Impact of Corporate Social Responsibility (CSR) Reporting on Firm Performance

Abstract

Purpose: The aim of the study was to assess the impact of corporate social responsibility (CSR) reporting on firm performance.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: Research suggests that there is a positive correlation between Corporate Social Responsibility (CSR) reporting and firm performance. CSR reporting not only enhances a company's reputation, mitigates risks, and improves access to capital but also fosters meaningful stakeholder engagement and contributes to long-term value creation. However, it is important to note that the specific impact of CSR reporting can vary across industries and contexts, influenced by factors such as industry norms, regulatory environments, and the extent to which CSR is integrated into a company's core business strategy.

Implications to Theory, Practice and Policy:  Stakeholder theory, legitimacy theory and resource-based view (RBV) may be use to anchor future studies on assessing the impact of corporate social responsibility (CSR) reporting on firm performance. In practice, CSR reporting uniquely contributes by promoting integrated reporting, where financial and non-financial information is combined to offer a holistic view of a company's performance, fostering transparency and accountability. From a policy perspective, CSR reporting makes unique contributions by advocating for globally harmonized reporting standards, facilitating comparability and consistency in reporting across industries and regions.