Impact of corporate social responsibility on firms’ financial performance: the mediating role of customer satisfaction, corporate image and competitive advantage
Abstract
In the changing scenario of doing business, it becomes imperative for business firms to integrate Corporate Social Responsibility (CSR) in their daily operations for their mere acceptance in society.The socially responsible business firms are able to gain the trust of society by bringing quality in their products and services, abiding with the laws and codes of conduct, dealing ethically with all the stakeholders and focusing on the welfare of their employees. This way, CSR results in achieving the satisfaction of the customers, building corporate image and providing a competitive advantage to business firms, ultimately leading to the enhancement of their financial performance. The study intends to suggest ways for the policymakers of the business firms to integrate CSR into core operations as a strategy to gain financial and social benefits. The study establishes a significant relationship between CSR and firms’ financial performance, indicating that contribution in CSR activities may enhancethe financial performance of business firmsby providing customer satisfaction, improving corporate image and giving a competitive advantage.
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