The Corporate Social Responsibility and Its Impact on Financial Performance: A Case of Developing Countries

Abstract

In developing nations, environmental policies have not given nearly enough consideration to the role that environmentally friendly innovation plays. Green innovation and long-term financial performance are extremely dependent on one another. Despite the fact that numerous studies have investigated the impact that a variety of corporate social responsibility (CSR) activities have had on environmental sustainability, relatively few have investigated the implications of green innovation strategies and sustainability. From the mid-2021 through to mid-2022, information was gathered from 184 businesses listed on the Pakistan Stock Exchange (PSX) across 12 different industries. Estimates of the results were obtained by the use of structural equation modeling using partial least squares (PLS-SEM). The outcomes of the study indicated that all parts of CSR were positively significant in the process of fostering environmentally sustainable growth, with the exception of one aspect of CSR that was directed toward customers. Additionally, sustainable development contributes to the mediation impact that green innovation has, making this effect even more powerful. The data show that CSR activities have an exceptional impact on financial performance (FP) in all aspects other than one, and that green innovation (GI) also has a high-quality impact on FP, which demonstrates the significance of CSR practices in enhancing sustainable environment.

The Impact of Country Characteristics on Board Gender Diversity and Sustainability Performance: A Global Perspective

“…Moreover, more extensive stock exchanges exhibit higher competition for the firms to obtain scare investment capital. Hence, firms in such markets are expected to furnish more SP [71,78]. To sustain their market standing, female directors (besides other directors) will be more bound to engage in sustainability activities in countries with higher financial development.…”

Environmental compliance and business strategies practices of entrepreneurial ventures

“…Research in developing countries is aimed at studying the impact of business strategies on increasing environmental efficiency, using sustainable technologies, supporting ecological entrepreneurship and developing green markets [15][16][17]. Given the growing interest in sustainable development and conservation of natural resources, these studies are important for the development of the economy and business sector in regions with high environmental sensitivity.…”

Kinerja Keuangan, Manajemen Laba, Dan Penghindaran Pajak: Apakah CSR Industri Kontroversial Memiliki Peran?

“…Pengungkapan CSR dalam laporan dapat mengurangi pandangan publik dan memberikan kesan bahwa perusahaan telah memenuhi harapan sosial masyarakat (Deegan 2002). CSR berperan penting dalam praktik tata kelola yang berdampak pada peningkatan kinerja keuangan perusahaan (Hamad and Cek 2023). Lebih lanjut mereka mengungkapkan bahwa perusahaan yang memiliki prioritas terhadap CSR, kinerja keuangannya cenderung lebih baik sehingga lebih mungkin terlibat dalam mitigasi risiko.…”