Corporate social responsibility and firm performance: Investor preferences and corporate strategies

Academy of Management Review

Volumn 32, Issue 3, 2007, Pages 817-835

  Mackey, Alison ^a   Mackey, Tyson B ^a   Barney, Jay B ^b  

^a CALIFORNIA POLYTECHNIC STATE UNIVERSITY   (United States)

^b OHIO STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34547312349     PISSN: 03637425     EISSN: None     Source Type: Journal    
DOI: 10.5465/AMR.2007.25275676     Document Type: Review

References (63)

1. Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. 2007. Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32: 836-863.
2. Alchian, A. 1950. Uncertainty, evolution, and economic theory. Journal of Political Economy. 58: 211-222.
3. Aronson v. Lewis, 473 A.2d 805, 812 (Del. 1984).
4. Banfield, E. C. 1985. Are homo economicus and homo politicus kin? In Here the people rule: Selected essays: 384-395. New York: Plenum Press.
5. Barney, J. B. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32: 1231-1241.
6. Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management. 17: 99-120.
7. Barney, J. B. 2002. Gaining and sustaining competitive advantage (2nd ed.). Upper Saddle River, NJ: Prentice-Hall.
8. Belkaoui, A. 1976. The impact of the disclosure of the environmental effects of organizational behavior on the market. Financial Management, 5: 26-31.
9. Bragdon, J. H., Jr., & Marlin, J. A. T. 1972. Is pollution profitable? Risk Management, 19(2): 9-18.
10. Brealey, R., & Myers, S. 2003. Principles of corporate finance (3rd ed.). New York: McGraw-Hill.
11. Carroll, A. B. 1995. Stakeholder thinking in three models of management morality. In J. Näsi (Ed.), Understanding stakeholder thinking: 47-74. Helsinki: LSR Publications.
12. Clarkson, M. B. E. 1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20: 92-117.
13. Copeland T., Murrin, J., & Koller, T. 1994. Valuation (2nd ed.). New York: Wiley.
14. Coyne, K. R., & Witter, J. W. 2002. Taking the mystery out of investor behavior. Harvard Business Review, 80(9): 68-79.
15. Davis, K. 1973. The case for and against business assumption of social responsibilities. Academy of Management Journal 16: 312-322.
16. Dierickx, I., & Cool, K. 1989. Asset stock accumulation and the sustainability of competitive advantage. Management Science, 35: 1504-1511.
17. Donaldson, T., & Preston, L. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20: 65-91.
18. Fairfax, L. M. 2002. Doing well while doing good: Reassessing the scope of directors' fiduciary obligations in forprofit corporations with non-shareholder beneficiaries. Washington and Lee Law Review, 59: 409-475.
19. Fama, E. F. 1970. Efficient capital markets: A review of theory and empirical work. Journal of Finance, 25: 383-417.
20. Fama, E. F. 1998. Market efficiency, long-term returns, and behavioral finance. Journal of Financial Economics, 49: 283-306.
21. Freedman, M., & Stagliano, A. J. 1991. Differences in social-cost disclosures: A market test of investor relations. Accounting, Auditing and Accountability Journal, 4(1): 68-83.
22. Freeman, R. 1984. Strategic management: A stakeholder perspective. Englewood Cliffs, NJ: Prentice-Hall.
23. Friedman, M. 1962. Capitalism and freedom. Chicago: University of Chicago Press.
24. Geczy, C. C, Stanbaugh, R. F., & Levin, D. 2003. Investing in socially responsible mutual funds. Working paper, Wharton School, University of Pennsylvania, Philadelphia.
25. Godfrey, P. C. 2004. The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30: 777-798.
26. Grass, M. 1999. OAC wants "U" to divest. Michigan Daily, October 29: 1, 7.
27. Jensen, M., & Meckling, W. 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3: 305-360.
28. Karpoff, J. M. 1987. The relation between price changes and trading volume: A survey. Journal of Financial and Quantitative Analysis, 22: 109-126.
29. Lavelle, L. 2004. CalPERS: Too fierce? Business Week. June 7: 114.
30. Margolis, J. D., & Walsh, J. P. 2003. Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48: 268-305.
31. Margolis, J. D., & Walsh, J. P. 2001. People and profits? The search for a link between a company's social and financial performance. Mahwah, NJ: Lawrence Erlbaum Associates.
32. McWilliams, A., & Siegel, D. 2001. Corporate social responsibility: A theory of the firm perspective. Academy of Management Review. 26: 117-127.
33. Mitchell, R., Agle, B., & Wood, D. 1997. Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22: 853-886.
34. Moskowitz, M. 1975. Profiles in corporate responsibility: The ten worst, the ten best. Business and Society Review, 13: 28-42.
35. Orlitzky M., Schmidt, F. L., & Rynes S. 2003. Corporate social and financial performance: A meta-analysis. Organization Studies, 24: 403-411.
36. Paine, L. S. 2002. Value shift. New York: McGraw-Hill.
37. Peteraf, M. A., & Barney, J. B. 2003. Unraveling the resourcebased tangle. Managerial and Decision Economics, 24: 309-323.
38. Schiller, R. J. 1999. Human behavior and the efficiency of financial markets. In J. B. Taylor & M. Woodford (Eds.), Handbook of macroeconomics, vol. 1: 1305-1340. Amsterdam: Elsevier Science.
39. Schiller, R. J. 2000. Irrational exuberance. Princeton, NJ: Princeton University Press.
40. Schneider, S. C., Oppegaard, K., Zollo, M., & Huy, Q. 2005. Socially responsible behavior: Developing virtue in organizations. Working paper, INSEAD, Paris.
41. Shane, P. B., & Spicer, B. H. 1983. Market response to environmental information produced outside the firm. Accounting Review, 58: 521-538.
42. Shefrin, H. 2000. Beyond greed and fear: Understanding behavioral finance and the psychology of investing. Cambridge, MA: Harvard Business School Press.
43. Shlensky v. Wrigley, 237 N.E.2d 776, 777 (111. App. Ct. 1968).
44. Simon, W. H. 1993. What difference does it make when corporate managers have public responsibilities? Washington and Lee Law Review. 50: 1697-1698.
45. Sinclair Oil Corp. v. Levien, 280 A.2d 717, 720 (Del. 1971).
46. Social Investment Forum. 2005. 2005 Report on socially responsible investing trends in the United States, http:// www.socialinvest.org/areas/ research/trends/sri_ trends_report_2005.pdf, accessed March 6, 2007.
47. Spicer, B. H. 1978. Investors, corporate social performance and information disclosure: An empirical study. Accounting Review, 53: 94-110.
48. Swanson, D. L. 1999. Toward an integrative theory for business and society: A research strategy for corporate social performance. Academy of Management Review, 24: 506-521.
49. Thaler, R. 1987a. Seasonal movements in security prices I: The January effect. Journal of Economic Perspectives, 1(1): 197-201.
50. Thaler, R. 1987b. Seasonal movements in security prices II: Weekends, holidays, turn of the month and intra-day effects. Journal of Economic Perspectives. 1(2): 169-177.
51. Tversky, A., & Kahneman, D. 1974. Judgment under uncertainty: Heuristics and biases. Science, 185: 1124-1131.
52. Waddock, S. A. 2004. Parallel universes: Companies, academics, and the progress of corporate citizenship. Business and Society Review, 109: 5-42.
53. Waddock, S. A. 2006. What will it take to create a tipping point for corporate responsibility? In M. Epstein & K. O. Hanson (Eds.). The accountable corporation, vol. 4: 75-96. Greenfield, CT: Praeger.
54. Waddock, S. A. & Graves, S. B. 1997. The corporate social performance-financial performance link. Strategic Management Journal, 18: 303-319.
55. Wang, J. 1994. A model of competitive stock trading volume. Journal of Political Economy. 102: 127-168.
56. Wartick, S. L., & Cochran, P. L. 1985. The evolution of the corporate social performance model. Academy of Management Review, 10: 758-769.
57. Whetten, D. A., & Mackey, A. 2004. An identity-congruence explanation of consistently high corporate social performance ratings. Working paper, Marriott School of Management, Brigham Young University, Provo, UT.
58. Whetten, D. A., Rands, G., & Godfrey, P. C. 2001. What are the responsibilities of business to society? In A. Pettigrew, H. Thomas, & R. Whittington (Eds.), Handbook of strategy and management: 373-410. London: Sage.
59. Windsor, D. 2001. Corporate social responsibility: A theory of the firm perspective-Some comments. Academy of Management Review, 26: 502-504.
60. Wood, D. J. 1991a. Corporate social performance revisited. Academy of Management Review, 16: 691-718.
61. Wood, D. J. 1991b. Social issues in management: Theory and research in corporate social performance. Journal of Management, 17: 383-406.
62. Wood, D. J., & Jones, R. E. 1995. Stakeholder mismatching: A theoretical problem in empirical research on corporate social performance. International Journal of Organizational Analysis. 3: 229-267.
63. Wright, P., & Ferris, S. P. 1997. Agency conflict and corporate strategy: The effect of divestment on corporate value. Strategic Management Journal. 18: 77-83.