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The Impact of Corporate Social Responsibility on Financial Performance: The Case of United Kingdom’s Companies

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  • Necib Adel
  • Jarboui Anis

Abstract

Purpose: The purpose of this article is to look at how Corporate Social Responsibility affects financial performance. Design/methodology/approach: The information used comes from a database of 97 companies that spans the years 2012 through 2020 (873 observations). Multiple regressions is the statistical instrument, and management quality is employed as a control variable. A principal component analysis revealed that EFP is one-dimensional, whereas CSR has three dimensions: ERL (Economic-Legal Responsibility), ERR (Environmental Responsibility), and EPR (Environmental Policy Responsibility) (Ethical-Philanthropic Responsibility). The study demonstrates and evaluates CSR's favorable impact on EFP. Findings: According to the research results, the established evaluation model is used to comprehensively explore the effects of CSR on company performance. The experimental results show that in the 4 models selected, the CSR variable has a positive impact (0.084; 0.076; 0.055 and 0.29 respectively). However, it is statistically significant at the α

Suggested Citation

  • Necib Adel & Jarboui Anis, 2022. "The Impact of Corporate Social Responsibility on Financial Performance: The Case of United Kingdom’s Companies," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 41-54.
    • Handle: RePEc:ers:ijebaa:v:x:y:2022:i:4:p:41-54
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    References listed on IDEAS

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    1. Henrique Castro Martins & Eduardo Schiehll & Paulo Renato Soares Terra, 2020. "Do shareholder protection and creditor rights have distinct effects on the association between debt maturity and ownership structure?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(5-6), pages 708-729, May.
    2. Lucian Bebchuk & Alma Cohen & Allen Ferrell, 2009. "What Matters in Corporate Governance?," The Review of Financial Studies, Society for Financial Studies, vol. 22(2), pages 783-827, February.
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    Cited by:

    1. Adel Necib, 2023. "Financial Performance and Social Responsibility of Mining Materials Companies Listed on the Tunis BVMT Stock Exchange," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(4), pages 57-72.

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