corporate social responsibility and financial performance
168180339
Corporate Social Responsibility and Financial Performance
How publically traded companies and the business sector more broadly are adapting to expanded public and investor expectations regarding their environmental and social performance is a topic of great public policy interest and one worthy of scholarly investigation.
Dennis J Aigner
219483639
Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks
This study intends to examine corporate social responsibility (CSR) in Pakistan's banking sector, CSR disclosure practices and their impact on financial performance. For the study, relevant data was collected from the banks' annual reports, financial websites, the State Bank of Pakistan (SBP) and the Pakistan Stock Exchange (PSE) from 2008 to 2018. The methods utilized in this research study were content analysis and panel data techniques. The results indicate an increase in overall CSR disclosure by all banks in the sample and the findings suggest the involvement of commercial banks in CSR activities, and its proper disclosure has helped to improve their accounting based financial performance proxied by the return on equity (ROE) and return on assets (ROA) The research findings contribute to a better understanding of the CSR practices in the financial sector of an emerging country, which makes a dynamic effort to develop its financial culture and can encourage rapprochement with Pakistan's financial sector.
Krisztina Szegedi Yahya Khan Csaba Lentner
169837508
Corporate social responsibility and financial performance: An empirical analysis of Indian banks
Abstract Despite scads research on the relationship between corporate social responsibility and financial performance, literature is still inconclusive. This study attempts to examine the relationship between corporate social responsibility and financial performance in the Indian context. Secondary data has been collected for 28 Indian commercial banks listed in Bombay stock exchange (BSE) for the period of 10 years (2007 16) The results indicate that CSR exerts positive impact on financial performance of the Indian banks. The finding of this study provides great insights for management, to integrate the CSR with strategic intent of the business, and renovate their business philosophy from traditional profit oriented to socially responsible approach.
Shafat Maqbool Moosa Zameer
34427926
Corporate social responsibility and financial performance relationship: a review of measurement approaches
Abstract The relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been subject to extensive empirical enquiry. Yet the body of evidence that has accumulated about the nature of the relationship is equivocal. A commonly identified reason for the diverse and contradictory results is measurement issues pertaining to both concepts of interest. This article aims to review alternative operationalisations and measurement approaches for the CSR and CFP concepts that have been deployed in empirical literature concerned with the CSR CFP relationship. Several findings emanate from our study. First, CSR operationalisations in empirical literature range from multidimensional to one dimensional. Second, CSR measurement approaches include reputation indices, content analyses, questionnaire based surveys and one dimensional measures, whereas CFP measurement approaches include accounting based measures, market based measures and combined measures. Third, no CSR measurement approach is without drawbacks. In addition to approach specific drawbacks, two problems inherent in most approaches are researcher subjectivity and selection bias that may influence the nature of CSR CFP relationship detected in empirical literature. Finally, potential pathways to remedy these drawbacks are suggested.
Adriana Galant Simon Cadez
157408019
Exploring corporate social responsibility and financial performance through stakeholder theory in the tourism industries
The literature examining the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in the tourism industries is extensive but it has not verified the relationship unambiguously. This has been attributed to the methodological artefacts used, but also to the lack of a solid theoretical foundation. Based on stakeholder theory, this paper proposes the use of two models that explicitly investigate the relationship between stakeholder management, expressed as CSR activities, firm strategy and CFP. The strategic stakeholder model and the intrinsic stakeholder commitment model are evaluated in terms of their descriptive accuracy in four different tourism related industries (airlines, casinos, hotels and restaurants) using panel regressions for the years 2005 2014. The results provide useful theoretical insights into the way in which CSR interacts with firm strategy and CFP, as well as managerial insights into how tourism practitioners can identify which CSR activities may impact CFP.
Babis Theodoulidis David Diaz Federica Crotto Elisa Rancati
16291854
Corporate social responsibility and financial performance: A non linear and disaggregated approach
The present paper examines the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP) using both accounting based (Return on Assets and Return on Capital) and market based (Excess Stock Returns) performance indicators. We use Bloomberg's Environmental Social Governance (ESG) Disclosure score covering the S&P500 firms in the period 2007 2011 which allows for the examination of both linear and nonlinear relationships to be considered. The results of the linear model suggest that there is a significant negative relationship between CSP and Return on Capital. However, the non linear models provide evidence of a U shaped relationship between CSP and the accounting based measures of CFP, suggesting that in the longer run CSP effects are positive. Most prominent among our results is that fact that by disentangling the ESG Disclosure score into its environmental, social and governance sub components, we find that a U shaped relationship exists only between the governance sub component and CFP. A straightforward implication of our findings suggests that in order for CSR to serve the interests of the shareholders, a long run planning and considerable resources should be dedicated at this direction, given that CSR expenditure pays off only after a threshold of CSP has been reached. Furthermore, the fact that governance is the key driver affecting the CSP CFP relationship suggests that CSR investments should be directed to this component.
Jos W Nollet George Filis Evangelos Mitrokostas
198672457
Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey
The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR financial performance relationship. The sample consists of non financial public firms listed on the Borsa Istanbul (BIST) 100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for.
Sustainability
Elif Akben-Selcuk
225700632
The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry
Abstract The aim of this study is twofold: to explore whether board characteristics (i.e. a sustainability committee, board independence, board diversity, and board diligence) lead to greater corporate social responsibility (CSR) performance, and to test whether CSR performance enhances firms' financial performance in the hospitality and tourism (H&T) industry. Data were collected from the Thomson Reuters Eikon database for the H&T firms listed there between 2011 and 2018. We employed panel data analysis, after which we ran robustness tests. The results indicated that having a CSR committee and female directors on the board are robust factors driving firms to show superior CSR performance in all dimensions, including environmental, social, and governance (ESG) Independent directors and directors' diligence selectively enhance the overall CSR score and individual pillars of CSR. Investigating the relationship between CSR performance and firms' financial performance did not produce a significant outcome. The findings propose a straightforward roadmap for H&T firms and policymakers to identify characteristics of CSR friendly boards.
Ali Uyar Merve Kilic Mehmet Ali Koseoglu Cemil Kuzey Abdullah S Karaman
221211434
The Effect of Corporate Social Responsibility and Financial Performance on Stock Returns
The research intends to analyse the effect of corporate social responsibility (CSR) activities and financial performance which is proxy by the growth of cash flow (CFG) and return on assets (ROA) on the return of company shares. This study uses a sample of 7 companies that are part of the ASTRA group for the period 2014 to 2018 with a total of 35 research observational data. By using a general effect model that gives the result that CFG and ROA significantly influence stock returns, while CSR factors have no effect. Simultaneous testing states that the combination of CSR factors and financial performance (CFG) and (ROA) together affect the company's stock returns. This finding implies that companies cannot rely on CSR activities to increase stock returns, but rather focus on improving the company's financial performance.
Moch Fathonya Akhsanul Khaqb Endri Endric
15895889
Social Responsibility and Financial Performance: The Role of Good Corporate Governance
The objective of this theoretical empirical study is to investigate the bidirectional relationship between Corporate Social Responsibility and Financial Performance in Spanish listed companies. A complete theoretical framework based on agency, stewardship, dependency resources, and stakeholder theories provides the basis for the conceptual model. An important contribution is the use of a social behavioral index formed by four components: Global Reporting Initiative participation, Dow Jones Sustainability Index firm inclusion, Good Corporate Governance Recommendations compliance, and Global Compact signee. The conclusions drawn from the empirical study performed on the companies registered on the Madrid Stock Exchange demonstrate positive relationships in both directions, namely that the social is profitable and that the profitable is social, thereby originating a positive feedback virtuous circle. The results of this analysis have practical applications in the boardroom; they are proof that all social policies increment financial resources, and vice versa, that increased financial performances lead to greater social benefits. As a consequence, this paper encourages all board members to seriously weigh investing financial resources in developing policies that boost the levels of social behavior components in order to contribute globally to the improvement of society.
Mercedes Rodriguez-Fernandez