Interrelation between Corporate Social Responsibility and Company Performance

The paper is focused on the identification of relation between corporate social responsibility (CSR) and company performance in the Russian Federation. The aim of study is an empirical search for the answer to the question: Are socially responsible activities of the companies linked to their results?Design/methodology/approach: Data on the large Russian companies belonging to different branches were taken as a basis for the research. The sample includes data on the CSR level of fully and partially rated by CSRHub Russian companies for the 2012-2017 years. These data were supplemented by information about the companies performance from the Moscow Exchange, the RBC Information Systems and the official financial statements of the companies. Panel regressions with fixed effects were employed and econometric models with dependent variables such as Market Capitalization, Net Profit, Revenue, Return On Assets (ROA), Return On Equity (ROE) were estimated to fulfil research aim. Findings: The regression analysis confirmed the existence of the positive impact of CSR level on the companies performance. In particular, it showed the existence of positive impact of CSR level on the market capitalization of companies and their revenue. No negative impact of socially oriented activities of companies on companies performance has been detected.Research/practical implications: The research results can be used by the heads of the companies while formulating CSR policy, by the state bodies in the process of regulating and developing CSR Institute.Originality/value: The study empirically proved the positive impact of CSR level on companies performance and refuted the assumption that CSR costs do not pay off in economic conditions of Russian Federation.