The impact of ISO 26000 social responsibility standard adoption on firm financial performance: Evidence from France

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the ISO 26000 (global corporate social responsibility standard) adoption and financial performance. The current study aims to explore whether ISO 26000 social responsibility standard adoption has an impact on financial performance.

Design/methodology/approach

The study is based on a sample consisting of French companies listed on the CAC-All-Tradable index for the period 2010-2017. This study is motivated by using panel data estimated feasible generalized least squares method.

Findings

The results show that that good corporate governance can improve the financial performance. This positive impact is also noticed in the case of labor relations and conditions, environment and community involvement. However, it does not apply to human rights, fair operating practices and consumer issues, as there is no significant relationship between these dimensions and the financial performance.

Practical implications

The findings may be of interest to the academic researchers, investors and regulators. For academic researchers, it is interested in discovering how the adoption of ISO 26000 can improve financial performance. For investors, the results show that it is appropriate for different countries to adopt the ISO 26000 guidelines and introduce societal practices in their activities.

Originality/value

This paper extends the existing literature by examining the effect of the ISO 26000 standard for financial performance in the French context. The study of corporate social responsibility through its seven societal dimensions has enabled us to understand the guidelines relating to the ISO 26000 standard.

Citation

Chakroun, S., Salhi, B., Ben Amar, A. and Jarboui, A. (2020), "The impact of ISO 26000 social responsibility standard adoption on firm financial performance: Evidence from France", Management Research Review, Vol. 43 No. 5, pp. 545-571. https://doi.org/10.1108/MRR-02-2019-0054