The Impact and Relation of Corporate Social Responsibility on Financial Performance - Research Paper Example

The paper "The Impact and Relation of Corporate Social Responsibility on Financial Performance" is an excellent example of a research paper on management. The progress regarding corporate social responsibility (CSR) has gained prominence with the shift focusing on unnecessary addition to the financial performance of different companies. Evidence-based case studies on companies have indicated that the interest for engagement in CSR continues to increase among both the stakeholders, companies, and investors, despite the fact that there is uncertainty concerning ways in which CSR engagement continues to create financial values. As a result of this position, the connectedness between CSR and financial performance has attracted different studies, which have indicated conflicting evidence and results. To conceptualize the gap in knowledge, this research is an empirical study that investigates whether the CSR performance of a company is linked with its financial performance. To draw the research data, the study works with two telecommunication companies from Western culture (Germany and United Kingdom) and two telecommunication companies from Asian culture (Singapore and India).

CHAPTER ONE: Introduction

Understanding Corporate Social Responsibility and Financial Performance

The Grenfell Tower fire that took place on 12th June 2017 and the BP oil disaster that took place in the Gulf of Odessa continue to receive a number of concerns across the world on the need to streamline CSR among companies. The two events, and in particular, the Grenfell Tower fire that claimed at least 50 lives show that the way firms handle matters to do with the environment is essential not only based on the perception towards it but can have an impact on performance as involves the finances (Watson et al, 2004). As a matter of fact, Environmental Defense Fund managing director Victoria Mills noted that for company financial performance to be improved, sustainability is no longer an issue of ‘if’ but a ‘must’ and ‘how’ (McGuire et al, 1988).