Assessment of the Impact of Corporate Social Responsibility on Financial Indicators of Companies

The theme of the final bachelor thesis is “Assessment of the Impact of Corporate Social Responsibility on Financial Indicators of Companies”. Nowadays, a tremendous number of organizations are concerned about ensuring development and prosperity for society. They devote special attention to various concepts and strategies that ensure the perception of the responsibility of companies to the objects surrounding them. Indeed, it is important that organizations are required to bear responsibility for their activities. In order to increase the importance of awareness of such issues both among the whole population and among companies, most countries and associations introduce various kinds of rules and guidelines that facilitate the disclosure of information on the activities of companies. For example, the Federal Law “On Public Non-Financial Reporting” is currently being introduced in Russia, according to which organizations must provide reports on the company's activities and its impact on the environment, as well as stakeholders. As a result, it is important to know the impact of the reported indexes on the financial performance of the company. This topic is quite relevant because organizations must understand how their performance will change. The main goal of this work is to determine the impact of the non-financial reporting index on some indicators of companies. The necessary literature was analyzed, as well as data were collected and RE, FE and POLS models were built on their basis. Models were built both for 3417 companies around the world, and separately for Russian companies. It was found that the ESG index, in this case taken as a proxy for assessing corporate social responsibility, positively affects the Tobin’s Q and cash flow from operating activities and negatively on the return on assets. Key words: corporate social responsibility, ESG (Environmental, social, governance)