Effect of CSR on financial performance of company

CSR

CORPORATE SOCIAL RESPONSIBILITY(CSR)

Corporate social responsibility is a concept that has attracted worldwide attention and acquired a new meaning in the global economy. Sharp interest in CSR in recent years has stemmed from the advent of globalization and international trade. Ultimately, it has reflected on increased business complexity and new demands for corporate citizenship.

BUILDING A FIRM RELATIONSHIP BETWEEN STAKEHOLDER AND ENTERPRISE

Most of the enterprises attracting the investors refer to draw the attention of investors through CSR activities. It helps to improve the financial performance of an enterprise. To improve a better relationship between stakeholders and enterprise. Moreover, if the enterprise is transparent about their activities conducted for the welfare of communities. As they can better understand the perception of stakeholders and issues that may affect their operations. It’s providing the information related to defining priorities and ensuring that the business practices are aligned with the ethical standards.

IMPROVING CREDIBILITY

CSR is also helping to improve the credibility of an enterprise. Other using to optimum utilizing the resources of finance. In other hands, CSR is also a negative impact of the financial performance of companies are shifting from the profit-making objective and is also not a cheapest always. Therefore, like any other aspect of your business, if you don’t execute well, then you can create unintended consequences. And fail to achieve your goal. Another challenge which comes up is the possible negative perception of shareholders. Another increased expenditure is reflected in the increased prices of the product. Ultimately, customers have to pay.

To conclude, the CRS is building a relationship between corporate social responsibility and financial performance of companies. Three variable are considered for financial-NET PROFIT, EARNINGS PER SHARE AND RETURN ON ASSETS. CRS is an important role-playing to Improve the performance of financial companies.

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