THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE AND BUSINESS PRACTICES, SPECIFICALLY FOCUSING ON THE CASE OF INTERNATIONAL CERTIFIABLE MANAGEMENT STANDARD.

Abstract

This study concentrated on universally recognised management principles and examined the impact of corporate social responsibility (CSR) on financial performance. Employing SPSS alongside various statistical techniques such as factor analysis and ANOVA, researchers examined data collected from 687 questionnaires completed by Chinese participants within a quantitative research framework. The study examined two primary propositions: first, that CSR positively influences financial performance; and second, that this influence is amplified when CSR adheres to established management practices. The findings indicate a robust positive correlation between CSR and financial performance, as evidenced by high F-values and p-values below 0.05, regardless of global benchmarks. The findings indicated that adherence to globally recognised standards enhanced organisational processes across various dimensions, including stakeholder trust, operational effectiveness, risk management, and reputation. Furthermore, the integration of CSR into management standards has notably enhanced compliance with regulatory frameworks, stimulated innovative advancements, and promoted long-term profitability. The report indicates that firms in emerging nations such as China are swiftly aligning their operations with international standards to meet the demands of international markets and gain competitive edges. The study found that adopting certifiable management standards not only enhanced the benefits of CSR but also led to improved financial outcomes and sustainability. Such results emphasize the necessity for the adoption of widely accepted standards for a strategic benefit towards the uptake for enhanced CSR and the establishment and sustenance of long-run commercial success in an intensely globalizing economy.