This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

ABSTRACTThis article provides an insight into the changing role of businesses in dealing with the natural environment issues. From being regarded as poachers of the natural environment, many businesses have now started to position themselves as gamekeepers of the natural environment. This article traces the events and factors that have contributed toward this shift. The article starts with an introduction to the current state of the natural environment. It then discusses the role that businesses have traditionally played in contributing toward (...) the rapid deterioration of the natural environment. The article then traces the events that have gradually resulted in businesses accepting that they have a responsibility to address environmental issues. This is followed by an overview of the business responses, to the risks and opportunities, posed by changes in the natural environment. The article then provides a brief overview of the various phase models that attempt to categorize business responses to environmental issue. The conclusion focuses on the challenges that lie ahead. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)