The correlation between the four components of a company's corporate social responsibility and financial performance: The case of selected companies in the food and beverage industry in the Philippines

• Main Authors: Alvarez, Mark Gerard C., Miranda, Kim Gerald T., Sia, Myles P.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11917
• Institution: De La Salle University

Corporate social responsibility (CSR) has been shown by some of the previous studies to have a significant effect on the financial performance of a company. However, there is a limited study on which types of CSR significantly affect financial performance. In order to find more about that, the proponents of this study gathered the rating for each type of CSR (i.e. customer-related, employee-related, environmentally-related, socially-related) and the financial performance indicators (return on assets, return on equity, profit margin) of selected companies from the food and beverage industry in the Philippines. Surveys were performed to collect the CSR ratings while the financial performance indicators were calculated from the data presented in the book entitle 2Top 15000 Corporations: The Philippines as an Emerging Market. 3The structural equation modeling (SEM) was then applied to determine the relationship between the relationships between the data collected. Based on the results, it was conclude that only the socially-related and customer-related CSR have significant effect on the financial performance of the selected food and beverage companies.