Social responsibilities and financial performance of non-financial listed companies: empirical evidence from Vietnam

Abstract

For commercial firms, social responsibility has evolved into a strategic priority. Hence, researchers pay close attention to matters relating to social responsibility. The social responsibility document is divided into two sections: one section examines the history of social responsibility (definitions, theories, norms, and frameworks), and the other section examines the connection between social responsibility and corporate performance (the relationship between social responsibility and corporate performance). Performance in terms of social responsibility, finances, and market share). Social responsibility and financial performance, however, continue to show conflicting results. As a result, the primary goal of this research is to look at the overall relationship between financial performance and social responsibility factors in Vietnam. A social responsibility questionnaire was created to determine the CSR practices of Vietnamese listed firms by developing a social responsibility index based on four components of responsibility in order to examine this link. The study also includes financial performance and investigates if a publicly traded corporation that routinely releases information about social responsibility lowers corporate risk (stock price volatility). To highlight the favorable benefits of social responsibility on financial performance, a comparison between companies with social responsibility statements and those without is made. Companies listed on HOSE are among the sample data used in this study. The chosen research period spans the years 2019 through 2021. The social responsibility index, financial performance, and firm risk are among the aspects that must be taken into account. And ROA measures financial performance. The experimental analysis's findings demonstrate that there is a positive relationship between corporate social responsibility practices and financial performance but has no apparent effect on a company's stock price volatility.