The Impact of Corporate Social Responsibilities on Financial Performance of Listed Companies in CSE

Abstract

The key objective of research is to find out the impact of corporate social responsibility on financial performance. To examine the adoption of corporate social responsibility practices in each industry and to examine the significant association between corporate social responsibility and financial performance are other specific objectives. When comparing Sri Lanka with other countries there are considerable differences in economic, political, and ethical background. Thus, it is difficult to get a clear idea or a conclusion of the relationship between CSR and financial performance. Hence, this paper focused on examining the association between corporate social responsibility and the financial performance of publicly quoted companies listed in CSE to bridge the knowledge gap in the Sri Lankan context. This study mainly focuses on identifying the Effect of CSR on profitability. To analyze the relationship, this study mainly gets information from companies listed on the Colombo Stock Exchange. Public quoted companies are the companies that practice corporate social responsibility practices. That is the reason for selecting listed companies for this study The Colombo Stock Exchange (CSE) is the main Sri Lankan stock exchange; it has 295 listed companies representing 20 GICS industries as of 30th June 2022, with a market capitalization of 3,184.16 billion rupees.