THE EFFECT OF THE MEDIATING ROLE OF CORPORATE REPUTATION IN THE RELATIONSHIP BETWEEN CSR AND BUSINESS PERFORMANCE
Abstract
ABSTRACT
In the last few years, the strategic consideration of Corporate Social Responsibility (CSR) is gaining relevance, due to the potential benefits that firms can obtain from its implementation in a number of industries. However, the existing research trying to show a causal relationship between CSR and business performance, is still inconclusive. This paper, which focuses on the renewable energy industry in Spain, tries to overcome limitations of previous research by offering a new measure of CSR and adding (good) corporate reputation as a mediating variable in that relationship. The results of the analysis, carried out through a structural equation model by applying the Partial Least Squares (PLS) technique, show that corporate reputation has a full mediating effect in the relationship between CSR and business performance, which it has important managerial implications on CSR management from a strategic viewpoint.
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