Social Relationship of a Firm and the CSP–CFP Relationship in Japan: Using Artificial Neural Networks

Journal of Business Ethics · 2009 · Volume 87 · Issue 1

Abstract

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data.

Keywords

artificial neural networks, corporate social performance versus corporate financial performance relationship, corporate social responsibility, growth potential, Japan, linearity, profitability, social relationship

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