Corporate social responsibility and its impact on organization’s financial performance : Case Finnair Oyj and Kesko Oyj
Le, Thu (2018)
2018
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019111521273
https://urn.fi/URN:NBN:fi:amk-2019111521273
Tiivistelmä
Corporate social responsibility (CSR) is no longer a new thing to companies; it has played an integral part in firms’ strategies in recent years. This thesis aimed to analyze the importance of corporate social responsibility (CSR) and its correlation with the organization’s financial performance. The roles of managers and stakeholders also influence CSR engagements and outcomes, so they were analyzed in the research. In addition, CSR benefits were emphasized to discover how it might add value to a busi-ness as well. Case studies were about two Finnish companies: Finnair and Kesko.
The qualitative method was used in this research via interviews with managers from CSR and financial departments. The study materials were obtained from books, articles, journals from library and some online sources. To approach the result, accounting-based index (return on equity and return on assets) will be used. Research data were collected from annual reports and sustainability reports of the two enterprises.
With the theoretical part and analysis, the thesis findings include that CSR significantly contributes to business and rewards for being more socially responsible are efficiency in daily operation, employee commitment, customer satisfaction, reputation and profits. Importantly, there is a positive connection between social responsibility and financial values of a company, even though it is difficult to find out the actual effect of CSR activities to the firms’ annual earnings. Furthermore, managers are extremely important people whose role affects CSR engagements and outcomes of the company. This research gives companies, investors, stakeholders as well as future researchers better views in CSR and potential benefits from its engagement. Readers can know how important CSR is and its positive impact on the business’s financial performance since CSR is likely to grow over time. Therefore, they can utilize better ideas, stretch relevant strategies to maximize their profitability, rational investments as well as future research developments.
The qualitative method was used in this research via interviews with managers from CSR and financial departments. The study materials were obtained from books, articles, journals from library and some online sources. To approach the result, accounting-based index (return on equity and return on assets) will be used. Research data were collected from annual reports and sustainability reports of the two enterprises.
With the theoretical part and analysis, the thesis findings include that CSR significantly contributes to business and rewards for being more socially responsible are efficiency in daily operation, employee commitment, customer satisfaction, reputation and profits. Importantly, there is a positive connection between social responsibility and financial values of a company, even though it is difficult to find out the actual effect of CSR activities to the firms’ annual earnings. Furthermore, managers are extremely important people whose role affects CSR engagements and outcomes of the company. This research gives companies, investors, stakeholders as well as future researchers better views in CSR and potential benefits from its engagement. Readers can know how important CSR is and its positive impact on the business’s financial performance since CSR is likely to grow over time. Therefore, they can utilize better ideas, stretch relevant strategies to maximize their profitability, rational investments as well as future research developments.