Corporate Social Responsibility and Financial Performance of Firms. A Case Study of Greek Companies in Athens, Greece
DOI:
https://doi.org/10.53819/81018102t5234Abstract
Corporate social responsibility (CSR) practices mostly results in cost savings through improved efficiency, reduced risks, and better resource management. The integration of CSR into business strategies attracts and retains top talent, fostering employee productivity and reducing turnover costs, which positively affects financial performance. Embracing CSR can lead to better access to capital and investment opportunities, as investors increasingly consider environmental, social, and governance factors when making investment decisions, contributing to improved financial stability and growth. The descriptive research method was employed for this study. Thirty Greek companies were selected as the primary focus. Twenty-five participants were randomly chosen from a larger pool of thirty Greek companies for the research. The information was gathered with the use of questionnaires. In conclusion, the influence of corporate social responsibility (CSR) on the financial performance of Greek companies is significant. Embracing sustainable practices, engaging in social impact initiatives, fostering stakeholder collaboration, and ensuring transparent reporting are key drivers that can positively impact financial outcomes. By integrating CSR into their business strategies, Greek companies have the opportunity to reduce costs, attract loyal customers, build stronger relationships with stakeholders, and enhance their reputation, ultimately leading to improved financial performance. Embracing CSR not only aligns businesses with societal and environmental values but also positions Greek companies as responsible and sustainable leaders, contributing to the long-term success and sustainability of the Greek business landscape. The study recommended that Greek companies should prioritize the integration of corporate social responsibility (CSR) into their business strategies to enhance financial performance. By embracing sustainable practices, engaging in social impact initiatives, and fostering stakeholder collaboration, Greek companies can create a positive impact on society while improving their financial bottom line. Transparent reporting and accountability should also be emphasized to build trust with stakeholders and attract responsible investors, further contributing to long-term financial success.
Keywords: corporate social responsibility, financial performance, firms, Greek
References
Awaysheh, A., Heron, R. A., Perry, T., & Wilson, J. I. (2020). On the relation between corporate social responsibility and financial performance. Strategic Management Journal, 41(6), 965-987. https://doi.org/10.1002/smj.3122
Devie, D., Liman, L. P., Tarigan, J., & Jie, F. (2020). Corporate social responsibility, financial performance and risk in Indonesian natural resources industry. Social Responsibility Journal, 16(1), 73-90. https://doi.org/10.1108/SRJ-06-2018-0155
Kaplan, R., & Kinderman, D. (2019). The business-class case for corporate social responsibility: mobilization, diffusion, and institutionally transformative strategy in Venezuela and Britain. Theory and Society, 48(1), 131-166. https://doi.org/10.1007/s11186-019-09340-w
Khovrak, I., Polinkevych, O., & Trynchuk, V. (2021, December). Management of financial institutions on the basis of corporate social responsibility as a driver of sustainable development. In Conference Proceedings Determinants of Regional Development (No. 2, pp. 246-264).
Liopa, M., Geitona, M., Latsou, D., & LIOPA, M. (2023). Factors Affecting the Implementation of Corporate Social Responsibility in the Health Technology Industry in Greece. Cureus, 15(6). https://doi.org/10.7759/cureus.39946
Nugroho, R. S. (2022). Company Financial Performance Before And During The Covid-19 Pandemic In Companies Listed On The Indonesia Stock Exchange. Jurnal Mantik, 6(2), 1647-1656.
Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from US tech firms. Journal of Cleaner Production, 292, 126078. https://doi.org/10.1016/j.jclepro.2021.126078
Panagiotopoulos, I. (2021). Novel CSR & novel coronavirus: corporate social responsibility inside the frame of coronavirus pandemic in Greece. International Journal of Corporate Social Responsibility, 6, 1-12. https://doi.org/10.1186/s40991-021-00065-7
Papacharalampous, N., Papadimitriou, D., & Anagnostopoulos, C. (2019). “Walking the talk” in times of recession: the case of corporate social responsibility in Greece. Journal of Global Responsibility, 10(2), 102-118. https://doi.org/10.1108/JGR-11-2018-0058
Pham, D. C., Do, T. N. A., Doan, T. N., Nguyen, T. X. H., & Pham, T. K. Y. (2021). The impact of sustainability practices on financial performance: empirical evidence from Sweden. Cogent Business & Management, 8(1), 1912526. https://doi.org/10.1080/23311975.2021.1912526
Ramzan, M., Amin, M., & Abbas, M. (2021). How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan. Research in International Business and Finance, 55, 101314. https://doi.org/10.1016/j.ribaf.2020.101314
Reklitis, P., Trivellas, P., Mantzaris, I., Mantzari, E., & Reklitis, D. (2018). Employee perceptions of corporate social responsibility activities and work-related attitudes: the case of a Greek management services organization. Sustainability and Social Responsibility: Regulation and Reporting, 225-240. https://doi.org/10.1007/978-981-10-4502-8_10
Suttipun, M., Lakkanawanit, P., Swatdikun, T., & Dungtripop, W. (2021). The impact of corporate social responsibility on the financial performance of listed companies in Thailand. Sustainability, 13(16), 8920. https://doi.org/10.3390/su13168920
Zhou, G., Sun, Y., Luo, S., & Liao, J. (2021). Corporate social responsibility and bank financial performance in China: The moderating role of green credit. Energy Economics, 97, 105190. https://doi.org/10.1016/j.eneco.2021.105190
Ziogas, I., & Metaxas, T. (2021). Corporate social responsibility in south Europe during the financial crisis and its relation to the financial performance of Greek companies. Sustainability, 13(14), 8055. https://doi.org/10.3390/su13148055