Page 186 - Global Compact | International Yearbook
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Global Compact International Yearbook 2013
186
Extending the business case debate
One reason for the inconclusiveness of the business case de-
bate can be ascribed to the lack of long-term considerations.
To illustrate this in more detail, it is important to distinguish
between three generic positions within this business case debate.
First, there is the “only profits matter” argument: Rooted in
neo-classical economic theory, this argument considers firms
to be efficiency-driven anyway, and thus no special emphasis
on managing ecological or social issues is needed. The mana-
gerial advice would be to incorporate sustainability only to
the extent as it is covered by business as usual processes. Any
further efforts to increase CSP unnecessarily constrain the
firms’ actions through increased costs. Following this line of
thought, management should only focus onmaximizing profits
and creating shareholder value. It is obvious that, under these
assumptions, there is not much room for more sustainable busi-
ness practices, especially to the extent that is urgently needed.
Second, there is the short-termpayoff argument: This argument
is rooted in the assumption that, because of information asym-
metries, companies may not always follow efficiency-driven
goals and make optimal decisions. Based on this assumption,
environmental-strategy research suggests green management
The CSR-CFP Link – Some Useful National Studies
Malaysia:
Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad
:
An Empirical Examination of the Relationship between
Corporate Social Responsibility Disclosure and Financial Performance in an Emerging Market
Link:
South Korea:
Fu-Ju Yang, Ching-Wen Lin and Yung-Ning Chang
:
The linkage between corporate social performance and corporate
financial performance
Link:
Indonesia:
Hasan Fauzi and Kamil M. Idris
:
The Relationship of CSR and Financial Performance: New Evidence From Indonesian
Companies
Link:
Bangladesh:
Kazi Zahirul Islam
:
Corporate Social Responsibility (CSR) and Issue to Corporate Financial Performance (CFP):
An Empirical Evidence on Dhaka Stock Exchange (DSE) Listed Banking Companies in Bangladesh
Link:
South Africa:
Hopolang Leeto Ntoi
:
Impact of Corporate Social Responsibility on the Financial Performance of Companies listed on the
Johannesburg Securities Exchange
Link:
Pakistan:
Nadeem Iqbal, Naveed Ahmad, Nauman Ahmad Basheer and Muhammad Nadeem
:
Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan
Link:
Sri Lanka:
Wijesinghe K. N. and Senaratne S.
:
Impact of Disclosure of Corporate Social Responsibility on Corporate Financial
Performance in Bank, Finance and Insurance Sector in Sri Lanka
Link:
