How Socially Responsible Are the Romanian Listed Companies?

Abstract

The social responsibility has become an important part of the long-term perspectives of the listed companies. Doing this, the companies are taking the responsibility for their impact on society regardless of their financial performance. In this context, the objective of this paper is to study the degree of social responsibility of the Romanian listed companies in correlation with their financial performance. In order to achieve this aim, a quantitative analysis of a panel data of all companies listed at Bucharest Stock Exchange (BSE), except those under insolvency, between 2011 and 2016 was conducted, by processing the information from annual financial statements. The empirical research consists of a comparative analysis between the companies who register profit and the one who didn’t, from the perspective of corporate social responsibility (CSR) policies and their behavior. The results highlight the fact that the listed companies continued to make charitable contributions even in the years their recorded losses (even if they didn’t have tax benefits). In conclusion, the financial performance is not the only determinant factor for social responsibility but together with the CSR policies contributes to the long-term sustainability of the companies.