Corporate Social Responsibility and Financial Performance of some Listed Firms: Evidence from developed and Developing Countries

Abstract

Effective corporate social responsibility is vital to financial performance of listed firms in developed and developing countries. Corporate social responsibility has been a controversial issue especially in developing countries. The researchers reviewed existing studies on effect of corporate social responsibility on financial performance of some listed firms in developed and developing countries from 1989 to 2022. The studies on corporate social responsibility dimensions reviewed in this study were employees, customers and environment. Most of the findings showed that corporate social responsibility towards employees, customers and environment had a positive significant effect on financial performance. Therefore, the researchers recommend that management of listed firms in both developed and developing countries should take corporate social responsibility towards their employees, customers and environment seriously in order to increase the financial performance of their respective companies.