Corporate Social Responsibility and Financial Performance

This study explores and analyzes the relationship between corporate social responsibility and corporate financial performance of UK listed companies operating in gas, water and multiutilities industries. Assess the link between prior and subsequent corporate social performance and prior and subsequent corporate financial performance. It also examines the relationship that prevails between market value trade-off and the accounting based measures such as return on equity, earning per share and price to earnings ratio. The study found the following, corporate social performance is positively related to prior financial performance and concurs with the slack resource theory and they associate positively, furthermore, corporate financial performance is positively related with future financial performance confirming the good management theory and they are also positively related. There exist a non-linear association between concurrent corporate performance and concurrent corporate financial performance.