A Framework for Analysing Economic Impacts of Corporate Social Performance

Before examining the economic impacts of superior corporate social performance, this chapter intends to provide an analysis of both conceptual work on CSR and previous empirical studies that have addressed similar questions in the past. To develop such a frame of reference, it should first be explicated what exactly is meant by the concept of CSR. Therefore, Sect. 2.1 deals with past efforts to define CSR, and with their limitations for the specific purposes of this thesis. Section 2.2 reviews empirical studies on the relationship between corporations' social and financial performance and tries to explain why it so far has failed to come to clear results as to the existence, strength and direction of such a link. Subsequently, Sect. 2.3 draws conclusions from this review and proposes some results concerning a methodology for an empirical analysis of the economic firm-level effects of corporate social performance.