Determinants and Effects of Corporate Social Responsibility in German Agribusiness: A PLS Model

ABSTRACT The authors analyze the determinants and effects of a corporate social responsibility (CSR) strategy for enterprises in the German agribusiness. Based on an overview of the literature addressing interrelations between society and agribusiness, we define CSR. Next a theoretical framework that explains the interrelationships between CSR, its various determinants, corporate reputation, and financial performance is introduced. Then the results of a survey of 170 German agribusiness companies are presented and using partial least squares (PLS) methodology for evaluating a structural equation model, they test their conceptual framework. CSR efforts in their sample are significantly influenced by the competitive strategy a company pursues, its number of employees, and the degree of altruism it incorporates. Moreover, in their model CSR efforts significantly enhance corporate reputation. They conclude with some theoretical and managerial implications and outline some future research directions. [EconLit classifications: Q130, M140] © 2012 Wiley Periodicals, Inc.