Various Causation Sequence
Whether corporate social responsibility has an impact on financial performance has been the focus of many studies in the past, however, others had different theoretical perspectives in that they were striving to find the answer to the 'egg and chicken' question – i.e., what is the causation sequence between social responsibility and financial performance. This research design sought to find out which hypothesis is correct – does social responsibility influence financial performance, or vice versa (Preston and O’Bannon, 1997; Moore, 2001).