Such a situation puts managers in a favorable position, i.e., not to be adequately evaluated for the results of their decisions, thereby increasing the risks of excessive discretion and potential inefficiency in capital allocation. Friedman ( 1970) identified CSR as an agency problem in which managers misallocate shareholders’ wealth to pursue a social mission they choose. For agency theorists, the main objective of the firm is to increase the wealth of the shareholders. 1932).Īnother perspective is presented by the agency theory that augurs a negative relationship between CSR and firm performance. “CSI is seen as immoral and/or illegal corporate actions with negative consequences for others” ( Lin-Hi and Müller 2013, p. However, companies are responsible not only for “doing good” but also for “avoiding bad” in order to prevent corporate social irresponsibility (CSI). In general, CSP is tied to “doing good” and overlap with CSR. ( 2014) suggested that companies can display both socially responsible and irresponsible practices. Recently, researchers have begun integrating corporate social irresponsibility (CSI) to better understand the impact of CSP on CFP. Indeed, it is not clear whether some aspects contribute to the relationship between CSP and CFP. should be considered separately ( Blasi et al. ![]() 2015 Goel and Misra 2017 Sroufe and Gopalakrishna-Remani 2019), others suggest that individual dimensions, such as community, diversity, human rights, and etc. While many studies consider corporate social performance as an overall score ( Fatemi et al. In addition, the decree of 24 April 2012 relating to the transparency of information related to social and environmental impact and the decree of require companies to appoint an independent third-party body to verify the information disclosed and write a report including a certificate on the presence of all mandatory information and the fairness of the information appearing in the annual report and the CSR report. This law was followed by the law of 12 July 2010, known as Grenelle II, on national commitment to the environment. In 2009, the Grenelle I law defined actions to improve sustainable development activities and promote socially responsible investment. It is important to note that this law did not prescribe social rules to be implemented, new emission thresholds, or the use of renewable energies. The law on New Economic Regulations (NRE) obliges listed companies to disclose information relating to their social and environmental impacts in their annual reports. ![]() In France, since 2001, CSR has been the subject of numerous regulations.
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