Journal of Business Ethics

, Volume 49, Issue 1, pp 41–54 | Cite as

The Moderating Effect of Environmental Munificence and Dynamism on the Relationship Between Discretionary Social Responsibility and Firm Performance

  • Irene Goll
  • Abdul A. Rasheed


This study examines the relationships between a company's emphasis on discretionary social responsibility, environment, and firm performance. It tests the proposition that environmental munificence and dynamism moderate the relationship between discretionary social responsibility and financial performance. Social responsibility was measured with a three-item scale in a sample of 62 firms using a questionnaire. Environmental munificence and dynamism were measured using archival sources as was financial performance (return on assets and return on sales). The results of moderated regression analyses and subgroup analyses found a significant moderating effect of environment on the social responsibility-firm performance relationship. Discretionary social responsibility contributes to firm performance in environments that are dynamic and munificent.

environment firm performance social responsibility 


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Irene Goll
    • 1
  • Abdul A. Rasheed
    • 2
  1. 1.Kania School of ManagementUniversity of ScrantonScrantonU.S.A.
  2. 2.Department of Management, College of Business AdministrationUniversity of Texas at ArlingtonArlingtonU.S.A.

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