Title

Corporate social performance and financial performance

Document Type

Journal Article

Publisher

Griffith University, School of Accounting, Banking and Finance

Place of Publication

Nathan, Qld

Faculty

Business and Law

School

Accounting, Finance and Economics

RAS ID

5933

Comments

This article was originally published as

Kristoffersen, I., Gerrans, P., & Clark-Murphy, M. (2008). Corporate social performance and financial performance. Accounting, Accountability & Performance, 14(2), 45.

Original article available here

Abstract

The debate on whether corporate social performance and financial performance are substitutes or complements has been long and unresolved. The evidence presented in this paper demonstrates that there are clear associations between measures of corporate environmental, social and governance performance and financial characteristics and, moreover, that they are sensitive to industry classification. There is no evidence of trade-offs between environmental, social and governance performance and shareholder wealth, in terms of either risk or return. For firms in the banking, diversified financials, insurance and telecommunications industries high governance performance is strongly related to superior financial performance.