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ANALYZING THE EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY LEVEL ON THE FINANCIAL PERFORMANCE OF COMPANIES: AN APPLICATION ON BIST CORPORATE GOVERNANCE INDEX INCLUDED COMPANIES

Year 2014, Volume: 10 Issue: 23, 227 - 242, 01.09.2014

Duygu Acar Erdur Esen Kara

https://doi.org/10.17130/ijmeb.2014.10.23.613
Cited By: 7

Abstract

The aim of this study is to analyze the relationship between corporate social responsibility level and financial performance in a developing country, Turkey. For this purpose, financial data derived from annual reports of the 33 companies included in BIST Corporate Governance Index between years 2006-2012 has been analyzed with panel data analysis. According to the analysis, there is a meaningful and positive relationship between corporate social responsibility and market value/book value ratio, return on equity ratio, return on assets ratio, leverage ratio and net profit. On the other hand, there is no meaningful relation between corporate social responsibility and companies’ total sales and return on sales ratio

Keywords

Corporate Responsibility Level Financial Performance Panel Data Analysis BIST

References

  • Alexander, G. J., & Rogene A. B. (1978). Corporate social performance and stock market performance. Academy of Management Journal, 21, 479–486.
  • Arsoy Poroy, A., Arabacı Ö., & Çiftçioğlu, A. (2012). Corporate social responsibility and financial performance relationship: The case of Turkey. Muhasebe ve Finansman Dergisi, 53, 159-176.
  • Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. Academy of Management Journal, 28(2), 446-463.
  • Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, 32(3), 794–81.
  • Becchetti, L., Di Giacomo, S., & Pinnacchio, D. (2005). Corporate social responsibility and corporate performance: evidence from a panel of U.S. listed companies, Working paper, (CEIS).
  • Bowman, E. H., & Haire, M. (1975). A strategic posture toward corporate social responsibility. California Manage. Review, 18(2), 49-58.
  • Bradgon, J. H., & Marlin, J. (1972). Is pollution profitable? Risk Management, 19(4), 9-18.
  • Carroll, A. B. (1979). A three-dimensional conceptual model of corporate social responsibility. Academy of Management Review, 4, 497-505.
  • Clarkson, Max B. E. (1995). A stakeholder framework for analyzing and evaluating corporatesocial performance. Academy of Management Review, 20, 92–117.
  • Cochran, P. L., & Wood, R. A. (1984). Corporate social responsibility and financial performance. Academy of Management Journal, 27(1), 42-56.
  • Crowther, D., & Rayman-Bacchus, L. (eds.). (2004). Perspectives in corporate social responsibility. Ashgate,Burlington,USA.
  • Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review, 2, 70-76.
  • Davis, K., & Blomstrom, R. L. (1966). Business and its environment. New York: McGraw- Hill.
  • Davis, K. (1967). Understanding the social responsibility puzzle: What does the businessman owe to society? Business Horizons, 10, 45-50.
  • Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16, 312-322.
  • Freeman, R. E. (1984). Strategic management: A stakeholder approach. Marshfield, MA: Pitman.
  • Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56(3), 758–781.
  • Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine, September, 13, 32-33.
  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate Strategy. Academy of Management Journal, 33(2), 233-258.
  • Lee, D. D. (2006). An analysis of the sustainability investment strategy employing the Dow Jones World Sustainability Index (PhD Monash University, Clayton).
  • McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872.
  • McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603-609.
  • Moskowitz, M. R. (1972). Choosing socially responsible stocks, Business and Society Review, 1, 71–75.
  • Orlitzky, M., Schmidt, F. L., & Rynes S. L. (2003). Corporate social and financial performance: a meta analysis. Organization Studies, 24: 403–441.
  • Parket, R., & Eibert, H. (1975). Social responsibility: The underlying factors. Business Horizons, 18, 5-10.
  • Peterson, P. (1994). Financial management and analysis, Florida: McGraw Hill.
  • Porter, M. E., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility, Harvard Business Review, 84, 78–92.
  • Robinson, T. R., Munter, P., & Grant, J. (2004). Financial statement analysis. Pearson/ Prentice Hill.
  • Sadaf, E., & Kaleem, A. (2012). An empirical investigation of the relationship between corporate social responsibility and financial performance (Evidence from manufacturing sector of Pakistan). Journal of Basic and Applied Scientific Research, 2 (3), 2909-2922.
  • SPK. (2003). Kurumsal yönetim ilkeleri. Erişim tarihi: 16.11.2013, http://www.etikadanismanlik. com/depo/kurumsalyonetimilkeleri.pdf
  • SPK. (2011). Kurumsal yönetim ilkelerinin belirlenmesine ve uygulanmasına ilişkin tebliğ, Seri: IV, No: 56. Erişim tarihi: 16.11.2013, http://www.resmigazete.gov.tr/ eskiler/2011/12/20111230-14.htm?submenuheader=null
  • Soloman, R., & Hansen, K. (1985). It’s good business, New York: Atheneum.
  • Tak, B. (2009). İşletmelerin sosyal sorumlulukları ve paydaş grupları ile ilişkilerinin yönetimi, Beta Basım A.Ş., Kasım 2009, ISBN 978-05-377-085-5.
  • Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. Applied Financial Project, Haas School of Business University of California at Berkeley, Berkeley, California.
  • Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees, Academy of Management Journal, 40, 658– 672.
  • Uadiale, O. M., & Temitope, O. F. (2011). Corporate social responsibility and financial performance in developing economies: The Nigerian experience. The 2011 New Orleans International Academic Conference New Orleans, Louisiana, USA 2011, 815-824.
  • Ullmann, A. A. (1985). Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of U.S. firms. Academy of Management Review, 10(3), 540–557.
  • Quinn, J. M. H., & James, R. (1987). The strategy process. Englewood Cliffs, N.J.: Prentice- Hall.
  • Van Horne, J. C., & Wachowicz, J. M., (1995). Fundamentals of financial management. New Jersey: Prentice Hall International Editions.
  • Vance, S. C. (1975). Are socially responsible companys good investment risks? Management Review, 64, 18-24.
  • Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18, 303–319.
  • Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16, 691–718.
  • www.borsaistanbul.com www.kap.gov.tr www.tkyd.org.tr
  • Appendix-1: Company List
  • Anadolu Efes Biracılık ve Malt Sanayi A.Ş. Arçelik A.Ş.
  • Aselsan Elektronik Ticaret A.Ş Aygaz A.Ş.
  • Boyner Büyük Mağazacılık A.Ş.
  • Coca Cola İçecek A.Ş.
  • Dentaş Ambalaj ve Kağıt Sanayi A.Ş.
  • Doğan Şirketler Grubu Holding A.Ş.
  • Doğan Yayın Holding A.Ş. Doğuş Otomotiv A.Ş.
  • ENKA İnşaat ve Sanayi A.Ş.
  • Global Yatırım Holding A.Ş
  • Hürriyet Gazete A.Ş.
  • İhlas Ev Aletleri A.Ş. İhlas Holding A.Ş.
  • İş Gayrimenkul Yatırım Ortaklığı A.Ş.
  • İş Yatırım Menkul Değerler A.Ş
  • Logo Yazılım Sanayi ve Ticaret A.Ş.
  • Otokar Otobüs Karoseri A.Ş. Park Elektrik A.Ş.
  • Petkim Petrokimya Holding A.Ş.
  • Pınar Entegre Et ve Un Sanayi A.Ş.
  • Pınar Süt Mamulleri Sanayi A.Ş.
  • Tav Havalimanları Holding A.Ş.
  • Tofaş Türk Otomobil Fabrikası A.Ş. Turcas Petrol A.Ş.
  • Tüpraş Türkiye Petrol Rafinerileri A.Ş.
  • Türk Prysmian Kablo ve Sistemleri A.Ş.
  • Türk Telekomünikasyon A.Ş.
  • Türk Traktör ve Ziraat Makineleri A.Ş.
  • Vakıf Yatırım Ortaklığı A.Ş.
  • Vestel Elektronik A.Ş.
  • Yazıcılar Holding A.Ş.

KURUMSAL SOSYAL SORUMLULUK DÜZEYİNİN İŞLETMELERİN FİNANSAL PERFORMANSINA ETKİSİNİN İNCELENMESİ: BIST KURUMSAL YÖNETİM ENDEKSİ ÜZERİNE BİR UYGULAMA

Year 2014, Volume: 10 Issue: 23, 227 - 242, 01.09.2014

Duygu Acar Erdur Esen Kara

https://doi.org/10.17130/ijmeb.2014.10.23.613
Cited By: 7

Abstract

Bu çalışmanın amacı; gelişmekte olan bir ülke olarak Türkiye’de işletmelerin kurumsal sosyal sorumluluk düzeyleri ile finansal performansları arasındaki ilişkiyi analiz etmektir. Bu amaçla BIST Kurumsal Yönetim endeksinde yer alan 33 işletmenin yıllık faaliyet raporlarından elde edilen finansal veriler panel veri analizi ile analiz edilmiştir. Analiz sonuçlarına göre, işletmelerin kurumsal sosyal sorumluluk düzeyleri ile piyasa değeri/defter değeri oranı, özsermaye karlılığı oranı, aktif karlılığı oranı, kaldıraç oranı ve net kârı arasında pozitif ve anlamlı ilişki olduğu tespit edilmiştir. Diğer taraftan, işletmelerin kurumsal sosyal sorumluluk düzeyleri ile toplam satışlar ve satış kârlılığı oranı arasında anlamlı bir ilişki tespit edilememiştir.

Keywords

Kurumsal Sosyal Sorumluluk Düzeyi Finansal Performans Panel Veri

References

  • Alexander, G. J., & Rogene A. B. (1978). Corporate social performance and stock market performance. Academy of Management Journal, 21, 479–486.
  • Arsoy Poroy, A., Arabacı Ö., & Çiftçioğlu, A. (2012). Corporate social responsibility and financial performance relationship: The case of Turkey. Muhasebe ve Finansman Dergisi, 53, 159-176.
  • Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. Academy of Management Journal, 28(2), 446-463.
  • Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, 32(3), 794–81.
  • Becchetti, L., Di Giacomo, S., & Pinnacchio, D. (2005). Corporate social responsibility and corporate performance: evidence from a panel of U.S. listed companies, Working paper, (CEIS).
  • Bowman, E. H., & Haire, M. (1975). A strategic posture toward corporate social responsibility. California Manage. Review, 18(2), 49-58.
  • Bradgon, J. H., & Marlin, J. (1972). Is pollution profitable? Risk Management, 19(4), 9-18.
  • Carroll, A. B. (1979). A three-dimensional conceptual model of corporate social responsibility. Academy of Management Review, 4, 497-505.
  • Clarkson, Max B. E. (1995). A stakeholder framework for analyzing and evaluating corporatesocial performance. Academy of Management Review, 20, 92–117.
  • Cochran, P. L., & Wood, R. A. (1984). Corporate social responsibility and financial performance. Academy of Management Journal, 27(1), 42-56.
  • Crowther, D., & Rayman-Bacchus, L. (eds.). (2004). Perspectives in corporate social responsibility. Ashgate,Burlington,USA.
  • Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review, 2, 70-76.
  • Davis, K., & Blomstrom, R. L. (1966). Business and its environment. New York: McGraw- Hill.
  • Davis, K. (1967). Understanding the social responsibility puzzle: What does the businessman owe to society? Business Horizons, 10, 45-50.
  • Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16, 312-322.
  • Freeman, R. E. (1984). Strategic management: A stakeholder approach. Marshfield, MA: Pitman.
  • Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56(3), 758–781.
  • Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine, September, 13, 32-33.
  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate Strategy. Academy of Management Journal, 33(2), 233-258.
  • Lee, D. D. (2006). An analysis of the sustainability investment strategy employing the Dow Jones World Sustainability Index (PhD Monash University, Clayton).
  • McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872.
  • McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603-609.
  • Moskowitz, M. R. (1972). Choosing socially responsible stocks, Business and Society Review, 1, 71–75.
  • Orlitzky, M., Schmidt, F. L., & Rynes S. L. (2003). Corporate social and financial performance: a meta analysis. Organization Studies, 24: 403–441.
  • Parket, R., & Eibert, H. (1975). Social responsibility: The underlying factors. Business Horizons, 18, 5-10.
  • Peterson, P. (1994). Financial management and analysis, Florida: McGraw Hill.
  • Porter, M. E., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility, Harvard Business Review, 84, 78–92.
  • Robinson, T. R., Munter, P., & Grant, J. (2004). Financial statement analysis. Pearson/ Prentice Hill.
  • Sadaf, E., & Kaleem, A. (2012). An empirical investigation of the relationship between corporate social responsibility and financial performance (Evidence from manufacturing sector of Pakistan). Journal of Basic and Applied Scientific Research, 2 (3), 2909-2922.
  • SPK. (2003). Kurumsal yönetim ilkeleri. Erişim tarihi: 16.11.2013, http://www.etikadanismanlik. com/depo/kurumsalyonetimilkeleri.pdf
  • SPK. (2011). Kurumsal yönetim ilkelerinin belirlenmesine ve uygulanmasına ilişkin tebliğ, Seri: IV, No: 56. Erişim tarihi: 16.11.2013, http://www.resmigazete.gov.tr/ eskiler/2011/12/20111230-14.htm?submenuheader=null
  • Soloman, R., & Hansen, K. (1985). It’s good business, New York: Atheneum.
  • Tak, B. (2009). İşletmelerin sosyal sorumlulukları ve paydaş grupları ile ilişkilerinin yönetimi, Beta Basım A.Ş., Kasım 2009, ISBN 978-05-377-085-5.
  • Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. Applied Financial Project, Haas School of Business University of California at Berkeley, Berkeley, California.
  • Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees, Academy of Management Journal, 40, 658– 672.
  • Uadiale, O. M., & Temitope, O. F. (2011). Corporate social responsibility and financial performance in developing economies: The Nigerian experience. The 2011 New Orleans International Academic Conference New Orleans, Louisiana, USA 2011, 815-824.
  • Ullmann, A. A. (1985). Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of U.S. firms. Academy of Management Review, 10(3), 540–557.
  • Quinn, J. M. H., & James, R. (1987). The strategy process. Englewood Cliffs, N.J.: Prentice- Hall.
  • Van Horne, J. C., & Wachowicz, J. M., (1995). Fundamentals of financial management. New Jersey: Prentice Hall International Editions.
  • Vance, S. C. (1975). Are socially responsible companys good investment risks? Management Review, 64, 18-24.
  • Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18, 303–319.
  • Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16, 691–718.
  • www.borsaistanbul.com www.kap.gov.tr www.tkyd.org.tr
  • Appendix-1: Company List
  • Anadolu Efes Biracılık ve Malt Sanayi A.Ş. Arçelik A.Ş.
  • Aselsan Elektronik Ticaret A.Ş Aygaz A.Ş.
  • Boyner Büyük Mağazacılık A.Ş.
  • Coca Cola İçecek A.Ş.
  • Dentaş Ambalaj ve Kağıt Sanayi A.Ş.
  • Doğan Şirketler Grubu Holding A.Ş.
  • Doğan Yayın Holding A.Ş. Doğuş Otomotiv A.Ş.
  • ENKA İnşaat ve Sanayi A.Ş.
  • Global Yatırım Holding A.Ş
  • Hürriyet Gazete A.Ş.
  • İhlas Ev Aletleri A.Ş. İhlas Holding A.Ş.
  • İş Gayrimenkul Yatırım Ortaklığı A.Ş.
  • İş Yatırım Menkul Değerler A.Ş
  • Logo Yazılım Sanayi ve Ticaret A.Ş.
  • Otokar Otobüs Karoseri A.Ş. Park Elektrik A.Ş.
  • Petkim Petrokimya Holding A.Ş.
  • Pınar Entegre Et ve Un Sanayi A.Ş.
  • Pınar Süt Mamulleri Sanayi A.Ş.
  • Tav Havalimanları Holding A.Ş.
  • Tofaş Türk Otomobil Fabrikası A.Ş. Turcas Petrol A.Ş.
  • Tüpraş Türkiye Petrol Rafinerileri A.Ş.
  • Türk Prysmian Kablo ve Sistemleri A.Ş.
  • Türk Telekomünikasyon A.Ş.
  • Türk Traktör ve Ziraat Makineleri A.Ş.
  • Vakıf Yatırım Ortaklığı A.Ş.
  • Vestel Elektronik A.Ş.
  • Yazıcılar Holding A.Ş.
There are 71 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Duygu Acar Erdur This is me

Esen Kara This is me

Publication Date September 1, 2014
Published in Issue Year 2014 Volume: 10 Issue: 23

Cite

APA Acar Erdur, D., & Kara, E. (2014). ANALYZING THE EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY LEVEL ON THE FINANCIAL PERFORMANCE OF COMPANIES: AN APPLICATION ON BIST CORPORATE GOVERNANCE INDEX INCLUDED COMPANIES. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 10(23), 227-242. https://doi.org/10.17130/ijmeb.2014.10.23.613

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