A Study on Relation between Corporate Social Responsibility and Profitability-and-Corporate Value

Hae-Jong Seo, Kee-Woong Kim, Jin-Woo Park

Abstract


The purpose of this research is to analyze whether there is a systematic relation between CSR performance and corporate profitability-and-corporate value with Korean companies as target. For the purpose, 943 KEJI indexes that have been calculated from 2012 to 2014 were used as surrogate variables of CSR, and ROA and Tobin’s q were used as surrogate variables of corporate profitability-and-corporate value before a correlation analysis and a regression analysis were carried out. As a result of analysis, a significant positive (+) relation appeared between CSR performance measured by KEJI index and corporate profitability (ROA) and corporate value (Tobin’s q). Based on this analysis result, we have examined preceding studies with regard to the relation between CSR and financial performance of companies and presented possibility of CSR as a key management strategy of a company.   


Keywords


Corporate value, CSR, KEJI, profitability, ROA, shareholder approach; stakeholder approach; Tobin’s q.

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References


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DOI: http://dx.doi.org/10.18533/ijbsr.v5i10.859

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International journal of business and social research (Print)
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[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]