Influence of corporate social responsibility on the financial performance of micro-business entities

Abstract

The study tackled the corporate social responsibility (CSR) and financial performance of micro-business entities. The study's main goal was to determine CSR has a significant influence on the financial performance of micro-business entities using a quantitative, non-experimental design with 150 business owners from Barangay Tibal-og in the municipality of Sto. Tomas as respondents of the study. The Mean, Pearson's r, and Multiple Regression Analysis were the statistical tools utilized for data analysis. In fact, the results revealed an overall high level of CSR for micro-business entities, which was very high on regulatory compliance and high on customer satisfaction, ethical culture, and philanthropy and volunteerism. Moreover, the study showed an overall high level of financial performance for micro-business entities, which was also high in terms of return on assets (ROA), return on sales (ROS), and return on Equity (ROE). Therefore, there was a significant relationship between corporate social responsibility and the financial performance of micro-business entities. All the domains of CSR except ethical culture influenced the financial performance of micro-business entities due to the nature of such businesses. Hence, these entities should practice or improve their CSR, which can benefit them, the stakeholders, and the society at large.