RESEARCH ARTICLE
Corporate social responsibility's influence on firm risk and firm performance: the mediating role of firm reputation
Zia ur Rehman,
Asad Khan,
Asim Rahman,
Corresponding Author
Zia ur Rehman
Department of Management Sciences, University of Haripur, Haripur, Pakistan
Correspondence
Zia ur Rehman, Department of Management Sciences, University of Haripur, Haripur, Pakistan.
Email: zia.rehman@uoh.edu.pk
Search for more papers by this authorAsad Khan
Department of Management Sciences, University of Haripur, Haripur, Pakistan
Search for more papers by this authorAsim Rahman
Department of Management Sciences, Abbottabad University of Science and Technology, Abbottabad, Pakistan
Search for more papers by this authorZia ur Rehman,
Asad Khan,
Asim Rahman,
Corresponding Author
Zia ur Rehman
Department of Management Sciences, University of Haripur, Haripur, Pakistan
Correspondence
Zia ur Rehman, Department of Management Sciences, University of Haripur, Haripur, Pakistan.
Email: zia.rehman@uoh.edu.pk
Search for more papers by this authorAsad Khan
Department of Management Sciences, University of Haripur, Haripur, Pakistan
Search for more papers by this authorAsim Rahman
Department of Management Sciences, Abbottabad University of Science and Technology, Abbottabad, Pakistan
Search for more papers by this authorAbstract
The aim of the article is to analyze the influence of corporate social responsibility (CSR) initiatives by firm on firm performance and firm risk. Moreover, the mediating role of firm reputation in CSR/performance and CSR/risk relationship is also examined. Data were collected from European and Asian firms listed on Fortune's Most Admired Countries for the period 2014–2018. Using logit regression model and OLS regressions, we find that CSR has a significant positive influence on firm reputation and firm performance whereas on firm risk it is negative. Based on our results, we also confirm that firm reputation does mediate the relationship between CSR-firm performance and CSR-firm risk. This study adds to CSR related literature by providing more reliable and objective evidence on the role of firm reputation in CSR engagement and also provides direction for future studies in this context.
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