Social Responsibility and Financial Performance Literature review

Social Responsibility and Financial Performance - Literature review Example In order to conduct a literature review, two main themes are being highlighted including the relationship of CSR and financial performance and the relationship of CSR and Shareholders Value (Aras et al., 2010). A literature review is carried out by incorporating conceptual and theoretical frameworks (Aupperle et al., 1985). The theoretical framework provides relevant theories and models associated with corporate social responsibility and its impact on financial performances and shareholders’ value. The conceptual framework would improvise the need for research on the basis of previous researchers by various scholars and be examining their objectives, the methodology adopted and research findings. This provides insight on how different variables identified in themes chosen are linked together and are a significant part of in the corporate sector. The emergence of corporate scandals, financial responsibilities, and environmental threats has sensitized the society to be concerned with the social and ethically responsible behavior of companies. The concept of Social Responsibility (CSR) refers to the role of businesses towards the society. Cane and Matten (2010) in their study highlights, ‘it is by now fairly widely accepted that businesses do indeed have responsibilities beyond simply making a profit’ (Crane & Matten, 2010). A number of concepts such as Corporate Citizenship, Corporate Sustainability, and Corporate Social Responsibility are listed with regard to social responsibilities.