Stewardship Theory

Stakeholder Theory

Corporate responsibility towards stakeholders

Corporate environmental performance

No common way to measure the impact of CSR

Positive impact on financial performance

Positive reputation

Positive influence on innovation

Positive impact on social performance

CSR might not be given the highest consideration

Positive reputation

Indirect positive impact on financial performance

Legitimacy Theory (Suchman 1995)

Important for the effectiveness of CSR

Hard to measure

CSR raises the possibility of greenwashing

Effectiveness of CSR on business reputation differs between countries

In countries with a high CSR awareness, socially responsible behaviour is expected

Companies operating in countries with low CSR awareness benefit greater from it

Positive impact on business performance

Level of impact can change from year to year depending on society

Depends on the people's approach to CSR in the country of origin

CSR influences the brand's performance domestically as well as internationally

Positive impact on reputation

Positive impact on firm profitability

Negative impact on firm risk

Halo effect

During economic downturns, firms practicing CSR are better off than those who do not

Acting socially responsible reduces financial risk

Managers should invest in CSR, especially during economic fluctuations

Instrumental stakeholder theory

CSR actions are more of an approach to stakeholder management than part of a firm strategy

No influence on financial performance in the tourism sector