What is it about?
The purpose of this paper is to examine the financial aspects of high vs low-ranked firms in the Corporate Responsibility Index in Egypt, and to construct a Z-score model to discriminate between high- and low-ranked firms in the Corporate Responsibility Index.
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Why is it important?
The study contributes to the literature in terms of providing practical insights on the financial strategies that help support effective CG and CSR in Egypt. In addition, this study offers a unique quantitative attempt to measure and examine the benefits of incorporation of socioeconomics into business practices.
Perspectives
The results show that corporate governance and corporate social responsibility (CSR) are positively related to the firms’ financial performance in terms of sales turnover and customer loyalty. This suggests that in the long run, the market mechanism should be able to provide additional resources to those companies that are better at maximizing a widely defined bottom line of their social governance. The results also show that highly ranked firms are characterized financially by: strong bargaining power with suppliers; financing growth in fixed assets using debt mainly.
Professor Tarek Ibrahim Eldomiaty
Misr International University
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This page is a summary of: The financial aspects of the Corporate Responsibility Index in Egypt, International Journal of Social Economics, March 2016, Emerald,
DOI: 10.1108/ijse-06-2014-0118.
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