Corporate social responsibility and financial performance : evidence from the Johannesburg Stock Exchange, South Africa

Show simple item record Du Toit, Elda Lekoloane, Karabo 2019-01-24T06:56:09Z 2019-01-24T06:56:09Z 2018
dc.description.abstract BACKGROUND : Stakeholders are increasingly concerned whether the companies they are involved with act in a socially responsible way. However, stakeholders like employees and shareholders also have a direct financial interest in those companies and need to be assured that company actions bring forth some financial benefit. AIM : The research investigated one of the main questions surrounding the concept of corporate socially responsibility, namely whether a company’s investment in and effort towards corporate social responsibility results in improved financial performance. The purpose of this study was to narrow the gap in the body of knowledge in relation to corporate social responsibility and its relationship to financial performance. SETTING : This research investigated whether there was a relationship between being listed on the Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) Index and financial performance. The unit of study comprises 885 company-years of companies listed on the JSE over the period 2009–2014. METHODS : Logistic regression was used to find evidence of a relationship between a listing on the JSE SRI Index and financial performance. RESULTS : It is evident that there was no real relationship between inclusion on the JSE SRI Index and financial performance, but there was a direct relationship between the size of a company and having a listing on the JSE SRI Index. CONCLUSION : A listing on the JSE SRI Index does not have a clear and direct impact on financial performance, but it appeared that larger companies are perhaps better able to invest in corporate social activities and are, as a result, more likely to be listed on the JSE SRI Index. en_ZA
dc.description.department Financial Management en_ZA
dc.description.librarian am2019 en_ZA
dc.description.uri en_ZA
dc.identifier.citation Du Toit, E. & Lekoloane, K., 2018, ‘Corporate social responsibility and financial performance: Evidence from the Johannesburg Stock Exchange, South Africa’, South African Journal of Economic and Management Sciences 21(1), a1799. en_ZA
dc.identifier.issn 1015-8812 (print)
dc.identifier.issn 2222-3436 (online)
dc.identifier.other 10.4102/sajems.v21i1.1799
dc.language.iso en en_ZA
dc.publisher University of Pretoria, Department of Economics en_ZA
dc.rights © 2018. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License. en_ZA
dc.subject Stakeholders en_ZA
dc.subject Employees en_ZA
dc.subject Johannesburg Stock Exchange (JSE) en_ZA
dc.subject 2009–2014 en_ZA
dc.subject Corporate social responsibility (CSR) en_ZA
dc.subject Financial performance en_ZA
dc.title Corporate social responsibility and financial performance : evidence from the Johannesburg Stock Exchange, South Africa en_ZA
dc.type Article en_ZA

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