The relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been subject to extensive empirical enquiry. Yet the body of evidence that has accumulated about the nature of the relationship is equivocal. A commonly identified reason for the diverse and contradictory results is measurement issues pertaining to both concepts of interest. This article aims to review alternative operationalisations and measurement approaches for the CSR and CFP concepts that have been deployed in empirical literature concerned with the CSR-CFP relationship. Several findings emanate from our study. First, CSR operationalisations in empirical literature range from multidimensional to one-dimensional. Second, CSR measurement approaches include reputation indices, content analyses, questionnaire-based surveys and one-dimensional measures, whereas CFP measurement approaches include accounting-based measures, market-based measures and combined measures. Third, no CSR measurement approach is without drawbacks. In addition to approach specific drawbacks, two problems inherent in most approaches are researcher subjectivity and selection bias that may influence the nature of CSR-CFP relationship detected in empirical literature. Finally, potential pathways to remedy these drawbacks are suggested.

Non-financial reporting forms part of corporate reporting. Among other, it includes disclosure of information regarding corporate social responsibility (csr)/sustainability issues and as such represent the supplement to the information provided by financial statements. Compared to the financial reporting, non-financial reporting is voluntary in majority of countries, including Croatia. Thus, companies decide on their own whether to disclose on this issue or not. Considering its voluntariness, the aim of this paper is to determine the current state of non-financial reporting in Croatia by identifying the financial characteristics of companies disclosing non-financial reports. In data analysis, the logistic regression was used. The research was conducted on a sample of Croatian publicly listed companies. Obtained results indicate that larger, more profitable and efficient companies are more probable to disclose non-financial reports, while indebtedness is not significant for it. In addition, further development of corporate social accounting is required, as well as promotion of non-financial reporting benefits.

More attention is being paid to companies' environmental performance these days. It includes the consideration of how a company's business operations affect the natural environment in which it operates. In order to improve its environmental performance, various investments are essential. However, one important question is how such environmental performance investments affect the company's financial performance. The theoretical background indicates that both positive and negative effects on financial performance are possible; however, previous results show that environmental performance has a predominantly positive effect on financial performance. Considering the importance of environmental performance, the aim of this research is to determine if there is a positive relationship between environmental performance investments and financial performance. Investments in new longterm assets are used as a proxy for environmental performance investments since newer long-term assets are considered to be more environmentally acceptable than the older ones, while financial performance is measured with the business result (net profit or loss). The data was analysed by using multivariate regression analysis. The sample included 150 Croatian large-sized companies. The results reveal that there is a positive relationship between environmental performance investments and financial performance. Therefore, such investments are of interest to both the environment and the company since they help to preserve the natural environment and, at the same time, improve the company's financial performance. Implications for Central European audience: The effect of environmental performance investments on financial performance has been tested on a sample comprising companies from Central European country, Croatia. Obtained results can be of interests also for audience from other Central European countries with similar characteristics as Croatia due to common historical features (transitional experience).

This paper explores the quality of Croatian SMEs financial reporting notes relating disclosures upon revenues and expenditures, examining in such a way the level of CFRS implementation in this selected field of reporting. The goal is to determine the level of CFRS implementation in the selected field of reporting, over the SMEs group to notice any difference in their application between small and medium entities in order to assess their applicability for smaller entities. The notes contents and quality were found significantly correlated with SME size, raising the questions upon the CFRS requirements applicability by small, particularly the smallest micro-entities. ARTICLE INFOJEL classification: M41

Empirical evidence on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) remains contentious in terms of both its direction and causality. The presented study explores the intervening roles of stakeholder heterogeneity and the time dimension in the CSR–CFP relationship. We posit that there is a positive relationship between CSR activities towards market stakeholders (employees, customers, competitors) and future CFP and a negative relationship between CSR activities towards non-market stakeholders (NGOs, society, natural environment) and future CFP. A conceptual model is analysed using a sample of 115 Croatian companies. Countering expectations, a positive relationship is observed for all stakeholder groups considered (market and non-market), showing that CSR is a coherent construct regardless of the stakeholder group being studied. The key managerial implication is that socially responsible action is also in a company's economic interest.