The Effect Of Corporate Social Responsibility On Financial Performance: Southeast Asia Evidence

Abstract

This study aims to determine the impact of Corporate Social Responsibility (CSR) on the financial performance of Southeast Asian enterprises. Using a large dataset spanning many industries in Singapore, Malaysia, Thailand, Indonesia, and the Philippines, we investigate the relationship between CSR initiatives and financial measures such as return on assets (ROA), return on equity (ROE), and Tobin's Q. The findings demonstrate a strong positive correlation between enhanced financial success and effective corporate social responsibility (CSR) policies, suggesting that companies with great financial performance are also more likely to have effective CSR commitments. The study highlights the strategic significance of integrating corporate social responsibility (CSR) into business operations, not just for profit-boosting purposes but also for moral and societal ones. Presenting actual evidence from a field that is rapidly developing, This research adds to the expanding corpus of work on corporate social responsibility (CSR) and offers useful information to investors, business executives, and legislators who are interested in pursuing both corporate responsibility and financial excellence by presenting empirical data from a rapidly developing field.