The Impact of Social Responsibility on the Company Financial Performance of the Asian Industrial Sectors

Abstract

Aims: This research aims to study the relationship between social responsibility with its dimensions (economic, employee, and product) and company financial performance of Asian industrial sector companies. Methodology: This study used a sample of 113 listed companies from 2020 to 2023 using secondary data and DataStream and the study used the OLS Robust regression to test the relation between the variables. Results: The results showed that there is an important and positive link between social responsibility and its dimensions (economic, employee, and product) with financial performance. Since CSR is not a compulsory practice, many companies may not feel the need to involve in it. The regulators of Asian industrial companies could take advantage of these results in their attempt to achieve a development process. Conclusion: Though, with all the profits it needs, companies should take it as essential and start employed today with the aim of attractive a socially responsible organization for all. The process of “social responsibility” in development means that development aims are not limited to the current, but rather we must see their findings in the future.