The impact of corporate social responsibility on financial performance A study of a sample of Algerian economic firms during the period 2009- 2013

Abstract

This research aims to measure the impact of corporate social responsibility on the financial performance of 51 Algerians firms during the period from 2009 until 2013. Corporate Social Responsibility has been measuring through the four basic elements are : preservation of the environment, attention to employees, interaction with the community and finally consumer protection, while the return on assets as indicator of financial performance. To achieve the goal of this study was to use approach blends time-series data with cross-sections (Panel) by the application of three models of data are: a pooled regression model, fixed effects model and random effects model. The main results have shown that there is a negative relationship between the preservation of the environment and the return on assets, while there were no statistically significant relationship between the three elements of the social responsibility (attention to employees, interaction with the community and consumer protection) and return on assets, this depending on the choice of random effects model.