Perceived organizational performance has been studied from a social responsibility perspective. Although much literature exists for the relationship between CSR and a firm’s FP, evidence is also found for the relationship between CSR and perceived FP.
CSR activities build reputation in the eyes of stakeholders, which in turn builds perceptions of organizational performance. From a reputation-building perspective, perceived organizational performance complements good reputations that are established among stakeholders and corporate social performance.
Social investments are generally made to build organizational legitimacy and good reputations, which are actually perceived in the minds of stakeholders. In addition, certain responsible behaviors are formed to demonstrate the concern of an organization for its employee’s well-being (internal social responsibility). Therefore, it would be useful to study the impact of CSR on perceived organizational performance as well. The philosophy of CSR encourages organizations not only to study economic outcomes, but also the social and environmental consequences that an organization shows to its stakeholders.
There is a positive relationship between a company’s internal CSR activities and perceived organizational performance. There is a positive relationship between a company’s external CSR activities and perceived organizational performance.
The organization performance focuses on the business growth and the effective utilization of resources which leading to the operation with standard, speed and value. It would focus on the performance result with all internal and external involvements. The organization performance also involved the resource management, product distribution and customer services with results to reinforce whether the operation was in line with the target or strategy as the success would indicate the internal and external involvements, the staff development of knowledge skill and capability by integrating all stakeholders to achieve future success, i.e. entrepreneurship, innovation process, national and international networking, leadership, team working and knowledge sharing.
