Corporate Social Responsibility

From a financial economic perspective, organizational success of a company is the maximization of the profit. The kinship between financial deed and social performance has been a debate since the 1960s. Whether or non a relationship exists clearly is important for corporate management. The relationship is affected by various factors such as unbendable size, industry, economic conditions. The relationship between social performance and financial performance could be positive, negative or neutral. In this paper, I will poll whether being social responsible would make up the financial performance of a firm or stock-still a key to the organizational success. The paper will examine both side of the argument by analyzing previous look into and data.

Social responsibility is the key for organizational success
Positive relationship between social performance and financial performance
Some researchers ask argued that CSR investments and financial performance of a firm are positively related including Clarkson(1995), Waddock and Graves(1997).
A study conducted by Verschoor (2003) shows that firms that are socially responsible outperformed other firms in terms of market determine added (MVA).



An empirical study (Cotrill, 1990) which has examined 118 firms in 18 industries during 1982-1983 indicated that there was a positive relationship between market share and CSR.

enhancement of firm reputation
The value of CSR is a proxy for management note and a tool to attract and establish superior tincture workforce. A strong reputation for CSR is impalpable asset that economize shareholder value such as management quality, mint management skills, brands trust , emotional appeal and product quality. It is a valuable intangible asset which prompts repeat purchases by sure consumers and helps to retain better employees to increase productivity and enhance profitability.
A recent survey indicate that 50% of the fund managers and analysts believed that intangible assets...If you want to get a full essay, order it on our website: Ordercustompaper.com



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