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Corporate reputation, stakeholders and the social performance‐financial performance relationship

Benjamin A. Neville (Department of Management, University of Melbourne, Melbourne, Australia)
Simon J. Bell (Judge Institute of Management, University of Cambridge, Cambridge, UK)
Bülent Mengüç (Department of Management, Marketing, and Human Resources, Faculty of Business, Brock University, St Catharines, Canada)

European Journal of Marketing

ISSN: 0309-0566

Article publication date: 1 September 2005

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Abstract

Purpose

To increase understanding of the role of reputation in the corporate social performance (CSP) and financial performance (FP) relationship, including contingencies.

Design/methodology/approach

Stakeholder theory is drawn on to present a model of reputation's role in the contingent CSP‐FP relationship.

Findings

CSP is affected by stakeholders' resource allocation to the organisation. This allocation is based on stakeholders' assessment of the organisation's reputation relative to stakeholders' particular expectations, which may be instrumentally and/or normatively framed. Reputation, therefore, plays a key role in the CSP‐FP relationship. Additionally, the authors propose that the equivocal results of previous research into the CSP‐FP relationship may be partly explained by organisational and market contingencies. Specifically, the authors contend that strategic fit, competitive intensity and reputation management capability moderate the CSP‐FP relationship.

Research limitations/implications

Empirical measurement issues and future research directions are discussed.

Originality/value

This paper increases the understanding of the role of reputation in the CSP‐FP relationship. Owing to its rich pedigree in research in corporate branding and reputation, marketing is uniquely positioned to contribute toward the better understanding of this issue.

Keywords

Citation

Neville, B.A., Bell, S.J. and Mengüç, B. (2005), "Corporate reputation, stakeholders and the social performance‐financial performance relationship", European Journal of Marketing, Vol. 39 No. 9/10, pp. 1184-1198. https://doi.org/10.1108/03090560510610798

Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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