DSpace JSPUI

This Study Examines Whether Stakeholder Management Strategy And Salience Influence Corporate Social Responsibility Towards Stakeholders And Whether Corporate Social Responsibility Influences Firm Performance. Data Were Collected From 150 Senior-Level Managers Including Ceos In Indian Manufacturing Companies. A Questionnaire For Assessing Corporate Social Responsibility Was Developed With Respect To Six Primary Stakeholder Groups—Employees, Customers, Investors, Community, Natural Environment, And Suppliers. A Composite Measure Of Corporate Social Responsibility Was Obtained By Aggregating The Six Dimensions Of Corporate Social Responsibility. Along With This, Stakeholder Management Strategy, Stakeholder Salience And Non-Financial Performance Were Assessed Using The Questionnaire. All The Data Were Perceptual In Nature Except The Data On Firms’ Financial Performance. Data Were Analyzed Using Correlations, Least Square Regressions, Hierarchical Regressions, Two-Stage Least Squares, And Confirmatory Factor Analyses. Findings Reveal That The Favorable Strategy Towards Each Stakeholder Group Increases The Corresponding Corporate Social Responsibility. Increased Salience Of Each Stakeholder Group Also Enhances The Corresponding Corporate Social Responsibility. When Both Salience And Strategy Are Considered, The Salience Of A Particular Stakeholder Group Becomes So Strong That It Fully Or Partially Suppresses The Effect Of Strategy On Corporate Social Responsibility Suggesting The Mediating Role Of Salience On Strategy. Furthermore, An Increase In The Corporate Social Responsibility Towards Each Stakeholder Group Directly Influences Financial And Non-Financial Firm Performance. An Increase In The Aggregate Corporate Social Responsibility Towards All Stakeholder Groups Also Enhances The Firms’ Financial And Non-Financial Performance.