Corporate Social Responsibility and Organizational Profitability: An Empirical Investigation of United Bank for Africa (UBA) Plc.

Folajin, Oyetayo O.; Ibitoye, Oluwaseun. T; Dunsin, A.T

doi:10.6007/ijarbss/v4-i8/1089

Cited by 7 publications

(8 citation statements)

References 8 publications

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“…These findings are in line with H4b, confirming the stream of literature that argues for a negative relationship between CSR-strategy and CFP (e.g. Folajin et al , 2014). We may assume that this negative relationship is due to some difficulties which a company that approaches ESG issues or a sustainability beginner faces in the short-term.…”

Section: Resultssupporting

confidence: 89%

“…Conversely, for the lesser sustainable AF&B companies, we found a negative effect of CSR strategy and sustainable production/supply chain management on short-term CFP. These findings are in line with Boyle et al (1997), and Folajin et al (2014) as well as partially contrast the insights of Bodhanwala and Bodhanwala (2018), and Maloni and Brown (2006). However, these negative effects can be mitigated by other sustainability initiatives such as responsible products, eco-innovation, and management commitment to sustainability, which have shown positive effects on short-term CFP.…”

Section: Discussionsupporting

confidence: 76%

“…Following Friedman (1970) doctrine, some scholars (e.g. Boyle et al, 1997;Folajin et al, 2014) found that sustainability-oriented strategies can harm CFP. Conversely, other studies emphasised the positive effects that sustainable strategies can have on the future firms' profitability and growth (e.g.…”

Section: Sustainable Development and Agri-food Sectormentioning

confidence: 99%

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Sustainability and short-term profitability in the agri-food sector, a cross-sectional time-series investigation on global corporations

Cupertino

Vitale

Riccaboni

2021

BFJ

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PurposeThis paper aims to investigate whether being sustainable is also profitable for agri-food companies in the short-term.Design/methodology/approachThe study analysed the impacts of sustainability multiple issues on one-year lagged return on assets, developing a longitudinal analysis focused on best and worst companies' samples for a timeframe of ten years. Notably, we performed OLS regressions on unbalanced panels data collecting overall 1,760 annual observations from 318 companies. Moreover, we examined the moderating effects of slack resources on the relationship between sustainability and the short-term firms' profitability.FindingsThe results show that the best sustainable companies usually improve future profitability. Conversely, the worst ones should prioritize efforts in specific initiatives (i.e. responsible products, eco-innovation, management and governance commitment to sustainability), which positively affect their profitability and compensate possible short-term financial losses due to CSR strategy execution and sustainable production/supply chain management. Finally, the study found mixed results regarding the moderating effects of slack resources on the scrutinized relationships.Practical implicationsThe paper highlights the key environmental, social and governance aspects to be addressed for consolidating and enhancing the virtuous relationship between non-financial and financial performance, distinguishing between best and worst sustainability performers.Originality/valueThis study is among the first that decomposed sustainability in multiple micro aspects (i.e. sustainable strategy, products and processes) investigating the effects of each of them on the short-term agri-food firms' profitability.

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Section: Resultssupporting

confidence: 89%

Section: Discussionsupporting

confidence: 76%

See 1 more Smart Citation

Sustainability and short-term profitability in the agri-food sector, a cross-sectional time-series investigation on global corporations

Cupertino

Vitale

Riccaboni

2021

BFJ

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“…Additionally, some researchers found a positive relationship between CSR and PM (Mishra and Suar, 2010;Hafez, 2016;Abilasha and Tyagi, 2019), showing the enduring benefits of CSR by cost saving and differentiation. Nevertheless, other researchers found a negative relationship (Babalola, 2012;Folajin et al, 2014;Chen et al, 2018). As per these studies, CSR involves costs which influence the profits negatively.…”

Section: Introductionmentioning

confidence: 82%

“…Mukherjee et al (2018) revealed that companies who started spending on CSR activities (for which CSR spending is compulsory) after the introduction of mandatory CSR regulation showed a negative relationship between CSR expenditure and their profitability, indicating that more expenditure does not yield profits to these companies. Babalola (2012), Folajin et al (2014) and Sekhon and Kathuria (2019) found a negative impact of CSR on FP in India. They claimed the more expenditure on CSR may lead to destruction of shareholders value.…”

Section: Literature Reviewmentioning

confidence: 99%

Empirically examining the impact of corporate social responsibility on financial performance: evidence from Indian steel industry

Kaur

Singh

2020

AJAR

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PurposeThis paper aims to examine the impact of corporate social responsibility (CSR) on financial performance (FP) of Indian steel industry in terms of value-added (VAM), profitability (PM), market (MM) and growth measures (GM).Design/methodology/approachIt is an empirical study using secondary data of 40 companies for 14 years collected from CSR/annual reports/official websites of the companies and Prowess database. The panel regression analysis, MANOVA and univariate ANOVA have been conducted to examine the impact of CSR on FP.FindingsThe result indicates a positive impact of CSR on FP in terms of VAM, PM and GM, thereby indicating that more investments in CSR will generate wealth for shareholders, enhance profitability and sales. Moreover, this study shows no noticeable relationship between CSR and MM.Social implicationsThis study contributes to the literature on the CSR–FP relationship and also has implications for managers, investors and other stakeholders. Companies with higher CSR rating create a brand image, attract proficient employees, get greater profit, loyal customers and have less possibility of bribery and corruption. This study may result in being influential to companies confined not only to this sector but also reaching to the others, thus inspiring them to contribute their share of profit for the welfare of society.Originality/valueTo the best of the authors' knowledge, it is the first comprehensive study to examine the impact of CSR on FP of Indian steel industry by considering four dimensions for measuring FP. It provides evidence about the relationship between CSR and FP.

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Impact of Corporate Social Performance on Profitability: A Case Study of Listed Indian Companies

Dutt,

Dwivedi

2023

J. Professional Business Review

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Purpose: This section outlines the main objective of the research and what the study aims to achieve. In this case, the purpose is to investigate the relationship between corporate social performance (CSP) and financial performance in firms listed on BSE and NSE. The purpose is to understand if there is a connection between these two aspects of business performance. Design/Methodology/Approach: This section describes the methodology and approach used to conduct the research. It mentions the data collection methods, data sources, and analysis techniques. In this case, the design/methodology/approach involves collecting seven years' mean data of corporate social responsibility (CSR) spending and three years' mean data of financial performance, followed by regression analysis to assess the relationship between CSP and financial performance. Findings: This section presents the key results and outcomes of the research. It summarizes what the data analysis and regression analysis revealed about the relationship between CSP and financial performance for the firms listed on BSE and NSE. This is where the main discoveries and insights are shared. Research, Practical & Social Implications: Here, the broader implications of the research are discussed. This includes how the findings of the study can impact future research in the field, practical applications for businesses, and the potential social consequences of the relationship between CSP and financial performance. It looks at the "So what?" aspect of the research. Originality/Value: In this section, the paper highlights the originality and value it brings to the existing body of knowledge. It discusses how the research contributes to the field and why it is important. This section emphasizes the significance of the study's findings and how they can add to the understanding of the topic.

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Corporate Social Responsibility and Organizational Profitability: An Empirical Investigation of United Bank for Africa (UBA) Plc.

Cited by 7 publications

References 8 publications

Sustainability and short-term profitability in the agri-food sector, a cross-sectional time-series investigation on global corporations

Sustainability and short-term profitability in the agri-food sector, a cross-sectional time-series investigation on global corporations

Empirically examining the impact of corporate social responsibility on financial performance: evidence from Indian steel industry

Impact of Corporate Social Performance on Profitability: A Case Study of Listed Indian Companies

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