The Social Responsibility Effect: How Organizational Espoused Values Shape Performance

The primary objective of every business is to enhance its performance, and the disclosure of organizational values plays a crucial role in achieving this objective. The present research emphasizes the significance of organizational espoused values and social responsibility in business strategies and practices. Since corporate ethics and values emerge from social settings within the context of corporate culture and management interaction processes, the practical application of these ethics and values in day-to-day business operations requires more strategic clarification for executives and managers in organizational terms. The empirical findings of this study point out that the espousal of organizational values in corporate documents has improved significantly over the years in BSE 100 Indian companies. However, despite the recognized urgency to integrate social responsibility and sustainability into business strategies, their communication through espoused values is still limited to only 29%. The empirical results demonstrate that incorporating social responsibility-related values into an organization's espoused values can enhance its performance. Thus, based on empirical findings, the research suggests that embracing and promoting socially responsible values in strategic statements, such as values statements, would contribute to the betterment of society and play a critical role in driving improved financial performance.

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