Corporate Social Responsibility and Corporate Financial Performance in the Food and Beverage Industry

Corporate Social Responsibility and Corporate Financial Performance in the Food and Beverage Industry by Giselle R. Rieschick MBA, Western International University, 2011 BS, Excelsior College, 2009 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2017 Abstract Corporate executives have a responsibility to stakeholders to justify expenses, including those devoted to corporate social responsibility (CSR) initiatives, and strengthen the organization's financial position. Due to a lack of consistent information, some food and beverage industry managers do not understand the relationship between social and environmental CSR initiatives and financial performance. Grounded in stakeholder andCorporate executives have a responsibility to stakeholders to justify expenses, including those devoted to corporate social responsibility (CSR) initiatives, and strengthen the organization's financial position. Due to a lack of consistent information, some food and beverage industry managers do not understand the relationship between social and environmental CSR initiatives and financial performance. Grounded in stakeholder and ethical theory, this quantitative correlational study examined the relationship between 2 variables: the independent variable of social and environmental CSR activities, for which the 2016 Best Corporate Citizens index of “Corporate Responsibility Magazine” served as a proxy, and the dependent variable of financial performance, as measured by reviewing a 24-month return on assets. The significance test appears twice for a bivariate regression analysis: The F test reported as part of the ANOVA table and the t test associated with the independent variable in the coefficients table. The p value is the same as they are the same test. The yield was: F(1, 10) = . 246, p = . 633 and t(10) = . 496, p = . 633. The magnitude of the correlation coefficient was . 173, which suggested that financial performance had no relationship with social and environmental CSR initiatives. When reviewing the overall financial rank of all 100 companies in the BCC index, a similar trend emerged. The yield was: F(1, 99) = . 202, p = . 654 and t(99) = -. 449, p = . 654. The extent of the correlation coefficient was -. 045, which suggested that financial performance had no relationship with social and environmental CSR initiatives. This study has an implication for positive social change with management’s decisions about social and environmental sustainability initiatives. Corporate Social Responsibility and Corporate Financial Performance in the Food and Beverage Industry by Giselle R. Rieschick MBA, Western International University, 2011 BS, Excelsior College, 2009 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2017 Dedication To God be the glory and in loving memory of those who have gone before. Acknowledgments Many people have provided me much love and support throughout this learning journey, without whom this would not been possible. I would like to thank my husband for his willingness to let me reach further than I ever thought possible. Many thanks go to my children for understanding beyond their years. Thank you my loves: Sierra, Ansley, and Jacob. Thanks to Grandma Sue for always coming to help with the little ones during my many moves and study hours. We love you a bushel and a peck! I am also thankful for my father who told me I could and would make my own mistakes, but that if I worked hard enough, then nothing was beyond reach in life. I would also like to thank Dr. Peter Anthony, my mentor and doctoral study committee chair. He inspired me throughout this process with his tireless encouragement and forthright criticisms during doctoral study review. Thanks to the committee members for their comments, time, and support. Additionally, numerous students at Walden University have provided valuable help and encouragement. I am forever grateful to you all.