Financial Performance (Fp) and Social Performance (Sp): Critical View Through Cross Sectional Study on Citizens Firms

Siham Bouguila

Supervisor of Fiba Jazan University KSA

Email: bouguilasihem@yahoo.fr

Accepted 27 December 2012

Abstract

This research aims to verify whether the social status exacerbates opportunistic strategies through strategic, financial, and internal environment of citizens firms, notably, the instrumentalization of the interests of the stakeholders.   Through cross sectional studies, Our results reveal that by appropriating corporate status consider it as an instrument of their legitimacy to conceal discretionary strategies. More worthy our result confirm the non unanimity and the multitude of empirical results which highlight the limitations to implement such an approach not only among firms but also to validate a clear correlation between SP and FP. Social engagement seems to be conditioned by a strong financial performance while the opposite direction is less obvious. The majority of correlations proved arbitration and/or opportunism strategies.

Keywords: strategic management, interests of the stakeholders, financial performance, social performance, opportunism, social status, stakeholders, available funds, arbitration