Impact of Corporate Social Policy on Financial Performance of the Firm

This work focuses on the corporate social behavior of a firm and its impact on its financial performance. It first highlights accumulated knowledge of the matter and then explains the variable through which the further analysis is held. It approaches the problem with different instruments. The paper consists of several parts. First of all, the questionnaire is built to statistically assess the real investor’s attitude to different corporate social policies. Further, a new model of philanthropic behavior in the single-industry towns is introduced and explicitly described. The next section describes the event study methodology. The share prices of the companies typical of the key economic sectors, and their reaction to the announcement of philanthropic programs held are regarded with scrutiny. Afterwards, guided by already existing research papers, an econometric model depicting the relationship between charitable donations and its determinant variables is designed using the most vivid large and philanthropically friendly Russian companies.