CSR and Organizational Performance

Running Head: CSR AND ORGANIZATIONAL PERFORMANCE
CSR and organizational performance
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Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance: Investigating
the relationship between corporate social responsibility and financial performance
in emerging markets. International Journal of productivity and Performance
management, 59(3), 229-254.
The aim of this paper is to investigate and throw light upon the relationship between CSR
and financial performance in the emerging markets. The paper explores the different situations
where financial performance and corporate social responsibility is interrelated in various
developing countries. The paper investigates the Istanbul Stock Exchange (ISE) 100 index
companies (Aras, Aybars & Kutlu, 2010). The CSR policies of these companies between the
years 2005 and 2007 have been researched by the authors via a range of methods and tools. The
entire study is based on the assumption that there might be some relationships between CSR and
firm size, risk level and profitability.
The finding of the study and its analysis suggests that there is truly an integrated
relationship between a firm’s size and CSR which impacts the financial performance or
profitability. It has bene seen through many examples that CSR can increase the profits of the
company as well as lack of CSR can decrease it. CSR promotes the company values and result in
higher sales, attract talented employees and potential customers. Similarly, CSR focused on the
sustainability can cut down the expenses and increase the efficiency of the company. Therefore,
every small or large public company must engage in CSR activities for better results.
Falkenberg, J., & Brunsæl, P. (2011). Corporate social responsibility: a strategic advantage
or a strategic necessity? Journal of Business Ethics, 99(1), 9-16.

The paper is a great contribution to the literature because it helps to discover certain
aspects of CSR which are the strategic necessity and another set of aspects which are strategic
advantage. The paper has taken two cases to exemplify the topic. The authors have tried to
examine whether CSR is a strategic advantage or strategic necessity. The findings of the study
are inconclusive and seeks the help of further research or explanation. It has been found from
scholarly researches that CSR activities are important as it increases the bottom line of the
companies (Falkenberg & Brunsæl, 2011). CSR works as strategic advantage because it enables
the organization leave a lasting impact on the customers and the market.
The popularity of the organization and success rates are heightened by the activities. The
organization can connect the community and society more by practicing CSR. The CSR
activities within an organization becomes a strategic necessity when it functions for
sustainability concerns. The CSR activities which are practiced for environmental purpose
contributes to the enrichment of society and the nation. Instances of companies are there where
green CSR is practiced to get competitive advantages over the market rivals. In this way CSR
functions both as strategic advantage and strategic necessity and both the concepts are intricately
interrelated.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or
CEO narcissism? CSR motivations and organizational performance. Strategic
Management Journal, 37(2), 262-279.
This paper is based on the theory of CEO narcissism highlights that CRS is a response if
the narcissistic CEO s who crave for attention and image. The article argues that this narcissistic
nature of the CEOs has positive impact on the company profile and organizational performance.
The research has taken Fortune 500 CEOs, and has analyzed the situation by the help of