Corporate social responsibility and firm financial performance: A literature review

This paper aims to investigate the literature on Corporate Social Responsibility (CSR) to provide a comprehensive overview of whether CSR would make a difference to organisational financial outcomes. The paper also provides a closer focus on CSR research in Vietnam. Through an extensive analysis of 86 most recent empirical studies from 2015 to 2020, we found that the contribution of CSR to firm financial performance has received significant support from the literature. Yet the overall findings are still inconsistent, and the majority of evidence is mainly from developed countries. The current literature on CSR and firm performance highlights some important issues, ranging from theoretical background, CSR measures, methodological issues, the need to consider intervening factors in CSR-firm performance relationship, and the need to extend this literature further in developing and emerging countries. The literature on CSR-firm performance research in Vietnam closely resembles these problems. Research in this country domain is still scarce in both quantity and quality, reflecting in a number of issues including the limited number of international publications, the absence of theory-driven research, and the less rigorous research design. Building on these findings, we recommend future research to (i) adopt the multi-theoretical approach for a more extensive view on whether and how CSR contributes to firm performance; (ii) obtain more rigorous methodological approaches to measure a wide range of CSR dimensions and address the issue of endogeneity in CSR-firm performance causal relationship; (iii) open the Pandora box to explore why and through which channels CSR can improve firm financial performance with the presence of situational factors; and (iv) build the literature with more evidence from different country contexts and from developing and emerging countries.

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Corporate social responsibility and firm financial performance: A literature review

10.31219/osf.io/aymk7 ◽

2021 ◽

Author(s):

AISDL

Keyword(s):

Corporate Social Responsibility ◽

Firm Performance ◽

Social Responsibility ◽

Financial Performance ◽

Developed Countries ◽

Emerging Countries ◽

Future Research ◽

Firm Financial Performance ◽

Wide Range ◽

Corporate Social

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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON ISLAMIC BANKING PERFORMANCE IN MALAYSIA

Advanced International Journal of Banking, Accounting and Finance ◽

10.35631/aijbaf.38001 ◽

2021 ◽

Vol 3 (8) ◽

pp. 01-15

Author(s):

Nur Hanisah Razali ◽

Nizam Jaafar ◽

Ismail Ahmad

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Future Research ◽

Socially Responsible ◽

Firm Financial Performance ◽

Effect Regression ◽

Corporate Social ◽

The Impact ◽

The Relationship

Corporate Social Responsibility (CSR) activities can lead the company to gain better recognition from citizens and investors. CSR has become one of the added values for a company in increasing competition from global and domestic. However, there are some critics who contend that the CSR benefits surpass the actual cost and some also claim that for the company to be socially responsible is too expensive. Therefore, the objective of this study is to determine the relationship between Corporate Social Responsibility (CSR) impacts on the Islamic Banks' financial performance, specifically in Malaysia. This study used Fixed Effect Regression Model to achieve the objectives of this study. The independent variables used to determine CSR comprise of environment, community, and workplace and marketplace expenditure ratio. Meanwhile, to measure the financial bank performance that is the dependent variable, Return on Asset (ROA) is used in this study. Based on this model, the researcher concluded that CSR’s elements which are environment, community, and marketplace have significant impacts on banks financial performance. This is consistent with Stakeholder Theory which states that the firm financial performance is determined by external stakeholders. In order to enhance the study future research may segregate the focus of the study specifically on Islamic Bank or conventional banking. Future research may also conduct research on the different industries.

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The impact of corporate social responsibility on firm performance: Evidence form a MENA country

Corporate Ownership and Control ◽

10.22495/cocv12i1c9p1 ◽

2014 ◽

Vol 12 (1) ◽

pp. 761-774 ◽

Cited By ~ 7

Author(s):

Mohamed A. K. Basuony ◽

Reham I. Elseidi ◽

Ehab K. A. Mohamed

Keyword(s):

Corporate Social Responsibility ◽

Firm Performance ◽

Social Responsibility ◽

Financial Performance ◽

Organization Performance ◽

Cross Sectional ◽

Firm Financial Performance ◽

Corporate Social ◽

The Impact ◽

The Relationship

This paper investigates the effect of corporate social responsibility (CSR) on organization performance. It uses cross sectional data from non-financial companies in Egypt that derived from the Kompass Egypt data base. Regression analysis was used to explain the relationship and the effect of CSR on organization financial performance. The findings of this study found that there is a positive and significant effect of CSR on firm performance. Also, all CSR dimensions have significant relationship with firm financial performance. Furthermore, one of the conclusions of this study is that larger and older firms have a positive effect on financial performance (profitability) which will lead to enhance use of better CSR practice

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Impact of Corporate Social Responsibility on Firm’s Financial Performance: The Tanzanian Perspective

Journal on Innovation and Sustainability RISUS ISSN 2179-3565 ◽

10.24212/2179-3565.2016v7i1p18-27 ◽

2016 ◽

Vol 7 (1) ◽

pp. 18 ◽

Cited By ~ 1

Author(s):

Juliana Isanzu ◽

Xu Fengju

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Developed Countries ◽

Least Developed Countries ◽

Data Set ◽

Firm Financial Performance ◽

Significant Difference ◽

Corporate Social ◽

The Impact

There has been a significant growth of interest in the field of corporate social responsibilityand the debate is still hot. There are however very few studies done in the least developedcountries on the subject matter.The main objective of the study was to investigate the impact ofCSR on Firm Financial Performance in the least developed countries, Tanzania being the countryin question. The aim of this paper is to find out if there is a significant difference in financialperformance of firms that engage in CSR relative to those that do not practice CSR. Independentsample t-test was used to test hypotheses. The data set included randomly selected 101 firmsoperating in Tanzania using accounting based measures of financial performance namely Returnon Asset, Return on Equity.The findings presented revealed that there is a significance differencein financial performance favoring those firms that do Corporate Social Responsibility, implyingthat CSR has a positive influence on firm financial performance. Firms should then engage incorporate social responsibility so as to improve their financial performance and managers shouldnot underestimate the contribution they make by committing their time and resources to makesure their CSR programs are effective in order to achieve the competitive advantage.

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Corporate Social Responsibility and Corporate Financial Performance: An Empirical Literature Review

10.51430/ijirp.2021.13.001 ◽

2021 ◽

pp. 1-32

Author(s):

Sonia Boukattaya ◽

Zyed Achour ◽

Zeineb Hlioui

Keyword(s):

Corporate Social Responsibility ◽

Literature Review ◽

Social Responsibility ◽

Financial Performance ◽

Social Impact ◽

Empirical Literature ◽

Future Research ◽

Corporate Financial Performance ◽

Content Analysis Method ◽

Corporate Social

This study aims to present a literature review of recent studies on the relationship between environmental, social and governance (ESG) performance, corporate social responsibility (CSR) and corporate financial performance (CFP) and to provide a path for future researches. Using content analysis method, a total of 88 papers published in renowned journals, over the period 2015-2021, were selected in the review. Several findings have been made: first, the majority of researches have focused on the CSR’s “social impact” hypothesis on CFP; the reverse relationship seems to have been overlooked. Second, the contested results are likely to be attributable both to differences in research contexts and CSR’ laws but also to biases relating to the operationalization of CSR concept and CFP proxies retained. Finally, several arguments are advanced arguing for an indirect link between CSR and CFP. Future research should, therefore, pay attention to the different contingent variables that are likely to affect the studied relationship.

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Effects of Corporate Social Responsibility on Firm Performance: Does Customer Satisfaction Matter?

Sustainability ◽

10.3390/su12187545 ◽

2020 ◽

Vol 12 (18) ◽

pp. 7545 ◽

Cited By ~ 1

Author(s):

An-Pin Wei ◽

Chi-Lu Peng ◽

Hao-Chen Huang ◽

Shang-Pao Yeh

Keyword(s):

Corporate Social Responsibility ◽

Firm Performance ◽

Customer Satisfaction ◽

Social Responsibility ◽

Financial Performance ◽

Interactive Effect ◽

The United States ◽

Negative Effect ◽

Corporate Social Irresponsibility ◽

Corporate Social

Academic research has shed light on the empirical relationships among a firm’s corporate social responsibility (CSR), corporate social irresponsibility (CSiR) and firm performance and on the firm’s customer satisfaction–firm performance relationship in different markets. However, little notice has been taken of whether the coexistence of corporate social responsibility, corporate social irresponsibility and customer satisfaction has an interactive effect on firm performance. This study aims to examine the effects of their interaction on firm performance from an investment perspective. Using unbalanced panel regression to test a sample of publicly traded firms from the United States, this study finds that, in general, firms with higher customer satisfaction earn positive changes in abnormal stock returns. For firms that engage in CSR, CSR positively affects corporate performance, whereas firms’ social irresponsibility activities reduce firms’ financial performance. All else equal, a positive interactive effect of CSiR and customer satisfaction on stock return was observed. The results reveal that high customer satisfaction can alleviate the negative effect of corporate social irresponsibility on firms’ financial performance. Our findings will help management executives and investors to understand that the negative effect of a firm’s unforeseen events on firm performance can be weakened by increasing customer satisfaction.

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Corporate social responsibility, innovation capability and firm performance: evidence from SME

Social Responsibility Journal ◽

10.1108/srj-12-2019-0401 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Dawit Bahta ◽

Jiang Yun ◽

Md Rashidul Islam ◽

Muhammad Ashfaq

Keyword(s):

Corporate Social Responsibility ◽

Firm Performance ◽

Social Responsibility ◽

Financial Performance ◽

Developing Country ◽

Equation Modeling ◽

Innovation Capability ◽

Content Type ◽

Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

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Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey

Sustainability ◽

10.3390/su11133643 ◽

2019 ◽

Vol 11 (13) ◽

pp. 3643 ◽

Cited By ~ 14

Author(s):

Elif Akben-Selcuk

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Ownership Concentration ◽

Firm Financial Performance ◽

Variable Approach ◽

Corporate Social ◽

The Impact ◽

Moderating Role

The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of non-financial public firms listed on the Borsa Istanbul (BIST)-100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for.

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