Relationship between CSR and Financial Performance - Companies within ZSE CROBEX10® Index

Scientific paper - Original scientific paper

• Author: Robert Fabac
• Author: Marina Klačmer Čalopa
• Author: Tanja Šestanj-Perić
• Author's institution: University of Zagreb; Faculty of Organization and Informatics
• Scientific / art field, discipline and subdiscipline: SOCIAL SCIENCES; Economics

Abstract (english)

The main objective of this research paper is to examine the relationship between corporate social responsibility (CSR) and financial performance (FP) of the companies included in the official share index of the Zagreb Stock Exchange. CROBEX10® includes shares of 10 companies traded at the regulated market in Croatia. Corporate social responsibility is a factor having an important role in the consumer selection of products and services. Thus, CSR is increasingly gaining in importance because it creates organizational value for a company by giving the ability to differentiate the company from its competitors. All successful companies in the world have recognized the importance of CSR, but not all are equally successful in its implementation. Although many empirical studies found a link between the quality of CSR and the company performance measured by financial indicators, there is still a lot of inconsistency in the results of previous research, mainly due to the factors influencing this relation. The paper starts from the general premise that there is no relationship between CSR and FP, for companies included in CROBEX10®. In this paper common indicators such as the measure of the financial performance (such as ROA and ROE) are determined by using document analysis method. Levels of CSR indicators are evaluated by using content analysis. The relationship between CSR and financial performance is interpreted using descriptive statistics, method of simple regression analysis and factor analysis.

• Keywords (english): Correlation; CSR; CROBEX10®; Financial indicators; Measuring
• Language: english
• Publication type: Scientific paper - Original scientific paper
• Publication status: Published
• Peer review: Peer review - international
• Publication version: Published version
• Journal title: European Journal of Economics and Management
• Numbering: vol. 3, no. 1, pp. 169-182
• p-ISSN: 2056-7375
• URN:NBN: urn:nbn:hr:211:706714
• Publication: 2016
• Document URL: http://www.ejemjournal.com/issues.html
• Type of resource: Text
• Access conditions: Open access
• Created on: 2017-10-17 15:52:36