Impact of Corporate Social Responsibility on Financial Performance of Production Enterprises Listed on Ho Chi Minh Stock Exchange (Hose) – Viet Nam

Abstract

Purpose: The objective of this research was to analyze the approaches related to that the impact of each aspect of social responsibility on the financial performance of businesses of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam. Theoretical framework: The Stakeholder Theory has explained and justified the need for implementing Corporate Social Responsibility (CSR) with stakeholders. Results and conclusion: The results showed that the impact of each aspect of social responsibility on the financial performance of businesses, the regression results reveal that only the environmental responsibility index has a favorable effect on the Return on Assets (ROA) of the company. However, aspects of social responsibility towards employees, the community, and customers do not affect financial performance. Research implications: The research results on the impact of corporate social responsibility on financial performance in the annual reports of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam indicate that social responsibility activities and information disclosure have a positive influence on profitability and contribute to the sustainable development of the company. Originality/value: Additionally, the results also demonstrate that company-specific factors, such as company size and financial leverage, significantly impact the company's profitability.