The link between corporate environmental performance and corporate financial performance

2017

The question of whether companies can do good by doing good has aroused a lot of interest among academics and company managers. The link between corporate social or environmental performance (CSP/CEP) and corporate financial performance (CFP) has been studied a lot – and with several different methods, in both directions and in different industries. Majority of earlier studies have found a positive link between CSP/CEP and CFP but due to challenges in measuring social and environmental performance, there is a lot of inconsistency in the study results. However, earlier studies clearly indicate that companies are not punished for their social and environmental efforts. The aim of this study w…