Doing Well and Doing Good : A Multidimensional Puzzle

Does a firm sacrifice profits when it provides public good through its corporate social responsibility (CSR) policies? By focusing on the multidimensional nature of CSR and acknowledging model uncertainty new light is shed on the much debated issues of how corporations can do well and do good. Thick modelling and information-theoretic model averaging unveil the composition of profitability-linked CSR, revealing the importance of good business behavior with customers and suppliers. Strong support is brought to the coexistence of corporate policies monotonically related to economic performance (human resources management) and strategies with optimum levels (environmental policy), hence reconciling competing theories