Investigating the effects of corporate social responsibility on financial performance

Abstract

This paper assesses the relationship between corporate social responsibility activities (CSR) and financial performance as well as how CSR affects the financial operations of companies of all types. Over the last decade, the world has made remarkable achievements in its economy, which provide more fertile soil for a variety of companies to thrive even in fierce market competitions. However, the planet’s finite resources and a heightened citizen awareness also called for corporate social engagement rather than the pursuit of profit maximization. Therefore, this paper leverages recent CSR scores and the latest financial data of the top 300 companies on the CSR index list, and provides statistical evidence on the positive role of CSR activities in corporate performance. This paper is also expected to generate fresh insights into future academic research and CSR strategies.