Corporate reputation, stakeholders and the social performance-financial performance relationship

Abstract

Purpose - To increase understanding of the role of reputation in the corporate social performance (CSP) and financial performance (FP) relationship, including contingencies. Design/methodology/approach - Stakeholder theory is drawn on to present a model of reputation's role in the contingent CSP-FP relationship. Findings - CSP is affected by stakeholders' resource allocation to the organisation. This allocation is based on stakeholders' assessment of the organisation's reputation relative to stakeholders' particular expectations, which may be instrumentally and/or normatively framed. Reputation, therefore, plays a key role in the CSP-FP relationship. Additionally, the authors propose that th..