Role of Corporate Social Responsibility in Improving Financial Performance: A Cross Sectional Study

Abstract

This study explores the relationship between corporate social responsibility (CSR) and the financial performance of businesses. CSR, a self-sustaining business model, enables companies to be held accountable for the effects of their operations on the social, economic, and environmental elements of society. Companies can fulfil their obligation to demand moral standards and behavior in the workplace through CSR, which will have a big impact on how the board of directors formulates its strategies. CSR-focused businesses go above and above what is required by law to reduce their negative social and environmental impacts. The study divides CSR initiatives into two categories: those that focus on symbolic and opportunistic CSR governance and those that are more determined and rigorous. The study highlights four CSR categories: economic responsibility, philanthropic responsibility, environmental responsibility, and ethical responsibility. In highlighting the relationship between CSR and a company's financial success, effects on the environment, employee and customer satisfaction, management of the firm's social connections, and societal influence, the investigation draws to a close.