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Open Access Journal Article

Corporate Social Responsibility and Financial Performance

by Emma Johnson 1,*
1
Emma Johnson
*
Author to whom correspondence should be addressed.
EFRL  2020 2(1):7; https://doi.org/10.69610/j.efrl.20200313
Received: 23 January 2020 / Accepted: 13 February 2020 / Published Online: 13 March 2020
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Abstract

This study investigates the relationship between corporate social responsibility (CSR) and financial performance. The objective is to ascertain whether companies that engage in CSR activities demonstrate improved financial outcomes compared to those that do not. The research employs a quantitative analysis of financial data from various publicly listed corporations across different industries over a specified time frame. The study employs a multiple regression model to examine the impact of CSR on financial performance, including profitability, return on assets (ROA), and return on equity (ROE). Findings indicate a positive correlation between CSR engagement and financial performance. Companies that prioritize CSR tend to exhibit better financial performance metrics, suggesting that CSR initiatives can contribute to long-term profitability. However, the magnitude of the impact varies across different industries and company sizes. This study contributes to the existing literature by providing empirical evidence on the financial implications of CSR, and offers insights for managers and policymakers to consider when shaping CSR strategies and evaluating their impact on organizational performance.

 

Keywords: Corporate Social Responsibility; Financial Performance; Profitability; Return on Assets (ROA); Return on Equity (ROE).;
Copyright: © 2020 by Johnson. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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APA Style
Johnson, E. (2020). Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters, 2(1), 7. doi:10.69610/j.efrl.20200313
ACS Style
Johnson, E. Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters, 2020, 2, 7. doi:10.69610/j.efrl.20200313
AMA Style
Johnson E. Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters; 2020, 2(1):7. doi:10.69610/j.efrl.20200313
Chicago/Turabian Style
Johnson, Emma 2020. "Corporate Social Responsibility and Financial Performance" Economics and Finance Research Letters 2, no.1:7. doi:10.69610/j.efrl.20200313

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ACS Style
Johnson, E. Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters, 2020, 2, 7. doi:10.69610/j.efrl.20200313
AMA Style
Johnson E. Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters; 2020, 2(1):7. doi:10.69610/j.efrl.20200313
Chicago/Turabian Style
Johnson, Emma 2020. "Corporate Social Responsibility and Financial Performance" Economics and Finance Research Letters 2, no.1:7. doi:10.69610/j.efrl.20200313
APA style
Johnson, E. (2020). Corporate Social Responsibility and Financial Performance. Economics and Finance Research Letters, 2(1), 7. doi:10.69610/j.efrl.20200313

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