Impact of Corporate Social Responsibility on the Value of Manufacturing Companies

Non-financial information, disclosed by companies, becomes an integral part of their reports as by revealing this information they demonstrate their corporate social responsibility (CSR) to stakeholders. The importance and necessity of CSR compliance by companies is guided by the goals of sustainable development, within which the social responsibility of business is one of the integral factors of sustainable socio-economic development in the modern global economy. This research focuses on the impact of CSR on company performance in terms of company value as there is no consensus about CSR-firm value effect in literature review. The research is carried out through linear multiple regression. We form the database on 26 Russian manufacturing companies for the period from 2018 through 2020 and employ overall ESG-score by RAEX-Europe as an independent variable to measure CSR, Q-Tobin coefficient as a dependent variable to measure company value, and variables for firm-level control. It has been revealed that the implementation of CSR by Russian manufacturing companies can indeed serve as a sustainable development strategy for the company, thanks to which the company's value will grow. However, not all companies resort to this strategy, therefore it is necessary to stimulate such companies to switch to the implementation of CSR activities.