The Relationship between Corporate Social Responsibility and Financial Performance
Keywords:
Corporate Social Responsibility, Financial Performance, CSR Performance, Firm Performance.
Abstract
This study examines the relationship between Corporate Social Responsibility (CSR) and corporate financial performance, explains variations in previous findings, and identifies research gaps. A Systematic Literature Review (SLR) was conducted on 30 empirical articles published between 2020 and 2026. The literature was searched through Google Scholar using Publish or Perish and screened according to predefined inclusion and exclusion criteria. The synthesis shows that 21 articles report a significant positive relationship, five report insignificant results, two report a significant negative relationship, and two identify relationships that vary across time or CSR levels. These differences are associated with CSR and financial performance measurements, CSR activities, observation periods, national and industry contexts, and moderating and mediating variables. Key research gaps include the dominance of disclosure-based CSR measures, limited long-term observations, and insufficient testing of nonlinear relationships. Future research should employ more diverse performance measures and stronger research designs.
References
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Ardiniamalia, U., Ghofar, A., & Andayani, W. (2023). Revisiting The Effects of Corporate Social Responsibility on Financial Perfomance: Organizational Culture as a Moderating Variable. JOURNAL OF ACCOUNTING AND BUSINESS EDUCATION, 8(2), 72. https://doi.org/10.17977/jabe.v8i2.46049
Dakhli, A. (2022). The impact of corporate social responsibility on firm financial performance: does audit quality matter? Journal of Applied Accounting Research, 23(5), 950–976. https://doi.org/10.1108/JAAR-06-2021-0150
Dela, E., Ye, J., & Berhe, H. M. (2024). The Impact of Corporate Social Responsibility on Financial Performance in Indonesian Highly Polluted Industries: Mediating Role of Industry Competitiveness. SAGE Open, 14(4). https://doi.org/10.1177/21582440241259479
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Feng, Y., Akram, R., Hieu, V. M., & Tien, N. H. (2022). The impact of corporate social responsibility on the sustainable financial performance of Italian firms: mediating role of firm reputation. Economic Research-Ekonomska Istrazivanja , 35(1), 4740–4758. https://doi.org/10.1080/1331677X.2021.2017318
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Homayoun, S., Mashayekhi, B., Jahangard, A., Samavat, M., & Rezaee, Z. (2023). The Controversial Link between CSR and Financial Performance: The Mediating Role of Green Innovation. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su151310650
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Jing, Z., Shakhawat Hossain, G. M., Badiuzzaman, Rahman, M. S., & Hasan, N. (2023). Does corporate reputation play a mediating role in the association between manufacturing companies' corporate social responsibility (CSR) and financial performance? Green Finance, 5(2), 240–264. https://doi.org/10.3934/GF.2023010
Kammoun, S., Romdhane, Y. Ben, Loukil, S., & Ibenrissoul, A. (2021). An examination of linkages between corporate social responsibility and firm performance: Evidence from Moroccan listed firms. Managerial Studies, 37(161), 636–646. https://doi.org/10.18046/j.estger.2021.161.4010
Khan, M. A., & Manurung, A. H. (2022). Corporate Social Responsibility (CSR) Evaluation & Effectiveness of Disclosure and its Impact on Financial Performance: A Case of Indonesian Corporations by Longitudinal Evidence. Management and Organizational Science Studies, 3(1), 233–242. https://doi.org/10.35912/simo.v3i1.709
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Lahouel, B. Ben, Zaied, Y. Ben, Managi, S., & Taleb, L. (2021). Re-thinking about U: The relevance of regime-switching model in the relationship between environmental corporate social responsibility and financial performance. https://doi.org/10.1016/j.jbusres.2021.11.019
Lemana, P., Matemane, R., & Mokabane, M. (2025). The evolution of research on corporate social responsibility and financial performance: a bibliometric analysis. In Cogent Business and Management (Vol. 12, Number 1). Cogent OA. https://doi.org/10.1080/23311975.2025.2507230
Li, X., Esfahbodi, A., & Zhang, Y. (2024). The Impact of Corporate Social Responsibility Implementation on Enterprises' Financial Performance—Evidence from Chinese Listed Companies. Sustainability (Switzerland) , 16(5). https://doi.org/10.3390/su16051848
Mahmud, M. R., & Sari, C. M. (2024). The Influence of CSR on Company Financial Performance. LANCAH: Journal of Innovation and Trends, 2(2). https://doi.org/10.35870/ljit.v2i2.2727
Niu, M., & Ma, W. (2022). Does Corporate Social Responsibility Heterogeneity Affect Corporate Financial Performance Through Technological Innovation? The Moderating Effects of Advertising Intensity. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.837967
Ogachi, D., & Zoltan, Z. (2020). Corporate social responsibility and firm value protection. International Journal of Financial Studies, 8(4), 1–22. https://doi.org/10.3390/ijfs8040072
Okafor, A., Adusei, M., & Adeleye, B. N. (2021). Corporate social responsibility and financial performance: Evidence from U.S tech firms. In Journal of Cleaner Production (Vol. 292). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2021.126078
Prayanthi, I., & Budiarso, N. S. (2022). The effect of social responsibility disclosure on financial performance in the COVID-19 pandemic era. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2147412
Rinawiyanti, E. D., Xueli, H., & As-Saber, S. N. (2023). Integrating corporate social responsibility into business functions and its impact on company performance: evidence from the Indonesian manufacturing industry. Social Responsibility Journal, 19(7), 1233–1262. https://doi.org/10.1108/SRJ-05-2021-0193
Sharma, D., & Chakraborty, S. (2024). Corporate social responsibility and financial performance: does CSR strategic integration matter? Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2392182
Sharma, K. K., Kumar, S., & Sahoo, S. (2026). Impact of mandatory corporate social responsibility disclosure on financial performance of Indian listed companies. Discover Sustainability, 7(1). https://doi.org/10.1007/s43621-026-03564-4
Sindhu, M. I., Windijarto, Wong, W. K., & Maswadi, L. (2024). Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism. Heliyon, 10(9). https://doi.org/10.1016/j.heliyon.2024.e30557
Singhal, N., Paul, P., Giri, S., & Taneja, S. (2024). Corporate Social Responsibility: Impact on Firm Performance for an Emerging Economy. Journal of Risk and Financial Management, 17(4). https://doi.org/10.3390/jrfm17040171
Tambunan, A. L., Aristi, M. D., & Azmi, Z. (2023). The Effect of Environmental Costs and Corporate Social Responsibility on Financial Performance. Journal of Microskill Economics, 13(1), 1–9. https://doi.org/10.55601/jwem.v13i1.936
Yendrawati, R., & Kinanti, A. (2024). Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) Influence on Corporate Financial Performance. Indonesian Journal of Accounting and Auditing, 28(1), 2024. https://doi.org/10.20885/jaai.vol28.iss1.art3
Zhou, G., Sun, Y., Luo, S., & Liao, J. (2021). Corporate social responsibility and bank financial performance in China: The moderating role of green credit. Energy Economics, 97. https://doi.org/10.1016/j.eneco.2021.105190
Alam, Z., & Tariq, Y. Bin. (2023). Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan. SAGE Open, 13(3). https://doi.org/10.1177/21582440231184856
Aminatuzzuhro, Setiawan, D., & Widagdo, A. K. (2025). The influence of CSR disclosure on financial performance: the moderating role of independent commissioners. Frontiers in Sustainability, 6. https://doi.org/10.3389/frsus.2025.1542625
Ardiniamalia, U., Ghofar, A., & Andayani, W. (2023). Revisiting The Effects of Corporate Social Responsibility on Financial Perfomance: Organizational Culture as a Moderating Variable. JOURNAL OF ACCOUNTING AND BUSINESS EDUCATION, 8(2), 72. https://doi.org/10.17977/jabe.v8i2.46049
Dakhli, A. (2022). The impact of corporate social responsibility on firm financial performance: does audit quality matter? Journal of Applied Accounting Research, 23(5), 950–976. https://doi.org/10.1108/JAAR-06-2021-0150
Dela, E., Ye, J., & Berhe, H. M. (2024). The Impact of Corporate Social Responsibility on Financial Performance in Indonesian Highly Polluted Industries: Mediating Role of Industry Competitiveness. SAGE Open, 14(4). https://doi.org/10.1177/21582440241259479
Fahlevi, F., Gugus Irianto, & Lilik Purwanti. (2025). The Impact of CSR on Financial Performance: The Mediation Role of Good Corporate Governance. Journal of Accounting and Finance Review, 15(3). https://doi.org/10.22219/jrak.v15i3.40673
Feng, Y., Akram, R., Hieu, V. M., & Tien, N. H. (2022). The impact of corporate social responsibility on the sustainable financial performance of Italian firms: mediating role of firm reputation. Economic Research-Ekonomska Istrazivanja , 35(1), 4740–4758. https://doi.org/10.1080/1331677X.2021.2017318
Freeman, R. E. (1984). Strategic management: A stakeholder perspective. Pitman MA.
Hasan, A., Saputra, R., Rini, S., & Absah, Y. (n.d.). The effect of corporate social responsibility and green innovation on corporate financial performance. https://doi.org/10.21067/mbr.v8i1.9493
Homayoun, S., Mashayekhi, B., Jahangard, A., Samavat, M., & Rezaee, Z. (2023). The Controversial Link between CSR and Financial Performance: The Mediating Role of Green Innovation. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su151310650
Huang, K., Li, Y., Oyewale, K., & Tworoger, E. (2025). Corporate Social Responsibility and Firm Financial Performance: Evidence from America's Best Corporate Citizens. International Journal of Financial Studies, 13(3). https://doi.org/10.3390/ijfs13030119
Jensen, Michael, and William Meckling. 1976. Theory of the firm: Managerial behavior, agency costs and capital structure. Journal of Financial Economics 3: 305–60.
Jing, Z., Shakhawat Hossain, G. M., Badiuzzaman, Rahman, M. S., & Hasan, N. (2023). Does corporate reputation play a mediating role in the association between manufacturing companies' corporate social responsibility (CSR) and financial performance? Green Finance, 5(2), 240–264. https://doi.org/10.3934/GF.2023010
Kammoun, S., Romdhane, Y. Ben, Loukil, S., & Ibenrissoul, A. (2021). An examination of linkages between corporate social responsibility and firm performance: Evidence from Moroccan listed firms. Managerial Studies, 37(161), 636–646. https://doi.org/10.18046/j.estger.2021.161.4010
Khan, M. A., & Manurung, A. H. (2022). Corporate Social Responsibility (CSR) Evaluation & Effectiveness of Disclosure and its Impact on Financial Performance: A Case of Indonesian Corporations by Longitudinal Evidence. Management and Organizational Science Studies, 3(1), 233–242. https://doi.org/10.35912/simo.v3i1.709
Kurniawansyah, D., Iswajuni, I., & Sari, N. P. (2026). The Impact of Corporate Social Responsibility Performance on Financial Performance: Does CSR Committee, and Audit Quality Matter? JASa (Journal of Accounting, Auditing and Accounting Information Systems), 10(2), 425–439. https://doi.org/10.36555/jasa.v10i2.3080
Lahouel, B. Ben, Zaied, Y. Ben, Managi, S., & Taleb, L. (2021). Re-thinking about U: The relevance of regime-switching model in the relationship between environmental corporate social responsibility and financial performance. https://doi.org/10.1016/j.jbusres.2021.11.019
Lemana, P., Matemane, R., & Mokabane, M. (2025). The evolution of research on corporate social responsibility and financial performance: a bibliometric analysis. In Cogent Business and Management (Vol. 12, Number 1). Cogent OA. https://doi.org/10.1080/23311975.2025.2507230
Li, X., Esfahbodi, A., & Zhang, Y. (2024). The Impact of Corporate Social Responsibility Implementation on Enterprises' Financial Performance—Evidence from Chinese Listed Companies. Sustainability (Switzerland) , 16(5). https://doi.org/10.3390/su16051848
Mahmud, M. R., & Sari, C. M. (2024). The Influence of CSR on Company Financial Performance. LANCAH: Journal of Innovation and Trends, 2(2). https://doi.org/10.35870/ljit.v2i2.2727
Niu, M., & Ma, W. (2022). Does Corporate Social Responsibility Heterogeneity Affect Corporate Financial Performance Through Technological Innovation? The Moderating Effects of Advertising Intensity. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.837967
Ogachi, D., & Zoltan, Z. (2020). Corporate social responsibility and firm value protection. International Journal of Financial Studies, 8(4), 1–22. https://doi.org/10.3390/ijfs8040072
Okafor, A., Adusei, M., & Adeleye, B. N. (2021). Corporate social responsibility and financial performance: Evidence from U.S tech firms. In Journal of Cleaner Production (Vol. 292). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2021.126078
Prayanthi, I., & Budiarso, N. S. (2022). The effect of social responsibility disclosure on financial performance in the COVID-19 pandemic era. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2147412
Rinawiyanti, E. D., Xueli, H., & As-Saber, S. N. (2023). Integrating corporate social responsibility into business functions and its impact on company performance: evidence from the Indonesian manufacturing industry. Social Responsibility Journal, 19(7), 1233–1262. https://doi.org/10.1108/SRJ-05-2021-0193
Sharma, D., & Chakraborty, S. (2024). Corporate social responsibility and financial performance: does CSR strategic integration matter? Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2392182
Sharma, K. K., Kumar, S., & Sahoo, S. (2026). Impact of mandatory corporate social responsibility disclosure on financial performance of Indian listed companies. Discover Sustainability, 7(1). https://doi.org/10.1007/s43621-026-03564-4
Sindhu, M. I., Windijarto, Wong, W. K., & Maswadi, L. (2024). Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism. Heliyon, 10(9). https://doi.org/10.1016/j.heliyon.2024.e30557
Singhal, N., Paul, P., Giri, S., & Taneja, S. (2024). Corporate Social Responsibility: Impact on Firm Performance for an Emerging Economy. Journal of Risk and Financial Management, 17(4). https://doi.org/10.3390/jrfm17040171
Tambunan, A. L., Aristi, M. D., & Azmi, Z. (2023). The Effect of Environmental Costs and Corporate Social Responsibility on Financial Performance. Journal of Microskill Economics, 13(1), 1–9. https://doi.org/10.55601/jwem.v13i1.936
Yendrawati, R., & Kinanti, A. (2024). Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) Influence on Corporate Financial Performance. Indonesian Journal of Accounting and Auditing, 28(1), 2024. https://doi.org/10.20885/jaai.vol28.iss1.art3
Zhou, G., Sun, Y., Luo, S., & Liao, J. (2021). Corporate social responsibility and bank financial performance in China: The moderating role of green credit. Energy Economics, 97. https://doi.org/10.1016/j.eneco.2021.105190
Published
2026-10-31
How to Cite
Amanda, P. T., Rubyta Rinastiti, Y., Yusnaini, Y., & Sasti Ferina, I. (2026). The Relationship between Corporate Social Responsibility and Financial Performance . International Journal of Economics, Business and Innovation Research, 5(06), 2676-2699. https://doi.org/10.63922/ijebir.v5i06.7243
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