An Empirical Study of Taiwan-s Hospital Foundation Investment in Corporate Social Responsibility and Financial Performance
Corporate Social Responsibility (CSR) has become a
new trend of business governance. Few research studies on CSR
published in Taiwanese academia, especially for medical settings, we
were interested in probing the relationship of CSR and financial
performance in medical settings in Taiwan. The results illustrate that:
(1) a time delay effect exists with a lag between CSR effort and its
performance in the hospital foundation, (2) input into the internal
domains of CSR will be helpful to improve employee productivity in
the hospital foundation, and (3) input into the external domains of CSR
will be helpful in improving financial performance in the hospital
foundation. This study overviews CSR in the medical industry in
Taiwan and the relationship of CSR and financial performance.
Discussions of possible implications from the study results are applied
to consult the CSR concept that will be transferred into a business
strategy for the organization manager.
[1] M. Drumwright, "Socially responsible organizational buying:
environmental concern as a non-economic buying criterion," Journal of
Marketing, vol.58, no.3, pp.1-19, 1994.
[2] I. Maignan, and O.C. Ferrell, "Antecedents and benefits of corporate
citizenship: an investigation of French businesses," Journal of Business
Research, vol.51, no.1, pp.37-51, 2001.
[3] T. M. Jones, "Instrumental Stakeholder Theory: A Synthesis of Ethics and
Economics," Academy of Management Review, vol.20, no.2, pp. 404-437,
1995.
[4] A. B. Carroll, "A three-dimensional conceptual model of corporate
performance," Academy of Management Journal, vol.4, no.4, pp.497-505,
1979.
[5] A. B. Carroll, "The Pyramid of Corporate Social Responsibility: Toward
the Moral Management of Organizational Stakeholders," Business
Horizons, vol.34, no.4, 1991.
[6] A. I. Nabil, P. A. John, and P. H. Donald, "The Corporate Social
Responsiveness Orientation of Hospital Directors: Does Occupational
Background Make a Difference," Health Care Management Review,
vol.25, no.2, pp.85-92, spring, 2000.
[7] Liebowitz. "Knowledge Management Handbook," New York: CRC Press
LLC. 1999.
[8] H. Stuart, "Employee identification with the corporate identity,"
International Studies of Management and Organization, vol.32, no. 3,
pp.28-44, 2002.
[9] C. B. Bhattacharya, S. Sen, and D. Korschun, "Using corporate social
responsibility to win the war for talent,"MIT Solan Management Review,
vol.49, no.2, pp. 36-44, 2008.
[10] M. J. Montero, R.A. Araque, and J. M. Rey, "Occupational health and
safety in the framework of corporate social responsibility". Safety
Science, vol.47, pp.1440-1445, 2009.
[11] M. Orlitzky, F. L. Schmidt, and S. L. Rynes," Corporate social and
financial performance: a meta-analysis." Organization Studies, vol.24,
pp.403-441, 2003.
[12] E.H. Bowman, and M. A. Haire, "Strategic Posture Toward Corporate
Social Responsibility," California Management Review, vol.18, no.2,
pp.49-58, 1975.
[13] M. V. Russo, and A. F. Paul,"A resource-based perspective on corporate
environmental and profit ability," Academy of Management Journal,
vol.40, no.3, pp.534-559. 1997.
[14] S. McGuire, and Schneeweis, "Corporate Social Responsibility and Firm
Financial Performance, "Academy of Management Journal, vol.31, pp.
854-872,1988.
[15] C. Molinari, L. Morlock, J.A. Alexander, and C.A. Lyles, "Hospital Board
Effectiveness: Relationships Between Governing Board Composition and
Hospital Financial Viability," Health Services Research, vol.28,
pp.357-370, 1993.
[16] J. M. Handelman, and S. J. Arnold, "The role of marketing actions with
asocial dimension: appeals to thein stitutional environment," Journal of
Marketing, vol.63, no.3, pp. 33-48, 1999.
[17] Sen, Sankar, and C. B. Bhattacharya, "Does Doing Good Always Lead to
Doing Better? Consumer Reactions to Corporate Social Responsibility,"
Journal of Marketing Research, vol.38, no.3, pp.225-243, 2001.
[18] W.G. Simpson, and T. Kohers, "The Link Between Corporate Social and
Financial Performance: Evidence from the Banking Industry," Journal of
Business Ethics, vol.35, 2002.
[19] R. M. Roman, H. Sefa, and R. A. Bradley, "The relationship between
social and financial performance: repainting a portrait," Business and
society, vol.38, no.1, pp.109-124, 1999.
[20] S. Bert, "A note on the interaction between corporate social responsibility
and financial performance," Ecological Economics, vol.68, pp.46-55,
2008.
[21] Reason, "Rethinking the social responsibility of business," Reason: free
minds and free markets. pp. 29-37, October, 2005.
[22] R.E. Freeman, "Strategic management: a stakeholder approach". Boston,
Mass.: Pitman/Ballinger, 1984.
[23] M.E. Porter, C. Van der Linde, "Green and competitive: ending the
stalemate," Harvard Business Review , vol.73, no.5, pp.120-134,1995.
[24] A.M. Adam, and T. Shavit, "How Can a Ratings-based Method for
Assessing Corporate Social Responsibility (CSR) Provide an Incentive to
Firms Excluded from Socially Responsible Investment Indices to Invest
in CSR?" Journal of Business Ethics, vol. 82, no.4, pp.899-905, 2007.
[25] L.E. Preston, and D.P. O'Bannon, "The corporate social-financial
performance relationship: A typology and analysis," Business and
Society, vol.36, pp.419-429, 1997.
[1] M. Drumwright, "Socially responsible organizational buying:
environmental concern as a non-economic buying criterion," Journal of
Marketing, vol.58, no.3, pp.1-19, 1994.
[2] I. Maignan, and O.C. Ferrell, "Antecedents and benefits of corporate
citizenship: an investigation of French businesses," Journal of Business
Research, vol.51, no.1, pp.37-51, 2001.
[3] T. M. Jones, "Instrumental Stakeholder Theory: A Synthesis of Ethics and
Economics," Academy of Management Review, vol.20, no.2, pp. 404-437,
1995.
[4] A. B. Carroll, "A three-dimensional conceptual model of corporate
performance," Academy of Management Journal, vol.4, no.4, pp.497-505,
1979.
[5] A. B. Carroll, "The Pyramid of Corporate Social Responsibility: Toward
the Moral Management of Organizational Stakeholders," Business
Horizons, vol.34, no.4, 1991.
[6] A. I. Nabil, P. A. John, and P. H. Donald, "The Corporate Social
Responsiveness Orientation of Hospital Directors: Does Occupational
Background Make a Difference," Health Care Management Review,
vol.25, no.2, pp.85-92, spring, 2000.
[7] Liebowitz. "Knowledge Management Handbook," New York: CRC Press
LLC. 1999.
[8] H. Stuart, "Employee identification with the corporate identity,"
International Studies of Management and Organization, vol.32, no. 3,
pp.28-44, 2002.
[9] C. B. Bhattacharya, S. Sen, and D. Korschun, "Using corporate social
responsibility to win the war for talent,"MIT Solan Management Review,
vol.49, no.2, pp. 36-44, 2008.
[10] M. J. Montero, R.A. Araque, and J. M. Rey, "Occupational health and
safety in the framework of corporate social responsibility". Safety
Science, vol.47, pp.1440-1445, 2009.
[11] M. Orlitzky, F. L. Schmidt, and S. L. Rynes," Corporate social and
financial performance: a meta-analysis." Organization Studies, vol.24,
pp.403-441, 2003.
[12] E.H. Bowman, and M. A. Haire, "Strategic Posture Toward Corporate
Social Responsibility," California Management Review, vol.18, no.2,
pp.49-58, 1975.
[13] M. V. Russo, and A. F. Paul,"A resource-based perspective on corporate
environmental and profit ability," Academy of Management Journal,
vol.40, no.3, pp.534-559. 1997.
[14] S. McGuire, and Schneeweis, "Corporate Social Responsibility and Firm
Financial Performance, "Academy of Management Journal, vol.31, pp.
854-872,1988.
[15] C. Molinari, L. Morlock, J.A. Alexander, and C.A. Lyles, "Hospital Board
Effectiveness: Relationships Between Governing Board Composition and
Hospital Financial Viability," Health Services Research, vol.28,
pp.357-370, 1993.
[16] J. M. Handelman, and S. J. Arnold, "The role of marketing actions with
asocial dimension: appeals to thein stitutional environment," Journal of
Marketing, vol.63, no.3, pp. 33-48, 1999.
[17] Sen, Sankar, and C. B. Bhattacharya, "Does Doing Good Always Lead to
Doing Better? Consumer Reactions to Corporate Social Responsibility,"
Journal of Marketing Research, vol.38, no.3, pp.225-243, 2001.
[18] W.G. Simpson, and T. Kohers, "The Link Between Corporate Social and
Financial Performance: Evidence from the Banking Industry," Journal of
Business Ethics, vol.35, 2002.
[19] R. M. Roman, H. Sefa, and R. A. Bradley, "The relationship between
social and financial performance: repainting a portrait," Business and
society, vol.38, no.1, pp.109-124, 1999.
[20] S. Bert, "A note on the interaction between corporate social responsibility
and financial performance," Ecological Economics, vol.68, pp.46-55,
2008.
[21] Reason, "Rethinking the social responsibility of business," Reason: free
minds and free markets. pp. 29-37, October, 2005.
[22] R.E. Freeman, "Strategic management: a stakeholder approach". Boston,
Mass.: Pitman/Ballinger, 1984.
[23] M.E. Porter, C. Van der Linde, "Green and competitive: ending the
stalemate," Harvard Business Review , vol.73, no.5, pp.120-134,1995.
[24] A.M. Adam, and T. Shavit, "How Can a Ratings-based Method for
Assessing Corporate Social Responsibility (CSR) Provide an Incentive to
Firms Excluded from Socially Responsible Investment Indices to Invest
in CSR?" Journal of Business Ethics, vol. 82, no.4, pp.899-905, 2007.
[25] L.E. Preston, and D.P. O'Bannon, "The corporate social-financial
performance relationship: A typology and analysis," Business and
Society, vol.36, pp.419-429, 1997.
@article{"International Journal of Business, Human and Social Sciences:50579", author = "Hsiu-Pi Lin and Wen-Chen Huang and Hui-Fang Chen and Yan-Pin Ke", title = "An Empirical Study of Taiwan-s Hospital Foundation Investment in Corporate Social Responsibility and Financial Performance", abstract = "Corporate Social Responsibility (CSR) has become a
new trend of business governance. Few research studies on CSR
published in Taiwanese academia, especially for medical settings, we
were interested in probing the relationship of CSR and financial
performance in medical settings in Taiwan. The results illustrate that:
(1) a time delay effect exists with a lag between CSR effort and its
performance in the hospital foundation, (2) input into the internal
domains of CSR will be helpful to improve employee productivity in
the hospital foundation, and (3) input into the external domains of CSR
will be helpful in improving financial performance in the hospital
foundation. This study overviews CSR in the medical industry in
Taiwan and the relationship of CSR and financial performance.
Discussions of possible implications from the study results are applied
to consult the CSR concept that will be transferred into a business
strategy for the organization manager.", keywords = "Corporate Social Responsibility (CSR), financialperformance, hospital foundation,", volume = "5", number = "6", pages = "847-5", }