earticle

영어

Using the social-environmental performance score from the Korea Economic Justice Institute(KEJI) for the period between 2002 and 2009, this study analyzes the circulation loop of corporate social and environmental performance, productivity, and financial performance, for which the literature provides no conclusive results. This paper shows empirical evidence that firms consistently improving in their social-environmental responsibility are able to gain superior labour productivity. The analyses also show that changes in labour productivity have a positive impact on the improvement of financial performance (ROA, Tobin-q). These results support the theory that corporate social and environmental performance and good management are positively associated. However, this study reports that financial performance does not have an impact on social-environmental performance. Finally, the findings prove that differences exist in the circulation loop of corporate social and environmental performance, productivity, and financial performance with industry characteristics.