The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach

In light of the growing interest in corporate social responsibility (CSR), there is still controversy regarding its impact on firms’ performance. In this paper, we examine the impact of CSR initiatives, as a marketing investment, on firms’ performance. We treat CSR initiatives as investment and, con...

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Autores principales:	Mohamed M. Ibrahim, Mohamed M. El Frargy, Khaled Hussainey
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	corporate social responsibility profit efficiency stochastic frontier analysis banking sector Egypt Risk in industry. Risk management HD61 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/ea7d91dac46644cf93dea7a9083e52b1
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spelling	oai:doaj.org-article:ea7d91dac46644cf93dea7a9083e52b12021-11-25T18:08:29ZThe Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach10.3390/jrfm141105151911-80741911-8066https://doaj.org/article/ea7d91dac46644cf93dea7a9083e52b12021-10-01T00:00:00Zhttps://www.mdpi.com/1911-8074/14/11/515https://doaj.org/toc/1911-8066https://doaj.org/toc/1911-8074In light of the growing interest in corporate social responsibility (CSR), there is still controversy regarding its impact on firms’ performance. In this paper, we examine the impact of CSR initiatives, as a marketing investment, on firms’ performance. We treat CSR initiatives as investment and, consequently, the returns appear over the long term. We use the stochastic frontier analysis (SFA) approach which is a forward-looking financial market-based metric that captures the firm’s long-term performance. We focus on the banking industry as it confronts a variety compound of risk. We find that CSR implementation is positively reflected in profit efficiency, regardless of the strategic commitment to implementing CSR and bank size, as these variables do not influence the CSR–performance relationship. However, we find that bank age and competitive positioning have a significant impact on the CSR–performance relationship. Our study provides valuable insights to CSR practitioners and researchers, especially in the banking sector. We provide empirical evidence on the importance of CSR and its positive impact on bank performance in Egypt as one of the emerging markets.Mohamed M. IbrahimMohamed M. El FrargyKhaled HussaineyMDPI AGarticlecorporate social responsibilityprofit efficiencystochastic frontier analysisbanking sectorEgyptRisk in industry. Risk managementHD61FinanceHG1-9999ENJournal of Risk and Financial Management, Vol 14, Iss 515, p 515 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	corporate social responsibility profit efficiency stochastic frontier analysis banking sector Egypt Risk in industry. Risk management HD61 Finance HG1-9999
spellingShingle	corporate social responsibility profit efficiency stochastic frontier analysis banking sector Egypt Risk in industry. Risk management HD61 Finance HG1-9999 Mohamed M. Ibrahim Mohamed M. El Frargy Khaled Hussainey The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
description	In light of the growing interest in corporate social responsibility (CSR), there is still controversy regarding its impact on firms’ performance. In this paper, we examine the impact of CSR initiatives, as a marketing investment, on firms’ performance. We treat CSR initiatives as investment and, consequently, the returns appear over the long term. We use the stochastic frontier analysis (SFA) approach which is a forward-looking financial market-based metric that captures the firm’s long-term performance. We focus on the banking industry as it confronts a variety compound of risk. We find that CSR implementation is positively reflected in profit efficiency, regardless of the strategic commitment to implementing CSR and bank size, as these variables do not influence the CSR–performance relationship. However, we find that bank age and competitive positioning have a significant impact on the CSR–performance relationship. Our study provides valuable insights to CSR practitioners and researchers, especially in the banking sector. We provide empirical evidence on the importance of CSR and its positive impact on bank performance in Egypt as one of the emerging markets.
format	article
author	Mohamed M. Ibrahim Mohamed M. El Frargy Khaled Hussainey
author_facet	Mohamed M. Ibrahim Mohamed M. El Frargy Khaled Hussainey
author_sort	Mohamed M. Ibrahim
title	The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
title_short	The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
title_full	The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
title_fullStr	The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
title_full_unstemmed	The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach
title_sort	impact of corporate social responsibility as a marketing investment on firms’ performance: a risk-oriented approach
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/ea7d91dac46644cf93dea7a9083e52b1
work_keys_str_mv	AT mohamedmibrahim theimpactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach AT mohamedmelfrargy theimpactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach AT khaledhussainey theimpactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach AT mohamedmibrahim impactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach AT mohamedmelfrargy impactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach AT khaledhussainey impactofcorporatesocialresponsibilityasamarketinginvestmentonfirmsperformanceariskorientedapproach
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The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach

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