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

Authors

  • Hae-Jong Seo PhD Student, Department of Business Administration, Korea Aerospace University
  • Kee-Woong Kim Professor, Department of Business Administration, Korea Aerospace University 200-1, Hwajeon-dong, Deokyang-gu, Goyang-city, Gyeonggi-do, 421-791, South Korea
  • Jin-Woo Park Associate Professor, Department of Business Administration, Korea Aerospace University 200-1, Hwajeon-dong, Deokyang-gu, Goyang-city, Gyeonggi-do, 421-791, South Korea

DOI:

https://doi.org/10.18533/ijbsr.v5i10.859

Keywords:

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

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.   

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Published

2015-11-02

Issue

Vol. 5 No. 10 (2015): October

Section

Article

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