Corporate Social Responsibility and Financial Performance: An Integrative Meta-Analytic Review

Abstract

This integrative meta-analytic review examines the relationship between Corporate Social Responsibility (CSR) and financial performance, highlighting the varying impacts across different firm sizes and industry sectors. The analysis reveals that CSR initiatives generally lead to positive financial outcomes, especially for large firms, which benefit from greater resources, established reputations, and economies of scale. These firms can effectively implement and leverage CSR activities to enhance their financial performance. In contrast, small firms often face challenges due to resource constraints and higher relative costs, resulting in more varied financial impacts from CSR. The industry context further influences CSR effectiveness, with sectors like finance and technology experiencing more pronounced positive impacts due to high stakeholder expectations and regulatory pressures. Conversely, manufacturing and energy sectors may struggle with higher implementation costs and regulatory challenges that diminish CSR's financial benefits. The findings underscore the importance of tailoring CSR strategies to firm-specific characteristics and industry contexts to maximize financial benefits. By aligning CSR initiatives with organizational resources, stakeholder expectations, and market conditions, firms can enhance their competitiveness and achieve sustainable financial and social outcomes. This study provides valuable insights for both academics and practitioners, advocating for a strategic and customized approach to CSR to foster positive financial performance.