The Relationship Between Corporate Social Responsibility and Financial Performance: The Role of Corporate Governance - 8,5

Summary — The Relationship Between Corporate Social Responsibility and Financial Performance: The Role of Corporate Governance This comprehensive literature review explores the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP), with special attention to the moderating role of Corporate Governance (CG) and institutional context. The document analyses more than 70 scientific articles from the management, finance and sustainability literature. The review discusses various theoretical perspectives, including Stakeholder Theory, Agency Theory, and Institutional Theory, to explain how CSR can contribute to financial performance. In addition, it is investigated under which circumstances CSR leads to higher profitability, reputation advantages, innovation and lower capital costs. The influence of corporate governance mechanisms such as board diversity, board independence, CEO structures, sustainability committees and ownership structures on the relationship between CSR and financial performance is also extensively discussed. Attention is also paid to the role of institutional quality and differences between developed and emerging markets. The document includes an extensive literature review, theoretical framework, four research propositions, conceptual models and an extensive list of references. Ideal for students in International Business, Strategic Management, Corporate Governance, Sustainability, ESG, Corporate Social Responsibility, and Business Ethics.