CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE: COMPLEMENTARY OR CONFLICTING

Adil Zahoor

Abstract


The perennial debate between the role of corporate social responsibility and the bottom-line results of a firm has witnessed significant disagreement among the researchers. Some argue for a positive relationship between CSR initiatives and the subsequent financial benefits while others fence that wealth maximization is the only responsibility of a firm and yet others opine for neutrality. Such an inconsistency in the results has been attributed to various factors which include omission of crucial variables, flawed econometric models, industry differences etc. The spate of the radiated spectrum of research available on the topic reveals enough diversification to prompt the author for documenting the understandings of the concept of CSR and its relationship with the financial performance of a company. The objective of this paper is to elaborate on the concept of CSR and further the understanding of the linkage of CSR with the firm performance in the light of existing literature.


Keywords


CSR; Financial Performance; Econometric Model; Firm Size

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References


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