Authors: Katerina Kalamaki, Michail Bekiaris

Title: Corporate Social Responsibility:The association between Environmental, Social and Governance factors with Financial Performance.

Abstract

The last decades have witnessed an increasing interest in CSR which is rising worldwide and, although each company might approach it differently, more and more corporations are implementing voluntary CSR initiatives. CSR primarily entails corporate self-regulation; nevertheless, it widely expanded when relevant legislation was introduced. However, legislation applies only to large publicly listed companies. Small business entrepreneurs who engage voluntarily in CSR either manage their social impact based on a more informal insight or they implement socially responsible actions without even knowing the concept. The aim of this paper is to extend previous research that mainly focused on listed companies to the Athens Stock Exchange Market by investigating the association between CSR and Financial performance, through a survey which is also addressed to small and medium companies. The link between CSR and Financial performance is tested by using empirical methods. Sustainability reports are employed to produce a numerical value of CSR performance. Specifically, we introduce a point-score scale to measure the level of CSR reporting practices in terms of reference to standardized international guidelines, while annual turnover was used as a measure of financial performance. The hypothesized relationship was tested with regression analysis. Previous research on this association showed multiple contradictory conclusions of positive, negative or even neutral relationship. Our preliminary results have produced evidence supporting the view that socially responsible performance can be associated with bottom-line benefits.