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Corporate Social Responsibility And Financial Crisis

Author

Listed:
  • Liliana SIMIONESCU

    (Bucharest University of Economic Studies, liliana.simionescu@outlook.com, Bucharest, Romania,)

  • Dalina DUMITRESCU

    (Bucharest University of Economic Studies, dalina.dumitrescu@fin.ase.ro, Bucharest, Romania,)

Abstract

This paper studies the effect of financial crisis on Corporate Social Responsibility (CSR) practices and their performance during the financial crisis. Researchers have underlined that CSR practices can act as a radar (Hohnen (2007), could break or be aware of a potential economic and/or a financial shock (Thorme, 2009, Hohnen, 2007) and reduce the risks (Testa, 2008). Starting from the reference literature on CSR this paper empirically analyze Romanian companies listed on Bucharest Stock Exchange (BSE) in order to determine whether the CSR practices can be linked to companies financial performance during an economic downturn. From a total of 81 companies listed on BSE were considered only companies that are active in CSR. The period analyzed is between 2006 and 2012. Results suggests a positive relation between CSR practices and companies financial performance. Moreover this paper underlines the benefits of CSR practices as a strategy for long term business leading to competitive advantage and win-win opportunities.

Suggested Citation

  • Liliana SIMIONESCU & Dalina DUMITRESCU, 2014. "Corporate Social Responsibility And Financial Crisis," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 31-37, September.
    • Handle: RePEc:aic:jopafl:y:2014:v:s1:p:31-37
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    References listed on IDEAS

    as
    1. John C. Williams & John B. Taylor, 2009. "A Black Swan in the Money Market," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 58-83, January.
    2. Charles Wyplosz, 2010. "The Eurozone in the Current Crisis," Finance Working Papers 22825, East Asian Bureau of Economic Research.
    3. John C. Williams & John B. Taylor, 2009. "A Black Swan in the Money Market," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 58-83, January.
    4. Andrew Filardo & Jason George & Mico Loretan & Guonan Ma & Anella Munro & Ilhyock Shim & Philip Wooldridge & James Yetman & Haibin Zhu, 2010. "The international financial crisis: timeline, impact and policy responses in Asia and the Pacific," BIS Papers chapters, in: Bank for International Settlements (ed.), The international financial crisis and policy challenges in Asia and the Pacific, volume 52, pages 21-82, Bank for International Settlements.
    5. Dra. Belén Fernández-Feijóo Souto, 2009. "Crisis and Corporate Social Responsibility: Threat or Opportunity?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 2(1), pages 36-50, June.
    6. Yakup Selvi & Eva Wagner & Ahmet Türel, 2010. "Corporate Social Responsibility In The Time Of Financial Crisis: Evidence From Turkey," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(12), pages 1-28.
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    Citations

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    Cited by:

    1. Petitjean, Mikael, 2019. "Eco-friendly policies and financial performance: Was the financial crisis a game changer for large US companies?," Energy Economics, Elsevier, vol. 80(C), pages 502-511.
    2. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    3. Liliana Nicoleta SIMIONESCU & Ștefan Cristian GHERGHINA, 2014. "Corporate social responsibility and corporate performance: empirical evidence from a panel of the Bucharest Stock Exchange listed companies," Management & Marketing, Economic Publishing House, vol. 9(4), Winter.
    4. Jahmane, Abderrahmane & Gaies, Brahim, 2020. "Corporate social responsibility, financial instability and corporate financial performance: Linear, non-linear and spillover effects – The case of the CAC 40 companies," Finance Research Letters, Elsevier, vol. 34(C).
    5. Liliana Nicoleta Simionescu & Dalina Dumitrescu, 2018. "Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    6. А. Dornean & D.-C. Oanea, 2018. "The Іmpact of Adopting CSR and Corporate Financial Performance. Evidence from BSE," Вестник Киевского национального университета имени Тараса Шевченко. Экономика., Socionet;Киевский национальный университет имени Тараса Шевченко, vol. 6(201), pages 47-53.
    7. Ọláyẹmí M. Ọlábìyí & Jasmine Alam, 2025. "Making money move: an analysis of corporate social responsibility activities in money transfer firms," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-18, December.

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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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