THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE AND BUSINESS PRACTICES, WITH A SPECIFIC EMPHASIS ON THE CASE OF THE INTERNATIONAL CERTIFIABLE MANAGEMENT STANDARD.

Abstract

This research examined the relationship between corporate social responsibility (CSR) and financial success using well-known management concepts from throughout the world. Data from 687 questionnaires filled out by Chinese respondents were analysed using SPSS and other statistical techniques, including ANOVA and factor analysis, as part of a quantitative research process. The objective of this research was to evaluate two hypotheses: the first hypothesis posited that CSR enhances a firm's financial performance, and the second hypothesis asserted that the positive effects of CSR are amplified when aligned with conventional management principles. Results demonstrated a robust positive correlation between CSR and financial success, with or without consideration of international standards (higher F-values and p-values less than 0.05). Organisational processes, involving stakeholder trust, operational effectiveness, risk management, and reputation, were shown to be better when internationally acknowledged standards were followed. Management standards that included CSR had a good effect on innovation, long-term profitability, and compliance with legal frameworks. According to the findings of the study, firms in emerging countries like China are rapidly integrating their operations with global standards in order to satisfy the requirements of global marketplaces and acquire a competitive advantage. Researchers found that CSR benefits increased with the use of certifiable management standards, which improved financial outcomes and paved the way for long-term success. These studies indicate that it is possible to increase CSR and make sure that businesses are successful in a global market by using internationally recognised standards.