Corporate Social Responsibility and Finances: A Study of Fortune 500 Companies
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Abstract
The aim of this study is to ascertain the degree to which financial considerations and corporate social responsibility issues are linked with respect to Fortune 500 firms. The study will specifically focus on figuring out how closely the two are related. We examine a range of CSR initiatives and their effects on financial metrics like Return on Equity (ROE), Return on Assets (ROA), and stock market performance using a sizable dataset covering the years 2010–2022. We pay particular attention to how these programs affect the profitability of the stock market. The ways in which these initiatives impact corporate social responsibility programs are our particular focus. Our findings suggest that there is a strong correlation between financial results and corporate social responsibility (CSR)-related activities, especially when this relationship is examined over an extended period of time. When the time period in question is even longer, this is particularly true. Furthermore, it is crucial to keep in mind that different industries have different relationships between financial issues and the obligations that businesses have to the communities in which they operate. The results of this study continue to contribute to the continuing discussion regarding the economic rationale for corporate social responsibility. This study contributes to the current conversation in addition to offering lawmakers and business executives fresh perspectives that are fundamentally significant.