Entrepreneurship and Corporate Social Responsibility related to Financial Performance: Evidence from Ecuadorian Companies.

Abstract

The current research focuses on the relationship between four major constructs: entrepreneurship, economics, environmental responsibility, social responsibility (corporate social responsibility, or CSR), and how all this impact financial performance. Seven hypotheses have been generated (H1) mainly related to entrepreneurship and the other variables (in a direct relationship model), and three hypotheses (H2) in an indirect relationship model, as regards financial performance. We worked with confirmatory compo-site analysis (CCA), in a structural equation model based on covariance, where a con-firmatory factor analysis (CFA) is first generated. The results show all the raised hypotheses to be valid except for hypothesis H1 (direct relationship), that was not significant, which clearly denotes that the entrepreneurs in the sample do not see as relevant that entrepreneurial actions directly reflect on an increase in financial performance.