The Effects of Corporate Social Responsibility on Financial Performance Moderated by CSR Disclosure
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Authors
OHLSEN, Shayne
Issue Date
2025-11
Type
Dissertation
Language
en
Keywords
CSR Disclosure , Financial Performance , ESG , Business, Engineering, Science, & Technological Innovation
Alternative Title
Abstract
Despite increasing attention to Corporate Social Responsibility (CSR), prior studies have produced inconsistent findings regarding its financial benefits, particularly when considering how CSR disclosure influences the CSR–performance relationship. The purpose of this quantitative, correlational study was to examine the relationship between CSR and the financial performance of publicly traded U.S. consumer-staples companies while assessing the moderating effect of CSR disclosure. Guided by Stakeholder Theory, this study sought to clarify how transparency and ethical practices contribute to firm profitability. The sample included seventy- seven companies analyzed using IntellectusStatistics. CSR was measured through environmental and social performance indicators, and financial performance was represented by return on equity (ROE) and net profit margin (NPM). The results revealed that CSR had a significant positive relationship with ROE but not with NPM. Additionally, CSR disclosure significantly moderated the relationship between CSR and ROE, emphasizing the role of transparency in enhancing CSR’s financial impact. These findings partially validated Stakeholder Theory by demonstrating that ethical and transparent business practices can enhance long-term financial performance. The study contributes to the literature by clarifying how CSR and disclosure interact to influence firm outcomes, offering practical guidance for organizations seeking to integrate responsibility and profitability in strategic decision-making. Future research could expand this analysis to other industries or consider additional CSR dimensions.