TABASA, MARY ALWINA S.

04/14/23
BS PSYCHOLOGY 3

Firm Performance and Corporate Social Responsibility: Spatial Context and

Effect Mechanism

This article investigates about the impact of firm performance on corporate social
responsibility (CSR) in a particular spatial setting. There's a in part bidirectional
relationship between corporate performance and corporate social responsibility (CSR;
Ratajczak, 2021). By and large, this relationship is positive (Lee & Yang, 2022); be that
as it may, it may sometimes be negative (H. Wang & Choi, 2013) and beneath certain
circumstances, it isn't significant (Kreander et al., 2015). However, this study focuses on
the firms located in China. It could have been in other countries too such as the
Philippines.

Financial performance influences CSR (K. Huang et al., 2020). Companies with
great financial performance have more assets and venture more in upgrading CSR and
can subsequently make superior CSR performance (Khan et al., 2019; Torugsa et al.,
2012). Which confirmed the indirect link between financial and CSR performance through
the mediating role of institutional and executive shareholding rates. What is good about
this study was that the researchers provided good evidence that can be seen in their
results. The empirical evidence in this ponder not as it were underpinning the spatial
context-sensitive thesis but, more vitally, proposes a spatiotemporal context-sensitive
thesis. It gives solid observational support for the true relative esteem of the
spatiotemporal context influencing CSR performance, which yields critical theoretical,
methodological, and policy implications.

REFERENCES:
• Ratajczak, P. (2021). The mediating role of natural and social resources in the
corporate social responsibility—corporate financial performance relationship.
Managerial and Decision Economics, 42(1), 100–119.
• Lee, J.-E., & Yang, Y. S. (2022). The impact of corporate social responsibility
performance feedback on Corporate Social Responsibility Performance. Frontiers
in Psychology, 13, 893193.
• Kreander, N., McPhail, K., & Beattie, V. (2015). Charity ethical investments in
Norway and the UK. Accounting Auditing & Accountability Journal, 28(4), 581–617.
• Khan, S. A. R., Yu, Z., Golpıˆra, H., & Sharif, A. (2019). The nexus between
corporate social responsibility and corporate performance: An empirical evidence.
LogForum, 15(2), 291–303.
• Jiafeng, G. (2023). Firm Performance and Corporate Social Responsibility: Spatial
Context and Effect Mechanism. DOI: 10.1177/21582440231152123
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