Abstract-Approximately $25.2 trillion in total assets under management is involved in some strategy of socially responsible and sustainable investing. Grounded in the stakeholder theory, the purpose of this correlational study was to examine the relationship between financial performance, firm size, leverage, and corporate social responsibility. A random sample included 119 large companies in the United States from the population of companies listed in the Russell 1000 index. The data were collected via Bloomberg Terminal. Multiple linear regression analysis was used to predict Environmental, Social & Governance (ESG) activity scores. The 3 predictor variables accounted for approximately 7% of the variance in ESG activity scores and the result was statistically significant, F (3,115) = 2.83, p < .04, R2 = .07. Although the p value was significant, the R2 was low, thus representing a poor model fit. In the final analysis, total revenue was a significant predictor and was negatively correlated with ESG activity scores. However, return on equity and leverage were not significant predictors of ESG activity scores. This suggested the potential need to transfer some corporate social initiatives from business leaders to government policy makers. Future researchers should consider incorporating additional variables to make the model more useful. The results of this study are expected to identify fiscal incentives for corporate social programs that would benefit stakeholders such as employees, suppliers, customers, communities, and the environment.

Organizational leaders around the world spend millions of dollars on ineffective corporate social responsibility (CSR) programs and CSR reporting strategies. Understanding the relationship between CSR reporting, CSR indices (CSRi), and financial performance is necessary to minimize unnecessary expenditures among organizational leaders. The purpose of this quantitative correlational study, grounded in Frederick's CSR theory and Freeman's stakeholder theory, was to examine the relationship between CSR reporting, CSRi, and financial performance of hardware and software organizations. Data were collected from the Security Exchange Commission and the official websites of 25 hardware and software organizations that were part of Fortune 500 between the years 2010-2015. The results of the multiple linear regression indicated that there was no statistically significant relationship between CSR reporting, CSRi, and net income. Similarly, no significant relationship existed between CSR reporting, CSRi, and return on assets. The implications for social change include the development of socially responsible strategies that take into consideration the ethical variables of dignity and respect and the uncertainties faced by individuals within the community.