Corporate social responsibility and its impacts on financial performance: evidence from vietnamese fast-moving-consumer-goods firms

Tóm tắt

This study examines the impact of Corporate Social Responsibility (CSR) on financial performance in Vietnamese fast-moving consumer goods (FMCG) firms both directly and indirectly through firm reputation. The research aims to uncover do CSR practices enhance financial outcomes and to analyze the broader implications of CSR adoption within Vietnam's socio-economic context. A quantitative approach was employed using data from 13 FMCG firms listed on HOSE and UpCOM markets from 2008 to 2023. This study provides evidence that the financial impact of CSR is multifaceted, involving both short-term costs and long-term benefits. The direct relationship between CSR and ROA is negative, indicating that CSR investments may reduce profitability in the short run due to increased costs and resource allocation. However, the mediated relationship – where CSR enhances reputation, and reputation positively influences ROA – highlights the potential for long-term financial gains through improved stakeholder perceptions and trust. For managers, the study underscores the importance of high-quality CSR disclosures and reputation-building activities as strategic investments. Policymakers and industry associations are encouraged to promote CSR through regulatory frameworks and collaborative initiatives.