Relationship between Corporate Social Responsibility and Corporate Financial Performance

This paper targets the areas of corporate social responsibility and corporate financial performance, more precisely, the topic of their mutual relationship and impact.The goal of this paper is to provide a critical review of the seven selected research studies that already examined the relationship.This critical review investigates and compares the selected criteria, methodology, research panel, research goals, and results.The critical review involves ranking of the research studies based on the strength of the relationship between corporate social responsibility and corporate financial performance.This paper comes with surprising findings that the studies significantly vary in the results.There are multiple studies that identify the relationship between variables, and simultaneously, other studies come with results that there is no relationship or that there is even a negative relationship.The authors further identified that the results of the reviewed studies are impacted by the selected methodology.