Unveiling the Nexus: Corporate Social Responsibility and Financial Performance in Developing Economies

Document Type : Research Paper

Authors

1 University of Okara, Punjab, Pakistan

2 Hailey College of Commerce, University of the Punjab, Lahore, Pakistan

3 Department of Educational Planning & Management (EPM), University of Okara

10.22059/ijms.2024.372336.676543

Abstract

The purpose of this study is to examine how corporate social responsibility (CSR) affects a company's financial performance by looking at the moderating effect of CSR information quality and the mediating role of customer satisfaction and loyalty. Additionally, a two-stage structural equation approach was used to assess the validity and reliability of the data, as well as the impact of underpinning variables. This study demonstrated that CSR has a positive and significant impact on consumer loyalty, customer satisfaction, and corporate financial performance. Furthermore, the study affirmed the function of customer loyalty and satisfaction as a mediator between CSR and corporate financial performance. Furthermore, it has been shown that the CSR information quality modifies the association between CSR and customer satisfaction. However, the moderating effect of the quality of CSR information on the connection between CSR and company financial performance was not supported by this study. This study is significant since it sheds light on the intricate relationships that exist between financial performance and CSR, and offers understanding of the basic processes that support business success in terms of client loyalty, customer satisfaction, and the CSR information quality in developing countries.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 18, Issue 1
January 2025
Pages 113-128

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