https://doi.org/10.2307/256324
  31. Fombrun, C. J., N. A. Gardberg, and M. L. Barnett, "Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk," Business and Society Review, Vol.105, No.1(2000), 85-106. https://doi.org/10.1111/0045-3609.00066
  32. Freeman, R. E., Strategic Management: A Stakeholder Approach, Pitman, Boston, 1984.
  33. Garriga, E. and D. Mele, "Corporate Social Responsibility Theories: Mapping the Territory," In Citation Classics from the Journal of Business Ethics, Springer Netherlands(2013), 69-96.
  34. Goyal, P., Z. Rahman, and A. A. Kazmi, "Corporate Sustainability Performance and Firm Performance Research: Literature Review and Future Research Agenda," Management Decision, Vol.51, No.2(2013), 361-379. https://doi.org/10.1108/00251741311301867
  35. Hardjono, T. W. and M. V. Marrewijk, "The Social Dimensions of Business Excellence," Corporate Environmental Strategy, Vol.8, No.3(2001), 223-233. https://doi.org/10.1016/S1066-7938(01)00125-7
  36. Harjoto, M., I. Laksmana, and R. Lee, "Board Diversity and Corporate Social Responsibility," Journal of Business Ethics, Vol.132, No.4(2015), 641-660. https://doi.org/10.1007/s10551-014-2343-0
  37. Harrison, J., News,. London: Routledge, 2006.
  38. Jensen, M. C. and W. H. Meckling, "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure," Journal of Financial Economics, Vol.3, No.4(1976), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
  39. Jensen, M. C., "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Vol.14, No.3(2001), 8-21. https://doi.org/10.1111/j.1745-6622.2001.tb00434.x
  40. Kim, Y. and S.R. Jeong, "Intelligent VOC Analyzing System Using Opinion Mining," Journal of Intelligence and Information Systems, Vol.19, No.3(2013), 113-125. https://doi.org/10.13088/jiis.2013.19.3.113
  41. Lai, C. S., C. J. Chiu, C. F. Yang, and D. C. Pai, "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Vol.95, No.3(2010), 457-469. https://doi.org/10.1007/s10551-010-0433-1
  42. Lii, Y. S. and M. Lee, "Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm," Journal of Business Ethics, Vol.105, No.1(2012), 69-81. https://doi.org/10.1007/s10551-011-0948-0
  43. Lindgreen, A. and V. Swaen, "Corporate Social Responsibility," International Journal of Management Reviews, Vol.12, No.1(2010), 1-7. https://doi.org/10.1111/j.1468-2370.2009.00277.x
  44. Luo, X. and C. B. Bhattacharya, "Corporate Social Responsibility, Customer Satisfaction, and Market value," Journal of Marketing, Vol.70, No.4(2006), 1-18.
  45. Luo, X., H. Wang, S. Raithel, and Q. Zheng, "Corporate social Performance, Analyst Stock Recommendations, and Firm Future Returns," Strategic Management Journal, Vol.36, No.1 (2015), 123-136. https://doi.org/10.1002/smj.2219
  46. Margolis, J. D., H. A. Elfenbein, and J. P. Walsh, "Does It Pay to Be Good... and Does It Matter? A Meta-Analysis of the Relationship Between Corporate Social and Financial Performance," SSRN Working Paper Series, 2011.
  47. Marquez, A. and C. J. Fombrun, "Measuring Corporate Social Responsibility," Corporate Reputation Review, Vol.7, No.4(2005), 304-308. https://doi.org/10.1057/palgrave.crr.1540228
  48. Nan, X. and K. Heo, "Consumer Responses to Corporate Social Responsibility (CSR) Initiatives: Examining the Role of Brand-Cause Fit in Cause-Related Marketing," Journal of Advertising, Vol.36, No.2(2007), 63-74. https://doi.org/10.2753/JOA0091-3367360204
  49. Peloza, J. and J. Shang, "How Can Corporate Social Responsibility Activities Create Value for Stakeholders? A systematic review," Journal of the Academy of Marketing Science, Vol.39, No.1(2011), 117-135. https://doi.org/10.1007/s11747-010-0213-6
  50. Porter, M. E. and M. R. Kramer, "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility," Harvard Business Review, Vol.84, No.12(2006), 78-92.
  51. Rayton, B. A., S. J. Brammer, and A. I. Millington, "Corporate Social Performance and the Psychological Contract," Group & Organization Management, Vol.40, No.3(2015), 353-377. https://doi.org/10.1177/1059601114561476
  52. Romer, P. M., "Increasing Returns and Long-Run Growth," The Journal of Political Economy, Vol.94, No.5(1986), 1002-1037. https://doi.org/10.1086/261420
  53. Servaes, H. and A. Tamayo, "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness." Management Science, Vol.59, No.5(2013), 1045-1061. https://doi.org/10.1287/mnsc.1120.1630
  54. Shahzad A. M, and M. P. Sharfman, "Corporate Social Performance and Financial Performance Sample-Selection Issues," Business and Society, 2015.
  55. Surroca, J., J. A. Tribo, and S. Waddock, "Corporate Responsibility and Financial Performance: The Role of Intangible Resources," Strategic Management Journal, Vol.31, No.5(2010), 463-490. https://doi.org/10.1002/smj.820
  56. Tuominen, P., T. Uski, I. Jussila, and U. Kotonen, "Organization Types and Corporate Social Responsibility Reporting in Finnish Forest Industry," Social Responsibility Journal, Vol.4, No.4(2008), 474-490. https://doi.org/10.1108/17471110810909885
  57. White, A. L., Business Brief: Intangibles and CSR, 2006.
  58. Yu, E., Kim, Y., Kim, N., and S.R. Jeong, (2013). "Predicting the Direction of the Stock Index by Using a Domain-Specific Sentiment Dictionary," Journal of Intelligence and Information Systems, Vol.19, No.1(2013), 95-110. https://doi.org/10.13088/jiis.2013.19.1.095