Third, there is no CSR measurement practice in the Maldives and how it should report. and Khan suggested that to understand CSR, it is a must to understand the cultural aspects of that country because developed nations' influential factors may not apply to the Maldives. According to, most of the research done on CSR is investigated in a western developed nation such as the USA, UK, Germany, and Australia and is not that clear whether it can apply in developing nations. Secondly, public companies in the Maldives assume that similar management practices (such as CSR) adopted by foreign countries might be relevant in the Maldives. First, research base culture did not exist in the Maldives and recently public university came into the picture. It indicates the prominence given by companies to CSR activities, but the effect of CSR on financial performance is not locally being investigated so far in the Maldives, due to several reasons. Nowadays, companies announced CSR disclosure through the annual report. In the Maldives, it is not mandatory for public companies to publish the CSR report. Therefore, now a day to pursue sustainable development and enhance the goodwill of companies has started to publish CSR disclosures in annual company report or CSR reports. These studies results suggest that CSR provides insurance like effect on financial performance against adverse events of company, CSR initiatives can enhance employee organizational commitment and organizational performance, and most of the workers like to work and can attract more potential employees for an organization that has an excellent reputation for being socially responsible. Lastly, found no correlation between CSR and FP.ĭuring the past six decades of CSR discipline, numerous finding has caught the attention of CSR practitioners and academicians. On the other hand, Hirigoyen and Rehm and Madugba and Okpara found negative correlation between CSR and FP. Some studies show a positive correlation between CSR initiatives on FP and Yeganeh and Barzegar. According to Das and Bhunia, the whole literature on this area can be categorized into three. For instance, one area that is debatable and one of the central focus given is determining the relationship between CSR and corporate financial performance (CFP). confirm that CSR initiatives are significant in the context of business ethics and found a healthy positive attitude toward business ethics and CSR.ĭespite the long history of CSR discipline, up to date, it remains to be debatable and immature in some areas. In his book, the central question, he argues that and continues to be asked, was “ what is the responsibilities to society may businessmen reasonably be expected to assume.” Bowen also stresses the importance of knowing business ethics so that it can lead to superior enduring performance. In the history of the corporate world for the first time, CSR was mention by Bowen in his seminal book Social Responsibility of the Businessmen in 1953. CSR discipline is one of the rigorous research areas among practitioners and academicians.
This paper spreads the understanding of the relationship between CSR and FP.Ĭorporate social responsibility (CSR) is one of the most controversial and significant topics since the 1950s, and it has been growing since then. Further, the sample size was also very limited due to that generalization may not be possible in a large population.
One of the main consequences of this study is the CSR framework adopted in this study which is not a custom-tailored instrument specific to the Maldives instead chose from another research paper. This study has implications for the academician and corporate world in understanding CSR and FP in developing countries like the Maldives. The finding reveals that diversity and ROA, environment and ROE, diversity, and EPS, and when the size of the firm controlled, there exhibit significant negative relation between CSR and ROA hence, it can conclude that there exists a significant negative relationship between CSR and FP.
BANKING GUIDE BY G SUBRAMANIAN PDF SOFTWARE
The sampling technique used was judgmental sampling, and the data were analyzed from STATA 15 software by using panel data regression. Data were collected from annual reports of the listed companies in MSE. This study used a mixed-method research choice and is longitudinal research. The main objective of this study is to determine the CSR disclosure and to find out the association between CSR and FP by the public companies of Maldives.