Abstract
This article analyzes the complexity of the linkages between corporate social responsibility (CSR) and firm performance in Morocco and to decompose this complexity through a bidirectional sense of causality. Using data surveyed from 74 Moroccan listed firms, we conduct an econometric modeling to measure this relationship bilaterally and to investigate the underlying factors behind this association. The empirical study proves the existence of a positive association between CSR and firm performance in both directions in the Moroccan context and suggests that the more social enterprises are, the more they achieve better financial results. The mutual linkage between social and financial aspects allows us to draw some managerial implications and set up further research directions.
Highlights
Over recent years, the issue of corporate social responsibility (CSR) has become an indispensable preoccupation parallel to focusing on profitability enhancement
This paper addresses the following question: What is the nature of the relationship between CSR and firm performance in developing countries where CSR is still evolving? To put it another way, can CSR have an effect on Moroccan firms’ financial performance and does financial performance help improve social behavior in business?
The present study set out to investigate the relationship between CSR and the financial performance of Moroccan firms
Summary
The issue of corporate social responsibility (CSR) has become an indispensable preoccupation parallel to focusing on profitability enhancement. In addition to their economic responsibility, today’s companies acknowledge social and environmental responsibilities (Taleb, 2013; Lin, Lin., Chang & Dang, 2015; Lin, Pi-Hsia., De-Wai & Lai, 2018; Meseguer-Sánchez, Abad-Segura, Belmonte-Ureña & Molina-Moreno, 2020) In this line of thinking, a new approach emerges, stipulating that social responsibility creates added value. The overarching purpose of this paper is to explain the complex relationship between CSR and firm performance in Morocco through a bidirectional sense of causality and to investigate the main underlying factors behind this association. The remaining part of the paper is structured as follows: in the second section, we present a review of the literature on the relationship between CSR and FP in order to formulate the hypotheses underlying our research question. The last section concludes and suggests directions for further research
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