Exploring the Impact of Corporate Social Responsibility on Firm Performance: Article Review on CSR

Running head: ARTICLE REVIEW ON CSR
ARTICLE REVIEW ON CSR
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1ARTICLE REVIEW ON CSR
Article: Ağan, Y., Kuzey, C., Acar, M.F. and Açıkgöz, A., 2016. The relationships between
corporate social responsibility, environmental supplier development, and firm
performance. Journal of Cleaner Production, 112, pp.1872-1881.
Topic: Corporate Social Responsibility
Corporate Social Responsibility is considered as the method of the corporate self-
regulation which can be integrated into the business model. The CSR generally functions as the
policy functions those act like the built-in and the self-regulating process where the business can
monitor and ensure the active compliance with the law spirit, the ethical standards, and the
international norms. CSR mostly aim to hold the responsibility of the business’s actions and
encouraging the positive influence through the actions on the environment, staffs, communities,
shareholders and the members of the community spheres that might be considered as the
stakeholders. This paper shows the impact of environment supplier development on the
organization performance and are examined by the survey method of collecting 314 responses
from the Turkish manufacturing firm along with 250 employees. This paper include the Partial
Least Square Structural Equation Model (PLS SEM) that was constructed for examining both
the reliability and the validity of the measurement as well as structural model. The result of this
examination indicates that the CSR is positively related to ESD and it has a positive influence
on the financial performance and the competitive advantage of the firms. This paper was able
to discover the larger firms which are most sensitive towards CSR. This article is most relevant
for the topic CSR because the (PLS SEM) model the paper have used for examining the
impact of CSR in the manufacturing firm, which showed the contribution of CSR in the
organization and their benefits for the organization.