umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The impact of corporate social responsibility on short-term profitability
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2018 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Every actor of the society has its own expectations about the companies. Shareholders are interested in the maximization of the profitability, managers are interested in sustainability, and partners are interested in fulfilment of the business ethics. And the company with well-structured CSR policy should be able to meet expectations of all stakeholders. This can cost large part of the company's resources. It can potentially impact on company’s profitability whether positively or negatively. Using the quantitative research method we tried to explore the impact of CSR policy on the short-term profitability. Our research question is composed as:What is the relationship between CSR and short-term profitability?The main purpose of this study is to analyze and present positive or negative links between CSR policy and corporate financial performance (CFP) using different profitability indicators. We analyzed impact of weighted average CSR score and environmental rank on the short-term profitability.The theoretical framework of the thesis consists of different theories, such as stakeholder theory, shareholder theory, agency theory, legitimacy theory and etc.The research conducted in accordance with the functionalist research paradigm, the objectivist ontological and positivist epistemic research philosophies using the deductive approach. Our result indicates that there negative relationship between CSR performance and short-term profitability. Also we found that CSR policy can negatively impact on return on assets. This in turn could have negative implications on shareholders and stakeholders. No positive correlation between CSR policy and profitability observed. All in all, the expenses on CSR policy have a negative impact on indicators of financial performance.

Place, publisher, year, edition, pages
2018.
Keywords [en]
CSR, CFP, profitability, agency theory, stakeholder theory, stakeholder theory, legitimacy theory, environmental policy
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:umu:diva-150192OAI: oai:DiVA.org:umu-150192DiVA, id: diva2:1233411
Supervisors
Examiners
Available from: 2018-08-13 Created: 2018-07-17 Last updated: 2019-01-07Bibliographically approved

Open Access in DiVA

fulltext(1235 kB)32 downloads
File information
File name FULLTEXT02.pdfFile size 1235 kBChecksum SHA-512
467253b6f7d65c34993236008cba78e7a6845d58f7200336f1685ea58a43e401b8bd8c1aced6103cd444b71ed135ffb08721d78a03c2fde4b9c5330114d245a0
Type fulltextMimetype application/pdf

By organisation
Business Administration
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 56 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 226 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf