Business Strategy, Corporate Social Responsibility, and Future Financial Performance: Evidence from Data Envelopment Analysis

Lotfi, Mohsen; Seyedi, Seyed Hosein; Delshad, Afsaneh

doi:10.22077/jgdms.2025.9954.1342

دانشگاه بیرجند

تعداد نشریات	22
تعداد شماره‌ها	354
تعداد مقالات	3,733
تعداد مشاهده مقاله	4,939,123
تعداد دریافت فایل اصل مقاله	3,310,842

	Business Strategy, Corporate Social Responsibility, and Future Financial Performance: Evidence from Data Envelopment Analysis
مطالعات مدیریت توسعه سبز
دوره 4، ویژه نامه، آبان 1404، صفحه 285-301 اصل مقاله (882 K)
نوع مقاله: مقاله پژوهشی
شناسه دیجیتال (DOI): 10.22077/jgdms.2025.9954.1342
نویسندگان
Mohsen Lotfi¹؛ Seyed Hosein Seyedi^* ¹؛ Afsaneh Delshad²
¹Assistant Professor, Department of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran
²Assistant Professor, Department of Management and Economics, Faculty of Humanities and Social Sciences, Golestan University, Gorgan, Iran
چکیده
This study investigates the impact of corporate social responsibility (CSR) in combination with distinct business strategies on future financial performance. CSR is recognized for enhancing public welfare and aligning organizational activities with core values, while companies seek to improve economic outcomes with suitable strategies. Financial data from 140 companies listed on the Tehran Stock Exchange over the period from 2008 to 2024 are analyzed using a multivariate regression model based on panel data. Additionally, data envelopment analysis is applied to assess the effectiveness of each company’s CSR practices, thereby providing an integrated perspective on the interplay between CSR and business strategy. Findings reveal that when a prospector strategy is adopted alongside strong CSR initiatives, there is a significant and positive effect on future financial performance. Conversely, companies employing a defender strategy show no substantial impact from CSR execution on subsequent financial success. The study concludes that CSR, when practiced in isolation, may not be sufficient to improve long-term financial results. Nevertheless, integrating CSR with a proactive prospector strategy generates beneficial financial outcomes. Unlike prior studies that typically evaluate the effect of CSR on financial performance in isolation, this research adopts an integrated approach by examining how CSR interacts with distinct business strategies. By comparing this combined CSR–strategy framework with the conventional standalone assessment of CSR, the study shows that the value of CSR is highly dependent on a firm’s strategic orientation and produces meaningful financial benefits only when aligned with a prospector strategy. This integrated perspective offers a more precise understanding of how CSR contributes to future financial performance and provides investors with a clearer foundation for assessing long-term value creation.
کلیدواژه‌ها
Data Envelopment Analysis؛ Prospector Strategy؛ Defender Strategy؛ Future Financial Performance؛ Corporate Social Responsibility

مراجع
Adamkaite, J., Streimikiene, D., & Rudzioniene, K. (2023). The impact of social responsibility on corporate financial performance in the energy sector: Evidence from Lithuania. Corporate Social Responsibility and Environmental Management, 30(1), 91-104. https://doi.org/10.1002/csr.2340 Ajayi, O.A., & Mmutle, T. (2020). Corporate reputation through strategic communication of corporate social responsibility. Corporate Communications: An International Journal, 26(5), 1-15. https://doi.org/10.1108/CCIJ-02-2020-0047 Akbari, P. and Shayegh, M. (2023). Analysis of the effect of green human resource management and corporate social responsibility on sustainable performance with an emphasis on the mediating role of organizational citizenship behavior in an environment-oriented approach towards the dev. Green Development Management Studies, 2(2), 41-66. 10.22077/jgmd.2023.6079.1017. Alkandi, I. (2025). Nexus between green practices, green marketing, and business performance: The mediating role of corporate social responsibility in emerging economy. Discover Sustainability, 6(1), 1-28. https://doi.org/10.1007/s43621-025-01182-0 Amri Asrami, M., & Aghaei, M. A, (2021), The effect of business strategy on the linear and nonlinear relation between corporate social responsibility with the amount and stability of the company's dividend, Financial Accounting Research, 13(1), 109-128. (In Persian). 10.22108/far.2021.123513.1645 Ashrafi, M., Adams, M., Walker, T.R., & Magnan, G. (2018). How corporate social responsibility can be integrated into corporate sustainability: A theoretical review of their relationships. International Journal of Sustainable Development & World Ecology, 25(8), 672-682. https://doi.org/10.1080/13504509.2018.1471628 Bag, S., & Omrane, A. (2022). Corporate social responsibility and its overall effects on financial performance: Empirical evidence from Indian companies. Journal of African Business, 23(1), 264-280. https://doi.org/10.1080/15228916.2020.1826884 Barbosa, C.E., Lima, Y., Emerick, M., Ferman, F., Ribeiro, F.C., & Moreira de Souza, J. (2023). Supporting distributed and integrated execution of future-oriented technology analysis. Futures & Foresight Science, 5(1), e136. https://doi.org/10.1002/ffo2.136 Bentley, K.A., Omer, T.C., & Twedt, B.J. (2019). Does business strategy impact a firm’s information environment? Journal of Accounting, Auditing & Finance, 34(4), 563-587. https://doi.org/10.1177/0148558X1772689 Bofu Deng, Ji, L., & Liu, Z. (2022). The effect of strategic corporate social responsibility on financial performance: Evidence from China. Emerging Markets Finance and Trade, 58(6), 1726-1739. https://doi.org/10.1080/1540496X.2021.1925245 Carroll, A.B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497-505. https://doi.org/10.1186/s40991-025-00109-2 Cavaco, S., & Crifo, P. (2014). CSR and financial performance: Complementarity between environmental, social and business behaviours. Applied Economics, 46(27), 3323-3338. https://doi.org/10.1080/00036846.2014.927572 Charnes, A., Cooper, W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429-444. https://doi.org/10.1016/0377-2217(78)90138-8 Cho, S.J., Chung, C.Y., & Young, J. (2019). Study on the relationship between CSR and financial performance. Sustainability, 11(2), 343. https://doi.org/10.3390/su11020343 Coelho, R., Jayantilal, S., & Ferreira, J.J. (2023). The impact of social responsibility on corporate financial performance: A systematic literature review. Corporate Social Responsibility and Environmental Management, 30(4), 1535-1560. https://doi.org/10.1002/csr.2446 Dahlquist, S., & Lehnert, K. (2023). Strategic orientation: Market changer or market defender. Journal of Macromarketing, 43(1), 5-16. https://doi.org/10.1177/027614672211340 Darabi, R., & Sajadi Nejad, S.T. (2023). The impact of business strategies on social responsibility and future performance of Tehran Stock Exchange companies. Journal of Accounting and Management Vision, 5(77), 112-121. (In persian) https://www.jamv.ir/article_170765_en.html Fauzi, H., & Idris, K. (2009). The relationship of CSR and financial performance: New evidence from Indonesian companies. Issues in Social and Environmental Accounting, 3(1), 1-15. https://ssrn.com/abstract=1694284 Feng, Y., Akram, R., Hieu, V.M., & Hoang Tien, N. (2022). The impact of corporate social responsibility on the sustainable financial performance of Italian firms: Mediating role of firm reputation. Economic Research-Ekonomska Istraživanja, 35(1), 4740-4758. https://doi.org/10.1080/1331677X.2021.2017318 Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine, 13, 122-126. https://doi.org/10.1007/978-3-540-70818-6_14 Fukuyama, H., & Tan, Y. (2022). Implementing strategic disposability for performance evaluation: Innovation, stability, profitability and corporate social responsibility in Chinese banking. European Journal of Operational Research, 296(2), 652-668. https://doi.org/10.1016/j.ejor.2021.04.022. Hatami, S. (2025). Antecedents and Outcomes of Sustainable Human Resources Management: A Meta-Analytic Approach. Journal of Green Development Management Studies, 4(Special Issue), 61-78. 10.22077/jgdms.2025.8687.1240 Ibrahim, A. Alatawi, Ntim, C.G., Zras, A., & Elmagrhi, M.H. (2023). CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda. International Review of Financial Analysis, 89, 102734. https://doi.org/10.1016/j.irfa.2023.102734. Jahani, P. , naderi, E. and chaharmahali, A. A. (2025). Examining the Relationship Between Corporate Social Responsibility and Environmental Performance: The Mediating Role of Green Strategy in Listed Companies. Green Development Management Studies, 4(3), 191-210. (In Persian) 10.22077/jgdms.2025.8169.1194. Jahmane, A., & Gaies, B. (2020). Corporate social responsibility, financial instability and corporate financial performance: Linear, non-linear and spillover effects – The case of the CAC 40 companies. Finance Research Letters, 34, 101483. https://doi.org/10.1016/j.frl.2020.101483. Kabir, M.A., & Chowdhury, S.S. (2023). Empirical analysis of the corporate social responsibility and financial performance causal nexus: Evidence from the banking sector of Bangladesh. Asia Pacific Management Review, 28(1), 1-12. https://doi.org/10.1016/j.apmrv.2022.01.003 Kamal, Y. (2021). Stakeholders expectations for CSR-related corporate governance disclosure: Evidence from a developing country. Asian Review of Accounting, 29(2), 97-127. https://doi.org/10.1108/ARA-04-2020-0052 Kashanipour, M., & Ghorbani, R. (2022). The effect of business strategy on the relationship between companies’ social responsibility and value in order to increase social capital. Social Capital Management, 9(2), 155-186. 10.22059/jscm.2021.324814.2226 Khodamipour, A. and Jafari, M. (2023). Expanding Social and Environmental Responsibility of The Company. Green Development Management Studies, 2(1), 101-111. 10.22077/jgmd.2023.6444.1032 Kunyanti, W.R.W.A., S.A., & Mujiono, M. (2021). Community empowerment-based corporate social responsibility program in Panglima Raja Village. International Journal on Social Science, Economics and Art, 11(1), 12–19. https://doi.org/10.35335/ijosea.v10i1.2 Kuo, L., Kuo, P.-W., & Chen, C.-C. (2021). Mandatory CSR disclosure, CSR assurance, and the cost of debt capital: Evidence from Taiwan. Sustainability, 13(4), 1768. https://doi.org/10.3390/su13041768 Li, F. (2008). Annual report readability, current earnings, and earnings persistence. Journal of Accounting and Economics, 45(2-3), 221-247. https://doi.org/10.1016/j.jacceco.2008.02.003 Lotfi, M., & Seyedi, S.H. (2025). Empirical analysis of factors affecting financial distress at companies: An emphasis on data mining models. Iranian Economic Review, 29(3), 905-935. 10.22059/ier.2024.362655.1007769 Maury, B. (2022). Strategic CSR and firm performance: The role of prospector and growth strategies. Journal of Economics and Business, 118, 106031. https://doi.org/10.1016/j.jeconbus.2021.106031 Miles, R.E., Snow, C.C., Meyer, A.D., & Coleman, H.J. (1978). Organizational strategy, structure, and process. Academy of Management Review, 3(3), 546–562. https://doi.org/10.2307/257544 Nirino, N., Ferraris, A., Miglietta, N., & Invernizzi, A.C. (2022). Intellectual capital: The missing link in the corporate social responsibility–financial performance relationship. Journal of Intellectual Capital, 23(2), 420-438. https://doi.org/10.1108/JIC-02-2020-0038 Okafor, A., Bosede, N.A., & Michael, A. (2021). Corporate social responsibility and financial performance: Evidence from U.S. tech firms. Journal of Cleaner Production, 292, 126078. https://doi.org/10.1016/j.jclepro.2021.126078. Pfajfar, G., Shoham, A., Małecka, A., & Zalaznik, M. (2022). Value of corporate social responsibility for multiple stakeholders and social impact – Relationship marketing perspective. Journal of Business Research, 143, 46-61. https://doi.org/10.1016/j.jbusres.2022.01.051 Ramezannia, H., & Rezaei, F. (2018). Investigating the effect of corporate social responsibility on systemic risk and idiosyncratic risk: Using data envelopment analysis model. Journal of Value & Behavioral Accounting, 2(4), 189-214. (In Persian) 10.29252/aapc.2.4.189 Sargazi, Alireza , Karim, Mohammad Elyas و Karim, Mohammad Hossein . (1404). Analyzing the Role of Local Community Engagement in the Governance of Small-Scale Natural Systems (Local Governance, Sustainable Tourism, and the Regeneration of Rural Ecosystems). Journal of Green Development Management Studies, 4(Special Issue), 1-14. 10.22077/jgdms.2025.9070.1276 Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045-1061. https://www.jstor.org/stable/23443926 Seyedi, S.H., Najjar, A. & Seyedi, S.M. (2025). The trends of fundraising in Iranian charities: methods, drivers, and risks. Int Rev Public Nonprofit Mark, 22, 751–784. https://doi.org/10.1007/s12208-025-00440-1 Shamsadini, K., Nemati, M., & Askari, S.M. (2022). A model for developing corporate social responsibility. Accounting and Social Interests, 12(1), 115-156. (In Persian) 10.22051/jaasci.2022.39507.1676 Siltaloppi, J., Rajala, R., & Hietala, H. (2021). Integrating CSR with business strategy: A tension management perspective. Journal of Business Ethics, 174, 507–527. https://doi.org/10.1007/s10551-020-04569-3 Tamvada, M. (2020). Corporate social responsibility and accountability: A new theoretical foundation for regulating CSR. International Journal of Corporate Social Responsibility, 5(2). https://doi.org/10.1186/s40991-019-0045-8. Tavassoli, M. , Mohammadi, F. , Abdolazimbeig, ,. F. and Seyedi, S. H. (2025). The Role of Non-Governmental Organizations in Realizing Corporate Social Responsibility. Journal of Endowment & Charity Studies, 3(2), 21-42. 10.22108/ecs.2025.144136.1131 Thanh, T.L. (2022). How do corporate social responsibility and green innovation transform corporate green strategy into sustainable firm performance? Journal of Cleaner Production, 362, 132228. https://doi.org/10.1016/j.jclepro.2022.132228. Velmurugan, P.R., Arunkumar, S., Vettriselvan, R., Deepan, A., & Rajesh, D. (2025). Strategic approaches to corporate social responsibility and sustainable development: Integrating leadership, marketing, and finance. Navigating Corporate Social Responsibility Through Leadership and Sustainable Entrepreneurship (pp. 373-406). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-6685-1 Vo, L.-C., Delchet-Cochet, K., & Akeb, H. (2015). Motives behind the integration of CSR into business strategy: A comparative study in French SMEs. Journal of Applied Business Research, 31(5), 1975–1986. https://doi.org/10.19030/jabr.v31i5.9412 Xiaowei, K., Fan, J., & Ling, Z. (2022). Business strategy, corporate social responsibility, and within-firm pay gap. Economic Modelling, 106, 105703. https://doi.org/10.1016/j.econmod.2021.105703. Yolcu, I. (2025). Exploring the interconnection of CSR, ethics, and corporate governance. Topkapı Sosyal Bilimler Dergisi, 4(1), 24-46. 10.15659/tjss.2025.002 Yousefi Hanoomarvar, A., Seyedi, S.H., Rofoogarzade, M., & Arasteh, K. (2022). A model for developing the best strategy combination based on balanced scorecard, fuzzy net present value and game theory. Journal of Operational Research, 19(1), 81-97. (In Persian) 10.52547/jamlu.19.1.81 Yuan, Y., Lu, L.Y., Tian, G., & et al. (2020). Business strategy and corporate social responsibility. Journal of Business Ethics, 162, 359–377. https://doi.org/10.1007/s10551-018-3952-9 Yu-En, L., Yi-Wen, L., Teng, Y., Cheng, K., & Keith, L. (2021). Corporate social responsibility and investment efficiency: Does business strategy matter? International Review of Financial Analysis, 73, 101585. https://doi.org/10.1016/j.irfa.2020.101585. Zada, M., Khan, S., Zada, S., & Dhar, B.K. (2025). Driving sustainable development through CSR leadership: Insights into organizational learning and technological innovation. Sustainable Development. 33(3), 4060-4074. https://doi.org/10.1002/sd.3341 Zhuang, X., & Duan, J. (2025). Under rising environmental uncertainty Chinese enterprises pursue fame or profits? Evidence from corporate social responsibility and financial investment. International Journal of Emerging Markets, 20(3), 1190-1213. https://doi.org/10.1108/IJOEM-04-2022-0639
آمار تعداد مشاهده مقاله: 74 تعداد دریافت فایل اصل مقاله: 21

نماد الکترونیک

سامانه مدیریت نشریات علمی. قدرت گرفته از سیناوب

پیوندهای مفید

آمار

Business Strategy, Corporate Social Responsibility, and Future Financial Performance: Evidence from Data Envelopment Analysis