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Assessing the Impact of Corporate Social Responsibility on Financial Performance. The Healthcare Industry

Author

Listed:
  • Loredana-Georgia IVAN (NIÈšU)

    (University of Craiova)

Abstract

This paper aims to investigate how the social performance of companies in a controversial sector influences their financial performance, illustrating the effects of the total social score and how the four components contribute to this relationship. To increase their financial success without eroding social and environmental capital, healthcare organizations are setting new targets for sustainable practices. The main objective of this research, which covers 103 healthcare companies, is to highlight the link between financial performance, as measured by return on assets, and nonfinancial sustainability, as measured by the social performance score. In the complexity of the results, a pronounced relationship between ROA and the human rights score can be observed. The study enhances the ability to understand the link between socialsustainability implications and financial performance in a sustainability-sensitive industry.

Suggested Citation

  • Loredana-Georgia IVAN (NIÈšU), 2023. "Assessing the Impact of Corporate Social Responsibility on Financial Performance. The Healthcare Industry," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(25), pages 37-45, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2023:i:25:p:37-45
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    References listed on IDEAS

    as
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    2. Huiyuan Liu & Kaiyao Wu & Qiuhua Zhou, 2022. "Whether and How ESG Impacts on Corporate Financial Performance in the Yangtze River Delta of China," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    3. Irene Wei Kiong Ting & Noor Azlinna Azizan & Rajesh Kumar Bhaskaran & Sujit K Sukumaran, 2019. "Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms," Sustainability, MDPI, vol. 12(1), pages 1-21, December.
    4. Rao, Amar & Dagar, Vishal & Sohag, Kazi & Dagher, Leila & Tanin, Tauhidul Islam, 2023. "Good for the planet, good for the wallet: The ESG impact on financial performance in India," Finance Research Letters, Elsevier, vol. 56(C).
    5. Tiago Cruz Gonçalves & Victor Barros & José Vicente Avelar, 2023. "Environmental, social and governance scores in Europe: what drives financial performance for larger firms?," Economics and Business Letters, Oviedo University Press, vol. 12(2), pages 121-131.
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    More about this item

    Keywords

    social performance; ROA; sustainability; health sector;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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