IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON FIRM PERFORMANCE IN SRI LANKAN LISTED COMPANIES

Abstract

Corporate social responsibility and Firm Performance is continuing discussion encountered by most of the commercial organizations. This study investigates the of economic, social and environmental disclosure and Firm Performance of listed companies in Sri Lanka. Thus, 30 listed companies with sustainability reporting are selected for the analysis purpose and all these companies follow the Global Reporting Initiative (GRI) guidelines. This study collected secondary data from the yearly reports, both from the financial section and sustainability reporting. Corporate social responsibilities variables are economic, social and environmental. Firm performance is measured by Tobin’sq and ROA. Statistical analysis purposes have conducted regression and correlation analysis. The findings show economic and social disclosures significant impact on tobin’sq. No significant relationship was identified between economic and social disclosure on ROA and association was recorded between economic and social disclosure and Tobin’s Q. It is recommended to increase the disclosure of sustainability information of the CSE Listed companies in the future to arrive at a valuable finding. A future effort may intricate additional in making extra active quantity of the promotional of the firm social visions and actions that would encompass actual investors responses, not only contestants as the case in Fortune index, but also other stakeholders such as government, clients, suppliers, and non-governmental organizations.