Does Corporate Social Responsibility Lead to Improve in Firm Financial Performance? Evidence from Malaysia

Ahamed, Wan Suhazeli Wan; Almsafir, Mahmoud Khalid; Al-Smadi, Arkan Walid

doi:10.5539/ijef.v6n3p126

Cited by 65 publications

(72 citation statements)

References 25 publications

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“…Positive appreciation as well as the improvement of corporate image will provide company benefits in an effort to improve company performance. The results of this study support the research conducted by Saleh et al (2011), Rajput et al (2012, Palmer (2012); Ghelli (2013) and Ahamed et al (2014) which states that CSR has a positive and significant effect on financial performance. This is in accordance with the concept of stakeholder theory which assumes that the company must be responsible to various groups in society that have influence on the company because the decisions and behavior will affect the welfare of society.…”

Section: The Effect Of Csr On Financial Performancesupporting

confidence: 89%

The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

Mahrani

Soewarno

2018

AJAR

285

158

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Purpose -The purpose of this paper is to determine the direct influence of the mechanism of good corporate governance (GCG) and corporate social responsibility (CSR) on financial performance as well as through earnings management as a mediating variable. Design/methodology/approach -The data used in this research are secondary data involving 102 companies listed on the Indonesian Stock Exchange for the period 2014. The data used in this study were analyzed using partial least square and carried out with the help of software WarpPLS 5.0. Findings -The results show that the mechanism of GCG and CSR has a positive effect on financial performance as well as the CSR on financial performance. Originality/value -The results also show partial mediation of earnings management on impact of GCG mechanisms on financial performance and full mediation of earnings management on impact of CSR on financial performance.

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Section: The Effect Of Csr On Financial Performancesupporting

confidence: 89%

The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

Mahrani

Soewarno

2018

AJAR

285

158

View full text Add to dashboard Cite

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“…Thus far, studies on the relationship between CSR and firm performance show positive, negative, mixed or non-significant results [4]. For example, a number of authors found a positive relationship between CSR and firm performance (See [4,5,42,43]. In contrast, empirical findings by Boyle, Higgins, and Rhee [44] and Wright and Ferris [45] showed a negative association between CSR and firm performance.…”

Section: Csr and Firm Performance In Smesmentioning

confidence: 58%

“…Dobre, Stanila, and Brad [16] explain that the fluctuations in results between CSR and firm performance could be related to the context or country of study, industry, different ways of measuring CSR, different methodological approaches or period chosen for analysis. For instance, Ahamed, Almsafir, and Al-Smadi [42] pointed out the need to consider the importance of time frame when investigating the link between CSR and firm performance. This is because even when firms actively engage in CSR, the link between CSR and firm performance may be negative if the country in which the research is conducted had a bad economic period.…”

Section: Csr and Firm Performance In Smesmentioning

confidence: 99%

A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

Choongo

2017

Sustainability

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Abstract:The aim of this study is to investigate the impact of corporate social responsibility on firm performance using a longitudinal design in small and medium-sized enterprises (SMEs). The reported study was conducted in a Sub-Saharan African developing country, Zambia. Data were collected from 153 entrepreneurs in two surveys and changes in CSR and firm performance measures were analysed over a 12-month period using SmartPLS structural equation modelling. The findings show that the relationship between CSR and financial performance is significant. Further, the association between CSR and the two measures of firm performance (corporate reputation and employee commitment) was only partially significant over time. We discuss the relevance of these results for entrepreneurs, researchers and policy makers in understanding the outcomes of sustainability practices in SMEs in developing countries, especially in Sub-Saharan Africa.

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“…Therefore, organisations need to identify and prioritise their stakeholders' expectations through their business operation (Clifton & Azlan, 2010;Amran et al, 2013). In this respect, organisations must be able to secure their relationship with all stakeholders consistently, especially when they make CSR disclosure decision (Ahamed et al, 2014) since different stakeholders may have different impact on organisations.…”

Section: Stakeholder Theorymentioning

confidence: 99%

Incorporating Role of Stakeholders into Corporate CSR Strategy For Sustainable Growth: An Exploratory Study

2017

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In today's modern day context, Corporate Social Responsibility (CSR) become the mantra for businesses as it can be seen as a strategic approach for firms to be succeed in their business endeavours. Hence, it remains the most widely used concept to refer to organizationalstakeholder relationships. An understanding about a stakeholder approach to CSR is an important means for a firm to enhance their commitment to operate in an economically, socially and environmentally sustainable manner. In support with above arguments, this article presents a theoretical proposition based on stakeholder theory for better CSR and firm performance. By drawing upon classic work in the field, the paper offers conceptual discussion and then systematically develops a means of stakeholder approach into corporate CSR strategy. The aim of this paper is to demonstrates the need for a firm to enhance further understanding about the role of stakeholders in the context of corporate CSR strategy, which is increasingly necessary in view of the fact that business entities are absolutely essential for economic development, but at the same time, their business activities pose a huge impact to society and the environment. Thus, firm's CSR disclosure is a pivotal tool to establish a relationship of working together with the stakeholders that ensures mutual benefit and continue to be a firm that is needed by society. This article contributes to the literature by providing a fundamental explanation of how a business should embrace responsibility for the impact of its activities on the stakeholders across various levels of the value chain. By doing so, firms are offered a means to take a much more proactive approach to CSR through the stakeholder approach which is precisely helpful in measuring the effectiveness of any CSR initiative on the society to foster business sustainability.

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Does Corporate Social Responsibility Lead to Improve in Firm Financial Performance? Evidence from Malaysia

Abstract: Corporate Social Responsibility

Cited by 65 publications

References 25 publications

The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

Incorporating Role of Stakeholders into Corporate CSR Strategy For Sustainable Growth: An Exploratory Study

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