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CSR & Related Definitions

CSR can help increase profits rather than just being seen as a 2% cost. International studies show strategic CSR activities have a positive relationship with corporate financial performance, whereas philanthropic activities do not. This establishes CSR as a potential profit center rather than just a cost center, which will lead companies to prioritize CSR. Corporate social performance ensures private businesses have positive community, employee, and consumer impacts, especially where governance and accountability are limited. Financial performance measures a firm's ability to generate revenue from its core business operations.

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Chaminda Jayaweera
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55 views1 page

CSR & Related Definitions

CSR can help increase profits rather than just being seen as a 2% cost. International studies show strategic CSR activities have a positive relationship with corporate financial performance, whereas philanthropic activities do not. This establishes CSR as a potential profit center rather than just a cost center, which will lead companies to prioritize CSR. Corporate social performance ensures private businesses have positive community, employee, and consumer impacts, especially where governance and accountability are limited. Financial performance measures a firm's ability to generate revenue from its core business operations.

Uploaded by

Chaminda Jayaweera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CSR

CSR is not just about spending 2% of the profit. Instead, it can help in increasing
the Profit as well. There are few international studies that establish this
relationship between Corporate Social Performance (CSP) and Corporate Financial
Performance (CFP). These studies also proved that it is the Strategic CSR and not
the Philanthropic activities responsible for this positive relationship. These
findings are crucial to establishing CSR as the Profit center and not as the Cost
center for the Corporate that will eventually give greater importance to the CSR in
the Corporate.

Corporate Social Performance (CSP) is an increasingly important concept used to


ensure the private sector has a positive impact on communities, employees and
consumers. This is especially so in geographies where basic governance, the rule
of law and accountability mechanisms are lacking or limited

Financial performance is a subjective measure of how well a firm can use assets
from its primary mode of business and generate revenues.

Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR) is a business approach that contributes to


sustainable development by delivering economic, social and environmental
benefits for all stakeholders.

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