Corporation social responsibility and firm performance

Abstract

This study discussed the opportunities and challenges for companies to take corporate social responsibility (CSR). Firms can gain benefits from good brand image but they also can make many expenses in order to fulfill the requirements of corporate social responsibility. CSR rating was evaluated in many dimensions such as community, environment, employee and governance. In order to obtain a consistent and detailed relationship on CSR and firm performance, a conceptual model with four independent variables was constructed and tested by applying 100 American companies’ information. Based on correlation between each dimension, the relationship between CSR and firm performance cannot be tested separately and regression result showed there is no significance relationship between CSR and firm performance. Due to missing data of some companies in disclosure and small sample size, the results might be limited that expected future study.