Corporate Social Responsibility and Financial Performance: A Meta-Analysis of Stakeholder Theory Applications

Abstract

The relationship between corporate social responsibility (CSR) and financial performance has been a subject of extensive debate in management literature. This meta-analysis synthesizes findings from 87 empirical studies published between 2015-2024, examining the CSR-financial performance relationship through the lens of stakeholder theory. The analysis reveals a positive and significant relationship (r = .310, 95% CI [.274, .345]) between CSR activities and financial performance, with organizations moving from low to high CSR performance experiencing 12-19% performance improvements. Environmental CSR showed the strongest relationship (r = .358), while financial services demonstrated the highest industry-specific correlation (r = .408). The meta-regression analysis explains 28.7% of variance in effect sizes, with comprehensive CSR measurement, longitudinal study design, and institutional quality emerging as key moderators. The findings support stakeholder theory predictions while highlighting the importance of strategic CSR implementation for value creation.