CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL CRISIS
CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL CRISIS

Summary/Abstract: This paper studies the effect of financial crisis on Corporate Social Responsibility (CSR) practices and their performance during the financial crisis. Researchers have underlined that CSR practices can act as a radar (Hohnen (2007), could break or be aware of a potential economic and/or a financial shock (Thorme, 2009, Hohnen, 2007) and reduce the risks (Testa, 2008). Starting from the reference literature on CSR this paper empirically analyze Romanian companies listed on Bucharest Stock Exchange (BSE) in order to determine whether the CSR practices can be linked to companies financial performance during an economic downturn. From a total of 81 companies listed on BSE were considered only companies that are active in CSR. The period analyzed is between 2006 and 2012. Results suggests a positive relation between CSR practices and companies financial performance. Moreover this paper underlines the benefits of CSR practices as a strategy for long term business leading to competitive advantage and win-win opportunities.

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