Authors: Seungwha (Andy) Chung, Hyunsang Pyo
Abstract: This study investigates the discriminatory benefit of corporate social performance from the viewpoint of stakeholder relations. The effect of corporate social performance on primary and secondary stakeholder relations was examined empirically. A sample of 52 firms and 312 firm-year observations was extracted from the Korea Economic Justice Institute database.
The results of this study suggest that corporate financial performance has a positive effect on primary stakeholder relations, but corporate philanthropy has a positive effect on both primary and secondary stakeholder relations. Furthermore, corporate financial performance has a positive overall effect on stakeholder relations when corporate giving is high. These findings provide new insight into the complex relations among corporate financial performance, corporate philanthropy, and corporate social performance.
Keywords: corporate philanthropy, corporate social performance, stakeholder relations, financial performance