The Relationship between Corporate Social Responsibility and Financial Performance of the Firms Listed on Tehran Stock Exchange

Authors

Abstract

This study seeks to find the relationship between financial performance of the firm and corporate social responsibility in accepted companies in Tehran Stock Exchange. The corporate social responsibility is measured by a questionnaire composed of 53 items related to social responsibility of the firm’s customers, workers, environmental and community dimensions. In this study, the numbers of 59 observations were investigated during the years 2005-2010. To analyze the data was exerted SPSS software. Our findings reveal that financial performance of firms is significantly related to social responsibility of the firm’s customers and community dimensions. However, this variable is not significantly related to social responsibility of the firm’s environmental and workers dimensions. This paper will help the management to develop effective social responsibility policies required to achieve better financial performance in long-term and provide awareness for firms in the field of role of social responsibility of firms to achieve future benefits.

Keywords

References

براتلو، فاطمه. (1386) . مسئولیت اجتماعی شرکتها. فصلنامه پژوهش، 44، 93-108.
سازمان استاندارد و پژوهشات صنعتی ایران. (1389) . استاندارد ایزو 26000، 92- 1
فعال قیومی، علی؛ مؤمنی، منصور. (1389) . تحلیل های آماری با استفاده از SPSS، تهران.. مؤلف.
Choi, Jong-Seo; Kwak, Young-Ming; Choe, CHongwoo. (2010) . Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 53 (3) , 291-311.
Creyer, Elizabeth H.; Ross, William T. (1997) . The influence of firm behavior on purchase intention: Do consumers really care about business ethics?. Journal of Consumer Marketing, 14 (6) , 421-432.
Danko, Dori; Goldberg, Jennifer S.; Goldberg, Stephen R.; Grant, Rita. (2008) . Corporate social responsibility: The united states vs. Europe. The Journal of Corporate Accounting & Finance, 19 (6) , 41-47.
Fernandez Sanchez, Jose Luis; Luna Sotorrio, Ladislao; Baraibar Diez, Elisa. (2010) . The relationship between corporate governance and corporate social behavior: A structural equation model analysis. Journal of Corporate Social Responsibility and Environmental Management, 18 (2) , 91-101.
Harjoto, Maretno A. (2011) . Corporate governance and CSR nexus. Journal of Business Ethics, 100 (1) , 45-67.
Holme, Richard; Watts, phil. (2000) . Corporate social responsibility: Making good business sense. World business Council for Sustainable Development.
Huang, Chi-Jui. (2010) . Corporate governance, corporate social responsibility and corporate performance. Journal of Management and Organization, 16 (5) , 641-655.
Johnson, Brian R.; Connolly, Eric; Carter, Timothy S. (2010) . Corporate social responsibility: The role of fortune 100 companies in domestic and international natural disasters. Journal of Corporate Social Responsibility and Environmental Management,18 (6) , 352-369.
Jones, Thomas M. (1986) . Corporate social responsibility revisited, redefined. Journal of California Management Review, 22 (2) , 59-67.
McWilliams, Abagail; Siegel, Donald. (2000) . Corporate social responsibility and financial performance: correlation or misspecification?. Strategic Management Journal, 21 (5) , 603-609.
Mohr, Lois A.; Webb, Deborah J. (2005) . The effect of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39 (1) , 121-147
Nelling, Edward; Webb, Elizabeth. (2009) . Corporate social responsibility and financial performance: The “virtuous circle” revisited. Review of Quantitative Finance and Accounting, 32 (2) , 197-209.
Samy, Martin; Odemilin, Godwin; Bampton, Roberta. (2010) . Corporate social responsibility: a strategy for sustainable business success. An analysis of 20 selected British companies, Journal of Corporate Governance, 10 (2) , 203-217.
Sandhu, H S; Kapoor, Shveta. (2010) . Corporate social responsibility initiatives: An analysis of voluntary corporate disclosure. South Asian Journal of Management, 17 (2) , 47-80.
Simpson, W. Gary; Kohers, Theodor. (2002) . The link between corporate social and financial performance: evidence from the banking industry. Journal of Business Ethics, 35 (2) , 97-109.
Tsoutsoura, Margarita. (2004) . Corporate social responsibility and financial performance. University of California at Berkeley, financial project.
Turban, Daniel B.; Greening, Daniel W. (1996) . Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40 (3) , 658-672.
Zaman khan, Md. Habib. (2010) . The effect corporate governance elements on corporate social responsibility (CSR) reporting. Journal of Law and Management, 52 (2) , 82-109.
Empirical Research in Accounting
Volume 3, Issue 3 - Serial Number 9
September 2013
Pages 1-20

Files

History

  • Receive Date: 31 December 2012
  • Revise Date: 30 June 2018
  • Accept Date: 01 November 2013

Share

How to cite

Statistics