The relationship between CSR and corporate financial performance: A review and analysis of the main empirical approaches

Abstract

In a climate of fierce competition and tightening regulations, companies are called upon to be more efficient at various levels. To achieve this, they need to be constantly attentive to the expectations of all stakeholders, especially those with more clout and power. The objective is the quest for overall performance and, in particular, financial performance, for any company wishing to be competitive and to perpetuate its existence.

This paper offers to researchers a summary of empirical work devoted to the study of the link between corporate social responsibility and their financial performance. Indeed, these works are very numerous and varied. This finds its justification in the approach and method of investigation used and also in the context to which they relate.

To carry out our work, we presented the main definitions attributed to CSR and to financial performance with its measurement variables. Finally, we presented a review of the main works explaining the link that may exist between CSR and FP.

Keywords : CSR, Financial Performance, method of investigation, context

JEL Classification : M14, L25, L20.

Paper type : Theoretical Research.