Corporate social responsibility and corporate performance in US companies

Abstract

The aim of this research is to find the impact of return on assets (ROAs), return on equity (ROE), and return on investment (ROI) on the corporate social responsibility index (CSRI) among US-based firms. Research on the correlation between corporate social responsibility (CSR) and key financial metrics, including ROAs, ROE, and earnings per share (EPS), is available. A inadequate of studies also includes the CSRI in their analyses of the 1000 publicly traded US corporations in the Russell 1000 database. The researcher conducted a quantitative study utilizing Pearson’s correlation coefficient and multiple linear regression (MLR) analysis. The study indicated a statistically significant correlation between CSRI and ROE but no such correlation between CSRI and ROA or ROI. A total of 133 people made up the sample for this investigation. This research study adds to the existing body of knowledge by examining the relationship between CSRI and ROA, ROE, and ROI for US companies. It also helps close a gap in the literature by providing evidence for both statistically significant and nonsignificant relationships.