Corporate Social Responsibility and Financial Performance of Firms. A Case Study of Greek Companies in Athens, Greece

Abstract

Corporate social responsibility (CSR) practices mostly results in cost savings through improved efficiency, reduced risks, and better resource management. The integration of CSR into business strategies attracts and retains top talent, fostering employee productivity and reducing turnover costs, which positively affects financial performance. Embracing CSR can lead to better access to capital and investment opportunities, as investors increasingly consider environmental, social, and governance factors when making investment decisions, contributing to improved financial stability and growth. The descriptive research method was employed for this study. Thirty Greek companies were selected as the primary focus. Twenty-five participants were randomly chosen from a larger pool of thirty Greek companies for the research. The information was gathered with the use of questionnaires. In conclusion, the influence of corporate social responsibility (CSR) on the financial performance of Greek companies is significant. Embracing sustainable practices, engaging in social impact initiatives, fostering stakeholder collaboration, and ensuring transparent reporting are key drivers that can positively impact financial outcomes. By integrating CSR into their business strategies, Greek companies have the opportunity to reduce costs, attract loyal customers, build stronger relationships with stakeholders, and enhance their reputation, ultimately leading to improved financial performance. Embracing CSR not only aligns businesses with societal and environmental values but also positions Greek companies as responsible and sustainable leaders, contributing to the long-term success and sustainability of the Greek business landscape. The study recommended that Greek companies should prioritize the integration of corporate social responsibility (CSR) into their business strategies to enhance financial performance. By embracing sustainable practices, engaging in social impact initiatives, and fostering stakeholder collaboration, Greek companies can create a positive impact on society while improving their financial bottom line. Transparent reporting and accountability should also be emphasized to build trust with stakeholders and attract responsible investors, further contributing to long-term financial success.