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Open AccessArticle

Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach

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Department of Business Administration, Universidad Carlos III de Madrid, Calle Madrid 126, 28903 Getafe, Spain
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Institute of Applied Mathematics, Department of Logistics, Wroclaw University of Economics, ul. Komandorska 118/120, 53-345 Wroclaw, Poland
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Food and Resource Economics Department, University of Florida, Gainesville, FL 32611, USA
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Business Economics Group, Wageningen University, 6708 PB Wageningen, The Netherlands
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(7), 2277; https://doi.org/10.3390/su10072277
Received: 2 June 2018 / Revised: 26 June 2018 / Accepted: 27 June 2018 / Published: 2 July 2018
(This article belongs to the Section Economic and Business Aspects of Sustainability)
It is yet to be determined whether the firms’ operational inefficiency is reflected on the Corporate Social Responsibility (CSR) engagement approach. This paper aims to examine this association and specifically analyzes to which of the dimensions of CSR operational inefficiency is more closely related. Operational inefficiency is assessed using Data Envelopment Analysis (DEA) via dynamic inefficiency approach that accounts for the confounding role of adjustment costs related with firms’ investments. Using a sample of U.S. firms in a variety of sectors from 2004 to 2015, we find that lower dynamic inefficiency occurs in firms with a higher commitment to CSR activities. We also find that dynamic inefficiency is negatively related to firms’ engagement in social and corporate governance dimensions of CSR, whereas it is positively associated with the environmental dimension of CSR. In addition, dynamically inefficient companies have higher level of CSR concerns and lower of CSR strengths. The results are robust to endogeneity issues. View Full-Text
Keywords: corporate social responsibility; operational inefficiency; dynamic technical inefficiency; data envelopment analysis corporate social responsibility; operational inefficiency; dynamic technical inefficiency; data envelopment analysis
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MDPI and ACS Style

Guillamon-Saorin, E.; Kapelko, M.; Stefanou, S.E. Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach. Sustainability 2018, 10, 2277.

AMA Style

Guillamon-Saorin E, Kapelko M, Stefanou SE. Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach. Sustainability. 2018; 10(7):2277.

Chicago/Turabian Style

Guillamon-Saorin, Encarna; Kapelko, Magdalena; Stefanou, Spiro E. 2018. "Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach" Sustainability 10, no. 7: 2277.

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