CORPORATE SOCIAL RESPONSIBILITY AND ITS FINANCIAL PERFORMANCE

Raluca Miruna Zapciu and Gheorghe Hurduzeu

Romanian Economic Journal, 2015, vol. 18, issue 56, 201-213

Abstract: The field of corporate social responsibility (CSR) has grown exponentially in the last two decades. There are different views of the role of the firm in society and disagreement as to whether wealth maximization should be the sole goal of a corporation. Nevertheless, there still remains a debate about the legitimacy and value of corporate responses to CSR concerns. This paper examines the effect of CSR on financial performance. It examines the effect CSR- related shareholder proposals lead to positive announcements returns and superior accounting performance. Also, the channels through which companies benefit from CSR are examined. The paper finds that CSR improves employee satisfaction and helps companies cater to customers that are responsive to sustainable practices and that the adoption of CSR proposals is associated with an increase in labor productivity and sales growth. The results indicate that the sign of the relationship is positive and statistically significant relationship between corporate social responsibility and financial performance, supporting the view that socially responsible corporate performance can be associated with a series of bottom-line benefits.

Keywords: corporate social responsibility; Value enhancement; corporate governance; Financial performance; sustainability (search for similar items in EconPapers)
JEL-codes: A13 M14 O16 (search for similar items in EconPapers)
Date: 2015
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:18:y:2015:i:56:p:201-213

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