The Impact of Corporate Social Responsibility on Corporate Financial Performance: Considering Corporate Size and Growth

This essay has proved a positive impact of corporate social responsibility (CSR) on corporate financial performance (CFP). In this paper, it also adds corporate size and growth to verify their intermediate effects between corporate social responsibility and corporate financial performance. This essay searches for every company in S&P500 from1995-2013, and uses the databases KLD and COMPUSTAT to find out their corresponding value. The dependent variables are return on assets(ROA), return on equity(ROE), return on sales(ROS), separately. The scores of corporate social responsibility is divided into two segments, operation-related corporate social responsibility and non-operation-related corporate social responsibility. The result of multiple regression analysis is that either operation-related corporate social responsibility or non-operation-related corporate social responsibility can increase corporate financial performance. Moreover, operation-related corporate social responsibility is the first choice when considering corporate social responsibility. In conclusion, the more you engage in corporate social responsibility, the more beautifully your financial statements show.