FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY OF COMPANIES

Abstract

Purpose- This paper aims to show how corporate social responsibility has gained importance in the world of economic societies. Case study: Romania. To this end, we will test the relationship between corporate social responsibility (CSR) and financial performance using the return on assets indicator (ROA). Methodology- The article will focus on the analysis of the policies and projects listed on the web pages of the active companies listed at the Bucharest Stock Exchange (BVB) and that have been involved in corporate social responsibility activities during 2017, 2018 and 2019. Findings- In our study a negative correlation coefficient was obtained (r = -0.19151) and we therefore have an inverse correlation, the two correlated variables varying in the opposite direction (when one increases, the other decreases). The value r = -0.19151 є [- 0.2; 0] and represents a very weak correlation, almost non-existent. Conclusion- The present paper aimed to investigate the relationship between the financial performance of companies listed in Romania on the stock exchange and the score obtained in the projects implemented by them in terms of corporate social responsibility.The very weak correlation between the two indices may mean that we should investigate more in order to obtain data that provides us with important information.

Keywords

• Corporate social responsibility
• return on assets
• financial performance

References

1. 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, 446-463
2. Bogdan, I. (2002). Tratat de management financiar-bancar. Ed. Economica, București, 32
3. Bowen, H. (1953). Social Responsabilities of Businessman. New York: Harper and Row
4. Capron, M., Quairel-Lanoizelee F. (2004). Mythes et réalités de l'entreprise responsable, Paris: La Découverte
5. Carroll, A. B. (1991). The pyramid of corporate social responsibility: Tward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48
6. Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine, September 13, 32-33, 122, 126.
7. Munteanu V.P., Pantea I.M., Ştefea P., (2007). Integrarea responsabilităţii sociale în strategiile de afaceri ale organizatiilor româneşti, Management & Marketing Journal, 2, 73-80.
8. Munteanu V., Ştefea P., Pantea I.M., (2007). Corporate social responsibility – support for sustainable development, published in Scientific Papers series I, vol. IX (2), Banat University of Agricultural Sciences and Veterinary Medicine, Agricultural Management Faculty, Agroprint Publishing House, Timişoara, 2007, ISSN 1453-1410, p.157

9. Ullmann, A. (1985). Data in Search of a Theory: A Critical Examination of the Relationship’s among Social Performance, Social Disclosure and Economic Performance of US Firms. Academy of Management Review, 10, pp. 540-557.
10. https://ec.europa.eu/commission/presscorner/detail/en/MEMO_02_153 - accessed 10 October 2021
11. https://www.bvb.ro/ - accessed 10 October 2021
12. https://www.iso.org/files/live/sites/isoorg/files/archive/pdf/en/socialresponsibility.pdf - accessed 10 October 2021
13. https://www.iso.org/obp/ui/#iso:std:iso:26000:ed-1:v1:en - accessed 10 October 2021