Linking corporate social responsibility and financial performance: the importance of CEO attention and corporate social performance congruence

Abstract

This thesis examines the extent to which congruence between CEO attention to social responsibility (CEO attention) and corporate social performance (CSP) impacts firm financial performance. This paper argues that the joint effect of CEO attention and its efficacy as assessed through CSP on financial performance is a positive but diminishing relationship. Using polynomial regression and response surface methodology on a sample of 449 unique firms from 2009 to 2018, I find that CEO attention and CSP congruence has a mixed linear relationship with financial performance. Financial performance is highest when CEO attention and CSP are both equally low/high depending on the financial performance measure. The findings also showed that disproportionate levels of CEO attention and CSP were not significantly related to financial performance. This study contributes to the broader field of CSR research by introducing CEO attention and CSP congruence.