Impact of Corporate Social Responsibility on Financial Performance of Non-Financial Companies in Sri Lanka

Abstract

Corporate Social Responsibility (CSR) is an important concept in the business world. The main objective of this study is to identify the impact of CSR on financial performance of listed non- financial companies in Sri Lanka. Number of studies in this area have identified different impacts between the CSR and financial performance as positive, negative and no impact. Current study is used the secondary data from 2015 of the 100 listed non- financial companies of Sri Lanka. Secondary data is collected from annual reports and websites of the selected listed non-financial companies. The data was analyzed by using regression analysis. The financial performance of the company was measured by using ROA, ROE & EPS, as well, CSR disclosure was measured by using GRI Guidelines and firm size identified as a control variable. The findings of this study would be help to contribute for the prevailing literature through analyzing those relationships and will support to establish a better opinion for CSR in Sri Lankan context for the interested parties who are seeking to study or to be adopted on CSR.