When the β is equal to zero which means there are no relationship between CSR and FINANCIAL PERFORMANCE. When the β is less than 0 which means there are negative relationship between CSR and FINANCIAL PERFORMANCE. When the β is greater than 0 which means there are positive relationship between CSR and FINANCIAL PERFORMANCE. Based on the previous literature review stated that there are positive relation between the CSR and financial performance, so this study hypothesized that β greater than 0 and there are positive relationship between CSR and FINANCIAL PERFORMANCE. 4. Empirical Results 4.1. Descriptive Statistics In this research, we investigate the relationship between the CSR and the firm’s financial performance. We had chosen 29 companies listed in Hong Kong out of 43 and 42 companies separately in 2008 and 2009. We have excluded the following insurance and financial companies in this research: The Hong Kong and Shanghai Banking Corporation Limited Holdings, Hang Seng Bank Limited, Hong Kong Exchange and Cleaning Limited, Bank of Communications Company Limited, China Construction Bank Corporation Limited, Industrial and Commercial Bank of China Limited, Bank of East Asia Limited, Bank of China Hong Kong (Holdings) Limited, China Ping An Insurance Corporation Limited, Bank of China (Hong Kong) Limited, China Overseas Land and Investment Limited and China Life Insurance Company Limited from CSR Survey of Hang Seng Index Constituent Companies 2008 & 2009 by Oxfam Hong Kong. Furthermore, there is a delisted company: China Netcom Group Corporation (Hong Kong) Limited. Since the share price of Tencent Holdings Limited’s is unusual, we excluded Tencent Holdings Limited. To provide the simple summary on the sample and measures, the p... ... middle of paper ... ...the sample is not representative and not normally distributed; the return on equity is 0.11% in mean and 0.13% in medium, the mean and medium is very close, it means that it is a representative sample and normally distributed. However, the average size of total assets is $37.52 per share in mean and $20.84 per share in medium; the total equity is $23.09 per share in mean and $13.50 per share in medium, the market capitalization is $169.35 billion in average and the medium is $75.30 billion; and the leverage is $0.22 per share in mean and $0.22 per share in medium. The mean and medium in average size of total assets, total equity and market capitalization are not very close; it means that the sample is not representative and not normally distributed. The mean and medium of leverage is very close, it means that it is a representative sample and normally distributed.
The financial report shows that sainsbury 's equity ratio fell from 38.48% in 2016 to 35.38% in 2014, while tesco was 19.65% in 2016. The data show that Sainsbury is well-run and all aspects of operation are stable. When shareholders run the company, more resources can be used to get a better return. Earnings per share can be directly seen in the financial report, which is an important measure of equity. It can predict the future of the company 's profitability. Sainsbury 's unit profit margin for the past three years averaged 0.3% and the trend is reduced, even negative in 2015. This means that the company is losing money in 2015 and this trend is similar to tesco. Although the downward trend represents a drop in the company 's profitability, Sainsbury 's stock market is optimistic, as the 2014 and 2016 figures indicate that Sainsbury 's shares are blue-chip stocks. The ratio of shareholders ' equity to asset - liability ratio is equal to 1. These two ratios reflect the long-term financial situation. The larger the ratio of shareholders ' equity, the smaller the ratio of assets to liabilities . The smaller the financial risk, the stronger the ability
In order to make inferences about a company’s financial condition, its operations, and its attractiveness as an investment we have analyzed financial ratios and compare ratios derived from SVU’s financial statements (see chart 1).
The rising trend in the gross profit margin shows that the firm is selling its inventory at a higher percentage of profit. Likewise, higher profit margin in 2014 as compared to 2013 means that the firm is earning more profits from its sales. Similarly, the rising trend in ROCE value means that it is earning higher profits for the invested capital. Moreover, the declining trend in debtor days means that it is collecting cash quickly from debtors. The similar declining trend n creditor days shows that the firm is taking utmost advantage of the available trade credit. Next, the declining trend in gearing ratio shows a low amount of debt to equity, which means lower financial risk to its business. Finally, lower stock turnover ratio reflects good inventory management within the firm(Finch,
Nowadays, corporate social responsibility (CSR) becomes an integral part of each company. CSR can be understood as a management concept and a process that links social and environmental issues in business operations to a company’s interactions with it’s stakeholders. CSR not only gives the company a chance to help society but also enhances company’s reputation and investors’ attractiveness. In this paper, we will show a brief description about CSR and effects of CSR on international business, including pros and cons when a company applies the CSR program. Besides that, I give my ideas on conflicts of interest beween shareholders and the company’s managers. And then, advantages and difficulties for companies implementing CSR in Vietnam will be defined. Although CSR was first introduced widely in Vietnam many years, it is still a new concept. Therefore, pioneers in this area are facing lots of challenges in running CSR programs in Vietnam.
In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.
According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...
CSR is a concept where company involves in social and environmental in their business operations. This is done to achieve a balance of economic, environmental and social obligations.in simple terms giving a hand for those who are not capable of achieving with their objectives and attending to them so that they could make those objectives a reality. This could improve organizations cooperate image which would also leads to attain a high market share.
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
CSR is the obligation of business to promote and to protect the interest of shareholders.
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed
Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.
It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add
than we can assume that the financial position of the company is not sound. This also indicates that there is over trading.