THE INTERDEPENDENCE BETWEEN ENVIRONMENTAL AND SOCIAL PERFORMANCES AND COMPANY’S ECONOMIC VALUE: THE CASE STUDY OF TITAN CEMENT KOSJERIĆ

Abstract

The purpose of this paper is to research the relationship between environmental and social performances and company’s economic value on case of the Titan Cement Kosjerić, and contributes to a clearer understanding of the importance on integrating the sustainable development principles into the business strategy and processes. The research was conducted using the data on selected financial and nonfinancial performances of the company from the Reports on corporate social responsibility and sustainable development for the period from 2011 to 2015. To confirm the initial hypothesis it was used the method of analysis, method of synthesis, and the correlation analysis method. The empirical findings of this research indicate that there is a high degree of interdependence between environmental and social performance and company’s economic value, which is in line with the company's commitment to sustainable development and socially responsible business. The main contribution of this paper attempts in highlighting the importance on carry out the socially responsible practices in the cement industry companies for improving all aspects of sustainable business - financial, environmental, and social.