A Research on the Relationship between Companies' Financial Performance and Environmental Responsibility Level

The aim of this research is to find out whether CEP and CFP are linked on the base of russian companies. The link is computed in both directions with a six years lag between CEP and CFP figures. Return on equity is used as an indicator of corporate financial performance. Data used in the research consists of secondary data and mainly of corporate social responsibility reports and annual reports. Statistical computing methods are utilized in evaluating the link between CEP and CFP. To achieve the goal, the following tasks should be performed: Identify the concept of environmental responsibility of companies and what it relates to, to identify the differences between ways of dealing with environmental problems in Russia, methods of environmental responsibility assessment, to study researches on this subject of other authors (to systematize and analyze the knowledge gained during long-term researches), select the necessary data to analyze the relationship of indicators, using modern information technologies to build the necessary models to analyze the relationship between the selected indicators and determine the degree of relationship between the implementation of social responsibility and the company's financial results of its activities. The estimation of the OLS model of simultaneous equations that we used in the analysis affects environmental indicators, and the assessment of financial indicators is motivated by the endogenous relationship between environmental and financial indicators, as is widely described in the literature (Wu, Margolis).