How firms create value through corporate social performance: A meta-analysis

The relationship between corporate social performance (CSP) and corporate financial performance (CFP) has intrigued strategy scholars for nearly four decades. While the field has come to accept that this relationship is, on the whole, positive, our understanding of the mediating pathways through which this effect is channeled remains limited. Moreover, because of theoretical eclecticism, we lack a unifying theoretical framework explaining the interrelationships between these pathways. We develop an integrative framework shedding new light on the CSP- CFP link, rooted in corporate social responsibility and instrumental stakeholder theories. A comprehensive meta- analysis combining the results of 344 prior studies shows that the positive effect of CSP on CFP is relegated through four complementary paths, all involving improved stakeholder relationships: stakeholder endorsement, reputational improvement, innovation, and risk mitigation.