Social Responsibility And Financial Performance: Evidence From Goods And Service Firms In Mexico

In Corporate Social Responsibility literature, the empirical evidence indicates that adopting a social responsibility program increases firm’s financial performance. However, in Mexico few firms are involved in responsible programs and there is little knowledge about their impact in financial performance. The purpose of this study is to analyze the relation between social responsibility and financial performance in Mexican firms participating in an environmental voluntary program in the goods and services sector. We collected information of 41 firms belonging to the goods and services sector, featured in Cable News Network Expansion magazine in the ranking of the 500 most successful firms in Mexico. Firms that participated in an environmental auditing program of the Procuraduria Federal de Protection al Ambiente (Federal Attorney for Environmental Protection) was analyzed. By means of regression analysis, we found that corporate social responsibility programs determine the financial performance of firms. Moderating the effects of company size, the relation’s coefficient decreases lightly, but does not lose importance. We conclude that environmental responsibility programs modify the financial performance of firms. Through these programs Mexican firms optimize their energy, water, and reduce their operating costs