Is there really a correlation between CSR and a business’s financial performance?
Numerous studies have been conducted into this matter in recent years. In their majority (68%), results showed a positive correlation between corporate social performance and financial performance (Margolis & Walsh, 2001). Researchers have concluded that there is, overall, a positive correlation and minimal negative correlation between the two. The London Business School confirms these findings. Out of 80 studies conducted into CSR, 42 showed positive impact, 19 showed no correlation, 15 showed mixed results and only 4 showed negative impact. Similar confirmation was provided by Harvard University, which found that businesses involved with those affected by their activities (the stakeholders) have a pace of development four times greater than those that focus solely on their shareholders.
